Aurora Cannabis, Canopy and More Earnings this Week (Feb 11-15)

Lots of opportunity in the US. Guilty of using easy money to build massive facilities. Big writedowns. Big equity offering. Doesn't see an imminent big export market. Longer term potential, but it's an outside probability.

(A Top Pick May 29/20, Up 55%) Oxygen delivery. Recurring revenue model. Very strong outlook.

They make life easier for large diagnostic test companies. It automates the testing process. They did a final financing. They've been working on this technology for 5 years.

This is another company in the cannabis space. This is not a cannabis producer, it is a company that adds value in that space. They are mapping cannabinoids, looking for different formulations to treat different diseases.It is highly speculative, but he thinks there is opportunity for this type of company. He likes the management. In…

Doesn't know this well. They're in the cannabis sector, more in the extraction market, an area that will continue to expand. He's watching their progress in earnings.

It is the biggest in the Canadian market and is moving into the U.S. market as well. He focuses on the U.S. market. An inventory of cannabis products is building in New York with some of it being the illegal variety.

It owns the assets of Canadian Tire. Has a net lease structure where the tenants are responsible for operations and asset improvements, Stable earnings at 5% plus. Good management and low growth.

Making changes to be able to invest more in foreign stocks. Wait to see how they do.

(A Top Pick April 25/16. Up 16.15%.) A small investment management firm. Historically they have done very well in investing in both public and private oil companies, and buying and selling assets. They delivered a special $2 dividend to shareholders in June. He is a little less bullish on this now. Trading at a slight…

Highest immigration to maritime provinces in Canada ever(own lots of properties in maritimes). Excellent dividend yield with discount to net asset value. Superior return to buying a GIC. Would recommend buying.

(A Top Pick Mar 01/22, Down 6%) It is not a REIT but a real estate corporation which re-invests in growth. It is mostly in Western Canada in a segment overlooked by institutional investors. It has made some very good acquisitions. It has compounded at 20% a year over the last 20 years and is…

A hold. A value name in apartments in Canada and the U.S. He's impressed with how stable their Toronto portfolio is, holding occupancy quite well. MGR is in the US sunbelt and Chicago. MRG is higher-leveraged. He's seeking REITs that are defensive. He doesn't see as much growth here vs. the REITs he already owns.…

They manage one of Canada's largest portfolios of shopping centres in major cities. A very good stock. Retail isn't in favour, but REI has great assets in the right markets. Has a good development pipeline and he believes they can grow cash flow in that period.

Way off from highs. Covid has changed how and where we work. What is your conviction level that office occupancy will revert to the pre-Covid mean? What's the timeline for that? He doesn't have the answers. It's in the "too hard" pile. If looking for a similar yield, try BCE.

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They control Loblaw, which anchors a strong portfolio. Is stable. Hold many industrial warehouses. Solid managers running a solid balance sheet. Pays over a 5% dividend. Shares now are not a bargain, but a solid investment.

(A Top Pick Nov 15/21, Down 28%) Growth stocks sold off globally. Been around for decades. Management delivered 19-20% annualized return over 25 years. Solid. Unique acquisition strategy of leaving 25% shares in hands of original owners, so motivation is more entrepreneurial. He's buying.

It owns retail shopping centres across Canada focused on grocery and pharmacy and is in the best markets. The strength and quality of its tenants is good and it has one of the best shopping centre portfolios globally. It trades at a great discount to the private market value of its real estate net asset…

Sell, switch to Canadian banks? Still likes it and new management. Took a long while to restructure US annuity business and reduce risk. Asian business seeing some positivity in sentiment, wait to see if this translates into results. Giant overhang for years. Underlying horsepower still good, dividend strong relative to sector. Opportunity for management to…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trading at high discount to NAV. Significant cash retention compared to peers. Diversified cash flow streams. Bid competition to slow acquisition growth.

It operates across Canada with its principle tenant being Walmart. Has stable cash flow with little growth although it is increasing density in existing space. He feels there are other places to be in real estate.

SLF vs. MFC Both high quality, good balance sheets, strong management. Both attractive value right now. MFC is 8x earnings, SLF is 11x. Asian business is a differentiator, which both have. MFC is much more international, with 80% of revenues from outside Canada, and 50% from Asia. Covid has slowed Asia, but when it bounces…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Market volatility helped trading volume. Integration of recent acquisitions continue. Balance sheet improved. Actvely pursuing M&A opportunities.

The spin off is interesting. History It's undervalued here. he owns the spin-off and other Brookfield names. They are very good at amanaging money Hold BAM as a core holding.

Global insurance business based out of Toronto. Value oriented leadership under Prem Watsa. Highest underwriting profits in years. Investment portfolio performing very well. $35 billion bond portfolio about to renew at higher rates.

Strange fee structure. Be cautious in that India has little corporate governance. Better way to participate in EM is to own some of the great global companies, like Unilever, that benefit from the growth there and follow expected corporate governance.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Repositioning property portfolio for growth. Good yield of 4.4%. Reduced debt balance. Repurchasing units at a discount to NAV. Unlock Premium - Try 5i Free

Most recent quarter was a great one. ROE was 28%. With all the stuff that is happening in the marketplace right now, there are a lot of concerns about Alberta specifically, and you also have a lot of concerns about financials. Thinks they put in a great quarter. To be a buyer of the stock,…

Allan Tong’s Discover Picks GOOS has been beaten up, but it’s time for it to rise again as China reopens. Shares popped 3.5% Monday morning on the momentum from China (the TSX market rallied less than 1%). GOOS pays no dividend and its beta is 1.44, so there’s some risk. Shares trade at 33.36x PE…

A cash machine. Owned by Pernod-Ricard and pays a decent dividend. Occasionally, it pays a special dividend. Hard to know what the future is. A safe, defensive stock. Will Pernod buy it out and go private. It's fairly valued now. If you own, you could sell, but overall the stock is okay.

He doesn’t know the seasonality on this, but the technicals show that it has been in an upward trend for quite a period of time. During the last little while, it has been in a trading range between around $19 and $22. It is not unusual for a lot of stocks in the consumer staples…

Does not own shares. New CEO will be interesting to watch. Very strong franchises in Tim Hortons/Burger King etc. Pandemic tough on business. Strong balance sheet.

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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Negative sales growth, but improving. Distribution on path to being restored. Larger base of stores for recovery. Share fairly valued with attractive yield.

It had basically been moving sideways but the downtrend is continuing so it is less appealing.

Whatever you need to buy, it's always an option. Management's done a good job moving competition away from online retailers. Impressive profitability of ROE around 18%, well above TSX average. Strong balance sheet. Expects nice capital appreciation. Yield is 4.30%. (Analysts’ price target is $186.73)

A disappointment. Pandemic has been the nail in the coffin for movie theatres and DBO's motion systems. Simulation and industrial segments have been profitable. Treading water right now. Long road ahead. Wait and see before stepping in.

Doesn't know this company. Loves the space. Names with a good name, like "green" move well. They produce organic foods, and people are looking to eat healthier. Fancy name. Fancy products.

They do canola mainly. At these prices the stock is so cheap. He sold because he was not seeing enough capital being deployed in Canola streams.

He sold all lumber stocks after the huge runup. But if he had to look at one, this would be it. Over $10 cash per share, with stock at $24, which means over 40% of company value is net cash. Lots of optionality. Intriguing.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Re: upcoming mil closures: The closing is expected by 1Q end, but costs may slip into Q2 depending on exact timing of layoffs. Other than severance, a lot of costs will be non-cash. CFX has about 1,300 employees, so close to 25% are being impacted.…

Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.

He owns it around these levels. They have mines in Bolivia and Spain and looking to acquire in Argentina. The property they just bought has costs of $500-$650 per ounce of gold. He is concerned about the revolving door on management. He does not know where gold prices are going to go. He will continue…

They have a large Brazilian gold deposit. The problem here are indigenous people challenges there and a government contract that pays out a crazy amount to the managers. This payout is not aligned to the shareholders' interests. Then again, it's a cheap stock vs. gold in the ground.

Fiji is an interesting place. They have raised $85 Million last year when it was tough. If they get this thing going it will build up confidence. They are putting a relatively small scale gold mine into production while doing exploration. They should eventually get bought out.

There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.

This is on his watch list. He is not familiar with their fundamentals. Today's earnings release will help define their future.

What's wrong with this? US housing has ground to a halt. Lumber prices are way off. China has been shut down, so lumber demand collapsed short-term. He expects interest rates to continue to rise and pressure housing. China is reopening now though. WFG is a highly cyclical and unpredictable stock. Earning can soar and plummet.…

Stockchase Research Editor: Michael O'Reilly This TOP PICK operates 7 sawmills and can produce 1 billion board feet of lumber annually. Production was slowed in December due to market conditions, which has impacted the stock's value short term. Management expect production to return in Q1. We like that the company generated almost $250 million in…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dividend yield favorable. Run up in lumber prices due to demand. Increased housing demand in North America.

Gold price very hard to predict. Difficult to determine future cash flows of business. Falling inflation will be good for gold. Strong balance sheet with decent dividend yield (~3%).

Large dividend yield (income trust format). Stock has under performed the past few years (large legal bills). Specialty chemical business with under-investment creating opportunities. Investing into R&D which will create new business lines and profits. Expecting cash flow and earnings to grow regardless of economy.

Late-December to mid-February is gold seasonality. Kinross has corrected with the sector, but it can do well. Let it run and see if it performs well. If not, then exit.

$2.25 price target. Growing pains starting up a mine. He'd be averaging down. Issues always signal a really good entry point at cheap valuations. Have to be patient. This wouldn't be his only holding; he'd own it amongst at least 5-10 companies.

Transformed company from 4-5 years ago. Not a good investment. Looking elsewhere. 96% retail ownership implies speculative asset. Tough business to operate in (mining). Consistently losing money.

There were a couple of subtle things went on with the trust conversion which discouraged a lot of investors. An illiquid stock. Most of their exposure is in B.C. and Alberta where housing is still very strong. Thinks we're at the peak of a cycle so don't have it as a long term hold.

Not a good company to invest in right now. Strong balance sheet, but cyclical stock with commodity based product. Current share price at 15 year high. Not a good time to invest. Global recession will impact share price.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS at $0.14 beat estimates and revenues also beat estimates. While they did not generate positive free cash flow in the last quarter, they have been cash flow positive over the past few years. Balance sheet is strong and the current multiple is 7x forward…

Hard to determine future of business. Fighting governments of country it does business in. Wait until business stabilizes. Wait to buy. Other copper stocks available with more certainty and financials.

(A Top Pick Oct 12/18, Up 2%) He still likes gold, Newmont (which acquired G-T) and Goldcorp.

Big runup, significant pullback. Coiling right around the 50- and 200-day moving averages. If it can clear the 200-day MA and its resistance level, it tells him the uptrend is taking hold with upside potential to at least around $12.50, another 30% upside from the current $8.66. Benefits from rates and inflation being higher for…

Doesn't think there will be a take-over soon. The CEO used to be the CEO of Richmond Mines. They now have an operator. On their watch list and he has confidence in management.

(A Top Pick Mar 15/19, Up 17%) It was bought back in October and so he does not hold this any longer.

Recently rotated a lot of our precious metal allocation to silver instead of gold. More of a long-term industrial use with the electrification of the world. Precious metals in general should be alive and well for years to come.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Slow growth. Sustainable superior margins relative to peers. Strong balance sheet with ample liquidity. Stagnant performance over the past 3 years.

With market volatility, gold stocks tend to be more volatile than the overall market and than gold itself. In this choppy period, he'd take it off the table right now. Deal completion risk and market volatility risk.

He rarely talks about Gold. He thinks it is a strong sector bet. It is been out of favor for so long that mines have closed, productions have closed, mergers and acquisitions happened. Central Banks are now massive buyers of Gold. they want to get out of the US dollar. The Fed is not raising…

Communications provider for work. Growth by acquisition, one blunder 2 years ago now that multiples have compressed. 75% of its revenues now come from SaaS. Profitable, 17-20% margins. Generates 15-20% of its market cap in free cashflow each year. Will take a while to bounce back, no one cares about small cap tech right now.

Allan Tong’s Discover Picks SHOP (still on the U.S. version) was trading a month ago at $33.71 (Dec. 23), so the stock has already been rallying hard. The upgrade and fresh signal will inject even more momentum in the short term, and SHOP stock will get another boost if the U.S. Fed’s Jay Powell slows…

Very profitable. ROE is around 30%, and has been high for a long time. Company has never used its potential to expand the business faster. Great value, but buying back stock at a high valuation. Go elsewhere.

(A Top Pick Feb 02/22, Up 3%) A Canadian tech darling. A massive, well-run company with many parts. Are spinning off a segment, Volaris, in order for their Lumine segment to buy a company involved in financial services. Return on capital over the last 10 years is 32%. Have acquired 270 start-ups over their history…

Still owns it. Came down with all tech stocks, and they made a costly acquisition. Also have an e-commerce business with clients like Sobeys; he thinks MDF may sell this and become a pure e-procurement company. He sees upside, because they have valuable businesses they can sell. Shares remain cheap. Growth will resume in the…

He follows this, but does not own it. They just reported an earnings miss. He does not see their business model panning out on the financial statements. Now trading under $12, he expects more downward pressure.

(A Top Pick Jul 29/20, Up 17%) #2 in the domain business. A cash cow. Steady and predictable. Also have a mobile business and a fibre business. In this environment, expects them to have many more installations and business should boom. Top management. Would buy at these levels.

Generally not a fan of the Chinese inter-listed companies. He has a Short position in this one. There are better places to be.

Always trading at premium since IPO. Doesn't have same reverence as other royalty names in the market. Sees 50% upside and not as much as other energy companies. Better names out there.

BIR vs. PEY vs. ARX LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. Prefers PEY to BIR; management is…

Stockchase Research Editor: Michael O'Reilly We reiterate CVE as a TOP PICK. The company holds $2.4 billion in cash reserves, even after aggressively retiring debt and buying back shares. It trades at 1.8x book and only 5x cash flow. Recently reported earnings support a ROE over 20%. Production is expected to increase 3% next year…

(A Top Pick April 23/13. Long Tag Oil (TAO-T) and Short Imperial Oil (IMO-T). Down 42.51%.) Did an equity issue last fall at about $4.40, which the Street didn’t like. This is a New Zealand oil/gas play and they have about 5 or 6 catalysts coming up in terms of major wells.

Just beat earnings and have increased production. Cheap valuation compared to peers. But it's getting more expensive heading into 2021. There's no growth here, but that goes with the entire oil patch. The real issue is will they survive. Their balance sheet is getting better, but still high for a blue-chip name. You'll be saved…

In the midst of a bidding war. More of a hold than a buy. Prospects for material upside are not very high. Better opportunities elsewhere. If you made profits, take some and invest in something like GEI or even TWM, if you have a higher risk tolerance.

Short? Reticent to short. Past year has seen demand for drilling and day rates go up, and this should persist for a while. Good performer. Content to hold.

Utility or energy company? Utility, and it has a sustainable dividend around 7.4%. SPB can now buyback 5% of its shares. It's fairly stable.

TRP vs. BNS Two completely different sectors. First questions are what's already in your portfolio and at what weighting? Similar dividend yields and similarly disappointing to investors in 2022. BNS has had poor performance for quite some time, and now a leadership change. TRP has a good, strong management team, but cost overruns. At these…

(A Top Pick April 3/14. Down 12%.) A fully integrated agricultural company with a railroad to their elevators along with production of legumes and wheat. Thinks it should deliver quite nicely this summer because of what is going on in California. Feels drought is going to haunt us from a food inflation perspective.

This is a funny one. The book value is $4.80. They started a few more projects in China. It is not for him, but he can see why somebody would like it.

(A Top Pick Feb 03/21, Up 51%) Another good chart that will add to. Very good chart (trending upwards). Excellent business model.

It has been over-leveraged for 20 years and has had to sell some of their best businesses. It is a much thinner company now with the jet component the only one left. The planes are good quality but the company is more leveraged than any of its major competitors.

It's the time for industrials, from late January into early May. TIH could do well in February. The chart shows higher lows, which is good.

Stable company. Rose last year on hype surrounding investments in agriculture and healthcare, but he likes those investments. Telus is using its tech know-how to expand opportunities in other business-use cases. Core business looks good. Further ahead than BCE on fibre build, capex starting to come down, free cashflow starting to rise. Dividend growth at…