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

It's been a wild ride. The valuation across all the names are still quite high. With what we are seeing with legislation in the US, he would still tend to look at these. Stick with it.

(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.

A millionaire stock? Vivid imagination. Hasn't made a penny to date. Balance sheet is sloping down, as it's consuming equity. Every time it takes a run, many people run for the exits. Pure speculation, a gamble, fluctuates wildly. Doesn't see the earnings or explosive growth in the Canadian market.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A solid REIT. Not too expensive with good tenants and income. Cashflow is good. They raised distributions in June. Cashflow rose 5% last quarter with the payout ratio low at 72.6%. Unlock Premium - Try 5i Free

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…

Allan Tong’s Discover Picks Other numbers look healthy for KMP stock: A 9.6% PE, a 3.15% dividend based on a 26% payout ratio (half the sector’s number), and an ROI of 7% which is in-line with peers. KMP.UN boasts five buys and one hold on Bay Street with a $23.33 price target. That’s 5.18% higher.…

(A Top Pick June 1/17, Up 12%) A great manager. Out of Alberta with very good western properties. He sold during its recent highs, but still likes it.

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.…

Positive on it. Discount to NAV. Now seeing a turn in prospects of the leasing environment. Good job on collection rates, now around 98%. Disciplined capital allocation.

(A Top Pick Dec 24/20, Up 9.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AP.UN has triggered its stop at $41.50. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.

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Stable income provider you can add to any portfolio. Likes it. Great real estate nationally. Biggest tenant is Loblaw, so it has a secure cashflow. An element of growth, which is unique, from the industrial sector. Nice combination of safety and growth. Hold, sleep well at night with the distribution yield.

They are in the asset management space for real estate and should see good tail winds. They have a good growth plan. She owns it and continues to like it.

He had avoided the retail space but is now bullish on necessity-based shopping and that is what they address. The stock has been depressed because cash flows came off during the pandemic and they cut the distribution temporarily for probably two years. It is trading at a big discount to net asset value. He likes…

Target price is $30. Perpetual underperformer, but it sets up really nicely. Trading at 6.3x 2023, with growth rate over 10%, dividend growth. Almost a no-brainer at this valuation. Good choice for spare cash.

Tough to own. Retail, office, some industrial. Deep value, but doesn't see a catalyst. He's not a buyer of enclosed mall office or retail.

Great operator. Dominant lease to WMT, so distribution is safe. Long-term hold for income. As a total return investor, he looks for more. Tougher leasing environment, below 98% occupancy level.

Performed well. Higher highs, higher lows. Above the 200-day MA, which is moving higher. Will benefit from rising interest rates. Wealth and asset management is more in demand globally. He also owns another life co, see his Top Picks.

The exchanges have done very well in recent years. Good free cash flow. Indexing (ETFs) are a tailwind. New stock exchange highs signal good business. These stocks do very well over time.

The effect of rising interest rates They're an alternative asset managers. They are global in scale. They mostly invest in hard assets, like real estate, renewable power and infrastructure. They have done well during very low rates. Yes, rates will rise, but historically they will remain quite low for quite a while. If the US…

Prem Watsa engages in market timing, unlike Warren Buffett. Fairfax is a black box as to what it owns. Challenging business. Stuck in the mud for a while. If you want too look at good capital allocators in the P&C business, look at BRK.B, which he owns.

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.

Diversified. Yield is healthy at 5.2%, but he doesn't see it growing. If rates start to ratchet up, REIT yields won't look as attractive, especially if the yield can't be increased.

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,…

(A Top Pick Jan 07/21, Up 12%) Volatile. Attracts a lot of skepticism, especially in the US, but keeps beating on sales and earnings. Sensational brand, very little substitute for the products. Under-penetrated outside our cold northern climes. Consensus growth is sales 25%, earnings 48%. Pullback is buyable. Look at historical post-earnings reactions; the stock…

A solid company with a good balance sheet and nice yield. There is a modest opportunity for upside. Since 2012 they have traded between 2.5 and 3.5 times book, with a downward basis trend. The share price is unchanged in ten years and has added no value to investors in that time. He calls these…

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…

Believes company is a good company, however not exceptional. Problems with franchise owners. Company will be around for a long time and is predictable. Type of company that could be valued if educated on products.

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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a two year pilot to introduce the Pret brand in its restaurants. It would offer customers an alternative and the brand is popular abroad. A good move overall to diversify. Unlock Premium - Try 5i Free

Allan Tong’s Discover Picks Canadian Tire boasts a wide range of household goods at decent prices, but consumers will have much more choice in buying that patio set or baseball glove. True, last summer’s partial reopenings didn’t dent the stock price, but the Tire’s website still sucks. Price to cash flow is inline with its…

Manulife vs. Canadian Tire as a dividend play He nearly made MFC a top pick today. He'd certainly buy. They just hiked their dividend and in the US they offloaded a lot of long-term risk. He through the market would have been more positive about the latter. Pays a 5.5% dividend now. Catalysts are head…

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.

(A Top Pick Jul 02/21, Down 3%) A play over the next year. If you look at housing demand in US and Canada over the next 5 years, there will be increasing demand for lumber. Trading at only 2x this year's earnings. Earnings for 2022 will be solid.

Seasonally, forest product stocks have a history of reaching a peak around the 3rd week in April. This year is no different. Probably an opportunity to take some money off table.

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.

Stockchase Research Editor: Michael O'Reilly WFG (with sales up over 85% on the year and having 60 facilities in Canada, the US, United Kingdom and Europe) is reiterated as a TOP PICK. Recently reported earnings showed YTD EPS over $24 per share, compared to under $4.50 a year ago at this time. It trades well…

He considers forest stocks to be a hold. He is lightening up on his position. You should buy commodity products when they are not at a historic high like now.

Lumber company with a good dividend and low payout ratio of 70%. The dividend looks safe. He does not expect a lot of capital returns. There are some cyclical risks with housing markets. There are 45% owned by Brookfield. A good income holding. Yield 6%

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The whole sector has not moved much. It is cheap. Pays a nice dividend at 2% that is growing. Gold should do well with all the money being flooded in. Higher interest rates could hurt the sector. Exposure is warranted as insurance, and also for…

A lot of bad things like lawsuits have happened to CHE and it fell out of favour. It pays a good dividend, but it isn't totally safe. Don't hold in a registered account, in case you suffer a loss. [Note: audio problems]

Good company with great upside and leverage. $11 target. Great for older clients who want just one company in the sector, and wait for better gold and silver prices. Yield is 2.19%. (Analysts’ price target is $12.28)

$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.

Getting to the right theme is the most important thing. Has a good basket of assets. Recently pulled back. It's a small cap, so you have to be careful. But it should continue to participate as long as base materials continue to improve.

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.

Long-term, great operators. Loves their migration to copper. Next quarter or two will be at risk. More downside than upside in coal. He sold, and is looking for more pure plays in copper.

Hard commodity to play. Inflation means it's not a bad time to buy. A buy, with a $6 target. Eventually we'll get out of Covid, and iron will be needed. He'd rather go with copper, or silver, that's where the biggest leverage is going to be.

(A Top Pick Feb 05/21, Up 49%) Benefited from move in copper, and silver and gold should follow.

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

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced an acquisition today with a total implied equity value of $625M. The move should expand their copper and gold production. The deal is a net positive for the company and 5i believes it will help them expand in the long term. Unlock Premium - Try 5i…

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.

Usually silver will lead gold by a little bit. Everything in silver right now is looking really, really good. Chart shows a downward pattern, but has reached the upper side of the channel and should be breaking out anytime now, and do quite well through to mid-March and maybe April, depending on the whole complex.…

Their customer base is the food industry and it does not grow that much. This company can only grow when they make acquisitions. There is nothing wrong with it but there is not enough upside to buy. It is a good company.

Good company. A buy, $8 target. If companies are doing well at these levels, they'll do really well as the commodity price goes up. You just have to wait. Keep buying into dips to keep your weighting at 5%.

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…

Used to own stock personally, but has sold all ownership. Return on equity has gone negative which is a big red flag. Believes company is very speculative. Not a good investment for long term investors.

Allan Tong’s Discover Picks In mid-November 19, SHOP-T peaked at $2,139, and now trades below $1,400. That's a 31% slide. What happened? Omicron hit. Then, the feds announced they would raise interest rates. All tech sold off. To be fair, though, Shopify's PE was sailing high. Peaking at 651.57x on September 30, 2020, it then…

They recently had a joint venture with Baker-Hughes (BHGE-N), where Baker Hughes is co-marketing one of their products. It would make sense for Baker Hughes to take over this company. Schlumberger (SLB-N) is the only company with a competing product. (Analysts’ price target is $9.50.)

Largest position and believes company is very well run. Predictable business with very good capital allocation record. Founder led company. Financial metrics very strong (return on equity, cash flow). Good time to buy with recent selloff.

Issued a huge number of shares to fund big acquisition. Stock fell. Acquisition was good. Procurement for governments in the US, a fast-growing business. E-commerce for traditional retailers. Good recurring revenue model. He's hoping for good results, and stock at $10 in next 12 months. Definitely hold on. Good technology, good clients.

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.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A solid company for the sector. Balance sheet and cash flow looks good. Growth is positive and they managed the pandemic well. They cut dividends but it is now much higher than before. Their recent deal is good and is the right move for the…

Not bullish on gas due to its relation with weather. Could see 46% upside, but other names have more potential. Look for cheaper multiples.

Paying down debt, because otherwise it makes it hard to get financing. Sold off part of assets, a smart move. Likes what they're doing. If oil stays around $75, they will benefit over time. They're being cautious. They've agreed to buy back shares, but this can change.

(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.

Would purchase TCW than PD. Owns neither. The collapse on oil price will impair spending further than maintenance capital. There is always a bad actor that ruins the pricing power. Would prefer the producers.

Analysts are not modelling a lot of growth. Trading at 15x 2022. The problem is the bloated balance sheet. A growth by acquisition story but they are not able to buy growth at this point. Likes the dividend and the pay out ratio. You could buy here and be okay.

TRP vs. ENB Tough call, he owns both. Quite similar, but different. Loves infrastructure, as it's impossible to build more these days. ENB is more oily, whereas TRP is more into nat gas. Both solid, dividend growers, great cashflow. TRP is more focused on renewables. Both going in that direction. Both stocks were hammered recently…

(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.

Dividend growth? Hoping for growth in the dividend, but it hasn't grown the way he'd like. Fuel and labour costs are increasing. Stable, well run. High multiple and low yield, which is a caution signal, but money keeps flowing in. A basic need, but price is too high for the return. Yield is 0.6%.

Strong performance of the stock the past year must be put into perspective. Long term holders have been disappointed with stock price over the long term. Private jet business has supported the business. Balance sheet stretched however valuation is still high.

Long term investment and owned since 1998. Up 28% YTD, 23% for 5 Years and 16% the last 15 years. Above average growth rates because is oligopoly. Covers most of Eastern Canada. Current assets greater than current liabilities. Great management team and returns continue to grow. Dividend has averaged around 14% growth per year.

Expensive. Premium to peers. Wireless is a great place to be. Nearing end of capital deployment for fibre, so will have more free cash. Tentacles into agriculture and health. Quality name. Trades at 24x 2023, growing at 15%, so it works. Dividend works. Benefits from world opening up. Great stock for a dividend play.