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

This space is starting to bottom out, but still a year or more to be a big deal. But the risk is off and volatility is lessening. He's starting to like these stocks. (Elliott Fishman)

They just released earnings this week and they have been turning their business around -- increasing margins and growing organically. Management owns about 18% of the shares and it trades at 5 times earnings. He thinks it could trade at twice that level. They are involved in patient home monitoring. Yield 0% (Analysts’ price target…

Does rapid testing for clinical diagnostics. Has held in quite well. Going through an approval process and it looks like things will be okay. Leveraged earnings are pretty big. Likes the company but is not actively buying it. (Peter Hodson)

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…

For years NEPT was in partnerships where they were extracting Omega-3 oils from krill oil and selling that to consumers. Now they're taking that extraction technology and applying it to the cannabis oil market. He's in a wait-and-see spots. The fundamentals don't back the move up in the stock. He has a small short on…

Likes the group. It was crazy expensive. They're like junior mines, they have a run up and then eventually it's messed up by reality. You need to justify the valuation, need about 30% earnings growth over the next 5 years. If you think they're going to be successful, then it's probably fine. So volatile, you…

He does not know this one well. You need to understand debt, payout ratios and they could have difficulty down the road. (Stephen Groff)

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

(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…

This is benefiting from the trend towards renting by the residential space. Canadians have not had good rental options provided by landlords offering real services to their tenants. (Joshua Varghese)

(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. (Paul Gardner, CFA)

A vehicle for holding more stable properties. More of a yield play than Morguard Corp. He owns both. Over the long-term, Morguard Corp is the more attractive, because it is where fees accrue to, and also retains more capital instead of paying the bigger dividend. Because the shares of Morguard Corp trade at a meaningful…

He only owns one REIT -- in international healthcare. He thought with interest rates going higher, the valuations are possibly going to be too high. (Tim Regan)

Always liked it. It's the best in class, dealing in the industrial space in Canadian cities. They have executed very well. They beat their last quarter and outperform the market. But it trades at a pricey 26x AFFO which gives him pause. It rents small office space that's attracting tech companies. This is in the…

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Nice breakout above $12.50 in 2016 to 2018, then went below. That support level becomes resistence to the upside. He needs to see it break through this level again. Until then, lighten your position. (Elliott Fishman)

He owns this and sees great growth opportunities. They recently made an acquisition in Virginia as an example. He will continue to hold them. (Tim Regan)

They own locations in the larger cities, primarily grocery anchored shopping centres. They are managed by a good focused real estate team. They like to buy the best locations in urban areas. He will look at it on a pull back. It is a good long term hold. (Michael Simpson, CFA)

We are at a critical inflection point. He really likes the chart. He have had some strong volume over the last two days. Wait the next week or two and then it looks good. (Analysts’ price target is $28.00) (Javed Mirza)

He owns Morguard Corp. (MRC-T).  He likes it because they hold a large portion of the free cash that is generated which gives them much more opportunity to do something with it.  It is an attractive compounder. (Stephen Groff)

Loves it. Has long owned it. The typical Canadian has been in 3 of 4 of the stores they own in the last month. Very well-diversified. The death of retail (malls) has passed them well, and Smart has performed well. (Mike S. Newton, CIM FCSI)

It should be going higher. We are seeing a period of rising interest rates which the lifecos should benefit from. There is a reverse head and shoulder pattern. It is very bullish. It should test at $51/52. Buyers are stepping in to accumulate the stock. It is poised for further upside in 20/21. (Javed Mirza)

(A Top Pick Jan 04/18, Up 9%) They've done a good job with the TMX through market reforms and improving operations. There's room to grow. (David Baskin)

Which chart to look at if you're unsure about your investment horizon? If you're shorter-term investor, look at the 20-day moving average; intermediate 50-day; and long-term is the 200-day moving average which is most investors. BAM's 200-day is still pointing higher and is still doing quite well, but short-term it broke its level of support.…

Their core P&C insurance business has improved in recent years. They now have a lot of cash. You're betting on Prem Watsa's investing acumen who will put that capital to work. Trading close to book value for the first time in six years. (Analysts’ price target is $748.46) (Colin Stewart)

He's heding his currency, because he expects the Canadian dollar will go down, so he wants cash flow outside the country to hedge this cash flow. He also wants to get rid of some of North American financials. Only 5% of home owners in India have insurance, so there's massive growth. He has faith in…

He is not too familiar with them, but feels it is a premier REIT. Overall, this space has been an out performing sector. The yields are strong, he believes. He looks more for growth stories, so does not own many REITs. (Peter Imhof)

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,…

The most expensive stock on the comp table, and so that is the issue. Analysts say it's fully priced, despite the great quarter. Hard to start pushing the multiple higher. She wouldn't buy it here, but she doesn't know if she'd be selling it either. (Veronika Hirsch)

Loves it. Defensive in a down market and recession-proof. Alcohol is a high-cash flow generating business. There's a potential for privatization and for getting into cannabis. CSW has great expertise in getting shelf space in the LCBO, which could benefit the latter (James Hodgins)

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…

(A Top Pick Feb 23/18, Up 17%) There was lots of skepticism a year ago on this name. All three banners are performing well. Tim's has been turning around. There are growth opportunities. He is modeling 17% EPS growth for a name trading at 19 times 2021. A little expensive but still a great international…

Convertible 8% 2022 Bonds - They always have owned the convertible not the equity. It is a restructuring story. They think it is better to be in the convertible because they have a good yield and it is ahead of the equity holder. (Paul Gardner, CFA)

Yield of 5%. Same store sales of 13% in the last quarter. 8% in the last year. They are doing all the right things. Growing their store count. Everything moving in the right direction. (Analysts’ price target is $36.00) (Ryan Modesto)

The company trades at 12 times earnings, but despite the reasonable metrics, she does not own a lot in the retail brick and mortar space in Canada. The online competition is fierce. She does not see strong growth prospects here. (Christine Poole)

They've shifted well from hard retailer to online, but all retail is very tough. He wants to see online growth here. It's in an uber-competitive space, especially online. He sees better retail stocks elsewhere, like Amazon. (Zachary Curry )

He is not sure why the stock is doing so poorly except that money is being sucked out for other sectors.  A lot of these companies have never been better valued.  They had a great quarter last quarter.  They announced a lot of new systems post-quarter.  They are reinvesting in sales and marketing.  The sales…

Owns a small position. Low margins. They've done a very good job with distribution and getting their revenues up, but he needs to see their margins rise. They're too low. He won't add to his position until then. They have some good products.  (Peter Imhof)

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. (Stephen Takacsy, B. Eng, MBA)

In a great spot now if you want to enter. Building a bit of a base, likes the selloff, nice runup. (Elliott Fishman)

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. (Don Vialoux)

Cobalt is a partner commodity in the production of lithium batteries. Earnings are expected to be negative in 2019. Cobalt prices have risen sharply, causing manufacturers to find a way to move away from using it -- nickle may replace it (as an aside Sherritt could be a potential benefactor of this). He would consider…

Bought this at around $.30 a share. About 2 years ago, he was buying into a lot of gold companies. The company hasn't done well, but have really improved operations. Has 2 major mines, one in Bolivia and one in Spain. They've done a lot of CLR work to improve what they are getting out…

An explorer/developer. It certainly hasn’t performed the same as Continental Gold. Has shown more volatility. Brazil obviously can be a difficult environment. He thinks they are appealing an injunction on their deposit. In South America, the social license is very difficult, and he thinks that is the overhang with the stock. He has avoided this.…

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. (John Kaiser)

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

This still has legs. There’s been a break out in the 10-year decline we have seen in base metal prices, which should be positive for all the base metal companies, particularly the Canadian ones which could have by-products of zinc, lead or other things that can bring a fair dollar. (Robert McWhirter)

He is very constructive on lumber and it is his favourite commodity. We saw a double bottom and a pull back. A longer term base is developing. The next 4 year cycle is developing and he sees significant upside and he buys on weakness. (Javed Mirza)

They have no debt, it pays a good dividend and the stock is cheap he thinks. However, they are in a very volatile sector and people are worried about the housing market. He likes it as a hold. Yield 5%. (Peter Hodson)

They have assets in New Brunswick and Maine. A lot of the forestry stocks have experienced a downturn because of slowdown in US housing market. He likes West Fraser and Interfor. (Michael Simpson, CFA)

They got rid of their copper and made a a big acqusition in gold to become a pure gold play. Trades cheaply at 1.5x book. If gold does well, ABX will do well. (Analysts’ price target is $19.35) (Ross Healy)

Over the past decade their earnings have gone down and the debt remains high. They reported an awful earnings quarter and the stock has plunged. He is not interested just yet. Yield 9% (Peter Hodson)

They missed expectations this quarter. It is an uphill battle for gold with cost risk, execution risk and more. If you want gold exposure, he would prefer a gold ETF or a royalty like Franco-Nevada. (Steven Ko)

A smart group of guys.  They are putting a fair bit of work into proving their concept is right.  They seem to be backing up their thesis.  It is looking like it is working so far. (Brent Cook)

Cobalt is a partner commodity in the production of lithium batteries. Earnings are expected to be negative in 2019. Cobalt prices have risen sharply, causing manufacturers to find a way to move away from using it -- nickle may replace it (as an aside Sherritt could be a potential benefactor of this). He would consider…

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. (Ravi…

He is keen on copper. He really, really likes this one. It is very timely here to buy. Over the last few days there was strong institutional buying. Once we test the key $32 level and get above it, it will get to $34. (Javed Mirza)

A junior iron ore exploration company that operates in the Labrador trough in Northeast Québec/Western Labrador. Canadian National (CNR-T) announced they were not going to go ahead with the expansion of a rail line. Companies like this were dependent on that rail line to get their material out. Alternatives now include having to cut a…

Depends on China, and whether that economy goes back up. He owns Hudbay Minerals instead, it's a safer geography and a bit better balance sheet. (Bruce Campbell (1))

Today's merger with Newmont Mining Synergies will improve their margins. But he would sell--he doesn't like gold in general and this is a selling opportunity. (Richard Croft)

You have been in this downtrend since June. The low was in November but the market bottomed in December (strong sign). There is a clearly defined channel of highs and lows. Over the last couple of days it broke above the 200 day on strong volume. Buy it on short term weakness in the next…

A company that has struggled with large mines that take so long to get going. Rainy River has been their Achilles heel. They put out a good update, but one quarter does not make the mine. He wants to see several quarters of success. Patience is needed, but there is still significant risk for this…

This is a hole in the ground, not a mine.  They tried to make it a large mine, but it is a small one.  (Rick Rule)

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.…

(A Top Pick January 8/18 - Down 1%.)  Part of the industrials that experienced massive multiple contraction. Earnings are growing. Lots of cash on the balance sheet. Still like it a lot.  (James Telfser)

They reported mixed results last week. They carry a huge debt load which prevents him from buying. He does watch it, however. (Benj Gallander)

Doesn't know this super well, but obviously with what is going on in the blockchain/Bitcoin space, this is a bit of a hybrid. They are doing a similar type of business in gold. You are seeing a big trend and big interest in that sector, but at the same time, you are also seeing gold…

They are internet phone protocol specialists. They have a 40 times PE, but the 2020 PE is estimated at 12 times. Technically it recently broke through resistance near $12. Great technology and cheap stock and he thinks it is getting traction. (Robert McWhirter)

Was in an uptrend in 2017, then in a slightly descending price channel in 2018. It's broken out of that recently, which is good. But it's overbought given a sharp rise. It'll probably return to its trade channel's lower end around $150. (Keith Richards)

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.) (Veronika Hirsch)

(A Top Pick Aug 21/18, Up 26%) We saw a choppy consolidation. Then it broke to all time highs. He loaded up even more in late December. (Javed Mirza)

Stock has been disappointing even though the company has done OK. Extremely illiquid for a small cap stock. Prefers others. (Peter Hodson)

They had an earnings miss. Every couple of quarters they are up or down a lot. He is short. It has poor price momentum. It is not cheap enough to buy. The business is choppy and unstable. (Jason Mann)

A definite lid at around $85 and recently broke through. From a technical perspective that is very bullish. The chart looks pretty good now. (Keith Richards)

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

This is a controversial name because it is a long term asset being valued on near term momentum and missed numbers last quarter.  They don’t give projections on production numbers.  They have no debt.  It is a buy and hold kind of stock.  (Analysts’ target: $32.07). (Lyle Stein)

They are natural gas and people are frustrated with Nat Gas companies. Nat Gas is up in the states but this one has been hit. It is the difference between Canadian and US pricing differences. In Canada Nat Gas companies don’t have the same robustness from seasonality. Nat Gas will do well again just before…

(A Top Pick Jan 18/18, Down 12%) It rallied on a bad report. He sold this pick in the summer and is now short on it. They have not delivered on the balance sheet enough and there is still not positive cash flow. It is a small short for him. (Jason Mann)

(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. (Jerome Hass)

He would be very careful with most oil names. But some are really too good to be true. This is one. Trading at 3.8 times EV to CF. Balance sheet is fine. He models growth at 25% for their earnings. This is a monster in a depressed environment. The only caveat is if oil and…

They just missed on their earnings from their conventional pipelines. Trades at a premium. Their payout ratio is going higher even as still safe-ish. You can have it for a yield proxy. (Greg Newman)

He did a bit of tax loss selling in this sector. You can see that the $3 level is going to be problematic. It touched it in 2017 and a couple of times in 2018. It will bring in more sellers as it gets closer to that level. It is going to try to revisit…

A bond proxy. From 2016 to early-2017 it had an uptrend, then a pullback. This year, the uptrend has resumed. He likes the chart--it's currently on the upside. Also pays a decent dividend. Let's see if it tests upside resistance at $14. (Javed Mirza)

(A Top Pick Jan 11/18, Down 0.1%) Increased dividend by 8 or 9%. Keystone is the wildcard, and explains why stock hasn't moved. Price will start to move if it gets approved. For utilities, it's all about rate-based growth and they can start to increase profitability. Yield is 5.2% with close to 10% increases. (David…

(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. (Jaime Carrasco)

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. (Benj Gallander)

Well-run. Best-in-class cash flow. Waste collection is still a fragmented space which will continue to consolidate. This space correlates to gas prices, to some degree. Likes WCN. (Mike S. Newton, CIM FCSI)

Not a fan. But people extoll its virtues. It is cheap, but she's not a fan of value. If you want to trade it, go ahead. But it's not a long-term hold. (Veronika Hirsch)

(A Top Pick Oct 04/17, Up 8%) They they do well during these times when the economy is strong and there's infrastructure building. They surprised last quarter with a dividend increase of 21%. (David Driscoll)

The bad is that last quarter they had lower margins. and there is more competition. But they are executing well. Growth of 8 to 10% 2018 to 2020. 80% payout ratio. All in this is a good name. It won;t lead our portfolio higher but it is a good name without a lot of downside…