Earning Reports to Watch (Jan 21-25)

Opinion about MBA-T: (A Past Top Pick on April 26, 2017, Down 5%) They build student housing very well and there's currently a shortage in the west. They make a 10% EBITDA margin on these schools. In addition to revenues, they benefit from the asset value is rising in those projects. They have several the…

Opinion about CP-T: Are hurt by the trade war; volumes will decline. CP is more exposed to cars crossing the US border. Buying KC was a great strategy. The rails have never been this cheap, so this will do well in 5 years. Just painful to hold now. A quality company with strong pricing power. 

Opinion about ER-T: They haven't indicated a discovery in the St. James Bay area, though he likes the management and this part of the world for exploration.

Opinion about FCC-X: Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.

Opinion about NG-T: NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541 million…

Opinion about TK-X: They have quality zinc deposits in Peru, but the zinc price is the issue, so is it a good time to sell it now? They will drill another 10,000 meters so find more high-grade. He escapes a scoping study by end-June. Has a flat chart though, reflecting the low zinc price. Zinc…

Opinion about AGF.B-T: Over the decades, they made poor acquisitions and should have accepted buy-out offers. It's now a shadow of itself, though is well run and generates cash. The only way to maximize value is to sell it (or raise the dividend each year).

Opinion about SCR-T: Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The revenue of $6.4M missed estimates by 31%. Loss was also much worse than expected. The company continues to move into new states and media revenue grew sharply. Another capital raise would not be surprising with the US rollout. Results were weak…

Opinion about RCH-T: Very good operators and acquirers. Post-pandemic funk, excess inventory had to be marked down. It'll take time for things to normalize. Murky construction and renovation outlook in US. More housing activity may be a good time to step back in.

Opinion about RCI.B-T: No issue with defaulting on bonds from any of the big 3 telcos. For the equity side: not a lot of growth, price competition, CRTC always making new rules.