Here are the companies with earning reports to watch.
(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 Vancouver area. Down…
Canadian Pacific Rail (CP-T) Jan 23
Better suited to do the KSU deal than CN. Great things about rail are high barriers to entry, good pricing power, limited by rational competition, good volume growth means better margins and cashflow. Great industry to be in. KSU deal may take a long time, but will help the winner's bottom line. He owns CN…
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.
First Cobalt (FCC-X) Jan 21
Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.
He's not a gold bug, but seeks unloved stocks in unloved sectors. Gold has consolidated nicely and made a good technical turn. His #1 gold holding is FNV-T. TGC has the largest undeveloped deposit in the world and in a safe place (Alaska) with a good partner in Barrick. All tailwinds.
Tinka Resources (TK-X) Jan 25
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 companies aren't making…
AGF Management (B) (AGF.B-T) Jan 23
Is there any growth in the investment business? AGF's balance sheet is too big for what they earn. Potential write-offs must happen to bring that down. Asset management businesses are being killed. $10.84 is his target price--lots of upside and they can cover their dividend.
TheScore Inc. (SCR-X) Jan 23
He owns very little in sports betting stocks. In mid-February there was excitement in this space, driven by legalization in some U.S. states, and at the same time the wider market was frothy. Since then, the market has changed what it's looking for, seeking reopening stocks. Score's valuation was overdone in February but is reasonable…
Richelieu Hardware (RCH-T) Jan 24
Benefiting from shift in consumer spending to the home. Doorknobs, cabinet hardware. Undergoing a positive rerating by the market. Strong consumer tailwinds as people forced to stay home. Good business model. Lots of growth runway. Half of revenue growth comes from accretive acquisitions. Margins have upside. Yield is 0.73%. (Analysts’ price target is $35.00)
He thinks there is a good chance the acquisition of Shaw will go through. They could increase their dividend over time. It is a long duration asset. He likes the sector in general. (Analysts’ price target is $70.73)