Earning Reports to Watch (Jan 28-Feb 01)
Metro and a few of our Top Canadian Tech Stocks are reporting earnings this week : CGI, Celestica, Open Text, among others. Not on our list because they are not Canadian stocks but noteworthy, Apple and Facebook are also set to report earnings on Tuesday January 29th after market close and Wednesday January 30th respectively.
Here are the companies with earning reports to watch.
He shorted the name a couple of years ago, but has almost no position now. It is highly speculative. There is a lot of resource and it will take a lot of money to take it into production.
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 28
Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.
Serengeti Resources (SIR-X) Jan 28
Where it goes from here will depend on what they get from more drill results. Initial indications were very positive.
They just partnered with a private equity group. The company is now 45% owned by private equity. They completed their first pour in the Yukon and are moving towards commercial production. The problem is the private equity partner will have a lot of say in the operations. This will keep him out as an investor.
(Market call minute.) A microcap stock and will be a bet on much higher gold prices and their ability to navigate through the problems in Indonesia.
Has one of the better geologists in the Pacific Northwest. Focus on Lucky Shot is a mistake. Could find a joint venture partner who would come in and develop without them having to do it. Doesn't think they have the experience/capacity to develop it themselves.
Goldmining Inc (GOLD-X) Jan 30
Well-run. When the gold price moves, this will too. Own it if you believe this will happen and are patient. Long-term.
Methanex Corp (MX-T) Jan 30
(A Top Pick May 04/21, Up 47%) World leader, with a 14% market share. Uniquely advantaged, as a lot of the European rivals are facing astronomical natural gas prices. $7 EPS expected this year, and that's not the peak. Sees upside, despite good performance already.
It has not done anything special except to be in the right place at the right time. There was a huge demand pick up for lumber. Lumber has a strong seasonal period. Lumber companies and home builders tend to under-perform starting now. Given the run in this one he would put a trailing stop on…
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.
Norbord Inc (OSB-T) Feb 01
Doesn't follow the name super closely. Positives in the industry. Good growth trajectory. Still a good name but volatile, as it's tied to the price of the commodity. Low interest rates should benefit it.
(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…
CNR vs. CP For growth, CP gets the nod. Acquisition will build out their route and help growth. Valuations are comparable, around 20x earnings.
Exco Technologies (XTC-T) Jan 30
Tremendous respect for management. Build more power and torque for EVs. Has shown its potential for commercialization. Stock recently shorted, and management responded well. Buy or wait for weakness.
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People Corp. (PEO-X) Jan 28
(A Top Pick Apr 24/18, Up 21%) Organic growth is 9-11% annually for the least few years, excluding acquisitions. Impressive. They just had a great quarter. They're doing the right things and setting themselves up to be the premiere benefits company.
Metro Inc (A) (MRU-T) Jan 29
Believes company is very predictable which results in consistent earnings. Company is a good hedge against volatility in the market. Ability for company to raise dividend is a major strength.
He's watching it and will visit them in July. Everyone is looking into THC beverages with a shelf life. They've signed deals in the U.S.
Rogers Sugar Inc (RSI-T) Jan 31
They have owned this in the past. It went no where for decades. The maple syrup side, which they entered about six years has been a disappointment and has been volatile. A safe and boring company. Not a lot of downside. You can milk it for the dividend, but there is not much upside.
CGI Group (A) (GIB.A-T) Jan 30
Shareholder friendly. Front and centre with outsourcing and consulting as more companies go digital. Wind at its back. Strong acquisitions and in buybacks. Attractive valuation at 16x earnings and free cashflow yield of more than 7%. Defensive in a tough market. No dividend. (Analysts’ price target is $122.57)
Celestica Inc (CLS-T) Jan 31
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. As had a good quarter with beating estimates and raising results. Continues to see demand from the cloud and semiconductor industries. Revenues rose 27% and EPS also beat. They raised revenue outlook from $6.37B to $6.5B. Unlock Premium - Try 5i Free
Open Text (OTEX-T) Jan 31
Likes company but would be hesitant to buy before market calms down. All tech names being sold off. If already own shares, continue to hold. Quality company that expects to do well in the future.
Goldmoney Inc (XAU-T) Feb 01
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…
This is a seasonal period when Lifecos in general tend to do well. This is a special vehicle where they buy a lifeco, split it up and give the capital appreciation to one half, and the dividend to the other half. Dividend yield of 19% is extremely high, and he is having trouble with that.…
Organigram Holdings (OGI-X) Jan 30
Flies under the radar, not top tier because of its size. Tremendous respect for management team. Very efficient, and that's probably why BATS invested. Will be one of the fastest growing sectors in next decade.
(A Top Pick Mar 15/19, Down 24%) He still holds it in the portfolio, but had taken some out at $4 per share. He is looking to add to the cannabis sector again following the consolidation. He holds an $8.25 target. They are producing a CBD and THC beverage.
A really interesting little company. Pretty small, but reminds him a lot of Nobilis Health (NHC-T), which was a Top Pick in the past. Have bought some ambulatory surgical centres in the New York State area, and they are going to continue to roll those up. These are typically started by doctor’s groups and are…
Findev (FDI-X) Jan 31
They have finally inked some very significant deals in the last 3 months, which is why the stock has doubled since then. Thinks there is pretty good opportunity. One of the challenges is that there is only one analyst covering it.
Imperial Oil (IMO-T) Feb 01
Company trading at slight premium to Suncor. Low risk name trading at 15x cash flow. Expecting a ~$90 share price. Not enough return for risk in energy sector.