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
It came down from a $60 head and shoulders, breaking it. Now, it's consolidating. $60 was support and is now resistance. So, sell at $60.
Forest products and home builders have done quite well over the last little bit. We are in the seasonal period for forest products and home building until the beginning of February. Charts looks positive. There is no resistance, the next level of resistance is around $20 or so. This is more of a momentum play…
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.…
Norbord Inc (OSB-T) Feb 01
This was a great performer in 2017-18, but with housing starts--and the economy--slowing in the U.S., it's under pressure. Tariffs to lumber didn't help. The yield pays over 5%, but in this late part of the cycle, OCB is likley not covering the dividend every quarter. They should trim the dividend. He prefers WEF for…
(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…
CP-T vs. CNR-T. CP-T was at $220 in 2014 and broke out from there last year. It consolidated for 5 years. This is a great way to participate in economic growth.
Exco Technologies (XTC-T) Jan 30
This had disappointing results. Had come to the Street about a year ago talking about their new high tech Japanese equipment. Their big business is making moulds for automobile engines. It’s a purchase that auto companies would only make once or twice in a cycle. They hadn’t delivered in the latest quarter and the stock…
👨💼 Employment Services
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
Metro is by far the best management team in the sector. It seems to go through these cycles. It is a good entry point to get it in at a bit of a lull.
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
Doesn't think dividend will be guillotined. Disappointing because it doesn't grow. Sugar is not a growth business. It's not a growth stock and probably never will be. Hold and try to trade it at the middle of its range.
CGI Group (A) (GIB.A-T) Jan 30
Canadian mid-caps (no past picks today) He specializes in these. They are under the radar of Canada's large mutual funds and receive little analyst coverage, so they trade at a discount. (No past picks today.) He buys stocks only during momentum, as they are rising and keep rising. CGI is a leader in Canadian tech.…
Celestica Inc (CLS-T) Jan 31
(A Top Pick May 29/18, Down 40%) They make electronic products for other manufacturers, like Cisco. There has been a lot of new product spending delays in the space and this is hurting them. The valuation is great and the company continues to buy back their own shares.
Open Text (OTEX-T) Jan 31
(A Top Pick Jul 24/19, Up 8%) A big holding of his. They can generate more and more recurring revenue from assets they've purchased. They're also moving into the cloud. Their stable has become more stable, which has been a knock against OTEX in the past. The multiple on earnings has been very low in…
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
They have done an excellent job executing. They have been working on a number of different products. They have been a leader in Canada and will continue. It will depend what happens with the new products.
(A Top Pick Dec 12/18, Up 104%) They are working on extracted products. He thinks they will continue to accelerate going forward.
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
Oil is up $3 with a possible war in the middle east. The stock is at a terrific value. Good upside potential. If everything works out well, it could have a huge upside in a recovery. (Analysts’ price target is $36.53)