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
Offers selective exposure to cyclicals during this recovery. MX holds a 14% share of global methanol market, used in plastics and fuel blending. Generates heavy free cash and buys back shares at the top of the economic cycle. They run efficient plants in Canada, Chile, New Zealand, etc. near low-cost natural gas supplies. Methanol's price…
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
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…
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
You want defensive stocks right now. Big thing is Jean Coutu, and integration will create earnings and cash flow growth. More difficult issue is how to expand that brand beyond Quebec, and this is already priced into the stock. A defensive name, and you can do quite well. Yield is 1.7%.
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
He hasn't looked at it recently. It's a safe, Canadian dividend stock, but not the kind of business he's looking at now. It's in a heavily regulated industry, a commodity, so if there's too much sugar produced in a given year, the stock will get hit.
CGI Group (A) (GIB.A-T) Jan 30
Is Canada's largest IT services company. They serve government and healthcare, as well as financials and retail. Very global. Increasingly, they're licensing their own intellectual property and client engagements, which have favourable long-term margins. Resistent to the pandemic. It should grow EPS this year. The kicker is GIB is a successful buyer, doing some recent…
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 Sep 04/19, Up 9%) Provides software to medium/large businesses. It does cloud and content management for companies, so demand is high. 80% of revenues are recurring with high margins. They're seeing strength in government and healthcare. Their Q4 2020 earnings blew past estimates, growing an impressive 11% YOY during a recession. Continues…
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
He has owned it for some time. It will take time for oversupply in the industry to work its way through the market. It is sad for people to be laid off but management needed to take actions for their balance sheet. They should be one of the leaders in the future.
(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
A large cap energy producer that he used to cover. The Canadian political landscape is an impediment. They need more takeaway capacity. The current supply-demand balance is too high. Inventory is high and the balance is out of equilibrium.