Earning Reports to Watch (Jan 7-11)
Here’s the full list of Canadian Companies on Stockchase reporting earnings this week :
First Cobalt (FCC-V) Jan 07
Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.
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.
Sprott is a secured lender in this project, as well as a shareholder. The mining start-up looks like it has been fairly troublesome. If they work through their problems, which he thinks they will, he thinks there is tremendous upside. However, there is risk. There is tremendous upside if they can make all this work.…
Velan Inc (VLN-T) Jan 10
World leaders in nuclear valves. Has become more shareholder friendly, focusing on higher margins and more profitable areas. Record backlogs, so this year should be very strong. Nominated first non-family chairman ever, a positive. Significantly below tangible book value. His firm is pushing to unlock shareholder value. Support at these levels and should go higher.
👨💼 Employment Services
They are a recruitment company. It’s not very exciting. It was 45 cents a few years ago, but has been pretty flat since 2013. They pay a nice dividend, the stock hardly trades (about 12000 share volume). It’s profitable and well-managed. He would be interested in the stock at 75 cents but it is so…
Acasti Pharma (ACST-X) Jan 10
The krill oil lipid trial did not work as expected. The overall portfolio is quite attractive. Over the coming year, there may be opportunities. However, there are other opportunities in other companies like ATE, which he owns.
Aphria Inc (APHA-T) Jan 11
(A Top Pick Dec 17/20, Up 93.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with APHA has triggered its stop at $19. To be disciplined, we recommend covering the position. Combined with the previous recommendation to cover 50%, this will create a net investment return of 59%.
Aritzia Inc. (ATZ-T) Jan 10
Don't own it but it is a brick and mortar fashion retailer they have confidence in. There is fashion risk to it with spending pattern risk. Store expansion story outside and inside Canada. Not trading at a terrible multiple, the premium multiple is justified.
Cogeco Cable (CCA-T) Jan 10
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Has surprised investors with a good acquisition of WOW. The deal added 200,000 internet and 61,000 video customers. This has added scale while diversifying the business. Significant growth opportunities. Unlock Premium - Try 5i Free
COGECO Inc (CGO-T) Jan 10
Despite a recent upgrade, he wouldn't buy this. (Though another has raised its taret price.) He prefers owning BCE, Telus or even Rogers because they are more diversified. Yes, the stock has done well and is recession-proof.
He recently sold his position because he was concerned about the lack of sequential growth and the subscriber decline. If it came back down he would reconsider it again. He is watching it from the sidelines. He likes the management and the company.
Stockchase Research Editor: Michael O'Reilly CJR is trading at good value at 6x earnings compared to peers at 18x and is trading just 1.2x book value. It has a good dividend, backed by a payout ratio estimated at 27% of cash flow. We would buy this with a stop loss at $4.50, looking to achieve…
He prefers CCO-T. The uranium space is one he really likes. He thinks we are going back to nuclear power as you can only have so many wind turbines and solar panels.
TheScore Inc. (SCR-X) Jan 10
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 but the potential…