Earning Reports to Watch (Nov 26-30)

It has been a disappointing stock to him. They have had some hiccups, but likes their asset base. The problem is that synthetic diamonds are taking away from overall demand. They have not been operating as well as they should have been. He might prefer Lucara Diamond (LUC-T).

Been a nice success story. His opinion is that the commodity cycle has really played out here.

(A Top Pick Oct 16/19, Down 24%) It is a prospect generator in Chile and Argentina. Their enterprise value is very low. They have a very high working capital position. Their permitting on drilling is slower than anticipated.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Silver tends to follow gold, with the caveat that it also has industrial usages, so in a recession it may lag. But we think the outlook is good, with rates likely to decline (eventually) and the US dollar possible weaker (especially if policy moves push…

They were abutting New Gold’s (NGD-T) Ashton project. They have an interesting exploration play and have sold some rights to New Gold. A speculative situation.

CCL.B-T A great label maker. A fantastic story over the years. He would never recommend selling it. You also have IPT-T and have been selling weak with all the hurricanes in the last weeks. They create a lot of value but there is better value with IPT-T. He holds this over CCL.B-T because IPT-T are…

He is tempted to buy this because it is selling at a discount to the cash and securities in the company, and you get the assets for free. The thing that holds him back is that this has undergone a strategic change. At one point they were a prospect generator, using their acumen and other…

Intelligently run diamond exploration company. Has yet to see that they have economic pipes. Also into nickel but he has not been following this.

The Barkerville district has a lot of prospectivity. Their individual drill results are excellent but under the control of the Osisko company. He doesn't own it, because has a hard time getting the drill holes to tie together. That said, the district has a lot of promise and the exploration team is strong. The stock…

Have had very good results but can tie them together. Also, it's a seasonal play in northwest B.C. so there won't be results till 2020.

Have projects in Nevada and French Guiana. Until recently, French Guiana was a tough place to explore. However, the government has mapped out areas where you can mine open pit, areas where you can mine underground and areas where you cannot mine. That is a huge plus. Have a large deposit in French Guiana of…

Potash in an area that is very close to deals that have been happening. On Junior potash plays in Saskatchewan, he is becoming worried about capital spending on account of foreign majors coming in. Concerned about the long-term prospects of this company.

A project that is effectively right underneath the Horne Mine Complex in Québec. Originally it was very low grade gold and copper, so in order for this to be economic, they have to be able to mine it using bulk mining methods, and keep the costs as low as possible. That would entail blockading. He…

Some of the people behind Gold Standard Ventures, are behind this one as well. If you follow success in this industry, you will do relatively well. They raised a lot of money for Gold Standard Ventures and it has done well. It is probably in the 8th-9th inning before it gets bought out. This one…

He doesn’t follow this company, but generic comments on graphite is that if you are keen on Elon Musk and Tesla, you should be keen on graphite. There is literally more graphite in lithium ion batteries than there is lithium. However, graphite is not all the same. You want really, really course graphite for batteries.…

Very high-grade deposit. Good exploration success. Share price has kept pace with development. Not sure that someone will take them out, as the chart shows it's doing just fine on its own. Not sure they want to be taken out, institutional investors would help them fight off any approach.

(A Top Pick Mar 05/19, Down 33%) A copper play in Serbia. It has three joint ventures including Newport. They still have a large land package that could lead to other projects. They also have assets in Bulgaria. He will continue to hold it.

Would recommend buying on weakness. EV business will be strong. Expect volatility. Strong for the long term investor. Owns shares. Valuation and story is compelling.  

A small, very speculative land holder in Canada. Higher nickel prices may push this stock higher

Used to own it, because they had a high-grade project in the Northwest Territories, but they were interested in a lower-grade target that didn't interest him so he sold. He doesn't know their company strategy anymore.

They've been around for a while and own a lot of the Ring of Fire's nickel deposits. Ontario was supposed to open infrastructure so these deposits would get mined. It's a government and infrastructure play. But NOT has a lot of debt, with no cash flow. Government involvement can work out long-term.

(A Top Pick Jul 14/23, Up 51%) Company has increased share price since recommendation. However room left to grow. Mine continues to grow. Believes upside still left in the stock. 

Used to own it and would like to again this spring or summer. Knows the management team and where they're mining, Nevada, very well.

A graphite deposit in Northern Ontario. Preliminary Economic Assessment has been overdue but came out today and, if good, it would lead to a bankable feasibility study. They should start presenting now and telling people what is going to happen, as it looks like now there may be some good value there.

California company that makes very precise metal parts. A lot of their work comes out of the defense area. Recently got a new contract for a diesel engine and anti-lock brake component as well as green lead free ammunition.

Easy money has been made.

Tempted to buy more. They may get a small royalty from a mine they found. They source really good simple projects to explore. There is no catalyst, but you are buying a good company for less than the cash in the bank.

Located in Venezuela, which is a problem. If they have a major discovery there is a chance they could be expropriated.

(A Top Pick March 9/18 Down 59%) He was taking a flyer on this one, which eventually went “cease trade” when documents were not filled on time. He sold all their holdings after losing faith in the company. Management made acquisitions, but failed to execute on the strategy. There are now issues on raising further…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research For its fourth fiscal quarter, XTC matched EPS estimates of 20c. Revenue missed estimates of $160M coming in at $155.4M, declining 3% year-over-year. The company's outlook for next year calls for $750M in  revenue, $120M in EBITDA, and EPS of approximately $1.50. XTC cited, "Despite…

Great management and great Board of Directors. They just finished a raise. Doesn’t think there are any headwinds anymore. With a fully loaded balance sheet, they’ve got a great growth in their client base, having gone from zero to 42 with 17,500 payers in the last year. Just signed on an ERP Vendor news cycle,…

Want to wait for them to start flying, to see if they can do it. It’s not an easy business. Comes down to management. You might be OK, but there are easier ways to make money.

(A Top Pick April 3/14. Down 12%.) A fully integrated agricultural company with a railroad to their elevators along with production of legumes and wheat. Thinks it should deliver quite nicely this summer because of what is going on in California. Feels drought is going to haunt us from a food inflation perspective.

Designs and develops software for drones, SaaS business model. Mainly for governments and some corporate. Problem is revenues are growing, but so are the losses. Not a lot of runway. You could buy it closer to 30 cents, be patient. (Analysts’ price target is $0.57)

Generally doesn't think carbon capture and storage is the solution to reducing emissions. Questions if this is a viable solution. Hasn't been demonstrated on scale. Carbon capture will play a role where there is a market for carbon dioxide, enhanced oil recovery.

He owned it last year after shares jumped. It's a great business, but the 40x PE is too high and risky. That said, they are doing well.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Continues to expand globally via partnerships. RNG and hydrogen tailwinds. Lower valuation risk.

There is a solid plan to build out the company. Plasma can be used in several different industries. If buying, start with a small quantity.

He sold ~40-50% of his position at $79-80. Now that it's dropped below $70, considering buying it back. Appealing dividend yield. Not sure correction is over yet because of credit cycle. May try to buy cheaper, but it's a reasonable entry point if you have a very long horizon.Savvy new CEO's doing quite a decent…

They are providing almost a royalty payment to those wanting to financial auto dealership loans. They go out and borrow money and make royalty investment in those investing in a dealership. He is watching for them to make a third party investment outside of their dealer group. They pay a great dividend and have fantastic…

Like a Mini-Me Coinbase. He's traded this, on relatively small positions in separately managed accounts. Not in his fund. Good way to ride the wave of blockchain and cryptocurrency.

(A Top Pick Mar 21/24, Down 3.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with OLY has triggered its stop at $98.  To remain disciplined, we recommend covering the position at this time.  

This is going to be the high-tech story in Canada. They developed a platform for real estate agents and have over 300,000 users now. The only problem with it was that it was not trading in the US, but it has now started trading there. Now a global operation. It’s illiquid.

A branch-less bank that does financing for their customers. They should have higher margins than other banks, but he would sit on the sidelines for a while. They are trying to do interesting things with the dividend.

(A Top Pick Feb 09/24, Up 29%) Will benefit from any passive flows given its huge weight in ETFs. A quality company. Is not overly concerned with credit losses.

Used to have a habit of running into sharp objects, but CEO has turned this around. Warrants consideration. Great domestic personal and commercial business, capital markets, and wealth management. Modest presence in US, and has stayed out of trouble there.If you already own NA and RY, consider TD or BMO before this one. But if…

Just moved up off the bottom of a very long-term channel. Long way to go to get back to usual high. Still under both Canadian and US regulatory scrutiny. Very well run, aside from a nasty US stumble. Quality and value will come through.

Involved in the UK North Sea. In the process of drilling a well with the Lundins that is very important. In about 1 month will start working with Husky (HSE-T) in the North West Territories. Between the winters of 2008 and 2009, you will have a good shot if they have any kind of drilling…

Did a shareholder vote and Pacific Rubiales (PRE-T) will be assuming the management of the company. Drilling off the coast of Guyana. Got to about 1000 feet of the target. Because of gas creating a lot of pressure, they couldn’t finish the drilling. Potential is still there and could be a world-class discovery. Pretty good…

Being acquired at $7 but because of the lower stock price, market indicates the deal is not going to close. Doesn't see this as a good way of making a quick buck. You are trying to beat the pros at a game that they are very, very good at.

They're in northeast BC where Tourmaline is consolidating land and assets, near LXE. So, LXE will become topical. LXE has reached an inflection point after acquiring a lot of land and pushed the Montney play to the northeast. Now, they need a lot of capital to move to full development. They're talking to potential buyers,…

Very cheap stock in 04 and then went parabolic in early 06, had a spiked top and then fell in late 06 and had a bottom of about $3. The risk is $.75 and until it moves, you won't know what the reward is.

Just announced a deal last week where they are launching in Mexico. Thinks mobile gambling is a real growth industry. Has a tiny stake in this one.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Its customers are facing difficulty with making decisions given the uncertain trade environment. We think that it will see increased uncertainties in sales and earnings guidance, but largely, it has navigated challenges well in the past (2020) and we would be comfortable holding or buying…

They are doing distinctive infrastructure, where they are digging trenches to get that last mile to the home. They are doing this in the UK, and have a large contract with one company. He really likes the story, but is waiting to see some revenues and earnings drop to the bottom line over the next…

It trades only 39,000 shares per day, so it isn't very liquid. (The beta is 0.23.) It still has negative earnings. POET reported on April 26 a fourth-quarter net loss of $3.7 million, or $0.10 per share, vs. a loss of $5 million, or $0.17 per share, a year ago. POET didn't supply sales for…

Healthcare tech company.Have recently been short the stock in the past.Not sure how financials are going to improve.Poor management of company.Not a good long term holding.

(A Top Pick Oct 26/21, Down 13%) Stock's started to recover under the new CEO. Now focused more on faster growth. Margins have pulled back because expenses have increased, but still a high-margin business long term.

Rolling out its software into one of his largest holdings, AND. Best-in-class software. Biggest exposure is hospitals. Long sales cycle. He prefers more recurring revenue and easy to download.

This company has been in flux and is finally coming through its last phase. There has been a management and board of director change. There will be a lot of new client acquisitions and a capital cleanup, which will ignite growth.

In Canada, this smallcap (C$210 million) biotech in Halifax submitted its antibody test to the FDA. Since April 22, MedMira has soared from 6 cents/share to over 30. There's scant coverage or even stock metrics to report. Also MedMira is one of many companies to submit such tests to the FDA, but it's worth keeping…

This company has a lot of scientific research to support the health care aspects of cannabis. They also have extensive experience in low cost farming economics as part of their partnership with Village Farms (VFF-T).

A very well run company with a really interesting variety of nickel exposure in Norway and 1st rate exploration projects.

Life sciences. Have an interesting regenerative technology. For example, they can take a hair follicle and extract certain cells, and then replicate them 1 million times and then re-inject them back in areas where they are needed. It is very, very rare to have a company this small with 2 products in phase 2 trials.…

He has been looking at this as it has become more attractive now. A mid-tier producer that has stagnated when a partnership did not materialize. They are involved in the specialty pharmacy business which could grow into the mainstream in the future. They could be bought out in the future.

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 Jan 23/25, Down 12.7%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with DOO has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.

New technology officer. Early stages. Wait to see what happens.