Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)

MFC has a slightly better dividend than SLF right now, though he likes both names. MFC is also slightly cheaper than SLF, so that's why MFC is in his portfolio.

He's a real chicken, and looking for stocks that won't hurt too much if tariffs go the wrong way. Life insurance is fairly insulated. Won out as his pick compared to MFC. Cheap at 8.6x 2025, growing 6-7%. Market thinks growth will be 12% next year. A win-by-not-losing choice. Yield is 5.5%.Owns Mackenzie Investors Group,…

It is a basket of common stocks including big U.S. companies. He is not sure about it but it is doing well for the caller. Income is the focus.

Making changes to be able to invest more in foreign stocks. Wait to see how they do.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research National Bank has made ECN a Top 2025 pick. The company has a high degree of leverage to interest rates and the economy. If rates decline and the economy holds up, it certainly could do well. Consensus calls for 75% growth in 2025. We think…

In an uptrend, testing the trendline. From the chart, you can see how it arced too high and now it's going through a pullback. The trend is still in place. So far, it looks fine technically. 

Growing quickly, but not investing at this time. Good yield, but not major capital appreciation. However, ~5% dividend yield is safe. 

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They invest in income-producing automotive dealerships. If there is an increase in demand for cars, the dealerships will pay rent and more dealerships will open up. DEmand for cars has only slightly increased, and it is more a supply constraint right now. Will continue to…

(A Top Pick Apr 18/24, Down 6.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KEG.UN has triggered its stop at $13.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 3%, when combined with our previous recommendations.  

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Sales and EPS outlook are good. The markets are reacting well to results from last quarter. EBITDA increased by 47% for the year. Organic growth was roughly 20% with $5M added to its cash balance. Management’s outlook is positive for 2022. Demand and growth have…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 1c missed estimates of 3.5c; revenue of $16.17M missed estimates of $16.46M. EBITDA of $4.75M beat estimates of 11%. Total sales rose 4.5%. Subscription sales rose 16.6%. SYZ bought back 85,700 shares. Canaccord raised its target by 50c to $12.50. Despite the 'miss'…

Suffered from exposure to commercial office space. More secondary markets. Suspended distribution entirely, in favour of buying back stock. Consolidated shares. Uphill battle.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Recent results were quite positive. It collected 100% of rent with an increase in revenue by 61%. Free cashflow is at $2.9M this quarter. They have added the Food Basics banner and acquired more land for development. Profit margins increased and cash balance is now…

(A Top Pick July 26/13. Up 18.07%.) A niche lender to small businesses. Very, very well run. They raise their dividend almost every year. Insiders own piles of stock. Very conservative. They are finding new ways to grow the bottom line. Have lots of capital, which is all deployed. Expects earnings will continue to move…

They do oil/gas fluids. Profitable company and revenues are growing by leaps and bounds. They have a lot of debt and have taken on quite a bit of debt and have virtually no cash in the bank. Just did a $10 million raise and sold 6.6 million shares, which they needed to pay down some…

Great properties, but diversification means it doesn't get a great valuation from the market. Sunbelt properties are over-supplied. Owns office properties and retail. Transforming to multi-family and industrial. Trade action starting to pick up. Secure yield of about 6.7%. Growth will be a while, depends on your time horizon. Better names in the meantime.

Why the selloff? Probably pulled back because of the 10-year treasury rising. Just increased dividend, that should continue. Coming out of a long turnaround. Core holding in his income fund. At $14, he'd probably trim; at $17-18, would probably exit. Yield is 6.4%.

Likes real estate in general. In particular, likes those that are building their businesses; not the ones that are just collecting rents, paying dividends, and going sideways. CEO is great and is investing in the company. Turning around. Sector will benefit from lower interest rates. Looked at this one, likes it, but not liquid enough for…

Management wants to buy it out but there are two conflicting groups of shareholders. The employee shareholders want the lowest price possible while the outsider shareholders want the highest price possible. This type of conflict is not good. Value it as a whole, not on the split-up of parts.

It is in the short term mortgage lending business, mostly residential. It is trading at a slight discount to NAV with an 8% yield. It is not widely followed.         Buy 2  Hold 0  Sell 0 (Analysts’ price target is $12.96)

Top income pick, newest holding. Provides mobile and manufactured housing parks in US. Growth through acquisition, improves services and trappings of those acquisitions. Low monthly rental fee, increased a bit every year. Strong balance sheet. Yield is 4%, payout ratio only 40%.Provides affordable home ownership when real estate is still expensive.

Event driven investment (not long term) based on cash on the balance sheet. Lots of cash on the balance sheet. Estimate sum of parts share value is $7 when currently trading at $4 on the markets.

(A Top Pick Dec 14/23, Down 11%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with SRV.UN has triggered its stop at $14.50.  To remain disciplined, we recommend covering the position at this time.  

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It is not looking good, considering more than $900M in debt and cash flow of only $37M in the last 12 months. Interest expenses were $73M, nearly twice cash flow. It does of course have assets, but it is not a seller's market right now,…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research IF growth returns then CWL could do OK, but it has seen revenues decline for nearly the last two years. Margins also took a significant dip in 2023 and CWL generated a net loss. Looking back to years when CWL did see significant growth, it's…

Pretty good job transitioning to pure-play industrial, but some worry about capital allocation. Trades at a higher discount than peers. He wants more liquidity and concentrated in key markets. Better risk/reward in larger entities with more liquidity. See his Top Picks.

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.

Difficult to own. Commercial real estate in Europe. Strategy of owning secondary assets was not the best. Cut distribution. Unless you have a high risk tolerance, don't add to your portfolio.

They had a project where they had lent out some money to the big Urban Corp. real estate company, which defaulted on their loans. Fortunately, the loan was secured by some real estate. Terra Firma just announced getting full repayment of the principal plus interest for that property. Now it will be a function to…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research REAL is in recovery mode; it has a solid Q2 with a 27% 'beat' on earnings. It also has good positive leverage to lower interest rates (now occurring) and the real estate market. Earnings in the next two years will still be significantly lower than…

Repeatedly compares this to TIH, and TIH always comes out on top in terms of ROIC and dividend growth.

Canada has some of the best high-grade coal for steelmaking, and this company exports it. Permits to build new mines are being held up by environmental concerns. Safe name, good dividend. Even if coal falls off, export capability is still intact. Yield is 6.8%.

Recently added a small, 2%, position. Likes the dividend yield. Believes the industrial economy will pick up, though Canada may be slower than the US. Exposed to the Canadian industrial economy right across the country. Yield is 6.7%.His strategy is to ride the stock up. As it does, the yield drops. So if the yield…

There were a couple of subtle things went on with the trust conversion which discouraged a lot of investors. An illiquid stock. Most of their exposure is in B.C. and Alberta where housing is still very strong. Thinks we're at the peak of a cycle so don't have it as a long term hold.

Flagship renewable diesel project coming online next year.

He was in on the IPO a few years ago. Wood-burning stoves is a large business for them, plus agriculture and some industrial. They acquire and integrate small businesses in order to lead the market. It pays a high dividend. During Covid, business in some parts spiked, but after Covid, their YOY comparables looked like…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research SJ saw its price decline recently on weak earnings, and it has also been seeing some weakness alongside the broader markets. It trades at a decent valuation of 12.9X forward earnings, but forward growth estimates are in the low single digits, and analyst estimates have…

Watch this because shares have fallen far and Brookfield is involved with them in a serious way. Watch their next two quarterly reports.

Recently, a lot more interest in hydrogen, which might be a spur to break its longtime downward trend. Very small company, not grabbing his attention. Better things to invest your $$ in.

It had a big downtrend from late 2021 to late 2023. Like the rails, this has come off sharply of late. There's likely more downside coming. If the stock breaks above the August low around $115, you can add more. Now, we'll likely see a bounce to that $115 resistance, but doubt this will rise…

Disappointing. Slowdown in farm division last year, and management anticipates continued challenges. Management keeps cutting guidance, so its credibility has taken a hit. Better use for capital elsewhere over the next year or so.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The stock is cheap, and acting better. The sector (in the US, mostly) has been seeing some good numbers recently. It hit a 52-week high this week. We think it can be held, and >$10 is possible, even $12 under good conditions. $16 we think…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Momentum is solid. The fundamentals are improving along with profitability. Debt relative to cash is also improving. Market cap has reached $520M with insiders owning 10%. Not profitable yet although revenue is ramping up. Expensive but revenue growth looks good. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research WEF has rallied with interest rates, which help the sector, but is still down 26% for the year and 37% over 52 weeks. Note the dividend was cancelled in November 2023 and none is paid currently. This week WEF announced it would be cutting production.…

Forestry space He owns no names. The stocks are okay but face trade disputes and an economic slowdown that will hit housing stocks. The stocks have been beaten up.

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.

Industrial stocks have come off on tariff, and other, fears. Very good ROE profile. Excellent earnings growth, with analysts projecting ~30% earnings growth a year for next 3 years. Quarters can be spotty due to lag time for project approval, so you have to own it for a while. At 9x forward PE, substantial discount…

Its businesses depend on consumers, so some growth might be capped. Pullback could be a time to look at it, but has already done pretty well over the medium term. Steady-eddy with potentially high valuation. Keep an eye on.

Prefers Linamar to Magna for its much lower EV of 6x, and they have diverse businesses, like agricultural equipment.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research With continued negative stock momentum, some debt, and not a lot of growth expected (estimated EPS this year less than 2021) it is hard to get too excited about GTII. There has been some insider buying which is a good sign, but the sector continues…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Debt continues to be a large deterrent for NFI, however, recent quarterly results were positive and the company's back log is very large. The stock trades at 40x forward-earnings but is cheap on a forward-sales basis at 0.4x. We think NFI is risky and with…

They face the US tariff risk. The PE looks cheap, but look at the balance sheet. Lots of debt. Growth is declining.

(A Top Pick Mar 27/23, Up 53%) Acquired by private equity. Likes the environmental space so much they parlayed proceeds into Canada's first Global Biodiversity Fund, comprised of about 40 stocks. 

Great-looking chart. Had a long base of 2-3 years, which was ripe for swing trading. But now it's broken out, and that's good news. Parabolic move in a very short time, from $7.50 to $12.50, and it will take a break. When it does, that would be another great entry point as it might pull…

This has great assets globally. The biggest sourcing platform for organic foods. It is really hard to get an organic designation. It takes 3 years for a farm to convert. They spent a lot of time putting together assets and it hasn’t been managed well. The company did a strategic review, brought in an investor…

Owns shares in company. Has done well the past year. Expecting further upside going forward. Dividend is expected sometime soon. Subcontracting business from Air Canada very good for reliable revenues. Price multiple not as high as it should be. 

Company performing very well. Rubber products very profitable. US growth continues with defensive spending. Management team performing well with good strategic review. Expecting company to focus on traditional rubber compounding business - will increase cash flows. 

Specialized, more durable concrete. Story makes sense, but the numbers aren't there. Company's been around a long time, but sales haven't grown that much. If the product is revolutionary, why aren't more people using it? Companies with sub-$100M market caps have to be really, really good to justify an investment.

Negative impact from US tariffs. The names on this list are plenty. Start with the industrials, for instance. He's a big fan of BBD.B, but they make everything here in Canada.An aerospace name like CAE, the rails, auto components like LNR and MG.

Large issue with the company is legalizing the products(marijuana). Another worry is the over supply of products in the market. Federal laws against marijuana in USA make it hard to deal with expenses that are not deductible (100% tax rate). Could be a good investment if US legislation changes. In the meantime, would not recommend…

Beat on aviation in Q3, raised 2025 guidance on the back of their latest acquisition of Spartan. Lumpy, not as steady a compounder as BIP.UN. Always kind of cheap, now 13x PE for 2026 and growing 17%. Nice dividend, which will probably be boosted; payout ratio is fine. Not for everyone. Small cap that gets forgotten,…

Huge new facility is coming onstream, and fundamentals in containerboard are more solid than in the very competitive tissue market. Facility over budget, so will take a while to get a return. Focused on debt reduction.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Consecutive quarterly revenue growth. Industry leader in out- sourced facility service. Non-cyclical market with tremendous pricing power. Continues to be acquisitive. Unlock Premium - Try 5i Free

Good for marijuana exposure. Speculative, but quality. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The company saw a big pop in 2021 on EV hype for the Coil Drivers it sells. It has never really had significant revenues or positive free cash flows. If EV demand booms the stock could do better, but overall we are not too interested…

Avoid the sector. High risk, speculative. Doesn't see catalysts to drive the sector higher, especially if Republicans succeed in the US election.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 9c missed estimates of 17.5c; revenue of $72M missed estimates by 2%. EBITDA missed by 11%. SXP is down significantly over the last twelve months by ~42% and recent earnings pointed towards declining profits and revenues. Revenue fell $6M. Earnings and EBITDA margins…

(A Top Pick May 08/18, Down 36%) They were doing things to turn things around. They made net income last year and then Trump tariffs killed them. But they said they are going to turn around the tariffs. He is going to look and see if it is time to buy back in.

(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.

Wellness drives CBD demand and there's more competition entering this space. The CBD market continues to expand into drinks and food. He used to own this, but sees better opportunities. But CWEB is one of the U.S. leaders in this crowded space, so it's okay. You want to be in this space.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Profit of 1c per share beat estimates of -1c. Revenue of $7.2M beat estimates by 11.4%. EBITDA was positive $1.17M vs an expected loss of $305,000. Sales rose 186% so certainly a nice improvement. Margin was 67% up from 49.5%. Profit was the highest in three years…

He sold his shares a few years ago, because SWP would need a lot of capital to move their plant (to meet higher demand). The results have been pretty good, but the prices have also risen. Also, they face competition and need more capital to complete further expansion. So, they have taken on a lot…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The restructuring brought in $40.8M, but now one investment entity owns 60% of the company. It gives the company money to survive, but it may be a while before it prospers. Of course, issuing 102 million new shares (at least, with 20 million more if…

(Market Call Minute.) Feels the potash market is oversupplied.

He's look at this many times, but never bought it. Pipelines still need to be approved, despite more talk about them. Co, crude-by-oil will endure, and everyone wants to make this safer. KLS has the technology to do this though their tech hasn't been mass-adopted. He'd like to see accelerated growth and earnings first. However,…

Very strong Canadian company that doesn't get enough attention from the markets. Last quarter starting to prove business prospects. Landing gear in very high demand within airline sector. Trading at discount to other names in the sector. Very high barriers to entry within the business. Margins continue to expand - will be good for cash…

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.

Bought at $8.50, now at $6.64. Sentiment remains challenged in the space (a common theme today), even though the Energy Index is up about 20% YTD. People are hiding in large caps, with few funds coming to small- or mid-caps. Hard to see it outperforming. Yield is 10.7%, pretty hard to replace. Not a name…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research PHX has had very strong momentum over the last year and is also cheap at 6.5x forward earnings. Most recent quarterly earnings results were very good, recording a large beat on revenue and EPS. Outlook for 2024 forecasts a drawdown while 2025 will bounce back…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the…

(Top May 21/14, Down 80.33%) He has trimmed some. They have no debt problem. It is totally out of favour. Don’t be concerned if they cut the dividend again. It will go up again when things improve.

Thinks it can work at $70 oil. Generates 10% FCF yield at $70 oil. Reached final debt targets, so all free cashflow should return to shareholders mostly in form of buybacks. Over the next 5 years, compounding effect should expand FCF yield from 10% to 20%. If oil goes to $80, you go from 14% FCF…

They refocused operations on the Montney and are pushing strong into the US (Utah, the Permian Basis). It's been rangebound like all energy stocks since 2022, but the free cash-flow yield is a high 15%. They have quality assets, but are in no-man's land (changing the company name and pushing in the US) and not…

Volatile. Not easy to understand. Engineered materials mainly for the solar industry. They've diversified. A recent acquisition may be transformative, wait and see. Hold if you own it. He's revisiting it. He prefers NEO, as a cheap way to play the EV market.

They brought in a partner this summer to help develop the East Duvernay. They still have too much debt. She is watching it but not recommending it. Not everything is cheap in this sector, still have to selective.

(A Top Pick May 15/19, Up 53%) Company has recently turned around with new management. Strong capital discipline. Very strong dividend. Excellent assets with very long reserve life of oil assets. Share prices are still cheap - would be a good long term hold. 

Likes it short and long term. They touch 30% of all LNG and 25% natural gas in North America. There was data centre hype in this stock, but faded after DeepSeek last week. Pays a 5% dividend yield. Likes it more after spinning off South Bow, a pure play natural gas company.

Does not own shares. Has been watching company closely. Believes natural gas will continue to be in high demand. Would recommend investors pay close attention. 

Will benefit along with others from LNG Canada. But it's dry gas, so not as much optionality. Lowest-cost producer around. Has no issues with the name, but depends what you're looking for. Other names she likes more.She owns ARX, which is more wet gas. You get the NGL plus the condensate. Long reserve life of…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research PXT is targeting average production of 45,000 boe/day in 2025. Capital expenditures will be $300M. Cash flow $445M and free cash flow $145M after dividends. This is essentially down a fraction from Q4 production results. The balance sheet is still strong and cash flow good.…

She sold this a year ago. She expected after their spin-off to improve margins and product line, but the dental industry is cyclical and tied to the job market. As interest rates rose, many patients deferred treatment. Also, it's in a competitive market and growth was soft in some geographies. Wait and see how the…

Some people own it for M&A takeover potential. He doesn't like to do that. It's a market where interest in small caps remains very low. Not hitting enough radar screens currently. Pursuing growth, so more modest cashflow. 

Oilfield services firm that has big fracturing technology presence. Horizontal drilling and shale boom not as strong. Very dependent on energy prices. Lots of assets that must be carried on the books. Not investing at this time. 

This was a spin out from a deal that Petrorubiales did about 6 months ago. Often these spin outs get dumped because people want to own the larger company. This is trading below cash and some nice prospects. Likelihood of success by the drill bit is pretty high.

Their debt has always been an issue. Trading at in-line levels for their multiple. Does not check his boxes in his fund.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research IPO is a small cap oil and gas company. It is down about 10% over the last year, but has been trending up year-to-date. IPO also pays out a high yield at 7.7% and is cheap on a forward price-to-earnings basis at 7.6x. Revenues have…

(A Top Pick Oct 24/24, Up 9.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SHLE has triggered its stop at $13.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous guidance, this will result in a net investment gain of 14%.  

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Splitting the company into two to separate the PNG business makes sense to us. The return of capital could be as much as 76c per share. This all sounds attractive...BUT....it is already a very small company. With less capital, and a split, shareholders will be…

One of the largest fleets of generation 3 and 4 deeper coil tubing. Two businesses: coil tubing and tools. Both are being run efficiently. Margin pressure in the sector. Great little story that will be a big beneficiary of LNG drilling. No debt. 5-year bull market target of $3. 2023 will be a pivotal year…

(A Top Pick Jun 15/23, Down 16.7%)Michael O’Reilly Our PAST TOP PICK with FEC has triggered its stop at $10.  To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 18%, when combined with previous recommendations. 

Has held up well at 8x PE, even with nat gas prices low. Pristine balance sheet, using it to invest in equipment that reduces carbon footprint, which gives it a marketing advantage. One of the more volatile among the service companies. Yield is 3-4%.

Not a good investment with current management team. Other energy companies available with better opportunities.

It has exceeded consensus estimates for the last 5 years with growing revenue margins, working capital and debt reduction. A recent acquisition should add to growth. Energy demand is rising and management is strong. Impressive free cash flow yield looks impressive. She sees 32% upside. (Analysts’ price target is $10.41)

Well-run company. Always trades at a bit of a discount to the sector because of the nature of the business. Not a bad one to get into.

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…

(A Top Pick Feb 19/19, Down 67%) He took it off the buy list a while ago. They have paid down their debt load, but their revenues from drilling in the Permian are dropping. He hopes a new management team will help. A high risk - high reward scenario. He will continue to hold it.

Owns a small position. They're bringing a new software product to market that will save oil/gas companies money, but we'll see if they can execute. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. KEL has strong drilling activity and currently no debt. We have KEL in the growth model portfolio, and we like it for its diversification benefits, being in the oil and gas sector. It is a strong name with a good balance sheet and healthy profit…

In 2020, they launched Evolution Power Products, having the exclusive right to nat gas turbines, slashing customers' diesels costs to zero and reducing pollution. Demand is strong. (Customers get carbon credits as a result.) He expects E-T to triple earnings as business rapidly grows. (Analysts’ price target is $2.78)

Raised $130 million last year. Will be drilling 5 or 6 combination exploration/appraisal wells in UK North Sea before year end. Also looking at deals offshore west Africa and Brazil. Good team. High risk situation but there is downside support.

Customized, prefabricated environmental office interior solutions. High net cash position. Significant upside because of their flexible business model. Surge in office reconfiguration taking place across North America. Top management. No dividend. (Analysts’ price target is $3.46)

Has lagged the Canadian tech sector. Used to own, wouldn't be back in soon. On its recent partnership with ADBE, he tends to own the big payment systems like MA and Visa, big beneficiaries of the resurgence in the economy. 

It covers making satellites to software management. It is a great Canadian story and an example of how good Canada can be. It should grow by 30% for three years with great margins and trades at 13 times cash earnings. He is looking for a quick increase in the stock price to $50.    Buy 6 …

Large infrastructure & utilities technology.Optimization software that replaces spreadsheets.Large organizations that create recurring revenues.SAP partnership helps create new opportunities. Under the radar - not widely followed in the markets. 

They bring validation software to biopharma, and they do it well. The chart is strong. He's been adding shares. Before, they were losing as they invested in R&D, but now they're becoming profitable. He expects margins to expand quickly in coming years. When they win a client, it takes time to roll out that client.…

(A Top Pick Sep 25/23, Up 63%) It was bought out, an undervalued Canadian tech company as leaders in e-procurement in both Canada and the U.S. This stock was too cheap for too long, then KKR bought it last May. He thought the buying price was way too late.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research QTRH is now down 16.5% over the last year. Since we last spoke about it, QTRH has been awarded two contracts valued at US$3.4M for system upgrades and maintenance at commercial vehicle enforcement stations operated by the Idaho State Police. While this news is positive,…

3D holograms. A year ago, it was 12-14 cents. Fallen off the radar, such a shame. Cutting edge. Product is pricey. Lots of pharma companies use it.

Best software company in Canada. Growth by acquisition makes him pause, as things go well until that final acquisition hurts. Great job buying and integrating businesses. Growth being priced at an excessive premium. Solid growth but high, 40x multiple. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $0.365 beat estimates of $0.311 and revenues of $75.0M beat estimates of $73.218M. Sales grew 19% driven by higher subscription revenue and customer retention. Adjusted EBITDA margins expanded from 9.7% for the same period in the prior year to 15.7%. Management noted advancements…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Hut 8 is traditionally a bitcoin mining company which now has a few main operating segments; digital assets mining, managed services (infrastructure development), and high-performance computing (AI cloud computing). The majority of its revenue is from bitcoin mining (59%), 18% is from managed services, and…

Just went public in June. Plays into same space as CGI. Small minnow in big pond, but very smart. Built business on acquisitions. Interesting, because they're picking out smaller and mid-size, and they have a long runway.

Brewery. Tough for them to compete. Have a strong following in Alberta but his concern would be if their product has a strong enough niche to compete with the big companies.

Stockchase Research Editor: Michael O'Reilly We reiterate this Canadian based Pet store operator.  Recently reported earnings showed a 28% increase in net income.  The company has opened its Vancouver regional distribution centre, positioning well ahead of the holiday season.  We like that cash reserves are growing, while debt is retired.  We recommend trailing up the…

He sees it as a short. The stock has moved down for two years. The revenue growth has been impressive but not even close to profitable.

Monthly dividend of 7.75 cents. Pretty range-bound, between $12-15, for a couple of years. Looks as though it's pulled back into the middle. Steady stock, steady and mature business. More of a yield play. Yield is 7%.

Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.

Has had a huge run and is not sure he would be courageous enough to get onboard at this point. Management has done a remarkable job of building this. He would look for a little lower entry point.

It has executed very well over the long run and works on cost structures. There could be another special dividend. It has lots of real estate and wants spin off a REIT. However a lot of their properties are not in the greatest areas so the REIT may not do as well as others. You…

Affinity for a product is different from investing in a stock. Don't touch until gets above $13.50. Stock seems to be pausing and could continue dropping, which would be confirmed by a drop below $12, and then you should get out. Thinly traded is a problem, as you don't want to buy a stock you…

He doesn’t know the seasonality on this, but the technicals show that it has been in an upward trend for quite a period of time. During the last little while, it has been in a trading range between around $19 and $22. It is not unusual for a lot of stocks in the consumer staples…

Value. Leaders in frozen seafood in Canadian retail and US institutional. PE of 7x. Buying back stock, paying down debt. Increased dividend by 30% last year. Yield is 4.51%. (Analysts’ price target is $15.42)

Small player in packaging, did large acquisition last year. Growing quickly. Very cheap. If you need to own something in the space, look at this name.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research KPT is a $101.6M company that pays a high yield of 7.1%. Its valuation is decent, but its balance sheet has been contracting for several years now. It's considered a consumer staples name, but we are not very impressed by the fundamentals or financials. Decent…

(A Top Pick Mar 26/18, Up 97%) They smartly bought some spectrum rights a few years ago, and now they're on the fringe of the 5G spectrum. So the value of their spectrum rights will be realized later this year. He took profits, and would be lightening up on this now as the stock does…

No exposure to telcos at this stage. Pretty decent, high-quality name, yet stock continues to suffer. 200-day MA is falling, and stock price is below that. Stock hit 52-week low today. Technically, not a name to be involved in.May seem cheap on PE, but not a name he likes. As well, he's more a growth…

Earnings after the bell on Thursday. Completely unloved today. #1 in Canada, #2 in UK and Australia, #3 in USA. Pre-pandemic, very stable. Food services division hasn't really recovered, especially in the US. Exposed to commodity prices, industry capacity needs to be taken out, cost-cutting needs to continue.Not as high quality a business as he…

Traditional bricks and mortar business that will face competition from eCommerce. Undifferentiated shopping experience that is not enjoyable. Discretionary product offering makes it difficult to retain customers. Would not recommend investing at this time. Housing slowdown in Canada will also be hard on the business. 

Short interest was 2%, but has come down. Continues to slowly grind higher. Likes the technicals, especially if it breaks above the highs of 2023. 

It's cheap, and surprised shares haven't moved higher. They will buy wireless assets from Shaw to become the #4 player in Canadian telcos. Valuation is lower than its peers.

(A Top Pick Jan 23/24, Up 3%) Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

A great one to buy at the height of Covid. This has come back with a vengeance. Amazing Q4 report and the housing market is on fire. Factors lined up for ZZZ. They've managed debt well. It's a one-product business, though, so keep that in mind and don't pay a big PE. Their growth will…

(A Top Pick Sep 21/23, Down 7.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ACQ has triggered its stop at $23.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 16%, when combined with our previous recommendations.  

Broke the downward trend, upward trend hasn't broken. Positive when you're in an upward trend.

It is a well run company. He got out of it. They paid out a lot of special dividends and the stock did well, but he got out because most of the catalysts are out of it.

Stores may or may not be impacted by Ontario government rolling out more retail locations. The Pellers stepped down from the board, possibly planning a bid to privatize the company but he's not really sure.

(A Top Pick Nov 22/18, Up 12%)Convertible 8% 2022 bonds He owned the Yellow senior bonds, but then moved into these convertibles. Most of their revenues are in digital, but that has struggled. New management has cut costs a lot until free cash flow now stands around $100 million this year. Their EBITDA margins are…

Tariffs shouldn't be a problem. Now improving operations and margins. Juice not growing as much as in the past, due to concerns about sugar intake. Not expensive, very well managed. Not a liquid stock. For a long-term value investor.He's never owned it. Quite acquisitive in the past. Topline has slowed, hard to see how it's…

(A Top Pick Jul 18/24, Up 59.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TA has triggered its stop at $16.  To remain disciplined, we recommend covering the position at this time.  Combined with our previous guidance, this will result in a net investment gain of 46%.

(A Top Pick Jul 12/24, Up 11%) It broke out since mid-July but has been sideways lately. As long as the stock holds at lows around $44, fine, but if it breaks below that, there will likely be more downside.

This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

He bought it as a value play with sum of the parts worth more than it was trading at. They are trying to sell some of the parts. Thinks they will sell all the parts and distribute the cash. $4-$5 breakup value. It is taking longer than he thought to break it up.

(A Top Pick Jan 10/24, Down 30%) The bar wasn't high for them last year, but they still didn't exceed it. Wind performance remains an issue and the ambiguous management change caused unrest. Also, they had a problem with a sub-contractor in Taiwan where a death (not their fault) created bad press. They just hired…

By far, best performer in the space. Great growth in EBITDA, good balance sheet, great management.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Trading is thin, despite its $480M market cap. Sales had a big drop, to $114M from $159.5M, as prices declined. EPS fell more than half to $1.09 vs $2.57. Production of 24,707 fell slightly. With lower prices, the only way to improve cash flow is…

Likes the sector, lots of runway. Renewable natural gas. Governments are increasing demand. On his radar. Will look at again when risk appetite in the market returns.

Bought it for the higher yield instead of FTS. Bumps along the road, but the price has appreciated. Utilities are always levered, so as rates go up, there's more interest expense on the balance sheet and less profit hits the bottom line. Rates coming down have helped EMA's profit. Over time, expectation is that it…

Dividend investing is for 30, not  3 years, to survive ups and downs. AQN has been very difficult in the last 3-4 years. But new management has sold off their renewables business. Also, he's very positive with companies that have a lot of US business, like AQN. When a re-rate comes, things will start to…

IT is pretty cheap and he has been looking at it but there is a lot of debt. He would buy if the debt gets to where it is less than three years of cash flow. Pretty strong execution.

It got stuck above $30 and is now building a nice base. He likes this.

(A Top Pick Nov 09/21, Down 51%) The largest provider of pharmaceutical services in Canada. Growing organically and by acquisition. Has higher labour costs - margins should be compressed short term but not longer term. Good management.

It's a vertically integrated medical marijuana company that is dominant in Florida with a growing presence in the US northeast. They grow, process and sell at their own stores. They just opened their 73rd this week. They've been turning a profit since 2017 and keep posting good numbers. Too bad it trades only in Canada.

Very compelling supply/demand fundamentals. Tailwind of seniors' population growth. Retirement portfolio recovering nicely. LTC care segment in Ontario is seeing massive waiting lists. Phenomenal management team. Discount to NAV. On track to higher occupancies. Yield is 6%. (Analysts’ price target is $18.72)

This has been an extremely good performance year for long-term-care REITs. Not sure there's much more in terms of capital gains from where we are now. Unless substantial pullback, wouldn't buy now.

(A Top Pick Sep 10/24, Down 11%) (Note the short timeframe.)One of the cheapest small caps, accumulate on weakness. Pullback gives you the opportunity. Good job setting stage for margin improvement over time, not overnight. High net-cash position. Capital discipline, good insider ownership. 

Has pulled back a lot. It holds US medical property. It has suffered inflationary pressures, but will diminish in 2023 and the stock will recover. Don't sell it in the current Dutch auction.

A large position for him. They bring tech to the healthcare industry, like software. They had a previous business that they grew, then sold to private equity and finished their non-competes, and now they're doing that again with a new product that is starting to produce cash. Margins have risen to 24%, and they target…

It could become the next Paladin. It has great management and ownership along with a good outlook. It made a big acquisition in the U.S. and if the first two quarters go well the stock could go up.

Doesn't know much about this. Shied away from it for now, because it doesn't trade much. Has the potential to be a bigger small-cap healthcare company, an area that he likes.

Rather bad couple of days. Was down substantially, outside of a range. Consolidated. It broke down and is more likely to go down. $1.50 on the downside.

There's no coverage on them. They're retrofitting an old Kraft location to grow high-grade cannabis. They've suffered a lot of delays, and have had aggressive expectations. He's waiting for them to deliver results first. Look elsewhere in cannabis for now.