Stock markets have been chugging along in positive earnings and hopeful news. Earnings season is slowing down now. This week, struggling Hudson Bay Co. (HBC-T) will be reporting earnings on December 10. Steady top pick Enghouse Systems (ENGH-T) and defensive Empire Company (A) (EMP.A-T) will also report on December 12.
Here are the companies listed on Stockchase who are reporting earnings this week:
🛢 Basic Materials
IBC Advanced Alloys (IB-X) Dec 09
Awarded a tooling contract for Lockheed Martin’s F 35 jet because it is part of the optical system. The material contains beryllium which is much stronger than the existing part that is machined out of gigantic block of aluminum. A greater rigidity allows for a much more accurate setting device. Doing financing because they need…
Mirasol Resources (MRZ-X) Dec 09
Silver. Recently came out with some spectacular results. Looks like it continues to get better grades and a bigger deposit. Should give you a lot of leverage. Might be a little ahead of itself currently.
Cymat Corp (CYM-X) Dec 12
Aluminum foam has great potential. A conceptual stock. Don't expect a big earnings growth in the next year.
Sprott Physical Gold and Silver Trust (CEF-T) Dec 12
An ETF that owns physical gold bullion Everyone else uses GLD, but he uses CEF. He sees gold as the cash component in a portfolio, and not as a speculation. Banks see gold as cash, too. The problem with GLD, will he be able to access it? He doesn't know. You need at least $150,000…
👨💼 Employment Services
People Corp. (PEO-X) Dec 09
An employee benefits consulting company. It does not require a lot of capital. They have made some nice tuck in acquisitions. It is up 40-60%+ in the in the past year. He sees it as an acquisition target. It is thinly traded, but now more investors will start to pay attention to it because of…
Enwave (ENW-X) Dec 10
Dehydrated foods technology. Has had one great announcement after another. Seem to have crossed over a threshold now. Amount of money they lose on a quarterly basis is small and have about $6 million in cash.
Transcontinental Inc. (A) (TCL.A-T) Dec 12
It is one he does not own. He has looked at it in detail. On a PE and multiple basis it trades cheap and always has done. Over the long term you will be able to see them pay a few extra pennies with dividend increases. The multiple looks attractive but don't catch the falling…
Transcontinental Inc (TCL.B-T) Dec 12
Stock had been range bound for quite a while, and then broke out with a nice measured move up to $24, but could actually go higher than that. Good value and a very nice balance sheet. Dividend yield of 3.6%.
Hudson Bay Co. (HBC-T) Dec 10
Up until today, US retailers have all come back from the death spiral. So that will happen here. It has so much going for it, believes this company will bounce. Yield is 0.7%. (Analysts’ price target is $12.10)
North West Company (NWC-T) Dec 11
The business model has always been a really good one. They tend to sell in markets where competition has been more limited and prices high. Looking long term, the structure of those markets might be changing, but they have diversified. They own a number of Giant Tiger stores. They have operations in the Caribbean. He…
Empire Company (A) (EMP.A-T) Dec 12
He has a price target of $30 on this and the fair market value is only about $32. Despite the turnaround in this company it has not created a tremendous amount of value. It has a strong technical resistance point about two times book value.
Transat .A.T. Inc (A) (TRZ.A-T) Dec 12
A turn around story. Good management. A lot of cost cutting is still going on. Most costs are US$'s, but sales are in Cdn$'s, so a strong Cnd$ is good for them. Expects a share buy back.
SQI Diagnostics Inc. (SQD-X) Dec 11
Does rapid testing for clinical diagnostics. Has held in quite well. Going through an approval process and it looks like things will be okay. Leveraged earnings are pretty big. Likes the company but is not actively buying it.
Looks for and acquires undervalued Canadian companies. Uses public market valuation and private market valuation, which has a big spread between them, and arbitrages them.
Enghouse Systems (ENGH-T) Dec 12
A software company that grows through acquisition. Earnings growth is expected to be flat. ROE is 18%. Free cash flow positive. Good opportunity going forward. The market did not like the news of another large acquisition.
(A Top Pick Nov 7/13. Up 26.76%.) Have some great assets in the Edmonton/Calgary area. These are rental properties, so there is lots of room to increase rents as it is a high growth area of the country. It will continue to see good growth and good increase in rents.
Use this list wisely to identify buying opportunities.
Happy trading !!!