Boston Pizza Royalties, Charlotte’s Web and More Earnings Reports this Week (May 16-20)
North American markets continued to fall last week. In this uncertain context, investors are sure to keep a close eye on companies reporting this week.
Here are the Canadian companies listed on Stockchase who are reporting earnings this week:
(A Top Pick Mar 30/21, Down 3%) He lightened up on price strength. Market worries about renovictions. 17.5% discount to NAV, an opportunity to buy at these levels.
United Corps. (UNC-T) May 17
Westaim Corp (WED-X) May 17
(A Top Pick June 19/17. Down 5%.) The stock hasn’t done much. It is a really interesting company. They have a property/casualty insurance business and an asset management business. Both sides are in good shape and the outlook looks really good. If we get a hard insurance market, the returns on that side of the…
Boston Pizza Royalties (BPF.UN-T) May 17
Safer than a non-royalty stock? They pay out everything they earn at a 13.5% dividend yield. It's sold off sharply, because it is perceived that fast food chains will close down during this outbreak.
Hamilton Thorne Ltd (HTL-X) May 19
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…
Terra Firma Capital (TII-X) May 19
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…
Willow Biosciences (WLLW-T) May 19
Figured out a way to use an agent to produce CBD in a lab, which will make it cheaper and more consistent. Still rolling it out into the commercial space. The future.
🛢 Basic Materials
K92 Mining Inc (KNT-X) May 16
Doesn't own because of he doesn't understand the geopolitics in Papua New Guinea. This is why he prefers investing in North America whose geopolitics he does understand. Otherwise the company looks good: properties, production, metals in the ground. He has a $12.50 target and his company has this as a buy.
Marathon Gold Corp (MOZ-T) May 16
Recently upgraded the price target. A play on Newfoundland. Still bullish on it. (Analysts’ price target is $4.00)
NanoXplore Inc. (GRA-T) May 16
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
Dynacor Gold Mines Inc. (DNG-T) May 16
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Sales rose 157% at $62M. Their net income per share was $0.09 and production rose. They hold substantial cash and volume and production hit record highs. A solid quarter and the stock remains cheap. Unlock Premium - Try 5i Free
Nighthawk Gold (NHK-T) May 16
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.
IBC Advanced Alloys (IB-X) May 16
Had owned this in the past. They operate in an interesting area and have a very interesting alloy, a combination of aluminum and others. They can make and cast extreme precision parts. The company expects to be profitable in the next couple of quarters. Have done a lot of things to improve their processes, and…
Eco Oro Minerals (EOM-CN) May 16
Ascot Resources (AOT-X) May 17
He owns this. It went through a major acquisition last year to consolidate their holdings in Northern BC. This mine will become productive in the next couple of years. The issues they have had are being resolved. He will continue to hold it.
Nevada Copper (NCU-T) May 17
Recently had a permit on Pumpkin Hollow. Likes the story and the management team. The probable next step for the company would be to arrange funding for development of the underground resource. CapX is not stretched. Long-term, this is a great story.
Mega Uranium Limited (MGA-T) May 17
Very junior, although it has been around for a long time. It is basically a lot of hype and hope. They are doing some work in Australia, and virtually have no money. Nothing found to date has been feasible, that they can push it forward in a big way. He avoids companies like this like…
Fortune Minerals Ltd. (FT-T) May 17
He met with management 7-8 years ago. The difficulty is that it’s been around since 1988 and revenues have always been a difficulty. They have no production. Expects there to be quite a bit of dilution. He doesn't invest in companies without revenues.
Cartier Resources (ECR-X) May 17
Likes the managers and company. Quebec is great to explore for hold, receiving a lot of government support. He doesn't own sole-risk exploration companies, but wouldn't discourage investors from ECR.
Mag Silver Corp (MAG-T) May 18
They have probably found the richest new silver discovery in the last 20 years, in central Mexico. They own 44% of it. Given the pullback from last week, this is a great time. They don't need leverage to silver.
Forsys Metals (FSY-T) May 18
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.
Atac Resources Limited (ATC-X) May 18
Agnico-Eagle (AEM-T) came in a while ago and made a 9.9% stake in this company. The stock went up, but it really hasn’t done much since then. Then Barrick (ABX-T) came in and said they really liked the deposit and wanted to do a joint venture. This is a much better approach that is better…
Talon Metals Corp. (TLO-T) May 19
Interesting. There are two classes of nickel: good and very good, the latter used in batteries for e-cars--high demand. TLO has a deposit in Minnesota that could be fruitful in the next three years.
Almaden Minerals Ltd. (AMM-T) May 19
Emx Royalty (EMX-X) May 20
(A Top Pick Mar 05/18, Up 43%) They have been great royalties buyers, prospect generators. They have as much money now as they have raised in the 20 years of existence. He owns lots and lots and lots. In conjunction with Sprott clients probably 50% holders.
They've done financing, rising from 80 cents to $4 then back to $1. A round trip. They're opening a big cannabis supercentre in Vegas that'll probably do well, but this stock got expensive. And cannabis is still speculative. He's waiting-and-seeing.
Auxly Cannabis (XLY-T) May 16
Their model is based on getting royalties off the cannabis companies they produce. They've done some smart deals and have been able to put pressure on producers who needed money. Not sure why it moved so down today.
Charlotte’s Web (CWEB-T) May 16
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.
Titanium Transportation Group Inc. (TTR-X) May 16
He does not own it because he has a lot of TFII-T. TTR-T struggled with balance sheet issues which seem to have been cleared up. It is a wait-and-see for him.
Questor Technology (QST-X) May 16
(A Top Pick Dec 27/19, Down 49%) They make highly efficient incinerators. The methane gas pollution that other incinerators create is banned in many US states, so Questor fills this gap its cleaner ones. So, there's a huge opportunity in the States, including Texas. The company is work. Further opportunities for the, but especially in…
Green Organic Dutchman Holdings (TGOD-T) May 17
Technicals would have been helpful for the cannabis space in general. The low near $1.09 is key support, if it breaks below this watch out.
Bri-Chem Corp (BRY-T) May 17
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…
Cresco Labs (CL-CN) May 18
CURELF-N vs. CL-X. He really made a focus on the US for cannabis. He thinks the US MSOs have a tremendous amount of room to go. CURELF-N is one of the leaders. CL-X just did a deal in California, which is one of the biggest markets out there. He likes both of them. They are…
Velan Inc (VLN-T) May 18
A leader in nuclear valves. Four years ago he was activist shareholder, but the company has made great strides since then. Their turnaround plan is in full swing. Gross margins have increased a lot and they have a record backlog. Are benefitting from energy infrastructure spending and the need for more energy. Company remains way…
Karnalyte Resources (KRN-T) May 18
CAE Inc (CAE-T) May 19
Owns stock in company - gives good exposure to recovering travel industry. A lot of debt on balance sheet a result of pandemic. Profitably and margins will improve. Balance sheet will be safe as debt is termed out into the future. Will continue to own stock in the company.
ATS Automation (ATA-T) May 19
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is sensitive to broad economic growth and is likely why the shares are dragging down. Trading at 16x forward earnings and good growth is expected. Risks are most likely already priced in. Cost pressures and slowdowns are possible, but many companies, including ATA will…
FSD Pharma Inc (HUGE-CN) May 19
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.
Indiva (NDVA-X) May 19
Company has preformed very well the past 2-3 years. Low stock price not indicative of performance. Recently signed distribution agreement for vape product in USA. Indiva might be a good candidate to be taken over via M&A. Good example of a product based marijuana company. Expecting share price to increase as currently under priced.
Flowr Corp. (FLWR-X) May 20
They have a lot going on in their greenhouse and outdoor operation. They have a deal with Scott's Miracle Grow. He sold off and may buy back in.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Although the company has missed estimates in recent quarters, they added more recently. The balance sheet is strong and sales are growing. Insiders own 18%. Unlock Premium - Try 5i Free
NexTech AR Solutions (NTAR-CSE) May 16
Small cap. Acquire and develop augmented reality shopping platform. Also sell vacuums, animal health supplements. Price target of $9.05. Long list of retail clients.
BBTV Holdings (BBTV-T) May 16
Help influencers with video adoption online, getting more viewers and more revenue. NBA is a client. Growing topline about 60% per year. Equate it to what could happen to LSPD. Based on peer group, could trade in the $47-50 range. No dividend. (Analysts’ price target is $20.17)
Spectra7 Microsystems Inc (SEV-T) May 18
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Backlog reported looks better with $4-5M in revenue expected in the second half of this year. They have received a large new order from China. They also secured a $5M in equity financing. Risks are high with market cap at $28M and low volume. However,…
Intermap Technologies (IMP-T) May 18
Pretty small, not profitable. Only a 23M market cap. Radar based technology for the mining industry. Recently certified by the aviation industry. It must prove that it can be cash flow positive.
Lightspeed Commerce Inc (LSPD-T) May 19
Terrible momentum, expensive, very volatile. Negative earnings. Future is hard to predict, but he'd not be a buyer.
Heroux-Devtek Inc. (HRX-T) May 19
Has done a fantastic job. In the top 5 of navigating the pandemic. Landing gear and aerospace business. Commercial business is slowly ramping up now. Should see a string of earnings beat in the next few quarters. The margin expansion will be good. An area of the market he wants to be in. Management can…
Computer Modelling Group Ltd (CMG-T) May 19
Very profitable. ROE is around 30%, and has been high for a long time. Company has never used its potential to expand the business faster. Great value, but buying back stock at a high valuation. Go elsewhere.
Quipt Home Medical (QIPT-X) May 16
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenues have grown 41% since 2020 at $102M for 2021. 10% organic growth. Operational metrics are impressive that sets up the company well for future recurring revenues. Still some runway left, trading at 22x earnings. The balance sheet is healthy with net cash. Unlock Premium - Try 5i…
Else Nutrition Holdings Inc. (BABY-X) May 16
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A plant-based baby nutrition company. Deal with Walmart has been positive development, giving them higher exposure. Trading at 15x sales, which is expensive considering the current revenu base of $1.8M. Has had a good quarter. Balance sheet looks good and sales should see strong growth.…
Acerus Pharmaceuticals (ASP-T) May 16
Good company. In some interesting spaces in terms of hormonal stuff. They are on the search for a Viagra for women. The numbers into 2016 are looking pretty good. He wants to see one or 2 more quarters, but if they keep doing things the way they are, it is a name he would be…
Skylight Health Group (SLHG-X) May 16
(A Top Pick May 11/21, Down 86%) Still likes the company, however doesn't own shares (even though recommends it). Thought there would be more growth in stock price.
Cardiol Therapeutics INc. (CRDL-T) May 17
COVID-19 heart issues? The company makes a synthetic CBD. Their original work saw CBD helped to reduce inflammation of the heart. It is expected they will start to re-purpose their product for COVID patients. This would help accelerate testing by about 2 years. This could lead to product being sold in Canada very quickly. A…
BioSyent Inc (RX-X) May 18
Licenses existing drugs with a smaller customer base from companies outside NA. Interesting new product that combines Advil and Tylenol in one dose. Market's underestimating how this will impact top and bottom lines. High and consistent ROIC, buying back shares, undervalued, free cashflow yield is 6%, founder run.
Ceapro Inc. (CZO-X) May 18
He was stopped out over a year ago. They are an emerging compunder, but didn't like their weak disclosure. He stopped looking at this. Watch your allocation size for stocks like this, because they can soar or plunge.
He knows it very well, back to when they were private. They continue to build out. If they can allocate capital well, resulting in animated programs that are well-syndicated, then they should do well. If not, then this will be a lumpy stock. He needs to research them more.
LXRandCo, Inc. (LXR-T) May 17
They pick up vintage, expensive handbags they find in Asia then sell them here in kiosks. Interesting business, but has performed poorly. He didn't buy it.
GFG Resources (GFG-X) May 17
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…
Orca Exploration Group (B) (ORC.B-X) May 19
ONEnergy (OEG-X) May 17
Just Energy Group (JE-T) May 18
They sell energy contracts. They have under gone several management changes over the years. He is not a great fan of this business model.
Use this list wisely to identify buying opportunities.
Happy trading !!!