Descartes, Reitmans and More Earnings Reports this Week (Nov 29-Dec 03)
Earnings season is coming to an end as we approach the end of the year. This week, major banks will be releasing earnings, which are expected to be largely positive.
Here are the Canadian companies listed on Stockchase who are reporting earnings this week:
🛢 Basic Materials
New Found Gold (NFG-X) Nov 29
Exploration. A hold, with a $4.25 target. Possibility of a world-class deposit. Good for Newfoundland & Labrador, as the land is right beside Gander. No dividend. (Analysts’ price target is $4.25)
Santacruz Silver Mining Ltd (SCZ-X) Nov 29
The silver sector has had a spectacular run. He has a prejudice against small mines, because they have all the risks of the big mines, but can never make you money.
African Gold Group Inc. (AGG-X) Nov 29
Very strong management. Initial drilling in Mali is very promising. Stock was crushed, but there has been no deterioration in the company. Extremely cheap.
Canadian Spirit Resources Inc. (SPI-X) Nov 29
The reserves and potential are there. They have lots of wells to drill over a five-year period. Slow and steady. They will need to finance it. Very cheap.
Apex Resources (APX-X) Nov 30
Gave up on their play in British Columbia and has moved down to Peru. At this price and given the outstanding market cap the stock should do well with only a smidgen of success.
Minera Alamos Inc (MAI-X) Dec 01
(Market Call Minute.) Deposit looks good, but it hasn't quite the size or the grade that it needs to move forward.
Platinum Group Metals Ltd (PTM-T) Dec 01
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.…
Graphite One Resources Inc. (GPH-X) Dec 01
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.…
Aurion Resources (AU-X) Dec 01
It's an exploration play, and they've found high-grade gold in Finland. Keep in mind that other companies are also exploring, so you should own 4-5 out of 40 of these companies. Exploration is the riskiest (and most fun) part of this sector. AU's drill results so far have shown some great grades. He still likes…
Falco Resources (FPC-X) Dec 01
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…
GroMax Resources (GRO-X) Dec 01
Oil/gas in Argentina. 24% owned by management and directors. Argentina always worries him a bit because it is a difficult, stormy, strange, political kind of country. It does appear to be a very important shale deposit.
GoldQuest Mining (GQC-X) Dec 02
He likes the deposit and the CEO. They tried to finance them but Eagle beat them. You need to be concerned about the very recent revenue grab by the government of the Dominican Republic. It will be interesting to see how this works out. A great deposit and a great management team.
IBC Advanced Alloys (IB-X) Dec 02
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…
CloudMD (DOC-X) Nov 29
Pre-announced today that revenues will be higher than forecast. Encouraging, as there's significant organic growth in addition to acquisitions. Likes the strategy. Will probably be one of the few telehealth winners. Lots of strings to their bow. Good time to buy. Sky's the limit on target prices for this sector. Good long-term hold.
SIR Royalty Income Fund (SRV.UN-T) Nov 29
We are seeing lots of money going into reopening themes. Not early here. Relative to pre-covid, what is the environment? Compared to pre-covid on the 2-year chart, it looks like there is opportunity. However, it was already dipping pre-covid.
Bank of Nova Scotia (BNS-T) Nov 30
(A Top Pick Dec 03/20, Up 29%) Time to reap what they've sown in acquisitions. Continues to own and buy. Footprint in EM, so double or triple the organic growth there, though risks are higher. Well run. Undemanding valuation, compelling yield. Over-capitalized enough to raise dividends and repurchase shares.
Royal Bank (RY-T) Dec 01
Positioned well, including across the border. Dominant in wealth management in Canada. Valuation has come back to the group. High dividend yield. Likes the story.
National Bank of Canada (NA-T) Dec 01
New CEO. About as textbook a succession planning as you'll ever see. Louis Vachon leaves pretty big shoes. It's been the best performer of the big 6 banks under his tenure. New CEO has been the COO, career NA employee for 23 years, digitally savvy, ran capital markets, known to the board and investors. Business…
VersaBank (VB-T) Dec 01
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.
Findev (FDI-X) Dec 01
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.
Toronto Dominion (TD-T) Dec 02
He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have…
Canadian Imperial Bank of Commerce (CM-T) Dec 02
(A Top Pick Dec 29/20, Up 39%) Banks have massive excess capital from reserves. Very little downside from here, decent dividend yield. Not massive upside, but you can do worse than owning the Canadian banks. Beats the bond market by a mile.
Bank of Montreal (BMO-T) Dec 03
(A Top Pick May 25/21, Up 107%) They came off a depressed environment, but held good momentum entering the summer. Canada will enjoy good growth into 2022. Solid. In March 2020, you did not want to sell banks and had to look forward to the recover. If you stayed with the banks including BMO, it…
Canadian Western Bank (CWB-T) Dec 03
Working to diversify, including owning Ontario real estate. Undergoing a review to calculate capital differently which, if successful, would let them compete more aggressively on loan products. Regional banks are trades for him, in and out. Prefers this to LB.
Remote monitoring business. When people leave the hospital, they have the technology to help monitor them. Gives the ability to track and keep healthcare costs down. Continues to add more doctor groups and healthcare regions that are recurring revenue streams. $24M run rate for this year. Margin is 45%. Valuation is attractive.
Think Research Corp. (THNK-X) Nov 29
Whole telehealth sector's come down. Lots of organic growth. He still buys more at these levels. He has faith in the company and its strategy.
Spectra7 Microsystems Inc (SEV-T) Nov 29
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,…
Avante Logixx Inc (XX-X) Nov 29
Wish he had owned this before last week's earnings which were a huge surprise, including big revenue and EBITDA beats. It's in a competitive space, but they're building themselves a niche. The multiple is cheap and the trend is their friend. This can rise higher.
Enablence Technologies Inc. (ENA-X) Nov 29
A play that could be triple / quadruple. Optical chips for next, next generation. 100 Gig data rates. High risk.
Kraken Robotics Inc. (PNG-X) Nov 30
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cash position is strong despite revenues falling in 2020 compared to the large order they received in the prior year. Margins have improved. It continues to secure orders. High risk but doing many things right. Unlock Premium - Try 5i Free
Descartes (DSG-T) Dec 01
One of the leading companies for supply management. Very solid. As commerce grows and supply chains get more complicated, it will do fine. Long-term holding. Buy on weakness.
Tecsys Inc (TCS-T) Dec 01
Inventory management. Leaders in the healthcare field. Excel in complex distribution. Growing fast. Sweet spot right now.
DataMetrex AI Limited (DM-X) Dec 01
There is the healthcare side with COVID testing in Canadian film and production industry as well as saliva testing geared towards students. There is also the AI side that has good outlook. The cashflow from covid is good. It is at a lower price to market cap than US counterparts.
Memex Inc. (OEE-X) Dec 01
He hasn't heard any recent news on the company. The stock has moved up a lot lately, but is still well below past highs. Demand for company products remains huge. The CEO promises good news in the next earnings report.
Macro Enterprises (MCR-X) Nov 29
It is cheap on an absolute basis and is a play on trans-mountain. You might want to wait on macro. It is a solid name but is speculative for now.
Flowr Corp. (FLWR-X) Nov 29
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.
ZEN Graphene Solutions (ZEN-V) Nov 30
Have been buying aggressively. It is a covid and post-covid play. They produce a spray that is used on materials for masks. Ability to produce 25M masks per day come November. The product can be sprayed on filter material and attracts wet materials.
good natured Products (GDNP-X) Nov 30
(A Top Pick Dec 08/20, Down 26%) Has not had a lot of interest in small and mid cap companies. Recently bottomed and moving up now. Announced a new partnership with a big food company in the US. Would stick with it with the momentum coming back. Underlying business is strong.
Drone Delivery Canada Corp (FLT-X) Nov 30
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The Edmonton airport deal is positive and the company continues to announce engagements over the last couple of months. Revenues are still low though it has hit $450K on a trailing twelve month basis last quarter. Unlock Premium - Try 5i Free
Harvest One Cannabis Inc. (HVT-X) Nov 30
There is so much concern on quality of earnings and when the companies will be profitable. He wants to see the industry mature. He likes it long term. The health side of this could be revolutionary over the next couple of decades.
Neo Lithium Corp (NLC-X) Dec 01
(A Top Pick Sept 9/16. Down 2.7%.) Has a world-class property in Argentina and a world-class CEO who has done this before. They’ve raised money from various sophisticated institutions at about the current price. At some point, given lithium prices and electrification of cars it is going to get taken out. Highly speculative, but if…
Exco Technologies (XTC-T) Dec 01
Tremendous respect for management. Build more power and torque for EVs. Has shown its potential for commercialization. Stock recently shorted, and management responded well. Buy or wait for weakness.
DynaCERT Inc (DYA-X) Dec 01
Interesting technology, but not investible right now. A gadget that installs on commercial vehicles to reduce emissions and increase fuel efficiency. "A science project" for 17 years of R&D. Losing money, negligible revenue, diluting shares, burning cash. He prefers more established companies. One to watch down the road.
Major Drilling Group International Inc (MDI-T) Dec 02
Exposed to massive shortage of materials, especially as the world moves to electrification. A 3-5 year play. Will double in the next 2-3 years.
1933 Industries Inc. (TGIF-CN) Dec 02
Working on their CBD and THC side. They have partnerships with California companies. Was ramping up when Las Vegas closed down due to COVID. Restructuring debt. Starting to clean everything up and the ramp up of tourists in Las Vegas will help.
Medmira Inc (MIR-X) Nov 30
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…
Imaging Dynamics Company (IDL-X) Nov 30
Produces a very small x-ray device that requires no maintenance. Have not been able to increase sales. No information or earnings estimates from analysts.
dentalcorp Holdings Ltd (DNTL-T) Dec 01
Trying to consolidate all dental practices in Canada. Acquiring story, so it's kind of a growth story. Underlying business is solid. Hit in pandemic, but recession-proof and ROE is quite high. Moving into orthodontics. No dividend. (Analysts’ price target is $19.56)
SQI Diagnostics Inc. (SQD-X) Dec 01
They make life easier for large diagnostic test companies. It automates the testing process. They did a final financing. They've been working on this technology for 5 years.
Isodiol International Inc. (ISOL-X) Dec 01
He has been watching it because they are making a lot of acquisitions. Their base technology is from Hops and Barley.
Medx Health Corp. (MDX-X) Dec 02
Brazilian order? He owns warrants and his wife works as a consultant for them. They have orders for 500 units for a melanoma testing product. The delivery is subject to approval by authorities in Brazil. This could lead to hardware sales by June and revenues that begin to show up in Q4. The company thinks…
BRP INC. (DOO-T) Dec 01
He would not be a buyer right now. They had a strong run-up on demand but now there are constraints on inputs into the manufacturing process. They also had a fire recently.
Advantex Marketing Intl (ADX-CN) Dec 01
Lakeview Hotel Investment (LHR-X) Dec 01
Not a fan of lodging REITs for the duration of the cash flow and the visibility. A lot of exposure to Western Canada. Expect it will be sleepy for some time.
Reitmans (RET-T) Dec 02
He owned it at $3.81 and sold it at $3.00 and is glad he did. Management is getting old and stodgy. As the stock has been thrashed following the share buyback program, he thinks the balance sheet still looks okay, but the cash position is not as good. Last quarter they lost a lot of…
Reitmans (Canada) Ltd. (A) (RET.A-T) Dec 02
(A Top Pick Oct 22/18, Down 35%) He sold this at $3. They offered to buy 15 million shares of stock and the took the offer. He is glad to be out. Sales are falling and they have closed 48 stores. He wonders if management should be changed. Their online sales have been going up,…
Waterloo Brewing Ltd. (WBR-T) Dec 03
Allan Tong’s Discover Picks WBR stock is a small-cap, so beware of volatility, trading only 22,000 shares per day. It pays a 1.49% dividend, far smaller than a few years ago. The big reason is that share prices have soared. In the past 12 months, WBR has run from $2.98 the way to $7.99 as…
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…
Use this list wisely to identify buying opportunities.
Happy trading !!!