The markets saw a week of rallies last week with S&P and Dow closing on record highs. Energy and materials have been performing particularly well. Analysts are optimistic for another week of gains in the markets.
This week, earnings season continues with Rogers Communications (B) (RCI.B-T) and Metro Inc (A) (MRU-T) reporting earnings mid-week. Canadian Pacific Rail (CP-T) along with a handful of other will report towards the end of the week on April 21.
Here are the companies listed on Stockchase who are reporting earnings this week:
PrairieSky Royalty (PSK-T) Apr 19
Likes royalty because there is less business risk. However, it is not risk free. Probably a good buy on dips. The reflation trade is interesting. For the next 6-12 months, it is okay for a trade.
People Corp. (PEO-X) Apr 19
(A Top Pick Apr 24/18, Up 21%) Organic growth is 9-11% annually for the least few years, excluding acquisitions. Impressive. They just had a great quarter. They're doing the right things and setting themselves up to be the premiere benefits company.
🛢 Basic Materials
Bear Creek Mining (BCM-X) Apr 19
Has it in his special opportunities portfolio. Their mine in progress in Peru is very interesting. He has raised his target to $6. A speculative buy. One of the largest undeveloped projects in the world. Continues to add when the allocation drops. Waiting for it to surf. (Analysts’ price target is $6.00)
Galantas Gold Corp. (GAL-X) Apr 22
A tricky one. Have a very small mine in Ireland that they are trying to put into production as well as a small jewellery division. There is no clear indication of what they are trying to be. Gold deposit is very small.
Goldmining Inc (GOLD-X) Apr 23
Well-run. When the gold price moves, this will too. Own it if you believe this will happen and are patient. Long-term.
Graphite One Resources Inc. (GPH-X) Apr 23
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.…
(A Top Pick Apr 04/19, Down 90%) He has been surprised. He likes the sector. He thinks there will be consolidation of the licenses in Ontario and this company can capitalize on it. It is a sector he is watching to get back into.
Canadian Pacific Rail (CP-T) Apr 21
Transports within industrials have been great performers. Great way to play the economic cycle. Bottlenecks in logistics getting product to market. Global stimulus should see an economic boom. Rails have a great business model, and CP in particular looks attractive. KSU deal would be additive to earnings. If they don't win, stock price will go…
Mullen Group Ltd (MTL-T) Apr 21
Has always admired management execution. Successfully transformed from oil to general trucking. He'd be interested if it traded 10-15% lower. You could buy, tuck it away, and hold for a long time.
Aecon Group Inc (ARE-T) Apr 22
Has a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price…
Precision Drilling (PD-T) Apr 22
(A Top Pick Feb 12/20, Down 9%) He used to own 5% of the company and made a 40% profit in a few months--but he sold it way too early. Give this lesson, now he'd rather sit on oil names and ride it out, or else he'll miss the upside. Companies like this won't spend…
He thinks there is a good chance the acquisition of Shaw will go through. They could increase their dividend over time. It is a long duration asset. He likes the sector in general. (Analysts’ price target is $70.73)
Metro Inc (A) (MRU-T) Apr 21
MRU-T vs. EMP.A-T. Metro has been his favourite grocery stock for 15 years. Grocery are the stay-at-home stocks but as we exit the pandemic this is not where you want to be. Don’t buy until the rotation is completed.
Use this list wisely to identify buying opportunities.
Happy trading !!!