Most Anticipated Earnings: IFC-T, MTLO-X and more Canadian Companies Reporting Earnings this Week (Feb 10-14)

Excellent company. Trades at 18x cashflow. FRU is cheaper at about 9x.

Over 90% of rents come from Canadian Tire, secure cashflow. Over 99% occupancy. Internal growth has contracted, but this is short-term. Perhaps only 2% capital growth, but a safe distribution. Yield is 6.5%.

Earnings per share growth rate this year and next year is 18%. Wait for a pullback.

Aims to own the finest grocery-anchored real estate across Canada. High quality. He thinks it's the best globally. 30% discount to NAV. Get paid to wait while the value gap closes. Goal is to grow earnings and NAV by 3% a year for 3 years. Defensive plus growth. Yield is 5.3%. (Analysts’ price target is…

Apartments on both sides of the border. Always trades at wide discount to NAV, a good starting point when you invest. Nice portfolio. Keep holding if you own, but better ideas out there. Nice distribution of 5.5%.

Over time it should get back to $88. Life insurance companies have less exposure to tariffs and recession than banks. Banks are more vulnerable to rising unemployment. Near term, life insurance companies are better buys than banks but longer term banks are better.

All insurers are doing well. They have some P&C business in the US which is volatile--beware. But has no problem with this.

Core holding in portfolio. Tenants include Loblaws and Shoppers Drug market which is very good for stable cash flow. Excellent pick for long term investors (10 years or more). Expecting further development in industrial properties. Lots of room for the company to experience growth. 

Very attractive dividend, especially for large caps. Walmart anchor tenant which is very good for business. Stable business that could only get better. 

Would recommend holding. Majority of portfolio in sunbelt states like Arizona and Texas. Would expect income to increase as more people move to warmer Southern areas. Good balance sheet that allows company to maintain dividend payouts. Expecting better times for company ahead. 

Reports on November 5. Now trading at an interesting level, over 15% discount to NAV. Fallen perhaps because of announcement on immigration being curtailed. 60% of portfolio in Atlantic Canada, actively diversifying in Ontario and BC. Likes that 44% of assets are not subject to rent control. Expecting results to be good. Stay the course.

Its apartment assets are in the Netherlands where there is a shortage of housing units. It has very high margins, trades at a big discount to NAV and has 4% rent growth.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trading at high discount to NAV. Significant cash retention compared to peers. Diversified cash flow streams. Bid competition to slow acquisition growth.

Large ownership of US properties. Too small to own at this point, but very cheap stock that could have a lot of value. 

Owns shares in company. Founder led with very strong management team. Recent share price weakness created a buying opportunity. Discounted relative to peers. Good alternative to Canadian bank stocks. Would recommend holding for the long term. 

(A Top Pick Dec 14/23, Up 54.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DFY has triggered its stop at $56.  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 37%.

One of her 2 picks in the space, as warehouse and residential growth outshine retail REITs.

Wonderful company. Fantastic operator, very good risk manager. Delinquencies on credit cards, rising bankruptcies, and overall economy suggest more credit defaults. This will hit the non-prime customers of GSY more. But that could be your opportunity to enter the stock, as it'll benefit on the other side when the economy starts to expand.

Good pop, but now legging lower. Important support around $30, so don't add yet. Wait to see if it can hold that level; if it can, he'd be more comfortable adding. Other insurance names are quite strong, so a relative underperformer is a warning flag.

(A Top Pick Sep 10/24, Down 0.5%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with PMZ.UN has triggered its stop at $18.50.  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 4%.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research In Q4 – 2024, CGY reported a revenue growth rate of 3%, with revenues reaching $181M compared to last year’s $175.9M. Adjusted EBITDA margin improved in the quarter to 12.5% from 11.6% last year. Overall, these were acceptable numbers but not that strong, revenue growth…

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)

Fortis owns 60%. Challenge is that hurricane comes through every once in a while. Good system. Rates of return are higher than you can get in Canada. He owns Fortis

FTS vs. EMA EMA is his choice. Bumps along the road, but the price has appreciated. Rates coming down have helped EMA's profit. Over time, expectation is that EMA will be the better choice over FTS. 

Good job overall, well run. Exposed to some of the AI trends. Sizable competition for what they do. He's conservative on whether it can differentiate itself in the coming years. Must show it can get the big, multi-year contracts.

(A Top Pick Mar 08/24, Up 43%) Pullbacks are great opportunities to add. Continues to invest in R&D. Payments is a big growth vector, still available in only a handful of countries. Secular rise in e-commerce still has room to run.

Spiked up on the close last week. Everything looks really good about this for the long term, everything says you should own some. RSI against S&P since 2022 has been really good, up and to the right. Buy some today with a partial position, then add a second component on a further breakout, and a third.…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenue grew 57% YOY despite soft results in Q4 2021 relative to expectations. A strong second half of 2022 financial year is expected. Holds $8.5M in cash. In talks with Microsoft for a deal. Continues to trade at relatively low valuation. Results were not spectacular…

Chart shows a neckline ~$22.50, and it's trying to break that. You'd probably see some of the momentum indicators hooking up on the nice move. Struggling a bit at that $22.50. If it breaks out, very good news. He wouldn't buy until it broke out.

IT services and support style business model. Company not performing well in the markets. Debt also a concern. Would not recommend investing. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Under activists' pressure, the CEO has decided to step down, which was likely because the company decided it was going to lose anyway in the upcoming special shareholders' meeting. DND says it has received expressions of interest from ''inbound parties', at 'attractive premiums' but has…

Sold because its ROIC returns started to get a bit wonky. In fact in last 3 years, ROIC has been negative. Satellite internet access has eaten the lunch of fibre. Hard to form a moat around its domain business. Wait for ROIC to be in excess of 20% for at least 3 years in a…

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.

New technology officer. Early stages. Wait to see what happens.

Reasonably well-tied to commercial construction. Fantastic job dealing with uncertainties. Likes the business and management team. A bit too big for him, as it's about to exit "SmallCapLand". If you own, decent time to add.

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

(A Top Pick Jan 14/21, Up 35.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with OGI has triggered its stop at $3.00. We recommend covering the balance of the position at this time. When combined with the previous recommendation to cover half the position, this results in a net investment gain over 46%.

Garbage is boring and a beautiful business. Looks poised to break out to new highs. A boring name with strong technicals (price momentum, RSI, and whether institutions are buying or selling). Price momentum is improving and, especially, trading above 50- and 200-day MAs. RSI is reaccelerating. Strong technical setup, with a good fundamental idea. Yield…

(A Top Pick Oct 17/24, Down 6%) (Note the short timeframe.) Chose this based on historical seasonality for lumber. Surprised those stocks aren't acting better, especially since the California fires.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research ADN may be better positioned to navigate trade tensions between Canada and the US. It mostly focuses on timberland ownership, and it does not own processing facilities. We could see the name being slightly negatively impacted by any tariffs, but overall, we continue to focus…

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They make simulators for both commercial planes and fighter jets. That's how he's playing increased defence spending in Canada.

Grown by acquisition quite steadily over the years. Very good company and it won't hurt you, but he owns TFII instead.

It has a higher level of production in the U.S. so would be less affected by tariffs than other Canadian lumber companies. The U.S. needs Canadian lumber and one quarter of production from B.C. goes to the U.S., -  but lumber is still needed for B.C.

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.…

(A Top Pick Jul 05/24, Down 4%) Most of the drop has to do with the tariff situation. Recent numbers were really good, great balance sheet, amazing footprint, global manufacturing powerhouse. Nice dividend.

Airline stocks are not long-term holds. Travel is discretionary, especially for pleasure. Most profitable part is business travel, which won't make a full recovery to pre-Covid levels. Air travel to US is suppressed. CAD at this low level doesn't bode well for overseas purchasing power. Massively leveraged balance sheet, plus looming tariffs.

Also a Lundin Group company. Consistent in buying back shares. Stock's substantially undervalued. Heavy oil producer. Potential beneficiary of de-bottlenecking Keystone. No dividend. (Analysts’ price target is $20.27)

Coming into the time when you want to own energy, between mid-February and May/June. Chart shows it's at, or maybe below, support. He'd need to see a bounce to be bullish on it. Watch for another 2 weeks or so; if it breaks down, you have to get out.

It is suffering much more than energy stocks in general. If it breaks $6 then buy for a swing trade.

(A Top Pick Apr 02/24, Down 32%) He exited at a profit. Services have been selling off when gas/oil was recently weak. The problem is that drillers have gotten too efficient. That said, this is looking tempting, trading at 3x EBITDA and 32% free cash flow yield.

Chart's looking pretty good, broken out from the December downtrend. Initial resistance would be close to the previous high of $48. So far so good, nice breakout.

A small cap. Can't buy it because there's not enough volume for him to analyse. It's breaking down after holding up during market problems. If it holds above $3, that's great, but it may decline below $2.80. It's starting to come down. Be careful here. Next support level is $2.60 which is your exit point.

Oil price doing a bit better. Pipeline/utility mid-cap part of energy has done extremely well, holding up better than the producers. Great run second half last year, now sideways range. This is normal consolidation. Acting extremely well, very well supported, picking up within its current trading range.

Defensive. Pays a 4.8% dividend. Natural gas demand will endure. No tariff worries. Data centres need power, and he doubts tariffs will impact Canadian energy supply. (Analysts’ price target is $71.18)

Part of syndicate that brought company to markets. Financials in China a little opaque, but company has been generous to shareholders through dividends and buybacks. Would recommend buying. 

This company has been around for 20 years on the Venture exchange. It has no revenues and has a couple of properties, one in Quebec and the other in BC. I questions how many investors have made money on this. He has no interest in this one.

Ran into a real meat grinder with an African government (a military dictatorship). Shows the difference between those jurisdictions that are safe and those that aren't. Has NA holdings too, so it's not the end of the world. Stock's cheap. Not a bad buy if gold keeps on moving (which he expects).

Whole bunch of decent assets, including a new one in Ontario. Stock will either go up of its own volition, or get taken over. Stock's performed well due to good cost containment. Good production growth and pipeline. Firing on all cylinders.

It is in the metal fabrication business. They just raised their dividend this year and have dramatically changed their balance sheet for the better, so it is in much better shape than in past cycles. They also have a U.S. operation and have done a great job managing their working capital. Tariffs could hurt them…

A cheap play in the space. See his Top Picks.

Does not own shares, but thinks deposits are very good. Would recommend waiting to see if assets are able to produce economically. Also, hard area to produce with geopolitical risk. Regional politics also troublesome. 

Be cautious of very long timelines. Extremely high-grade copper deposit. Political winds are against it, as US government denied funding for access roads. First Nations are solidly in favour of the project. Own it for the extremely high potential value.

Fiji is an interesting place. They have raised $85 Million last year when it was tough. If they get this thing going it will build up confidence. They are putting a relatively small scale gold mine into production while doing exploration. They should eventually get bought out.

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…

Ranks #1 in the head-to-head battles. Doing the best out of all the Canadian stocks right now. Trending up, and gold has broken through $3000. Continues to outperform, hasn't seen a 3-box reversal at all. Yield is 1.54%. (Analysts’ price target is $154.82)

Dundee is nowhere as large as Barrick, Franco Nevada or Agnico Eagle, which comprise a third of the Canadian materials sector, but it has outperformed it so far in 2024. Dundee shares have rallied 8.5% in this time period while Barrick is down over 16%. Also, Dundee holds more potential upside. Consensus sales estimates are…

Not his cup of tea. Doesn't own the actual real estate; instead long-term leases, but CGX has to spend the capital. Very capital intensive, and it's not even in control of its own destiny. He and his wife usually just stream content happily at home.

Quality management lets you hold a name for a very long time. New chairman turned around DPZ, hired to do the same here. Hasn't yet happened, spending lots to remodel Burger Kings. Tim's and Popeye's doing well. Tough macro. Cheapest in the restaurant space.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Debt becoming a concern. Delivery and take-out only sources of sales. Special dividend paid this quarter. Dividend reinstated at a lower rate.

Ace Beverage acquisition got him interested. Some really nice growth coming, but not all segments are growing. So it's not going to give him the consistent 10-15% growth rate of a great company. Last quarter showed 9%.

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…

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. 

Just OK. Better-managed retail out there. Essentially, everything it sells is a discretionary purchase. Also susceptible to tariff risk. Recent retail sales report in Canada shows slowing. Sidestep this one.

Used to be a good "compounder" (~20% annually). However, growth has slowed to around 10%. Is watching, but not investing at this time. 

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.

(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…

A cash cow, owning many TV channels and make movies. But shares are down, because it's a small cap and there's pressure on TV ad revenues. Still cheap. Quebecor owns 70% and could easily privatize it around $5-6, which he thinks will happen one day. Generates a lot of cash. For patient investors only.

Very positive on the stock price, the company, and the partnerships they're announcing. Technicals indicate the stock may head toward 90 cents, but he says higher. Just won a contract from the Ontario government. Covid testing isn't going away. Sales should triple in the next 12 months.