Most Anticipated Earnings: NTR-T, ONEX-T and more Canadian Companies Reporting Earnings this Week (Feb 17-21)

Opinion about CJT-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $1.62 beat estimates of $1.02; revenue of $250M missed estimates of $255M. EBITDA of $80.8M matched estimates. Revenue rose 8.1%. Earnings rose 56%. Commentary implied that 'more goods would be coming into Canada from around the world to mitigate the…

Opinion about FAR-T: (A Top Pick Jan 15/24, Down 6%) Didn't meet his expectations last year. Revenue growth was softer. Company exited higher-risk jurisdictions to focus on more stable areas. Management's doing well, financials are good. Watching to see how well it penetrates US market. Still likes it.

Opinion about CRP-T: (A Top Pick April 3/14. Down 12%.) A fully integrated agricultural company with a railroad to their elevators along with production of legumes and wheat. Thinks it should deliver quite nicely this summer because of what is going on in California. Feels drought is going to haunt us from a food inflation…

Opinion about SECU-X: They do physical and cybersecurity. A very small-cap, early-stage company. If they execute in the next 2-3 years, they will be great.

Opinion about BU-T: Extracts protein from vegetables like canola, peas, and soy. Has 285 patents. There is negligible revenue despite the company being around for more than 20 years. Difficult to apply fundamental analysis. Too speculative for him. Need to see revenue and profit.

Opinion about NTR-T: World's largest crop-nutrient business. Upstream production is vertically integrated with downstream retail. Gamechanger for him is that commodity price has bottomed for potash, nitrogen, and phosphate. Cash crop commodity prices are also slowly improving. Management changes. Operational changes to improve profitability. Trading at 1.1x book. Good luck tariffing potash, as the US produces…

Opinion about TFII-T: They operate in the US and Canada, but don't ship a lot across the border. But it's projected that there will be 60% fewer Chinese goods reaching the LA port in a few weeks, so this will be a real lull in shipping. If you can wait for a possible long period…

Opinion about CCL.B-T: Its businesses depend on consumers, so some growth might be capped. Pullback could be a time to look at it, but has already done pretty well over the medium term. Steady-eddy with potentially high valuation. Keep an eye on.

Opinion about CHR-T: Owns shares in company. Has done well the past year. Expecting further upside going forward. Dividend is expected sometime soon. Subcontracting business from Air Canada very good for reliable revenues. Price multiple not as high as it should be. 

Opinion about ECO-T: He is one of the largest shareholders in this. They now have 2 commercial mills up and running with their DuraBind products. They make the binding that goes into IKEA-like furniture. Not into IKEA yet, but there is a good chance they will be. IKEA has announced that they want all their…

Opinion about DRT-T: Customized, prefabricated environmental office interior solutions. High net cash position. Significant upside because of their flexible business model. Surge in office reconfiguration taking place across North America. Top management. No dividend. (Analysts’ price target is $3.46)

Opinion about CFP-T: Homebuilding stocks in the US have been going straight up, but Canadian forestry stocks have been going the other way. WFG has done the best in holding its share price.IFP and CFP have really started to bottom on the charts. He hasn't done enough digging to know who has a better earnings…

Opinion about SVI-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research SVI operates in a structure relatively similar to a REIT but is much more growth-focussed. It needs to utilize debt in order to be able to grow its portfolio of assets which it rents out. It has also grown primarily via acquisition.…

Opinion about CAS-T: Huge new facility is coming onstream, and fundamentals in containerboard are more solid than in the very competitive tissue market. Facility over budget, so will take a while to get a return. Focused on debt reduction.

Opinion about SXP-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 9c missed estimates of 17.5c; revenue of $72M missed estimates by 2%. EBITDA missed by 11%. SXP is down significantly over the last twelve months by ~42% and recent earnings pointed towards declining profits and revenues. Revenue fell $6M. Earnings…

Opinion about CFX-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research CFX has been on a steady downtrend. Revenue has been in decline over the last two years, free cash flow has gone negative and it has been operating at a net loss since 2019. Debt has been increasing as well and net…

Opinion about TBL-T: There were a couple of subtle things went on with the trust conversion which discouraged a lot of investors. An illiquid stock. Most of their exposure is in B.C. and Alberta where housing is still very strong. Thinks we're at the peak of a cycle so don't have it as a long…

Opinion about GCL-T: They own a series of food distribution businesses. It appears they are not making any money from them. It appears to be a scale problem.

Opinion about IAG-T: (A Top Pick Nov 13/20, Up 33%) Has started buying back shares and paying dividends. Financials should do well as the yield curve steepens. Valuation is not as compelling as before. Middle of the pack. Has moved to US banks and non-financial banks in Canada.

Opinion about REI.UN-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We think REI will be able to manage HBC's exit. The valuation is quite low at 9X cash flow, and, all things considered, the units have held up relatively well, down 6% YTD and up 2% in 52 weeks. The distribution was…

Opinion about DIR.UN-T: Industrials have a question mark over them, but if this ETF gets cheap enough, it's a strong long-term buy. It pays a lot of income. Industrial REITs 6-8 months ago were unattractive and expensive, but now should be on the minds of income investors. This could fall to $9. Good managers.

Opinion about MFC-T: Why doesn't it get more traction? The insurance business, in general, is not expanding dramatically. You get the nice dividend, which means they're not investing in the business. And they don't invest in the business because there's really nowhere to put their money for a high ROIC. Highly regulated, higher interest rates…

Opinion about CRR.UN-T: Looks quite good. Probably a good place to step in. The $13.50 level has had a lot of touches and a lot of support. Buy part now, see what happens. If it starts to accelerate from $13.50, buy more -- it's acceptable to pay more for something.

Opinion about DRR.UN-T: Focused on assets in US. Has never traded above its IPO price. Pursuing strategic alternatives; if you own it, see how those go.

Opinion about BEI.UN-T: Affordable + non-regulated. So when inflation hurts its operating expenses, it can raise rents. Alberta's enjoying above-average population growth. Market's overly concerned about economic impact on Albertans. Yield is 2.44%. (Analysts’ price target is $81.15)

Opinion about AIF-T: Are now a pure-play tech company after selling non-tech businesses. With that cash, are buying back shares. They globally lead in software for data analytics valuing and monitoring commercial real estate assets (banks, insurance companies and property managers are clients). 75% of revenues are recurring and high margin. Trades at a huge…

Opinion about MRC-T: NAV materially higher than share price. Doesn't see catalysts for NAV increasing, so discount will continue. Asset base is mainly retail and office, sectors that are somewhat out of favour. Earnings potential not great. Higher than average cost of debt.

Opinion about LFE-T: This is a seasonal period when Lifecos in general tend to do well. This is a special vehicle where they buy a lifeco, split it up and give the capital appreciation to one half, and the dividend to the other half. Dividend yield of 19% is extremely high, and he is having…

Opinion about ONEX-T: (A Top Pick Dec 31/24, Down 4.4%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with ONEX has triggered its stop at $108.  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 6%.

Opinion about CIX-T: (A Top Pick Sep 11/24, Up 81%) Taken out at $32.

Opinion about SII-T: Most investors need some help investing in natural resources. Sprott is a brand name for natural resources, in physical trusts and in equities management. You get the same diversification as a mutual fund, except they pay you a dividend instead of you paying them a fee. That's pretty good math 😉  Yield…

Opinion about MKP-T: Lending in real estate finance. Very interest-rate sensitive. If you think interest rates are going to rise, as in 2022, then it will underperform significantly. Will do better if rates fall. Thinks the BOC has a bit more to go on that, so there could be a bit more upside.But the stock's…

Opinion about GEI-T: Name to look at in the same space as FTS, but at a much better valuation.

Opinion about TCW-T: High beta service name, so can be volatile on a tweet. CEO is honourable, respected, and a good operator. Healthy stock buybacks have supported the stock. Net cash lets them survive anything. May see weakness in FCF. He's cautious on the services sector, owns none right now.

Opinion about GXE-T: Company share price is reflective of lack in interest in small energy names (market cap too small). Company needs to sell itself in order to generate value. Better options for investors out there. 

Opinion about OBE-T: Not a good investment with current management team. Other energy companies available with better opportunities.

Opinion about NXE-T: Uranium stocks have been pulling back since November, before the market started to correct. Technically in the near term, they're all broken. Long-term picture is excellent. Don't add here, until you see something change for the better.

Opinion about AAV-T: One of the worst energy names. The CEO and board did one of the word acquisitions in history. When the market wanted natural gas, they added liquids exposure. Are the worst-performing nat gas stock in North America. No upside. An activist has put members on the board.

Opinion about SSL-T: Mistakes in capital deployment were made about 3 years ago. Believes Turkiye mine will go into production, and cashflow will really change this company. Now using FCF to pay down debt rapidly. Either share price goes up, or company is taken over.

Opinion about SSRM-T: One of the most senior producers of silver. Silver is better than gold, as the bulk of silver production comes from copper mines. Silver just crossed $24, and there's lots of upside. SSRM has a $28 price target. He wants something that will benefit once inflation is realized.

Opinion about ORV-T: He owns it around these levels. They have mines in Bolivia and Spain and looking to acquire in Argentina. The property they just bought has costs of $500-$650 per ounce of gold. He is concerned about the revolving door on management. He does not know where gold prices are going to go.…

Opinion about IVN-T: (A Top Pick Jul 19/23, Up 51.83%) Still likes it, given where we are in the cycle. Copper still has some room to run. Consolidating here, but expects it to break out to new highs either this year or early next. Same applies to TECK.B.

Opinion about AGI-T: Likes this name in its space. His guess is that in the next month or so, Trump's going to roll back a lot of stuff and the economy will be better. So areas like gold are going to sell off.

Opinion about PAAS-T: Sold off aggressively after acquisition. Reasonably good job paying down debt. Guatemalan assets will probably restart in 2024. He notes that he's a close personal friend of the CEO.

Opinion about CS-T: Emerging play in South America. Not the quality asset of a FCX, but it is safer. He's not a mining expert, but thinks there's some money to be made here.

Opinion about OR-T: Not to be confused with Osisko Mining, OR-T is a pure-play royalies streamer in precious metals, and minerals have been hot on the TSX so far this year. OR-T is up nearly 19% or three-fold the Toronto index's performance. As gold makes new highs almost every day, OR continues to shine. It…

Opinion about HBM-T: They operate in less politically risky areas like Peru which is expanding, and are not in Africa, and a copper mine in Arizona. Also will develop a project in Alberta. Today, they reached an agreement with the Cree Nation in Alberta--good news. Copper is needed for electricity production and we will likely…

Opinion about BTO-T: Longtime shareholder and friend of founder/CEO. Behind schedule and over budget on mine in northern Canada. Very remote location, logistically challenged. If that can get resolved, expects stock to be much higher. Stock's extremely cheap from a sum-of-the-parts point of view, but there is completion risk (which, ironically, you can't quantify until…

Opinion about PRU-T: It is low grade and they have had issues getting it to make money. It probably won’t make a lot of money ever unless the price of gold goes up.

Opinion about NGD-T: Collection of Tier 2 assets. Never been fond of Ontario assets. He likes higher quality. Could do very well with a rising price for gold, which tends to favour the marginal over the lower-cost producer.

Opinion about TXG-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TXG is a small-cap gold producer with assets located in Mexico. TXG has generated decent cash flow over the last few years with strong organic growth. The company has been reinvesting heavily back into the business through capital investment. Therefore, TXG does…

Opinion about TKO-T: Does not own shares. Prefers companies companies with lower costs and higher return on capital. 

Opinion about NGT-T: Gold's done well. She typically doesn't invest in commodity sectors. If you want gold exposure, her preference has always been AEM or FNV.

Opinion about TECK.B-T: They dropped their coal business to become a pure metals play. The company has changed. They're pulled down along with industrials, given tariffs. Now is a buying opportunity. He might add to his holding.

Opinion about CCO-T: Think of it as a core position in a Canadian context. Uranium has really come into its own. Outside of speculative companies, is the best low-cost producer. Nuclear servicing via Westinghouse purchase. Not something you need to jump into with both feet today.

Opinion about LUG-T: Highly ranked stock acting extremely well. RSI doing well. Stock's currently in an uptrend, and gold is trending upward. Gold is consolidating around $3000. 

Opinion about IMG-T: The question was on Iamgold and Teck Resources. IMG has declared some good news from its Quebec mine and Teck has more copper production with gold as an add-on. However both operate in some places that are less politically agreeable. He likes the gold sector but prefers bigger and more diversified companies…

Opinion about ELD-T: (A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ELD has triggered its stop at $13.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous recommendations.  

Opinion about CXB-X: Does not own shares, but could be a good option for short term traders. Unsure on direction of company. 

Opinion about AG-N: A fan, but doesn't own. Recent acquisition will help use free cashflow against tax-loss carryforwards. Won't buy until he sees resolution of issue at Jerritt Canyon. Big fan of CEO and track record.

Opinion about CG-T: It's good to be in gold now, and CG is one of the cheapest gold stocks. They've diversified their portfolio geographically, which is good, but this stock always bounces around.

Opinion about MND-T: They had three working mines, now two. When you have a major catastrophe in a mine, people often jump out. This company has been around for years and years. That shows a certain staying power. He likes to invest in companies that have been around for at least 10 years. He doesn’t…

Opinion about ODV-X: It's time will likely come, but he has a hard time understanding the geology of the project. He doesn't own stocks where he doesn't understand the geology. He holds OR instead. 

Opinion about FPC-X: 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…

Opinion about LUC-T: The company has suspended its dividend. They operate diamond mines in South Africa. They are looking into underground, from open pit. The cost is more expensive than thought. The price of diamonds has been reduced, though retail prices won’t change.

Opinion about GIL-T: With tariffs, could see the price of clothing go up. As Springsteen sang, textile jobs are not coming back to NA; clothes will still be imported. Impact on the clothing industry remains to be seen. Thinks prices will go higher, but people still need to get dressed. Onshoring will be a multi-year…

Opinion about TBRD-X: 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.

Opinion about L-T: Has held in remarkably well; considered a defensive name when markets turn volatile with risk of economic slowdown. Traffic gravitated to its discount banners. Pharmacists' roles have expanded at SDM, which also helps drive traffic. Plans to open more pharmacy-based clinics across Canada. Executing very well. Not inexpensive at 22x forward PE,…

Opinion about QBR.A-T: It's cheap, and surprised shares haven't moved higher. They will buy wireless assets from Shaw to become the #4 player in Canadian telcos. Valuation is lower than its peers.

Opinion about QBR.B-T: (A Top Pick Jan 23/24, Up 3%) Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

Opinion about TGO-T: (A Top Pick Mar 26/18, Up 97%) They smartly bought some spectrum rights a few years ago, and now they're on the fringe of the 5G spectrum. So the value of their spectrum rights will be realized later this year. He took profits, and would be lightening up on this now as…

Opinion about ENW-X: He owned the stock years ago. They dry things like food. They are now getting into the marijuana space. It has done very well lately but if they are going to get meaningful contracts, they are going to do well.

Opinion about BHC-T: Kudos to the new executive at delevering and cleaning things up. Inexpensive valuation. Still a lot of debt. A turnaround story. 3% of your portfolio is a bit heavy. Add some diversity. Had a great move. Be cautious.

Opinion about SIA-T: Demographics is a huge tailwind. LTC component is a steady business and government-controlled; transitioning a bit away from this. Canada-only. The 85+ demographic is expected to triple in the next 25 years. Yield is 5.6%. (Analysts’ price target is $18.58)

Opinion about PHA-X: They are like an Uber for healthcare staff: allows hospitals to quickly hiring nurses for hospitals, and PHA transports patients and staff. Not well known. The problem, is that haven't been able to expand outside Quebec--and he's looking for this. That said, you can own this now.

Opinion about JWEL-T: Good business, decent ROIC. Multiple's not inexpensive. Lots of retailers are available under 13x with great ROIC. He continues to meet with management.

Opinion about INE-T: This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

Opinion about H-T: (A Top Pick Jul 12/24, Up 11%) It broke out since mid-July but has been sideways lately. As long as the stock holds at lows around $44, fine, but if it breaks below that, there will likely be more downside.

Opinion about TA-T: Stockchase Research Editor: Michael O'Reilly TA holds a basket of high-quality power generation facilities including renewables.  The company is prudently using some cash reserves to aggressively retire debt and buy back shares.  It trades at 21x earnings and supports a 25% ROE.  We recommend setting a stop-loss at $9.50, looking to achieve…

Opinion about PIF-T: This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

Opinion about EMA-T: (A Top Pick Feb 05/24, Up 34%) A boring, stable utility. Pretty much discarded last year with people chasing the AI trend. Big move since January with the flight to safety. Outlook was upgraded from Negative to Stable. Good job reducing leverage. Florida just approved storm reparation costs from 2 hurricanes in…

Opinion about KSI-X: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We like KSI, and we even covered the name in one of our latest podcast episodes (link to our discussion on KSI can be found here). KSI is a $630M healthcare SaaS company that provides solutions for data and document management. Good sales…

Opinion about NPT-CN: Has pretty well fallen off the radar screen of most analysts. Sales are down 12%. Ranks in the bottom 20% of their database.

Opinion about OEE-X: 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.