Most Anticipated Earnings: MRE-T, PSI-T and more Canadian Companies Reporting Earnings this Week (Aug 05-09).

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research With continued negative stock momentum, some debt, and not a lot of growth expected (estimated EPS this year less than 2021) it is hard to get too excited about GTII. There has been some insider buying which is a good sign, but the sector continues…

Bullish on the macro for industrial warehousing. Likes the focus in Toronto. Likes management. A show-me story, small. An opportunity. He's confident in their ability to grow. A bit expensive, so it's a bet on management and growth. On his radar for attractive entry points.

Repeatedly compares this to TIH, and TIH always comes out on top in terms of ROIC and dividend growth.

They face the US tariff risk. The PE looks cheap, but look at the balance sheet. Lots of debt. Growth is declining.

Forestry space He owns no names. The stocks are okay but face trade disputes and an economic slowdown that will hit housing stocks. The stocks have been beaten up.

World's largest ag-crop nutrient business. Vertically integrated. Believes prices for its input commodities have bottomed, supported by high and rising cash-crop prices. Farmers have to replace nutrients in soil, which was delayed while prices were so high. Trades at book value. Bounced off lows, but still sees upside. In his dividend growers mandate. Yield is…

Airlines are economically sensitive stocks. Technically, the chart shows a base, which suggests a swing trade. If, and only if, AC arcs up with definite conviction off support of $15 or so, it could head close to $24 (though might not quite make it).Don't do it until it breaks out. Plus, you'll need a fundamental…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 93c beat estimates of 71c; revenue of $730M beat estimates of $693M. EBITDA of $115M beat estimates by 6%. Sales rose 6.1% but EBITDA fell 4.2%. Railway ties showed strength, up 17%. Guidance was affirmed. Commentary was much more positive than we would…

Prefers Linamar to Magna for its much lower EV of 6x, and they have diverse businesses, like agricultural equipment.

Large issue with the company is legalizing the products(marijuana). Another worry is the over supply of products in the market. Federal laws against marijuana in USA make it hard to deal with expenses that are not deductible (100% tax rate). Could be a good investment if US legislation changes. In the meantime, would not recommend…

Industrial stocks have come off on tariff, and other, fears. Very good ROE profile. Excellent earnings growth, with analysts projecting ~30% earnings growth a year for next 3 years. Quarters can be spotty due to lag time for project approval, so you have to own it for a while. At 9x forward PE, substantial discount…

Disappointing. Slowdown in farm division last year, and management anticipates continued challenges. Management keeps cutting guidance, so its credibility has taken a hit. Better use for capital elsewhere over the next year or so.

This has great assets globally. The biggest sourcing platform for organic foods. It is really hard to get an organic designation. It takes 3 years for a farm to convert. They spent a lot of time putting together assets and it hasn’t been managed well. The company did a strategic review, brought in an investor…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Consecutive quarterly revenue growth. Industry leader in out- sourced facility service. Non-cyclical market with tremendous pricing power. Continues to be acquisitive. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The stock is cheap, and acting better. The sector (in the US, mostly) has been seeing some good numbers recently. It hit a 52-week high this week. We think it can be held, and >$10 is possible, even $12 under good conditions. $16 we think…

He sold his shares a few years ago, because SWP would need a lot of capital to move their plant (to meet higher demand). The results have been pretty good, but the prices have also risen. Also, they face competition and need more capital to complete further expansion. So, they have taken on a lot…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Profit of 1c per share beat estimates of -1c. Revenue of $7.2M beat estimates by 11.4%. EBITDA was positive $1.17M vs an expected loss of $305,000. Sales rose 186% so certainly a nice improvement. Margin was 67% up from 49.5%. Profit was the highest in three years…

Great operator over time, nice dividend yield. All pipelines have had a rough patch -- markets correcting plus cloud over tariffs. Tariffs don't really impact it, as it's just a toll road. With Canada's interest rates going lower, and demand generally going up over time, this name should be OK.Looking at how the chart's acting,…

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.

Would be less exposed to any tariffs imposed.

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.

Great-looking chart. Had a long base of 2-3 years, which was ripe for swing trading. But now it's broken out, and that's good news. Parabolic move in a very short time, from $7.50 to $12.50, and it will take a break. When it does, that would be another great entry point as it might pull…

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.

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…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The stock has really jumped over the last month and the most recent news we see is relating to CKI renewing its NCIB (share buyback plan). CKI plans to buyback 5% of outstanding shares over the next year. Results vary significantly period-to-period making it harder…

Flagship renewable diesel project coming online next year.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have been growing their top-line quickly over the last quarters. Net profit margins are improving. Although debt is quite elevated, they have cash balances and equity positions that are decent. Valuation is cheap and future growth estimates are good.A smaller size so could see…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The company saw a big pop in 2021 on EV hype for the Coil Drivers it sells. It has never really had significant revenues or positive free cash flows. If EV demand booms the stock could do better, but overall we are not too interested…

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 and EBITDA margins…

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.

He's look at this many times, but never bought it. Pipelines still need to be approved, despite more talk about them. Co, crude-by-oil will endure, and everyone wants to make this safer. KLS has the technology to do this though their tech hasn't been mass-adopted. He'd like to see accelerated growth and earnings first. However,…

Very strong Canadian company that doesn't get enough attention from the markets. Last quarter starting to prove business prospects. Landing gear in very high demand within airline sector. Trading at discount to other names in the sector. Very high barriers to entry within the business. Margins continue to expand - will be good for cash…

Good for marijuana exposure. Speculative, but quality. 

Sawmills and other building material sites in Canada and US. Building out larger US presence through acquisition. Earnings were fine, but stock dropped. Revenue far below expectations, but cashflow in line. Great job managing inventory and cash to pay dividend. Homebuilding should remain strong. He's looking to top up his position.

Recently added a small, 2%, position. Likes the dividend yield. Believes the industrial economy will pick up, though Canada may be slower than the US. Exposed to the Canadian industrial economy right across the country. Yield is 6.7%.His strategy is to ride the stock up. As it does, the yield drops. So if the yield…

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 term hold.

They had huge writeoffs in 2018 and more could be coming. They got hit by the 25% tariffs. They have diversified into car seats, bicycles and furniture. The dividend has been eliminated. He is watching it, but too early to buy.

It's never done anything and has disappointed shareholders. He owned shares 10 years and sold it because he got fed up with its lack of progress.

Not that familiar with the company, but knows the uranium industry really well. Issue with uranium is building the mines. In Saskatchewan, CCO owns all the infrastructure and decides what mines are going to be developed. Focus on a quality uranium play instead.

Has done a great job of taking market focus off of Base Plant mine depletion down the road. It trades at a slight premium to Cenovus, which SU could buy, but he hopes not.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. STEP is down 35% this year, but up 59% in 52-weeks. Profit taking is probably part of the issue here. It did beat estimates in the 4Q, but the sector has been quite weak, and the company has recently seen two downgrades by brokers. EPS is supposed…

(A Top Pick Jul 30/24, Down 10.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PSI has triggered its stop at $15.  To remain disciplined, we recommend covering the position at this time.  

Some people own it for M&A takeover potential. He doesn't like to do that. It's a market where interest in small caps remains very low. Not hitting enough radar screens currently. Pursuing growth, so more modest cashflow. 

(A Top Pick Jun 15/23, Down 16.7%)Michael O’Reilly Our PAST TOP PICK with FEC has triggered its stop at $10.  To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 18%, when combined with previous recommendations. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research IPO is a small cap oil and gas company. It is down about 10% over the last year, but has been trending up year-to-date. IPO also pays out a high yield at 7.7% and is cheap on a forward price-to-earnings basis at 7.6x. Revenues have…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TNZ reported Q3 EPS at $0.71 which beat analysts’ estimates of $0.007. Revenue came in below forecasts of $16.6M at $15.05M, nearly doubling year-over-year. Fund flow from operations (FFO) was $4.8M or $0.16 per diluted share versus the same period a year prior at $2.3M…

This was a spin out from a deal that Petrorubiales did about 6 months ago. Often these spin outs get dumped because people want to own the larger company. This is trading below cash and some nice prospects. Likelihood of success by the drill bit is pretty high.

Their debt has always been an issue. Trading at in-line levels for their multiple. Does not check his boxes in his fund.

They have two plays. It is pressured because of debt load. Production came down in the third quarter and should now increase. They should knock debt down with the sale of two non-core assets next year. It needs a catalyst before the market will revisit this story.

They brought in a partner this summer to help develop the East Duvernay. They still have too much debt. She is watching it but not recommending it. Not everything is cheap in this sector, still have to selective.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research QEC is a very small oil and gas company with market cap at $94.27M. QEC had a flat year in terms of price in 2023 but did display some volatility. Both revenues and net income margins had negative growth in Q3. The balance sheet looks…

Did a shareholder vote and Pacific Rubiales (PRE-T) will be assuming the management of the company. Drilling off the coast of Guyana. Got to about 1000 feet of the target. Because of gas creating a lot of pressure, they couldn’t finish the drilling. Potential is still there and could be a world-class discovery. Pretty good…

Betwixt and between, which makes it hard to call. Right up against quite strong technical resistance, and right at FMV. Good things have to happen, such as earnings and visibility of earnings. Unless you can see those, be very cautious about taking a position.If it could bust through $46, that would be good, particularly if…

In his aggressive fund. Choppy pattern, which he likes for swing trading. Support ~$10, resistance ~$14-15. Could drop a bit more from here. 

He sold it and did well. His interest in energy service stocks is low, because he doesn't see the US rig count increasing. Gas production growth will happen not until latter this year and into 2026. Pure play natural gas and/or oil will do better. Offshore is a potentially new market for them. Free cash…

Has deep assets, which they won't sell for 9-12 months, as they add others. He can't own every midcap, though this is good.

A Colombian natural gas producer which enjoys a favourable U.S. price of US$3.60. Production will rise as more customers and pipeline capacity are found. There's a shortage of natural gas in the country. It pays a nice dividend of 5.6%. He has a $5 target. Buy below $3.40. (Analysts’ price target is $6.09)

Doesn't believe in quality of assets. Company too new to determine whether a good investment. Good management, but not buying shares. Exploration oriented company.

In 2020, they launched Evolution Power Products, having the exclusive right to nat gas turbines, slashing customers' diesels costs to zero and reducing pollution. Demand is strong. (Customers get carbon credits as a result.) He expects E-T to triple earnings as business rapidly grows. (Analysts’ price target is $2.78)

Well-run company. Always trades at a bit of a discount to the sector because of the nature of the business. Not a bad one to get into.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Q1 production was 7,015 b/d (80% gas), up 80% from the prior year period. Production fell 18% largely due to natural depletion. Cash flow was $6.1M vs $10.5M on the production decline but also due to lower prices. Debt fell, but is still $27.6M, about…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Splitting the company into two to separate the PNG business makes sense to us. The return of capital could be as much as 76c per share. This all sounds attractive...BUT....it is already a very small company. With less capital, and a split, shareholders will be…

This provides aeronautic technology that allows oil/gas companies to pinpoint where they should use seismic technology. It is about a 30th of what the cost of seismic is. They just had a conference call and indicated they are still waiting for some contracts to come in. They reiterated that some of their previous clients have…

Had some execution problems in a number of their mines. Also recently lost their CEO. Since then, he has dramatically reduced his position. At some time he will increase his holdings but there is no rush at this time.

Volatile. Not easy to understand. Engineered materials mainly for the solar industry. They've diversified. A recent acquisition may be transformative, wait and see. Hold if you own it. He's revisiting it. He prefers NEO, as a cheap way to play the EV market.

A small, very speculative land holder in Canada. Higher nickel prices may push this stock higher

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 trades just over…

In Mongolia. Fairly illiquid. He's a fairly large shareholder. Time is on your side. Development is drifting their way. He anticipates a takeover transaction at some point.

In Western Africa, this miner is looking for funding. It is not the exciting part of the cycle as they are in the de-risking mode. Investors are looking for projects that double resources. Institutional investors are not yet stepping in the space.

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. 

(Market Call Minute.) Great execution with a $500 million market cap. Thinks it is ahead of itself. It is expensive.

They own the Rosia Montana gold mine in Transylvania. Have been trying to get permitted for approximately the last 10 years. This is going to continue to be an uphill battle. The resource is tremendous but he feels this is stuck in the jurisdiction where they don’t want the mine to go ahead. If they…

They were abutting New Gold’s (NGD-T) Ashton project. They have an interesting exploration play and have sold some rights to New Gold. A speculative situation.

Gold is almost like an insurance policy. Good diversifier. Should be a good, long-term hedge. Deposits have become harder to find. He prefers the business model of the royalty companies like FNV or WPM. As well, they operate counter-cyclically -- give money when gold prices are low and harvest when prices are high. Always looks expensive,…

Broken out to new highs. Benefits from falling interest rates, which should continue in Canada even if not in the US. Energy is a foundation of our economy, and as our economy grows we'd expect energy demand to grow as well. May have additional boost from newer sectors, like nuclear, growing more rapidly.

In the middle of a long-term range. Yesterday's news looked very positive. Good, solid support around $38. Potential to get to $50 before it stalls out, in a 3-6 month timeframe. Get out if drops below $40.

Quality of US balance sheet is very poor, and not getting any better. 10-year forecast for the US deficit is $5T a year. Global debt to GDP isn't a lot better. And if balance sheets doesn't get any better, what's going to? You need an alternate to currencies.He's very bullish on this area. Acquisition in…

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 not pay any…

He's a dip-buyer of gold and a royalty name like has more correlation on the gold price than a miner like Barrick.

Current share price presenting buying opportunity. Waiting on results for size of gold mine. Political risk in Mexico is concern. Very good management team. Risky stock, but good for risk tolerant investors.

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 know their financials,…

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.

Primary asset is an Alaskan property Livengood. Have been in the process over the last 3-4 years of proving it reserves. Interesting way to play gold because of volatility of a junior so be careful what you allocate to it. High potential development and pretty well developed infrastructure setting. Obvious takeover target if reserves prove…

Sees no change to the dividend theory. The 3 Irish business millionaires actually control the company and are holding it long-term for the dividends. The company has some costs going on disadvantaging it. The diamond sector itself has not produced really stellar performance. This is a “wait and see”.

It's been stuck at these levels for a long time, but likes recent volumes. No problem buying this one.

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.

Discovery in Ecuador. If anyone can put things together in Latin America, it's them. Massively high grade mine. Really good long-term hold.

He owns about 50% gold, but the seniors. This is a junior. There could be a catchup trade. But he wouldn't buy this one until it breaks out.

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 in more stable…

Focused on uranium, where seasonality is strong from September-January. Lots of volatility. Performed well, then pulled back, did well. Doing better than others in the space. Favourable in medium- and long-term.Lots of positive announcements in the sector, but the stocks have not responded because all the focus is still on tech, not on commodities.

Ranked as a 4 in his system, which is high praise. Holds management team in high regard. Wonderful asset allocators and patient investors. Recently entered into royalties for renewable energy.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research MUX is a 'love it or hate it' stock. Mr. McEwen has his fans, and his not fans. He is an aggressive CEO, and has grown via acquisition. He had good success decades ago, not so much since. He owns 15% of the stock. But,…

Will respond to copper prices if those prices move up. Tier 2 assets. Impressed with financial backing of the company. Not considering buying.

(A Top Pick May 08/23, Down 51%) Share price not performing well. However, believes demand for products will remain. Would recommend holding to see how company performs. 

Likes management. Note that there is nothing immediately happening. It’s not something to chase, but just accumulate over the summer. Turkey is not bad at all, it is a democratic system. Their mining code is working. He thinks they have permitted 10 mines in 10 years. This company is technically very, very competent. Sitting on…

A palladium-copper developer in northwestern Ontario. Rates of return are just below 30%. This will be hard to finance, though they scored funding from Export Development Canada. Can they get equity financing. That's the key question.

Expecting bankruptcy. Not a good place to invest. Company quiet on litigation problems. Too many unknowns. No cash flow, and tough debt requirements. 

They have option agreements with major partner Rio Tinto, but these have been under dispute for the past year. It's worth tens of millions of dollars. The stock has fallen because of this battle; investors have lost patience. He owned this before the legal battle and didn't want to wait for it to be sorted…

They have had a fantastic track record on the exploration front. They bought a shut in zinc mine and then the price of zinc dropped. He would stay away from it until they delineate new zones they can extract ore from.

Doesn't like the sole risk exploration. If the story develops the people behind the company have the financial connections. The terrain is legendary gold ground. he can not make the data work for hi to buy it.

(Market Call Minute.) In a big gold system and he likes it.

XME was among the strongest performers this morning, up almost 7%. Some view that protectionism would be good for the NA steel producer. Cyclical, fits the inflation theme. Hasn't done a lot of work on this one, but technical setup is good.

Highest open-pit mine grade in the world. Great asset. Knock against the stock has been the refractory nature of the ore and potential penalties. Even with penalties, this will be stupidly profitable. Goodwill with its indigenous partners is a lesson for the whole mining community.

Expecting merger with NextGen. Will continue to own shares. Large deposits of Uranium. Very bullish on upside for company. 

To manage risk, he sets up his portfolios starting with the biggest, which is FNV. More diversified than OR. He also owns OSK proper.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We think it is somewhat attractive. The balance sheet is fine. The dividend is nice. Good earnings growth is expected and its industry positioning seems secure with China restricting some metals. We would like a better valuation than 24X earnings, but otherwise we would consider…

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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.

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.

Shut down production recently. This type of situation is what usually happens at the bottom of a cycle, although this one may not be around to enjoy the upside of the cycle.

10 years ago he owned it and did very well. He got interested again, but he can’t reach the company over the last two weeks. Lost $2.2 Million this last quarter. He is watching it closely. 450 Million shares fully diluted. He wants confirmation they will not do a concentration.

(Market Call Minute.) Feels the potash market is oversupplied.

Most exposure is in Quebec. Lots of office space exposure. But could see a business turnaround. Would recommend buying and holding. 

He owns both this and Manulife. Rates going up have helped a lot. They are working on improving the U.S. side which wasn't going well. The Canadian side is doing well.

(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.

Very good company with industrial properties in Canada and Europe. Recent pullback in share price has created buying opportunity. Owns shares in portfolio. Nature of short term leases agreements not a huge factor on revenues - expected to remain strong. 

Would recommend holding for the long term. Good dividend yield. 

Owns shares in business. Current share price a very good time to buy. Would recommend being patient, and holding for the long term. 

Performed well, but up against a lot of new construction in their markets. Difficult to raise rents in 2024. Trades at discount to NAV. If you like a stock levered to the US economy and US dollar, not a bad name. If you own it, hold. Earnings won't necessarily inflect materially this year, but over…

Applied similar royalty approach from mining sector to pharmaceutical business. Allows for new development in pharmaceutical business. Capital light business. Second listing in the world of this nature. Very cheap valuation, trading ~1.3x book value. Excellent long term prospects. 

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 already rallied back…

Doing the right things, but public market is not rewarding it. Selling assets piecemeal until the REIT is liquidated, now about 50%, and distributed income to investors. Hold on, still lots of value. Could buy comfortably here as it's trading below $2.50 per share, but assets arguably are worth $3.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research FC is a relatively small mortgage lender. The stock is cheap at 10X earnings, and it mostly trades for its 9.4% yield. The dividend has not been raised for at least 10 years, but it does pay fairly regular small special dividends annually. There has…

Be patient with it. Has good, long-term fundamentals. Likes the managers for being focused. Could be taken out. They are executing, but sort of fly under the radar.

(A Top Pick Nov 23/23, Up 2.9%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with MRD has triggered its stop at $12.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss 4%, when combined with our previous guidance.   

They own U.S. hotels, a high-risk, high-reward stock. He's bearish on hotels, which is struggling with labour costs and keeping labour. HOT.UN has done a good job restoring vacancies, in the low-70s, though their peak was in the 80s. However, they've made up the balance on their hotel rates. Their balance sheet is slightly higher,…

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.

Why stuck around $44? Markets are tough and can be counter-intuitive. Great beat, and the sector is sheltered from tariffs. Free of negative surprises, unlike SLF. Street models 12.5% EPS growth, trading at 9.34x -- cheaper and more compelling than banks.The answer could be that the good news was already baked into the stock. He'd…

Stockchase Research Editor: Michael O’Reilly With $144 billion in assets under management, we reiterate IGM as a TOP PICK.  Cash reserves are growing while shares are bought back.  It trades at 11x earnings, under 2x book and supports a respectable 12% ROE.  The robust dividend is backed by a payout ratio under 60% of cash…

Given Trump, you need defense like this. Low immigration and rent control weighed on CAR.UN. In a recession, people will be evicted, and in a better economy, those vacated units will be priced higher. A sustainable business model. Now, the price is attractive. 

Canada's largest industrial REIT with properties in Canada, Europe and Asia. Increasing rents has helped the business, however, rents have appeared to plateaued lately. Concerns that large revenue stream from Magna will be at risk from tariffs. Would buy more shares upon stock price weakness. Strong business overall. 

More interest rate cuts are good for it and it has a good quality base. Has a sustainable dividend.

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.

(A Top Pick Dec 12/23, Up 42%) Organic growth of internal products has done extremely well. Has become a brand name for precious metals investing, and increasingly in natural resources. Can see it being snapped up in a few years by a global financial player.Disclosure:  He believes he's still the largest shareholder in Sprott.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The $4B withdrawal is fairly serious, though FSZ does have $166B, and it continues a trend of some assets leaving the company (including money that earlier flowed out to Pinestone following Nadim Risk's departure in 2021). On the plus side, it is coming at a…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research National Bank has made ECN a Top 2025 pick. The company has a high degree of leverage to interest rates and the economy. If rates decline and the economy holds up, it certainly could do well. Consensus calls for 75% growth in 2025. We think…

Monopoly-type business. 30-year contract on Saskatchewan land registry services. Trades at ~8x EBITDA. Generates about 11% free cashflow yield. Yield is 3.5%. (Analysts’ price target is $34.00)

(A Top Pick Jan 15/24, Down 41%) Probably his worst pick ever on the show 🙁  Big disappointment. Lost biggest customer, which made up ~60% of revenue, and he'd underestimated the likelihood of that happening. Company sold at a good price to FISV.

Top income pick, newest holding. Provides mobile and manufactured housing parks in US. Growth through acquisition, improves services and trappings of those acquisitions. Low monthly rental fee, increased a bit every year. Strong balance sheet. Yield is 4%, payout ratio only 40%.Provides affordable home ownership when real estate is still expensive.

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

In effect, a merchant company. Thrives by adding expertise and capital to other mining companies. He's long this one.Disclosure: Fan of the family, the founder was his mentor.

Terrific FMV. Stock's at a point where it has to break out technically, but it's a story unfolding on the back of more engaged management. Big discount to book value, lots of upside. Could probably survive a Trump walloping. Nice dividend of 4.5%. (Analysts’ price target is $53.50)

(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%.

Value pick given current share price. Company beginning to find its way again. Returning back to core strengths of the business. Focus on urban centers very good idea. Management team is performing well. 

Good company, but institutional coverage not picking it up. Very good business with strong dividend. Thinly traded shares, but good for retail investors. Revenues continue to rise with excellent profits. 

There's talk that the stock could break out of its current range, possibly. But he wonders about the direction of interest rates both here and abroad. Either hold if you already own, or buy on dips. Good job if you already own.

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

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.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research AIF saw a sharp drop following its Q3 financial results reported in early November. The stock's struggles have been driven by the slowdown in the real estate market and particularly, concerns regarding commerical real estate. Valuation has now come down to a more reasonable 18.3x…

CIX vs. BAM Are very different asset managers. CI's balance sheet is not good. Prefers BAM, but shares have risen to a high valuation. Great managers and earnings stream (asset management fees).

(A Top Pick Jul 14/22, Up 43%) Sold off one division for lots of money. Significantly undervalued, worth $60. One of the big banks could come calling. Amazing management. Share buybacks. Huge, regular dividend increases.

Management wants to buy it out but there are two conflicting groups of shareholders. The employee shareholders want the lowest price possible while the outsider shareholders want the highest price possible. This type of conflict is not good. Value it as a whole, not on the split-up of parts.

In transition, difficult to analyze. Not really covering its distribution. Investors hoping dividend won't be cut.

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)

Royalty models do better in bear markets. Costs are nil, so it's a stable business. Well run. Mr. Lube over time has taken market share. Stock's pretty illiquid, make sure it's covering the dividend. Hold or buy. Yield around 8%.

(A Top Pick Mar 21/24, Down 3.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with OLY has triggered its stop at $98.  To remain disciplined, we recommend covering the position at this time.  

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It is not looking good, considering more than $900M in debt and cash flow of only $37M in the last 12 months. Interest expenses were $73M, nearly twice cash flow. It does of course have assets, but it is not a seller's market right now,…

Has lagged the Canadian tech sector. Used to own, wouldn't be back in soon. On its recent partnership with ADBE, he tends to own the big payment systems like MA and Visa, big beneficiaries of the resurgence in the economy. 

They bring validation software to biopharma, and they do it well. The chart is strong. He's been adding shares. Before, they were losing as they invested in R&D, but now they're becoming profitable. He expects margins to expand quickly in coming years. When they win a client, it takes time to roll out that client.…

Doesn't think it will start a dividend. You actually don't want companies to pay dividends when there are still so many growth opportunities. Investor Day listed 5 areas ripe for growth, problem is market's already pricing this in. Trading ~100x PE, too expensive for him.

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.…

Large infrastructure & utilities technology.Optimization software that replaces spreadsheets.Large organizations that create recurring revenues.SAP partnership helps create new opportunities. Under the radar - not widely followed in the markets. 

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.

It trades only 39,000 shares per day, so it isn't very liquid. (The beta is 0.23.) It still has negative earnings. POET reported on April 26 a fourth-quarter net loss of $3.7 million, or $0.10 per share, vs. a loss of $5 million, or $0.17 per share, a year ago. POET didn't supply sales for…

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)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 28c beat estimates of 24c; revenue of $57M beat estimates of $56.1M. EBITDA of $9.5M beat estimates by 3%. But guidance came in light at $57M, vs estimates of $58.7M. Expected F/x headwinds really hurt guidance. Sales rose 16%. EPS more than tripled…

It is not getting it done with a lot of execution not happening now. It is cheap but needs a private equity group to take it out and have new management. There is already anticipation of a takeout so it is risky.

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…

(A Top Pick Oct 26/21, Down 13%) Stock's started to recover under the new CEO. Now focused more on faster growth. Margins have pulled back because expenses have increased, but still a high-margin business long term.

(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…

Best software company in Canada. Growth by acquisition makes him pause, as things go well until that final acquisition hurts. Great job buying and integrating businesses. Growth being priced at an excessive premium. Solid growth but high, 40x multiple. 

Parabolic move, which will wash out either in a downtrend or sideways action. Got the pullback, seems to have based, seems to be bouncing off. Resistance around $30. Doesn't look bad, especially in the midst of tariffs, good chance of getting to $30. Have to see if it goes through there.

He owns the quarterly debentures. It was a good story, but now stuck in neutral. Sales and revenue growth are lumpy, because they depend on contracts (in infrastructure). Has disappointed investors. He will let his debentures mature in 2026. They have cash to buy companies as revenue grows. It's worth holding onto.

It's a vertically integrated medical marijuana company that is dominant in Florida with a growing presence in the US northeast. They grow, process and sell at their own stores. They just opened their 73rd this week. They've been turning a profit since 2017 and keep posting good numbers. Too bad it trades only in Canada.

Has pulled back a lot. It holds US medical property. It has suffered inflationary pressures, but will diminish in 2023 and the stock will recover. Don't sell it in the current Dutch auction.

IT is pretty cheap and he has been looking at it but there is a lot of debt. He would buy if the debt gets to where it is less than three years of cash flow. Pretty strong execution.

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

It got stuck above $30 and is now building a nice base. He likes this.

Very compelling supply/demand fundamentals. Tailwind of seniors' population growth. Retirement portfolio recovering nicely. LTC care segment in Ontario is seeing massive waiting lists. Phenomenal management team. Discount to NAV. On track to higher occupancies. Yield is 6%. (Analysts’ price target is $18.72)

The psychedelic space is coming to the forefront for investors who ses this as Cannabis 3.0, but these are not recreational products. Rather, the breakthroughs are coming in medicine to treat PTSD, addictions and anxiety, areas showing promise through psychs. Such companies are building a pharmaceutical platform (drugs to sell to patients). Big pharma isn't…

(A Top Pick Sep 10/24, Down 11%) (Note the short timeframe.)One of the cheapest small caps, accumulate on weakness. Pullback gives you the opportunity. Good job setting stage for margin improvement over time, not overnight. High net-cash position. Capital discipline, good insider ownership. 

A large position for him. They bring tech to the healthcare industry, like software. They had a previous business that they grew, then sold to private equity and finished their non-competes, and now they're doing that again with a new product that is starting to produce cash. Margins have risen to 24%, and they target…

It could become the next Paladin. It has great management and ownership along with a good outlook. It made a big acquisition in the U.S. and if the first two quarters go well the stock could go up.

(A Top Pick Nov 09/21, Down 51%) The largest provider of pharmaceutical services in Canada. Growing organically and by acquisition. Has higher labour costs - margins should be compressed short term but not longer term. Good management.

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.

Doesn't know much about this. Shied away from it for now, because it doesn't trade much. Has the potential to be a bigger small-cap healthcare company, an area that he likes.

Rather bad couple of days. Was down substantially, outside of a range. Consolidated. It broke down and is more likely to go down. $1.50 on the downside.

Medical robotics? He does not know TMD-T well. He plays the space through and ETF of BOTZ-Q. He prefers ISRG-Q, if you wanted an individual holding.

There is nothing more powerful than a base breakout, and this had one in February of this year. This one is on a trend line right now and there is absolutely nothing wrong with the chart.

Liked that pet food is heavy (harder to purchase online and ship), so thought this would provide more protection. Challenging space, especially for a long-term investor like himself.

Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research GH has been steadily climbing over the past few years, and it has a dividend yield of 4.6%. Analyst estimates have mostly been rising for the name, and its valuation has mostly contracted over the past few years while its price has grinded higher -…

Small player in packaging, did large acquisition last year. Growing quickly. Very cheap. If you need to own something in the space, look at this name.

Services aren't goods, so they won't be subject to border tariffs. Engineering services have secular growth opportunities. Meaningful US position, and US is growing faster than Canada. Much revenue comes from government, and is a risk, but doesn't negate the strong secular tailwinds.

Two years ago was his last meeting with the company. It was good, but not good enough. Long-term care is challenged -- government reimbursement is an issue, growth is stable but low single digits. Wouldn't buy today.

Global tri-opoloy. High barriers to entry. Stable industry that's grown ~6% a year for 30 years, never a down year. New growth avenue of iLottery, which is very high margin with a different demographic base. Well managed, insider ownership strong, margins improving. Low valuation for high-quality company. Yield is 0.8%. (Analysts’ price target is $40.33)

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…

Monthly dividend of 7.75 cents. Pretty range-bound, between $12-15, for a couple of years. Looks as though it's pulled back into the middle. Steady stock, steady and mature business. More of a yield play. Yield is 7%.

Value. Leaders in frozen seafood in Canadian retail and US institutional. PE of 7x. Buying back stock, paying down debt. Increased dividend by 30% last year. Yield is 4.51%. (Analysts’ price target is $15.42)

Stores may or may not be impacted by Ontario government rolling out more retail locations. The Pellers stepped down from the board, possibly planning a bid to privatize the company but he's not really sure.

(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 the stock does…

Sold mobile unit. Leaders in embedded home, infrastructure, and satcom. Fixed balance sheet. Turned around, next year should be really strong with new product launches. Might be acquired. Excellent technology, solid clients.

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.

Trade deal on dairy opens up next year. Has major operations in Europe, yet it's a Canadian company trading on the TSX. There are issues dealing with dairy and the commodity side of the business.Lots of pressure within Canada on protected costs around dairy products. Might be an easier place for our government to give…

Announced today selling Helly Hansen. Market approves. Part of an effort to return focus to core retailing. Buying a high-end brand like this was perhaps off-strategy. Good business, but facing headwinds like weaker CAD, trade war risk and potential consequent recession.

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. 

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.

(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.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Pure-play water exposure; sustainability trend. Strong position globally; renewed water focus. Attractive valuation; good dividend. Debt recently lowered but still high. Unlock Premium - Try 5i Free

She's been researching this name for a year, may soon initiate a position. Excellent management team, very long-term focus. Rational M&A and capital allocation strategy. Three recent acquisitions, plus lots of organic growth too. Really trying to grow US side. Capex spend on US manufacturing facility just about done, so cashflow will follow.

She's anticipating economic weakness, hesitant even on the consumer staples space. Consumers in Canada have seen a lot of price increases in the last 24 months; spending same $$, but taking home less. Questions ability to continue to pass on those price increases. 

It has executed very well over the long run and works on cost structures. There could be another special dividend. It has lots of real estate and wants spin off a REIT. However a lot of their properties are not in the greatest areas so the REIT may not do as well as others. You…

A great one to buy at the height of Covid. This has come back with a vengeance. Amazing Q4 report and the housing market is on fire. Factors lined up for ZZZ. They've managed debt well. It's a one-product business, though, so keep that in mind and don't pay a big PE. Their growth will…

(A Top Pick Oct 26/21, Up 15%) Stock fell soon after recommending, he sold, now it's recovered. Good company. Supply issues and inflationary pressures have normalized. Pretty good value at 11-11.5x PE. Watches it; could potentially add on a pullback.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research RSI beat EPS estimates of 13c coming in at 14c. Revenue also beat estimates of $304.7M coming in at $333.03M increasing 10% year-over-year. Adjusted EBITDA was $141.6M up 28% year-over-year. The quarterly and full-year results look solid, with increasing sales driven by price increases and…

(A Top Pick Feb 27/08. Down 3.8%. BNN misquoted as a 30% gain.) Recently suffered from the malaise in the newspaper industry. The unique thing about this one is that it is mostly exposed to Western Canadian publications and to local community advertising. Generates a significant amount of new cash flow.

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.

(A Top Pick Dec 14/23, Down 21.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSAT has triggered its stop at $11.  To remain disciplined, we recommend covering the position at this time.  

This hardly trades at all. Insiders own a very big chunk of it, about 75%. They own ice rinks and an adult hockey league. Revenue has been mostly flat for the past 5 years. There is about $45 million in net debt on a $50-$60 million market cap company. Pays a 2% dividend.

A disappointment. Pandemic has been the nail in the coffin for movie theatres and DBO's motion systems. Simulation and industrial segments have been profitable. Treading water right now. Long road ahead. Wait and see before stepping in.

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.

Likes the sector, lots of runway. Renewable natural gas. Governments are increasing demand. On his radar. Will look at again when risk appetite in the market returns.

Very stable business that will hold up better in the face of tariffs. Canadian utility-type business. Slow but steady dividend growth. Not cheap, but dividends will be rock-solid and even more attractive with yields low in Canada.

Dividend investing is for 30, not  3 years, to survive ups and downs. AQN has been very difficult in the last 3-4 years. But new management has sold off their renewables business. Also, he's very positive with companies that have a lot of US business, like AQN. When a re-rate comes, things will start to…

He bought it as a value play with sum of the parts worth more than it was trading at. They are trying to sell some of the parts. Thinks they will sell all the parts and distribute the cash. $4-$5 breakup value. It is taking longer than he thought to break it up.