Air Canada, Couche-Tard & More at 52-week Highs and Lows (Feb 6-12)

Challenged. If you're tempted to buy, slap your hand and don't do it. Things can get worse before they get better. Their balance sheet has helped them through. Can't call a bottom on it yet. Sell, and wait to see what happens on the other side.

it is a good grower, with 75% of their contracts are take-or-pay inflation linked with 11 years as the average term. The 4-5% yield is positive. A source of stability and income. (Analysts’ price target is $64.92)

Billy Kawasaki’s Insights - Picks from 5i Research. Management has proven themselves with a solid historical performance. They are long term holders and builders of businesses. Cash flow is good and they have turned a profit every year for the last 20 years. Unlock Premium - Try 5i Free

(A Top Pick Jul 30/19, Up 12%) Death, taxes and garbage are life's certainties. He's long owned this. WCN continues to do well, though there will be softness from commercial activity, though consider all the cardboard boxes from Amazon deliveries. Still a good company. Well-managed.

He has their product in his office. The stock is struggling. They lowered guidance twice this year. They have a new management team in place. They are re-vamping their sales strategy. The change of management is taking more time than expected. Watch it as they try to go to a more professional organization. Turnarounds don't…

He is a big fan of this company and likes their management team. Their own risk management tolerance is low. A lot of buildings in Toronto and Vancouver, but they also hold office space in tight markets. They find older buildings and turn into nice new spaces. The balance sheet is healthy.

Buy the pullback? It's probably fine, but he's squeasy about office space occupancy in downtown Toronto. He'd rather avoid stocks that are tied to downtown office real estate and play it safe. BPY are good operators with a strong balance sheet, though.

80% of its assets are retail. He shies away from retail, but Loblaw owns half of those assets, which is stable and boasts high rent collection. The company is in good hands and the dividend is safe. Managers are doing a good job to diversify into apartments and industrial spaces to diversify away from retail.

Spun-out from Canadian Tire, and 92% of their income comes from Canadian Tire. They reported strong results last week; they collected an impressive 98.5% of rent in July. They surprisingly raised their Q2 dividend by 2%, indicating confident cash flows. Won't be much growth, because the leases are 9 years on average, but will be…

A leasing company run by Steve Hudson. They did a $265 share buyback late last year, then in February doubled their dividend. Low interest rates will help them. It took a while, but the stock is moving up these days. (Analysts’ price target is $5.39)

(A Top Pick Sep 17/19, Down 52%) A diversified REIT. This is one they ended up selling. Their mall portfolio has suffered. He was afraid the dividend would come under pressure. Getting access to capital is tough for them.

Likes their managers and strategy. They dominate across the Maritimes and have expanded into Ontario, BC, and have a small presence in Calgary. They outperform some apartment REITs, because they lack exposure in urban centres (urban, multi-family REITs have lagged). Killam should stability and growth in the coming year. Problem is that foreign students and…

It is a subject of a takeover and you might consider holding it until the close of the take out transaction. You could also move to another apartment REIT. Your upside is capped from here with NVU.UN-T.

(A Top Pick Feb 12/19, Up 32%) Scotiabank just announced a $13.75 target. Managers own about 10% of shares. There's good industrial rent growth in Toronto and Montreal. Vacancy rates are rock-bottom low.

This would be a hold for him, if not a sell. It has US grocery stores in small centres. It has an external management contract, which he feels is not in alignment with share holders.

(A Top Pick Jun 14/18, Up 59%) It is another example of an undervalued tech company in Canada. It was taken out by MS-N just over a month ago.

An asset-lilte business with little capex, which is a huge plus. It grows by acquisition and organically. The market is fragmented, so they have a lot of room to grow by acquisition. They can grow their franchise and residential property businesses. (Analysts’ price target is $100.00)

A hold. A tiny REIT with a yield that is too high to sustain. They did a portfolio acquisition of retail mall space in Quebec -- the wrong asset at the wrong time.

Has a 7% free cash flow yield. The market is annoyed they haven't made an acquisition recently, but he's fine with that. They've produced a ROE of 20% for decades, and are undervalued now. He doubled his position in the low-$40s. There is some concern over e-cars, but ATD has been testing EV stations in…

On strike in Newfoundland for the past month A steady business and doing well during Covid. Loblaw also owns pharmacies. It's reasonably priced in the high-$60s.

It is a challenging business right now. He thinks restaurants will be more shut down soon. The COVID business it taking an emotional toll. Life is not going to be back to normal for quite some time and he feels this one will be under pressure for quite some time.

Allan Tong’s Discover Picks This consumer defensive name operates retail stores, selling groceries and household items, in the Canadian far north, Alaska and Caribbean. Because it operates in such an extreme geography, NWC enjoys a monopoly. North West Company pays 4.45% dividend. Read Best Dividend Stocks Canada for our full analysis.

Pounding the table on utilities, which will benefit big time from low interest rates. Earnings and dividend growth potential is high compared to telecoms, banks, and insurance companies. Highly recommends adding it to your portfolio.

A good dividend play. The yield is at 4.6%. People tend to focus on the tech side of green stocks, but this has utilities that have consistent income. They are a potential takeover target for Brookfield so the price has recently shot up. Could get decent returns.

A lot of success is tied to Gaz Metro in Québec, but they also have some wind farms that have recently come online in the last year or 2, and giving good returns to the company. Recent earnings were solid and they raised the dividend by 3.7%, and plan to raise it 4% next year.…

(A Top Pick Jan 09/20, Down 20%) Orders have slowed down a bit. High quality name. Stock got a bit ahead of itself. What they do is mission-critical. Significant holding for her. Covid delayed projects, but they'll resume and business will improve from here.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has performed well and is now expensive. Investors need to be comfortable with a certain level of volatility. It has a large market and plenty of room to grow still. Patience is required for this name. Unlock Premium - Try 5i Free

(A Top Pick Oct 18/19, Up 4%) Investors are appreciating the steady cash flow. Some day they will be an acquisition target. They have a great niche in the market. They have the ability to grow, although it is not a giant market.

He likes it. His model price is $128 or 100% upside. The balance sheet is very small. It looks very, very good as a gold company. It has a totally different profile than most other gold companies. He would hold it here, but realize it might go down to $50. He would sell if it…

It stopped being a silver play a year ago. As they've made acquisitions, they've shifted from South American silver to North American gold. If gold pops, this stock could generate a lot of free cash flow.

An interesting one. Brazil. They have some high-grade veins that they have done some work on. They are drilling and it will prove it one way or the other. There will be lots of entry points coming up.

(A Top Pick Jul 31/19, Up 0.4%) This is a way to lower volatility. A return of 2.15% per year, paid monthly. Hold it during volatility, sell it, and use the return to pick up your cyclicals during periods of seasonal strength.

Had a good run in 2019, but now is breaking trend. He expects higher interest rates in 2021, which will pressure REITs. XRE will head lower in early-2020. He predicts a general market pullback in January.

An ETF that holds short-term bank papers that are hard to buy individually. An alternative to not earning any money in a bank account. The fact that it shot up was a warning that it markets were in trouble.

He is good with utilities. They have now corrected with everything else. They are regulated and generally don’t have a huge growth profile. He would be nibbling if you like the safe, stable dividend.

Basically it's an ETF version of a mutual fund. All fixed-income and pays a yield over 3%. You can park money here until you figure what to invest in next.

ZJK-T vs. ZHY-T. High yield is a sexy name for junk bonds. They are the worst quality bonds. In a downturn these companies will not be able to pay back their bond holders first. If equities fall 20%, high yield bonds fall 13%. There is more risk for a portfolio.

Pre-COVIC, he saw that tech was going to pop, and now the puck is heading to boring value names, like Quebecor. Has an 11% growth rate and trades at 12.6x 2021. Its a very cheap telco and have a lot of cash to return to shareholders and raise the dividend if they wish. Their wireless…

Growing exposure to wireless, content, cable, low valuation at 6x operating cash flow. Likes the group, and this is a newer name he's added. Yield is 4.78%. (Analysts’ price target is $27.58)

Shale gas in the US. A spin out from Bankers Petroleum (BNK-T). There is a lot of potential excitement but it just doesn't have the same management quality team. Just too risky in the market at this point.

(A Top Pick Oct 18/19, Down 64%) He recommended this long before Covid. Still owns it. The oil industry has been decimated and hard to get excited over.

He stayed away because they went to the states to make acquisitions. He did not know why the Americans would not already take these assets. He stays away from it.

Convertible bonds with a 5.75% coupon They own a great base of real estate. The debt issue is a small piece. The bond is well-covered. MTL.DV-T. You get a 6-year option on the stock within the bond, with a $14 convert price. If oil recovers, these bonds will convert into equity. Until then, collect then.…

Balance sheet is in good shape with debt at 42%. They just started to ramp up their assets in the liquids-rich Montney. Likes the company. Under 45 cents/share, then buy. He likes the managers. Buy this during the recovery, because he expects significant upside 12 months from now.

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”.

They have a done a deal with a private equity company, effectively taking the company private. Their hard rock lithium project is challenged due to the infrastructure constraints -- including rail and power. They needed more money, creating an opportunity for the private equity company.

It looks interesting, but is too small for his funds. It has under-performed for the past few years. They are in the right place at the right time, but we need to see some good drill results soon.

(A Top Pick May 15/18, Down 73%) A miner and processor of phosphate -- a precursor to potash. They took over a bankrupt project in Brazil, which they liked from a speculative perspective. They have had technical difficulty with the project and it did not work. If you are patient, it should eventually pay off,…

He covers the stock and owns it. The business is doing well. They are a leader in their space. There was a big investor out of China that fell on hard times and has had to sell shares. It may be poised for a turnaround.

Has an old mine outside of Los Angeles that was run in the 1930s. Closed down during the Second World War and they are doing open pit mining in the area. Has some issues, but at these gold prices, it will probably start to work again. Under followed. Highly speculative.

Biofuel. Canada has an incredible forestry industry with a huge emphasis on planting trees. PL takes wood waste like sawdust and turns it into energy. This fuel can replace coal that is also carbon-neutral.

All asset managers are being decimated. This trades at a premium. It no longer trades with the gold price. But he likes this sector, though prefers Sprott's peers like AGF. Now is not a bad time to enter this space.

Well before COVID-19 the diagnostic space was very credible. It is an interesting one. There is a strong recurring revenue component to it. There will be a desire to upgrade countries' medical ability. This will be an interesting space moving forward and so he wants to take a closer look at it.

A play that could be triple / quadruple. Optical chips for next, next generation. 100 Gig data rates. High risk.

Where you talk about a bear or bull ETF that is levered, they have no future. You are supposed to trade them on a day to day basis or possible a weekly basis. They are guaranteed to lose over the long term because of the way the gains are translated over night. These are a…

It is a leveraged natural gas ETF. It could be a good trade if you are well-versed in it, but you should not hold it long term at all. It is a tool for short term speculation.