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

Creating a huge base since last year. Has moved since vaccine announcements. Bumpy ride ahead. Two years forward, it will continue to recover as business activity normalizes. For the higher octane part of your portfolio. Be patient, and it should do well.

A big fan of Brookfield in general. You get a collection of utility like assets that gives you an added level of diversification. Capital allocation and management team is good too. The valuation must be looked at carefully. He is willing to pay up to 14x forward funds for operations but it is a little…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Still likes it. A well managed company with a great record for acquiring and selling companies. Balance sheet and earnings growth is strong. A relatively safe investment. Unlock Premium - Try 5i Free

(A Top Pick Oct 24/19, Up 11%) They lowered guidance during the lockdown, then revised their guidance back up a few moths later because they saw robust recovery. Waste collection is resilient and will prosper regardless of who will be the US president or trade tensions. SO, WM is well-positioned in a highly fragmented industry…

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)

Stockchase Research Editor: Michael O'Reilly AP.UN is a REIT that manages office space primarily in Toronto and Montreal. As vaccines are rolling out, we expect the worst is now over for this space, signaling a time to re-enter. It trades at less than 7x earnings and pays a good dividend backed by a 29% payout…

Brookfield buying BPY He expects BAM to take it over and it's a good thing to keep BPY within Brookfield/BAM. The deal is accretive for BAM which he really likes. About BPY, you don't want to own these assets (offices, large retail) during this pandemic. Better to own apartments and industrials. BAM fell 5% on…

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.

A bet on Canadian Tire over the next 10 years. Doesn't see significant amount of growth. Like a bond proxy. Safe play, but there are better opportunities.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock is still very cheap on all metrics. Considering growth perspectives, current book value and earnings power, it is attractively priced. It also has a strong record of dividend increases. Unlock Premium - Try 5i Free

He doesn't own REITs now, especially in offices and retail. How long will it take for their occupancy to return? In REITs, you pay around 90% earnings so there's little wiggle room for error. He'd rather buy retirement homes like Chartwell and Sienna, which offer better growth.

Killam vs. Crombie REITs Killam holds apartments, an asset class he really likes among REITs. Rent-collection rates are really high for Killam, so no worries about that. All these REITs trade at a 10-15% discount to NAV. Funding costs will drop 1%, because they get funding from CMHC. A hiccup comes from mobile homes which…

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.

Focused on Canadian industrial warehouses. It's returned to its highs. However, its valuation has gotten high, so maybe take profits and add back later. There are better values in industrial spaces, though. Look at Granite REIT. Otherwise, nothing wrong with SMU.

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.

(A Top Pick Dec 19/19, Up 44%) Property management plus franchises like California Closets. Capital light. Grow organically and by acquisition. Fragmented industry, so a lot of opportunity for bolt-on acquisitions. Very strong management. Great Canadian business. Buy when volatility creates dips.

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.

The French government has expressed its disagreement with ATD's acquisition of Carrefour. If they do business in France, they must abide by their strict labour laws. Does not think there will be a huge upside. Longer term, the stock's outlook is quite positive. The acquisition may not go through. Looking at the chart, there has…

Stock's underperformed for a while. Prefers Costco to all the food retailers. Not a big buyer of consumer staples right now. In a recovery, you want to focus on cyclicals. Covid costs have hit grocery stores.

(A Top Pick Jan 09/20, Down 1%) Wouldn't buy again. Remains a good company, but Tim's is exposed to the breakfast trade, which has fallen off. Popeye's and Burger King have done well. There are better ideas out there.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They beat EPS estimates by 4 cents, at 70 cents. EBITDA beat estimates by 20% at $83.6M. Same store sales rose. They continue to benefit from the pandemic and have controlled costs well. Unlock Premium - Try 5i Free

Trading weakly, but he can't explain why. Good reason to buy. One of the best managed companies in the world. Lots of positives ahead. Diversified. Democratic sweep in Congress could mean higher corporate taxes, which is actually good for utilities. Will participate in the renewable transition. Long secular trend for the company.

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.…

#1 performing stock on the TSX over 3 decades. Generates high returns on invested capital. Consulting is a great business because it's capital light. Keeps increasing shareholder wealth over the long term. Exactly the kind of company he likes. Chart is consistently up and to the right.

Valuations matter to him and this trading at 25x revenue. Yes, their model is working and maybe every small retailer in the world will use their platform. It's a great company, but not sure if it's a great stock. Remember the 1999-2000 tech bubble when stocks were too far of their valuations.

Great Canadian name. Cloud based platforms for companies. Management and security of devices, apps, and data. Work from home has fueled its growth. Rare blend of growth and income. Price target of $13.49, and it's getting close. Modest dividend of 2.75%.

Gold is not a big focus for him. Asset is pretty good. Company is solid. This isn't the seasonal period for gold. Bitcoin is stealing lustre from the gold sector. More stimulus could be another leg to the gold trade. No sustained thesis for putting money in.

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.

Holds some office, some apartments. Some of those areas will be challenged. Try well-positioned retail REITs, ones where vacancies are low, or logistic warehouse-type REITs.

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…

Capital preservation and safety first. Wireless build is going well, gaining subscribers. Patriarch passed away last year, paving the way for a new direction. Collect the yield while you wait for something good to happen. Yield is 5.21%. (Analysts’ price target is $27.33)

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 Dec 10/19, Down 40%) Of course, he didn't foresee oil prices going negative (in April). CPG is not in a bad position here. North of $40/barrel, they can generate decent cash flow. It's decent.

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.

(A Top Pick Oct 28/19, Up 3%) MTL.DB-T Convertible Bonds Maturing 2026, 5.75%. He sold them out of his equity portfolio but still owns them in his bond portfolio. He is very familiar with the company and they have a very consistent track record. There is an imbedded call option in the share that triggers…

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.

They made wood pellets which are used in biomass generation facilities. He has owned this, but it's volatile due to management and operational issues. Wood pellets are vulnerable to fire, which is what happened last year. Their backlog in Japan and Korea is robust is good, but he doesn't like their concentration risk in a…

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.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has a small market cap and is quite volatile. It is a technology-focused company with exposure to artificial intelligence and machine learning. It currently has negative cash flow. 5i does not endorse it. Unlock Premium - Try 5i Free

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.