Air Canada, Couche-Tard & More at 52-week Highs and Lows (Feb 6-12)
Air Canada, Alimentation Couche-Tard, and Fortis are all on the 52-week high list again this week. Telecom, notably Shaw and Quebecor, reaching their highs could mean that investors are becoming more defensive. On the other end, some basic material stocks and energy names are down to their 52-week low.
Here’s this week’s 52 week high and low list of companies listed on Stockchase.
Here’s this week’s 52-week highs stocks …..
The issue is that they had a very big year as Covid concerns lessened but next year may not be as good. There are some cost issues and pricing power may not be as good. The business is cyclical which adds to the volatility so it is not a good stock for the long term.…
The parent, Brookfield, is buying back these shares, a good move. He owns both. They own various assets, but data centres offer the most sizzle. Shares are very depressed, pays a 5.7% yield well above the historic 5%, and trades at 8x funds flow from operation (12% historically). Are another victim of high interest rates.…
Very good company that has owned for years. Recent A.I. acquisition good for business. Trading at high valuation. Would be good for long term investors.
The question was on comparing WSP Global and Waste Connections. The companies are very different. WCN is in the waste management business and WSP Global is more on the engineering side. Waste management is an important field and a consistent business. WCN traditionally has had an expensive valuation. Both are good companies. Hold or wait…
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)
Risk of bankruptcy? Bankruptcy is extreme. And he bought it just a week ago. He's not bullish on office or retail, but it gets to the point where it's been hit so hard, you have to put in 1 of 3 real estate chips on a name like this. Premier asset, trading at a 30%…
Allan Tong’s Discover Picks BPY.UN is anchored by diverse holdings across sectors, including industrial, retail and commercial properties, and across countries. Of course, we all know what happened next to the world, which wiped out the retail and office property markets. BYP.UN shares have slid around 7.5% since that call, but the 7% dividend has…
Stockchase Research Editor: Michael O'Reilly The CHP.UN portfolio of this REIT is highly tied to the success of Loblaws as it tenants. It trades at 14x earnings, under book value and supports a ROE of 29%. It has a good dividend, backed by payout ratio under 50% of cash flow. We recommend placing a stop…
Not for growth, but own for stability of cashflow from its investment-grade tenant, Canadian Tire. One of the largest REITs in Canada. Discount to NAV. Stable, keep holding. Yield is around 6.5%.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research There is not really a lot to add. There has been no news in about a month. Some insiders were granted performance units but no significant buying (we would expect insiders are restricted while the review is ongoing). Typically, catalysts would be earnings and acquisitions.…
Too diversified: retail, office, residential, US, Canada. He likes focused REITs that do just one or two things. Cut distribution. Doesn't care for management. Offloading assets at not-great prices. Significant discount to NAV, 16x AFFO. In this uncertain environment, gravitate to the highest quality.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research KMP.un's second-quarter funds from operations (FFO) per unit came in at $0.30, an increase of 7.1% year-over-year. The company reported a net income of $114.5 million, against $68.7 million reported in the second quarter of 2022, beating estimates by a wide margin ($30.4 million). The…
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 Sep 28/22, Up 45%) Got taken out. Traded at a 25% discount in a sector that was in high demand.
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 Nov 17/22, Up 16%) A great Canadian company. A low capex business that grows organically and through tuck-in acquisitions. They execute very well. Definitely buy on pullbacks.
(A Top Pick Sep 22/22, Down 15%) Stalled on acquisitions. Small cap, over-levered, failed to execute. He got out and moved on.
(A Top Pick Feb 01/22, Up 12%) Well-run and positioned to offer e-charging stations given all their stations and locations. Well-financed. Still has a little more upside.
Defensive consumer staple going into economic slowdown. Over half of food banners are in discount, seeing increased traffic. Plus, more people are cooking at home rather than eating out. SDM has great locations, offers Loblaw products; pharmacists expanding roles, and this increases general traffic. Yield is 1.45%. (Analysts’ price target is $135.40)
(A Top Pick Dec 08/23, Up 7%) It should be higher. Burger King disappointed last quarter, but Horton's is doing much better and Popeye's is growing. Fast food isn't disappointing and there remains growth.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The quarter is a big relief for worried investors. EPS of 83c beat estimates of 68c. Sales of $618M beat estimates by 2%. EBITDA of $83.3M beat estimates of $73.1M. Sales rose 6.8% with comp. sales up 4.7%. Profit rose 17%. EBITDA rose 15% year…
Group as a whole has pulled back because of rising interest rates. With interest rates stabilizing in the past month, stocks are catching up. Good sector for income. Her core utility name, well positioned in US and Canada. Dividend growth profile is very visible.
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 fine company. Revenue is growing 11% and EPS 16%. The one issue is 65-70% of their business comes from two sectors--government and financials, and a third comes from the US. They've bought fine companies though. The AI boom will lead to companies needing consulting, which benefits CGI.
Was a darling, then made some bad acquisitions. But they've added new board and executive members and backed out of logistics. This invited me to enter this name. He's been adding to this and is optimistic.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. The stock drifted along under $12 through 2022 to August when it moved up to about $16 which held to the start of November when it fell to its month-end close of $13.24. ABST is a leading provider of self-healing endpoint and secure access solutions.…
🛢 Basic Materials
(A Top Pick Feb 25/21, Up 15.3%)Stockchase Research Editor: Michael O’Reilly With the recent completed acquisition by AEM now official, we now consider this position closed. When combined with the previous recommendation to cover half the position, this results in a net investment gain of 22%.
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.
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 Jan 09/23, Up 3%) Strategy was to hold cash as interest rates were rising. Zero risk asset.
XRE vs. IYR Totally different products because of the country, given XRE is Canada and IYR is the US. XRE top 31% investments are in retail. IYR has only 9% retail. For residential, it's 25% XRE and only 15% IYR. Largest holding in IYR is AMT. IYR is more diversified, less exposed to retail which…
In a rising rate environment, you might want to stick to a shorter term. XSH is a short-term, corporate, investment-grade ETF. Had drawdowns, but not as bad as a typical aggregate bond or high-yield ETF.
XUT is market cap, ZUT is equal weighted. ZUT gives you more exposure to smaller players. HOG gives you more pipeline and energy services business, which acts similarly to utilities. It also hedges you on the downside. Could be a compliment to the other utility ETFs.
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.
Telcos in Canada are in a unique spot. Quebecor has really upped the competitive pressure, positive for the consumer but negative for BCE and Telus. Stay away from those two, and see how things shake out. Prefers RCI.B, with its ability to shave costs from Shaw, or QBR.B.
It comes down to the Rogers deal, which the street thinks will happen, but this is the fourth deadline extension. The deal has been priced into shares, so there isn't much upside. Better to buy Rogers or Telus than Shaw.
Here’s this week’s 52-week low stocks ….
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.
Hammerhead was a good deal, horrific timing with oil falling overnight. Deal is 11% accretive on free cashflow per share, extended premium inventory life from 15 years to 20. He sees 75% potential upside at $80 oil. Yield is 4.21%.He's pro-M&A, if it allows a company to pay shareholders more. CEO promised him last week…
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.
One of North America's largest logistics providers.Defensive name that is good for low risk investors.Large & diversified business.Better names in the sector - but not a bad investment for the long term.Record Q1 revenue with ~4% dividend yield.
🛢 Basic Materials
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.
Itafos (IFOS-X) TSXV
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…
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.
It is now focusing on Mobile EV charging. It had previously sold Covid test kits. Has a $32 million market cap. It is a difficult business to make money in, is not profitable, and there are better options. (Analysts’ price target is $0.12)
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…
More of a short-term trading instrument. Definitely don't just park money in it, money gets lost in it every time there's a move. Instead, play via a TOU or even some of the US pure-play nat gas producers.
Use this list wisely to identify buying opportunities.
Happy trading !!!