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 …..
He bought AC in late-March. He thinks that was a mistake as he got his head handed to him. If you are in the camp that things will get better for travel in general (including hotels, ride-sharing, airlines, etc.) this will be a great investment. He would not go in guns a blazing -- take…
BAM vs. BIP For income, buy BIP; for capital appreciation, BAM. Both are well-run. BAM is the parent company and is one of the biggest asset managers in the world. BAM is solid and will be hunting for properties in this pullback; they are skilled investors. It's trading at a discount to NAV which means…
The London Stock Exchange has been interested in acquiring them, which he thinks would be positive. He would consider holding for now and decide if holding shares in the Exchange makes sense in the long run.
A tricky one. He's torn. It checks most of his boxes, but not one: they hold a lot of debt. Their growth has been spectacular, but fueled by debt. He doesn't know the debt repayment details offhand. He prefers a stock with less debt. That said, the garbage business will be stable during this pandemic.
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.
The question is how long it will take to get back to pre-pandemic highs. Growth in office space may have really slowed due to the pandemic. He would prefer infrastructure at this point.
Not on his target list. It trades at 14 times earnings -- pretty cheap. The balance sheet is a little more levered than he would like. Earnings growth is not great. If you think interest rates will not change and remain low, he would prefer others. A quality name though.
It's the REIT spin-off of Canadian Tire. A very stable business as a triple-net REIT where the tenant pays all expenses of a property. A sustainable cash glow. View this as a long-term bond. It yields above 5% (great for a bond).
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)
Office properties. They may get reconfigured in the future. It has not recovered and still is not all that cheap. They have a heavy debt load.
Eastern Canada focused in the multifamily space. He likes the company. This is a sector you want to be invested in. It trades at a discount to its net asset value. It sold off too much.
Rental apartments are a great space, but NVU suffers from poor governance and low-quality real estate. There are way better names elsewhere--like CAP REIT or Killam.
(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.
It is a premier Canadian company. They take care of these tall gated communities. The commercial part of the business will continue to generate revenues for them. He really likes it
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 convenience and gas station operator. Less driving has reduced traffic to them. It is probably at a valuation that is attractive historically. She has chosen to hold other companies in the space. She also prefers to avoid companies that promote the sale of cigarettes.
It has been a volatile stock but a fantastically performing stock through the pandemic. A lot of people believe that people will opt to dine at home after restaurants open, as they do now, rather than dining out and L-T benefits from this. (Analysts’ price target is $78.73)
Their expansion into China. He's skeptical. The Horton's expansion into America didn't work, so China? In China, he would own Starbucks or especially McDonald's which has more growth discipline. In China, a company needs a landlord partner, and location means so much.
Resistance at $28. He predicts a general market pullback in January of 5-10%. This will return to $27. Wait. But if it breaks below $23, it will head lower.
He is not bullish on the utilities because they are expensive and are defensive. But he holds this one as it stands out amongst the others.
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.…
He likes and owns this stock and would be a buyer today. It is Canada's largest IT company, offering outsourcing in Canada, Europe and Asia Pacific. Their recent earnings were better than expectations. They are running lean and benefiting from small acquisitions. They manage to grow earnings at 10% annually over 5 years and it…
It has already rising over 160% this year. Its time is now. He likes how analysts see this on an Amazon type of trajectory, with revenues about to soar. They are partnering with Facebook. It is exploring entering into commercial payments beyond the mom and pop type entities he thinks. Yield 0% (Analysts’ price target…
(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.
🛢 Basic Materials
He thinks gold will likely go higher. NMC is one of the largest miners in Canada. He has been favoring KL for his clients as well.
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.
A takeover coming? Managed well. He prefers Bell and Telus. Shaw is betting big on wireless. Telus and Shaw corner the western Canadian market, so it's not competitive. A safe business. COVID will impact wireless sales, though. There have been takeover rumours for a long time, so buy this for the wireless growth, instead. A…
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.
(A Top Pick Jul 19/19, Down 56%) They did an awesome job monetizing some assets, including their Uinta holdings while getting good pricing. They will generate free cash flow as oil prices recover. They have good hedge positions. When interest levels returns to the space it should see a big rebound in value.
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.…
They ramped up production in Q4 last year. They could get to 30,000 bpd by end-2021 -- expecting them to exit 2020 around 18,000 bpd. He has a $1.50 one year price target. Yield 0% (Analysts’ price target is $0.95)
🛢 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
(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…
A Levearge ETF. He advised to steer clear of these kinds of investment. They are trading vehicles the are intended to be watched daily. D
Use this list wisely to identify buying opportunities.
Happy trading !!!