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 …..
You can pick away at the airlines, but there are cost pressures like labour and fuel. The demand for summer travel will offset that with consumer spending their excess cash on experiences. Buy a bit now then maybe add more in June or July.
BIP vs. BEP The trend for renewables will increase over time. Yes, Brookfield Renewables have been underperforming Brookfield Infrastrastructure. The former got ahead of themselves when Pres. Biden took office, but have since pulled back. The good thing is that Brookfield group invests in hard assets. Much of Brookfield's cash flow comes from the Renewables…
They did a major restructuring but when they sold their business analytics business. Earnings have declined, but they sit on a lot of cash. Very well managed. Shares ran up during lockdowns. Pays a 2% dividend and trades at 9x. You can hold on, but wait and see what they do, like whether they will…
Management sees great opportunities ahead. Wants to make more renewable landfill gas sites. Benefits from higher oil prices. Defensive, safe. Excellent management, clean balance sheet. He expects double-digit revenue growth for many years. Also a reopening play. The dual listing is a gift to Canadian investors. (Analysts’ price target is $178.80)
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)
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…
Stable income provider you can add to any portfolio. Likes it. Great real estate nationally. Biggest tenant is Loblaw, so it has a secure cashflow. An element of growth, which is unique, from the industrial sector. Nice combination of safety and growth. Hold, sleep well at night with the distribution yield.
Canadian Tire Reit. 92% of rent comes from Canadian Tire and almost 70% of the stock is owned by Canadian Tire. Stable 5% yield. Premium to NAV.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a special dividend of $7.50. The stock should have moved more on this news. Shares can be bought for the dividend here. Unlock Premium - Try 5i Free
Diversified portfolio and has done good job of rationalizing it. Will it be able to close the gap to NAV? A 'show me' story.
Allan Tong’s Discover Picks Other numbers look healthy for KMP stock: A 9.6% PE, a 3.15% dividend based on a 26% payout ratio (half the sector’s number), and an ROI of 7% which is in-line with peers. KMP.UN boasts five buys and one hold on Bay Street with a $23.33 price target. That’s 5.18% higher.…
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.
The best way to play the strongest and tightest market in NA, and that's the industrial market, specifically in Montreal. Track record of creating value. Good takeout candidate at some point. Trading at a wide discount to NAV. Yield is 2.7%. (Analysts’ price target is $24.94)
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company posted EPS of $0.73 beating estimates. Revenues also beat at $834.6 million. Revenues rose 17%. Positive results although it is not a surprise. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have industrial properties that held up well during the sell off earlier this year. Solid profitability and has positive cash flows. Valuation is starting to be rich with price to sales at 8.6x. PE is ok at 17.3x. Dividend yield is good at 5.8%. Unlock…
SLF vs. ATD'B ATD is doing very well because oil prices are high. Also, they are on the verge of buying a company. Both add to upside. SLF is the best Canadian insurer, with stable, but slow earnings growth. It will benefit from higher interest rates. Buy and put away and own for the dividend.…
Might be ahead of itself. Grocery inflation is helping. Pricing erosion to Shoppers Drug Mart. Trades at 16x, growth of 12%. If inflation abates over the next 2 years, excitement's already baked into the stock. Don't add here, wait for a much lower level.
Tim's is still restructuring. Stock looks a bit rough. 200-day MA moving down, share price down too. Oversold, with RSI below 30. Expects a short-term bounce. It will take time to get outsized returns. Wage and labour pressures. He's not interested in this name, and the industry is cautious. Nice dividend of about 4%, secure.
A safe place to invest--groceries in remote areas of Canada. Stocks are pricey vs. historic multiples, because they are defensive and stable. If you own, hold on or take some profits. Good to hold this in an uncertain world. They're well-managed.
Half of earnings comes from the US. An income stock. A core holding for her. Pays a 3.5% dividend. Has a long track of increasing that dividend, 6% annually through 2025. Will benefit from greening assets into renewables in the deacade to come. (Analysts’ price target is $59.14)
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.…
Has owned this many years. It lagged the tech sector last year, but it was a tech defensive stock and have reported good results two weeks ago with 8% organic growth. Companies are investing in digitizing their companies, so CGI will benefit. CGI does acquisitions based on a strong balance sheet, and they grow organically.…
Would suggest thinking about valuing companies based on how well can survive tech selloff. Waiting to see if company can generate income and profit. Will stay on sidelines until earnings are proven. Watch company and wait to see what happens.
Likes it, but follows it, doesn't own it. They specialize in the security of management devices, a competitive field. Their price action isn't good. True, good revenue growth, though the last quarter was a little lower, but the company is not profitable and these companies are not fashionable now. But at $10, using an $8.75…
🛢 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 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.
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…
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.
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.
Defensive telecom and cable. Regional. Dominant cable operator. New cell phone competitor with 21% market share, but the fastest growing. Small sports/entertainment division. No commodity exposure and minimal wage inflation, as it's capital- and tech-intensive. Strong balance sheet. Interesting reinvestment catalysts out of Rogers-Shaw deal. Yield is 4.11%. (Analysts’ price target is $35.31)
No real clarity yet on the takeover. Frustrating. Rock solid. Free cashflow generator, solid dividend. Long term, it would be harder for them to carry on as a standalone company.
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.
Obviously CPG has benefited from rising oil prices. She owned this years ago, but now prefers the pipelines, which avoid oil price utility. CPG will go where crude oil goes.
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.
He models $16.57, so 28% upside. But are you bullish or bearish about this year? He's bearish, expects a recession in Q3, when this falls back to $4-5. Buy a half position, especially at lower prices.
Has recently bought ~$50 million worth of stock. Trading at ~1.7x cash flow & 32% free cash flow yield($100 oil). Could privatize in ~3 years. Very good company with enormous upside.
🛢 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.
Too small for his firm. Cyber hacking is an ongoing threat. Clearly, a growing market. Still, the interest rate environment will be toxic for tech.
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…
Leverage play for natural gas. Clearly getting a breakout in the short term. Thinks oil is capped out and natural gas should trade relative to oil. Can see front month natural gas contracts going for $5. Forward pricing looks like there is room into next year to move further up. An okay way to do…
Use this list wisely to identify buying opportunities.
Happy trading !!!