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

(A Top Pick Jun 09/20, Up 33%) Outperformed the broader TSX. Will continue to do well as vaccines roll out for the next 12 months. Solid balance sheet. Higher octane stock, expect some turbulence.

May boost offer for IPL. Great capital allocators. Tailwinds are strong for BAM and BIP (for taxable accounts).

Well-managed over the years. They recently sold their stock-information business to Refinitiv, so now have a lot of cash to buy a company if they wish. TRI also supplies legal case histories to lawyers, and this is a growing business.

Barbell approach to navigating economic uncertainty over the next 12-18 months. Defensible, resilient cashflows. On the other hand, if the economy takes off, there will be more waste from industry. Best in class management and EBITDA margins, free cashflow. In a good position to do some M&A. Yield is 0.84%. (Analysts’ price target is $145.35)

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)

A recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)

If you own it, definitely sell. An offer of $18.17 USD is not bad, considering this asset class will be struggling. He doesn't think the offer will go higher. It's time to let go.

CT REIT (Canadian Tire) vs. Choice Properties (Loblaw) based on dividends for seniors He likes both REITs. Both dividends are safe, Choice paying 5.4% and CT 4.9%, and both well run. He owns Choice and bullish their outlook. He likes Loblaw as an operator and there is opportunity here. CT is very stable, with their…

(A Top Pick Mar 10/20, Up 14%) REIT spin off from Canadian Tire. Did very well relative to other REITs. Challenge is rising interest rates. Performs like bond proxies. Look at it as an alternative to bonds but it could see pressure from interest rate rising.

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.

He's generally positive this. They're operated well during the pandemic. About 70% of their portfolio is in Atlantic Canada, which is stable. They've tried growing in Ontario and BC. Their valuation has hung in better than their peers. But he prefers REITs in hard-hit centres like Toronto's and Montreal's business cores Still a good REIT…

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.

Likes it and its sector. Trade at a healthy premium. In the right markets. Growth has traditionally been there. Fairly valued today. Look for pullbacks to buy.

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.

He's long owned this. Some of their businesses are maintaining apartment buildings, but also gated communities in the US. They have little capital expenditure and they hold asset-lite businesses. They've grown organically and buy mom and pop businesses as well as tuck-in acquisitions. Plus they operate a franchise business that continues to grow. Office buildings…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The monthly yield is at 7.6%. The small size adds some risk, but the TSX listing will probably raise its profile. There are no huge expectations on gains due to relatively slow growth. However, the industrial REIT sector looks good and the stock has done…

(A Top Pick Apr 09/20, Up 17%) He has owned it for a number of years. They are a good consolidator. It has been perking up a little in the last few weeks. There are probably some short term headwinds for them with comparisons to last year as a lot of stores were closed and…

Digital and e-commerce transition. Cheap relative to its space and on an absolute basis. Having Shoppers as an asset is so powerful. Yield is 1.9%. (Analysts’ price target is $75.33)

They have three strong restaurant brands. The challenge he has is that the business model is to go in, gut the company and bring the costs down. With Tim Hortons there was a huge push-back from franchises and this hurt them.

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

(A Top Pick Mar 13/20, Up 5%) She's been buying more during this pullback. They plan on growing their 4% dividend 6% annually through 2025. FTS boasts a defensive cash-flow stream. It's a solid utility, paying a steady stream of increasing dividends. She's long held this as a key holding. It was a great stock…

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 Apr 09/20, Up 26%) It is not as racy as a SHOP-T. It is a large outsourcing firm. They have a great client base and are a great consolidator. They are always undervalued, caused by the organic growth being mid-single digits. The total growth is good. He is comfortable buying it here.

For a few months it was the biggest company in Canada, surpassing RY-T. He used to own SHOP-T. He moved on because of high expectations and valuations. The concerns remain and are greater now than three years ago. It's going to face difficult comparisons to last year as we return to normalcy during 2021. They…

Price target of $20.50 CAD. Cloud-based platform for enterprise and public sector. In the right place because of remote work. Should continue to go. Not cheap. Yield is 2.6%.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. At 12x earnings, it is very cheap. A good risk-reward play. The dividend is growing fast and good growth is expected at 17% EPS growth for this year. 1B in cash and a very strong balance sheet. It has better margins than AEM. Unlock Premium - Try 5i…

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.

He'd move on. There's a 48% spread between the top and bottom quartile performers. Can't capture the upside with an ETF. Better to focus on the winners, and avoid the losers. CAR, HOM-U, WIR-U, and Granite are great choices. Look for growth, and at a discount is even better.

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…

They participate in the spread when the deal is announced. Shaw is trading 24% the price Rogers has offered. This is due to the fear of regulatory intervention. Thinks that the real concern is on the wireless side, and this deal works without the wireless side. They can divest Shaw's wireless side and still be…

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.

Has pulled back. An opportunity to buy into it. Bought an asset from Shell. The Duvernay play gives them new wind. A higher cost play but worth it at $60 oil. Paid an attractive price for the acquisition. Trade at 3.3x cashflow, and could trade up to 5x cashflow. 80-90% upside. Sold it in the…

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.

There is the healthcare side with COVID testing in Canadian film and production industry as well as saliva testing geared towards students. There is also the AI side that has good outlook. The cashflow from covid is good. It is at a lower price to market cap than US counterparts.

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.