This week’s new 52-week highs and lows… (Jan 16-22)
This week, a lot of REITS are hitting their 52-week high along with some defensive names such as Metro, up again. Basic materials and energy have taken a hit, many ending up on the 52-week low list.
Here’s this weeks 52-week high and low list for companies listed on Stockchase.
Here are the stocks hitting their 52-week high….
Allied Properties REIT (AP.UN-T) TSE
Way off from highs. Covid has changed how and where we work. What is your conviction level that office occupancy will revert to the pre-Covid mean? What's the timeline for that? He doesn't have the answers. It's in the "too hard" pile. If looking for a similar yield, try BCE.
Crombie Real Estate Investment Trust (CRR.UN-T) TSE
Grocery-anchored retail, defensive. Benefits from inflation. Occupancy up last quarter, higher leasing spreads. 14.7x, 10% growth. Price to growth is super-compelling, super-nice dividend. Reasonable balance sheet. Yield is 6.17%. (Analysts’ price target is $18.00)
Dream Industrial REIT (DIR.UN-T) TSE
(A Top Pick Jan 31/22, Down 7%) It is the cheapest industrial warehouse stock so he would still buy. Its ownership of places in Europe caused the stock to drop but that situation is improving. The value of its real estate markets has increased and there is an opportunity for increased rent growth of 40…
(A Top Pick Nov 03/22, Up 22.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GRT.UN is progressing well. To remain disciplined, we recommend trailing up the stop (from $63) to $69 at this time.
H&R Real Estate Inv Trust (HR.UN-T) TSE
Stockchase Research Editor: Michael O’Reilly We reiterate, HR-UN, one of Canada's largest REITS holding $11.4 billion in assets in North America, as a TOP PICK. Its strategic plan is refocusing on growth orientated residential and industrial properties. It trades at 4x earnings and under book value. The yield is good and backed by a payout…
There is lots of value here due to a supply and demand imbalance leading to big growth in rents. There are 400 to 500 thousand new Canadians arriving annually in the next couple of years with not enough space for them. Also foreign students who stayed away during the first two years of the pandemic…
Summit Real Estate Investment (SMU.UN-T) TSE
Takeout offer of $23.50. Merger arbitrage, with stock trading at just below the takeout price. You have to decide if you want to take your money off the table right now, or hold out for another $1 a share. Likelihood of deal going through is quite high, already had a big boost in the share…
Timbercreek Financial Corp (TF-T) TSE
Pool of money that trades on the TSX and is lent out short-term to the real estate industry. They charge a premium on that. Like owning just the mortgage department of a bank. Payout of over 8% is fully taxable income, not a dividend. Avoid the tax by putting it in your RRSP. Risk/reward is…
It operates across Canada with its principle tenant being Walmart. Has stable cash flow with little growth although it is increasing density in existing space. He feels there are other places to be in real estate.
Agellan Commercial REIT (ACR.UN-T) TSE
A portfolio of US properties. It also has some interesting properties around the DVP area in Toronto. The CEO is one of the few people that not only knows how to buy, but also how to sell. Thinks that at some point, he will sell the entire company if he can, or bit by bit.
Atlantic Power Corp. (ATP-T) TSE
They generate electivity and sell it. As we move in this direction this company will have a foothold and niche. It is a capital intensive business and interest rates rising will be a problem.
Innergex Renewable Energy (INE-T) TSE
Good producer. He owns the preferred shares. His favourites in the space include AQN, FTS, and BIP.UN. Nothing wrong with INE. Focus is more wind-focused, so growth profile is not as diversified. Balance sheet is not as strong.
Badger Daylighting (BAD-T) TSE
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Currently generating 80-90% of 2021 sales. Guided double US revenue over next 3 years. Helped favourably by US storms.
Carmanah Technologies (CMH-T) TSE
(A Top Pick July 3/15. Down 43.04%.) Sold his holdings at around $5.50, and lost money. Their business continues to grow, and this is one that he continues to watch. There is lots of promise here.
(A Top Pick Mar 03/22, Up 8%) It is in the waste collection business - a very defensive place to be. A lot of contracts are tied to the CPI so revenues are bumped up and it can raise prices. Has owned for a long time and will buy more.
Medical Facilities Corp. (DR-T) TSE
Has pulled back a lot. It holds US medical property. It has suffered inflationary pressures, but will diminish in 2023 and the stock will recover. Don't sell it in the current Dutch auction.
Enbridge (ENB-T) TSE
(A Top Pick Mar 18/22, Down 4%) Facing extreme increases in cost of building out. Over 90% contracted revenues, so dividend is fairly safe. Yield close to 7% is extremely attractive, company anticipates growing it 5-7% per year. Inherent value going up all the time, because of replacement value of current assets. Continues to recommend…
Purepoint Uranium Group (PTU-X) TSXV
Junior company that is basically raising money to explore for uranium. Sometimes takes years to find a deposit. Have to be patient. Some interesting prospects in the Athabascan basin. Pretty strong drill program for the first half of 2008. On negative days, you could pick some up for a short-term trade.(Buy uranium stocks when uranium…
Very expensive, trading up near maximums. Be patient, let things fall to something that will give you a better rate of return.
Goodfood Market Corp. (FOOD-T) TSE
(A Top Pick Apr 28/21, Down 67.4%) Are building online grocery sales now. When he recommended it, he expected another leg up--and shares rose last summer on good numbers. But he sold this around $10 because he was concerned the company was no longer focusing on meal kits and was spending a lot to enter…
🛢 Basic Materials
Noranda Income Fund (NIF.UN-T) TSE
There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.
Pure Gold Mining Inc. (PGM-X) TSXV
$2.25 price target. Growing pains starting up a mine. He'd be averaging down. Issues always signal a really good entry point at cheap valuations. Have to be patient. This wouldn't be his only holding; he'd own it amongst at least 5-10 companies.
Victoria Resource Corp (VIT-X) TSXV
They just partnered with a private equity group. The company is now 45% owned by private equity. They completed their first pour in the Yukon and are moving towards commercial production. The problem is the private equity partner will have a lot of say in the operations. This will keep him out as an investor.
(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%.
SilverCrest Metals Inc (SIL-X) TSXV
SIL vs. MAG Both world-class deposits. At current prices, he likes both. Complication around MAG is that there's only one obvious bidder. SIL seems to get better and better, as they get farther along the development curve. He owns both, and both are in Buy range today.
Quebecor Inc (B) (QBR.B-T) TSE
(A Top Pick May 04/22, Up 13%) Waiting to buy Freedom Mobile, a good transaction that adds diversification. A value play. Deeply discounted compared to other telco names. Continues to buy here.
Rogers Communications (B) (RCI.B-T) TSE
Expects Shaw takeover to be approved. May see pop in the stock, but what next? Lots of shakeup over the last 1.5 years. Board and management turmoil. Wouldn't invest now. He prefers other, more stable telcos. See his Top Picks.
Very affordable tech name.Company has done very good job building shareholder value.Trading around 16X 2024 EPS.Wait to buy shares on weakness.
Cortex Business Solutions (CBX-X) TSXV
It is a greener form of cement. They use a lighter form of concrete to be a base, instead of Styrofoam. The product is fairly new but well received so far. They will probably look at making acquisitions.
Here’s this week’s 52-week low stocks ….
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.
Bellatrix Exploration Ltd. (BXE-T) TSE
Debt concerns? BXE took bankruptcy protection when debt became too much. There is no equity value in it any longer. Companies that have debt that matures in 2020 or 2021 will have issues. He sees no issues with BIR or TVE on this topic. The new Federal relief program for large companies may be difficult…
Owns 9.9% of company.Having success on new drilling technique.Lots of land for future drilling.Expecting return of capital to shareholders.
New Flyer Industries Inc. (NFI-T) TSE
It made a lot of deals where buses were sold at fixed prices but its costs are higher now due to supply chain issues. The company will survive but has to re-negotiate with its banks, which is always painful. It is a good company in a bad situation, therefore look elsewhere.
Trevali Mining Corp (TV-T) TSE
The biggest independent zinc producer has had its ups and downs. The new CEO has to navigate 2020, which was tough. Zinc prices have jumped to US$1.25/lb. TV's cost structure is based on $1.10-1.15. TV trades at a deep discount. Zinc doesn't capture the imagination like copper or nickel, though. Zinc prices have benefited from…
Bonterra Resources (BTR-X) TSXV
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.
First Cobalt (FCC-X) TSXV
Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.
Orezone Gold Corp (ORE-X) TSXV
In Western Africa, this miner is looking for funding. It is not the exciting part of the cycle as they are in the de-risking mode. Investors are looking for projects that double resources. Institutional investors are not yet stepping in the space.
(Top Pick Jul 13/11, Down 8.69%) Funding issue. Venture is down about 38%. Exploration companies have come off the most. Smaller company that didn’t have a lot of cash. Two days ago they came up with a huge whole with 1.3 grams. If you have a long-term perspective, wait until they do their funding.
Continental Gold Limited (CNL-T) TSE
A large continental deposit, but there are political problems in Colombia. Are also concerns over cost overruns, can be managed. Worth buying overall.
(A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with ELD has achieved its target at $13.50. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10.50) to $11.50 at this time.
On the sidelines until the CEO impresses him; he's having implementation challenges. He's staying on the sidelines for now. Great CEO though.
Energold Drilling Corp. (EGD-X) TSXV
China Gold International Resources (CGG-T) TSE
Listed in Canada but operations are in the far east. Is cautious because of high debt and accounting is weird. If you are betting gold will go a lot higher it is a pretty decent bet but if not it can decline a lot.
Golden Queen Mining Co. Ltd. (GQM-T) TSE
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.
(A Top Pick Dec 15/20, Up 12%) Taken over. He got out when the deal was announced, as the acquirer wasn't somewhere he wanted to put his money.
Mountain Province Diamonds Inc. (MPVD-T) TSE
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”.
Has been a bit of a disaster. Mine in Texas is not going ahead, resource was not properly done. The reserves are not what they expected.
Jayden Resources Inc (JDN-X) TSXV
Likes this company. Chinese have taken a 20% interest which is significant. Also have a good play in Northern B.C.
Maxar Technologies (MAXR-T) TSE
(A Top Pick Oct 07/20, Down 7%) Not long after making the recommendation the stock benefited from a lot of ETF buying. They exited on the strong buying on a much higher gain. Since then, the ETF buying has evaporated and the stock price has come back down.
NTG Clarity Networks (NCI-X) TSXV
Spoke to the CEO recently. Have a nice little business. Kind of a service provider to utilities and telcos. Write software pieces that help them send bills to their customers. The trouble is, they don’t have one source of revenue, sort of a patch of many different things. Also, they are capital constrained and need…
Gluskin Sheff and Associates (GS-T) TSE
Owned it a few years ago and cut his losses. Now, cut your losses. This business is struggling as an asset manager, specifically to retain and attract new clients. Also, their key managers, including the CEO, have been leaving. They won't generate much in performance fees, which has been an attraction for investors in the…
Asian Television Network International (SAT-X) TSXV
They have a fair bit of cash in the bank. Being a smaller company it suffers more from pirated content on the Internet. It was a really well run company. They had a lot of cash in the bank.
Use this list wisely to identify buying opportunities.
Happy trading !!!