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….
80% of asset value is in Toronto and Montreal. Good operators in a difficult market. Discount to NAV. Committed to distribution of 10%, sustainable if they can continue executing into 2024. Sold data centres, giving breathing room.
(A Top Pick Oct 20/22, Up 2%) Safe place for investors with steady dividend. Good place for investors worried about recession. Grocery anchored retail is very safe. Inverse function of interest rates. Should appreciate if interest rates are steady. Will continue to hold.
(A Top Pick Nov 29/22, Up 7%) Wide discount to private market value. Thinks it will have the highest cashflow growth (estimated at 9%) of any REIT globally. Share price worth north of $18. Will benefit from dynamics of e-commerce, onshoring, reshoring.
Successfully diversifying away from reliance on MGA. Solid management, executes well throughout the cycle. Concerns about more supply from new construction. Rent growth muted. Great option, but he owns DIR.UN instead.
HR.UN vs. AX.UN Doing its best to diversify into multi-family residential apartments in US Sunbelt, where supply is high, so operating income will be challenged. Execution story in a difficult environment for selling or transitioning assets. A hold. Discount to NAV, but headwinds to fundamentals. Still, prefers it to AX.UN.
(A Top Pick May 21/20, Down 4%) Once he realized interest rates weren't going to stay at zero, he scaled out of real estate from 22% down to 5%. He held onto industrials, but sold this one. Really likes the company, but is waiting until interest rates tick down again. Very interest-sensitive investments.
(A Top Pick Sep 28/22, Up 45%) Got taken out. Traded at a 25% discount in a sector that was in high demand.
Unique business plan.Pool of money that collects dependable income.Worst case - can collect underlying real estate. High yield being paid on shares.
Great job getting into other asset types by going vertically on what they already own. Operating income dictated mainly by WMT, which gives a very defensive profile, so he doesn't really worry. Flipside is very little growth. Tight cashflow coverage. Believes distribution of 8% is safe, even though payout ratio spiked above 100% temporarily. Better…
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.
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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research INE has been closely tracking to the broader 'clean energy' industry (PBW as a proxy). The PBW ETF peaked in early 2021 as 'green' stocks flourished, but the ETF and industry has since made a new 52-week low. The stock is a $2.1B company that…
Large business across North American.Good play on infrastructure investment throughout North America.Does not own shares at this time.Prefers other names in sector.Prefers other names with electrification exposure.
(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.
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…
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
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research ENB raised its dividend 3.1%; and re-iterated guidance for the current year. It had previously released 3Q earnings which did beat estimates, so today's news is not overly surprising. But the dividend bump is nice and will likely calm some nervous investors who were perhaps…
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…
He sold this a while ago and has now added it back. As a defensive stock it is one of the better plays over the next one or two years.. It has done a good job of re-vamping its stores and most of its capital spending is done. Buy 1 Hold 10 Sell 0…
(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
There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.
$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.
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%.
Excellent management team with proven results.Current production slightly discounted by market.Current share price highly discounted relative to NPV of assets on a per share basis. Expecting share price appreciation, or takeover.
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.
(A Top Pick Dec 30/22, Down 10%) All telcos are down this year. The valuation has fallen so low that he's buying more shares. The pandemic showed the need to sustain and improve the networks. Rogers and their peers enjoy an oligopoly too.
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.
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.
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…
Levered to oil price. Changed asset base toward profitability and scalability. Needs to improve drilling efficiencies and margins. Good job reducing debt. Probably by early 2024, can move return of free cashflow to shareholders from 25% to 50%. Yields just over 5%. He's focused on bigger players with more consistent dividend payments.
Chart indicating a good time to buy. Recent turn around from downward trend. Looks as if company has reversed fortunes. Base has broken out which is positive news.
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…
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.
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.
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 triggered its stop at $13.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 19%, when combined with our previous recommendations.
On the sidelines until the CEO impresses him; he's having implementation challenges. He's staying on the sidelines for now. Great CEO though.
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.
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.
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.
Likes this company. Chinese have taken a 20% interest which is significant. Also have a good play in Northern B.C.
(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.
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…
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…
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 !!!