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….
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)
Killam vs. Crombie REITs Killam holds apartments, an asset class he really likes among REITs. Rent-collection rates are really high for Killam, so no worries about that. All these REITs trade at a 10-15% discount to NAV. Funding costs will drop 1%, because they get funding from CMHC. A hiccup comes from mobile homes which…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In the current environment, industrial or residential REITs are preferable. It is fairly cheap and the distribution is safe. Unlock Premium - Try 5i Free
Thinks very highly of management, likes portfolio exposure. Warehouses in Canada, US, and Europe. Its Magna leases have a lot of upside. Has grown effectively. Warehouse facilities are in demand from e-commerce. Attractive at these levels. Yield is about 4%.
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.
They operate multi-family apartments in Toronto, Ottawa, Montreal and more so in Vancouver. They've been hurt by lack of foreign students, though, but resists lowering rents (which would be locked in) and is instead letting vacancy drop, a strategy he likes. IIP will benefit for the rebound when foreign students return. The next few quarters…
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.
Bond-like, they're very good at mezzanine and commercial lending. They distribute what they get and are conservatively balanced (balance sheet). They know their markets. It's like a mortgage-lending situation. They earn 7% rates of return, no more or less. A very stable investment, acting like a bond proxy. (Analysts’ price target is $9.96)
Walmart is their anchor tenant, so Smart is rock-solid stable. They collected a high percentage of rents during the pandemic. But prospects are limited. SRU may see only 1-2% rent growth when new space comes to market, far below to peers of 5-10% like Riocan. He prefers grocery-anchored shopping centres, like First Capital REIT.
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.
INE vs. RNW RNW depends on drop-down from the parent for growth. Whereas INE is an independent power producer. At current valuations, he prefers RNW. Pretty good visibility over the next few years. INE is more expensive and has good prospects, but its valuation doesn't have as much upside.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company missed on sales by 2% by $558M. All metrics fell YOY. Although covid had an impact, the miss was much worse than expected. 2021 still calls for robust growth. Unlock Premium - Try 5i Free
(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.
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)
It's a real estate play on medical facilities in the US. It was overleveraged a few years ago, then COVID declined their business, which are non-essential surgeries. But they're still profitable and paying dividends. He sees upside.
Enbridge (ENB-T) TSE
Net short due to overall lagging price momentum and valuation. Good yield but heavy on the debt side and missed on earnings. Expensive at 15x EBITDA. A hedge against other long positions. Yield is quite large and will not be going away.
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…
MRU-T vs. EMP.A-T. Metro has been his favourite grocery stock for 15 years. Grocery are the stay-at-home stocks but as we exit the pandemic this is not where you want to be. Don’t buy until the rotation is completed.
This is one of his largest positions. He trimmed a little on the way up but it is a long term core holding. The pandemic has really, really helped them. People are ordering more food from home. They are offering their own private label products with same day delivery. They plan to go to $4…
🛢 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.
A smart group of guys. They are putting a fair bit of work into proving their concept is right. They seem to be backing up their thesis. It is looking like it is working so far.
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.
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…
They had a sound model on where the gold was and now they found more. The management team are great. They are in Northern Mexico. He thinks the permit will not be an issue. It is at a very high multiple due to their silver assets.
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…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have finally gotten Shaw with a very large premium. A big deal at $26B. Regulators will surely be looking at this closely. Shares may come under pressure but they claim $1B in synergies and it should make a successful merger if the regulators allow…
(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.
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…
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
An industrial sector stock that does well in this type of environment. Has been a volatile stock with negative ROE. Cashflow is poor too. Interest coverage is not good. Yield is there but payout ratio is high.
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.
Gold companies remain cheap vs. the price of gold itself. There's a lot of room for upside. He's been taking profits to gold names to add new gold stocks to his portfolio (he specializes in precious metals). This is a hold with an $18 target. ELD has had a nice run.
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is a smaller and cheaper company than the big gold names. It has more leverage to deal with, discovery and multiple expansion is possible. There is more risk. Generally, small and mid cap gold outperform in a gold rally. You need to be okay…
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 Feb 20/20, Up 132%) He stuck with it and was rewarded. He still owns it although not as big a position as he once had.
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 !!!