This week’s new 52-week highs and lows … (Jan 30-Feb 5)

Airlines are a difficult business. Capital intensive, lots of regulation. He avoids investing. Strong balance sheet. Profitability trails the market. Wait for profitability to return and revisit.

Great, strong company, strong brand. Made transition to digital. Tremendous business model on paper. Profitability is tepid at best, below TSX. Eye-popping PE of 78x.

(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.

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)

Rather bad couple of days. Was down substantially, outside of a range. Consolidated. It broke down and is more likely to go down. $1.50 on the downside.

She owns CSH.UN instead. Divested from long-term care, now 100% private pay. LTC is subsidized by the government. Both are facing higher wages and input costs, and it will take a while for occupancy to ramp up.

He owned it but sold at $16 to $17 since he didn't like the deals it was making. There are too many headwinds in the industry including rising costs to build new structures.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Business sensitive to Alberta market. Lower demand/prices due to pandemic. Shift to green energy should help the stock. Good dividend, but higher risk.

Fairly good, though not a fan of utilities which perform weakly in January and February. NPI is not as volatile, looking at the 2022 chart. Seasonality kicks in in March. Also, Europe is buying more renewable energy.

Weak finish last year due to regulatory problems in Nova Scotia, plus Florida storm damage. All utilities had a downdraft in Sept/Oct last year. Likes it here, buying at these levels. Electricity demand will continue, and distribution infrastructure will increase as a multi-decade story.

Defensive investment idea with ~4% dividend yield. Grown dividend 49 years in a row. $22 billion capital expansion plan approved. Largest utility in Canada.

Stockchase Research Editor: Michael O'Reilly This TOP PICK is the 8th largest hybrid fibre cable operator in North American with customers in Quebec, Ontario 13 US states serving 1.6 million customers. It just launched a streaming TV service to integrate live tv, dvr and steaming apps with a single interface. It trades 1.2x book value…

They report today. It's growing well-known abroad. They've performed well in the past 5 years. Free cash flow has grown 15% a year and the dividend 22% annually. The family owners gave up their voting rights, so the stock is friendlier to investors. If there is a recession, they have a growing private label group…

Doing very well, based on food inflation. People have been shopping more downscale, and Loblaw has more exposure to discount chains than competitors. Inflationary pressures. A good, defensive place to be, though his preference is Loblaw.

(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…

Low profitability, balance sheet stretched. A more expensive multiple than the market, so avoid. Instead, try NWC at 13x and a bigger yield at 4.5%.

They have owned this in the past. It went no where for decades. The maple syrup side, which they entered about six years has been a disappointment and has been volatile. A safe and boring company. Not a lot of downside. You can milk it for the dividend, but there is not much upside.

It's going to do well because uranium is going to do well. Interesting, because recent Westinghouse acquisition will smooth some of the volatility of uranium, gives them more of a consulting business.

Likes it. They report Friday. Washington's stance on oil and gas hasn't helped stocks like Enbridge. It pays a 6.5% yield, supported by strong cash flow. Natural gas has swung from not enough to too much, high prices to low.

Core position for him. He maintains around a 4% position. Opportunity for total return over next 10 years of dividend plus capital appreciation is pretty great. 

They control Loblaw, which anchors a strong portfolio. Is stable. Hold many industrial warehouses. Solid managers running a solid balance sheet. Pays over a 5% dividend. Shares now are not a bargain, but a solid investment.

Not a good company in terms of financial performance. Valuation not great given current share price. Balance sheet ok, but not a good investment going forward.

The question was on both Granite REIT and Cap REIT. They are both very different companies and he likes them both. Granite REIT is in the industrial warehouse sector in Canada, the U.S. and Europe, which he's bullish on. It has good management and trades at a good discount to NAV. Cap REIT is in…

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.

It owns retail shopping centres across Canada focused on grocery and pharmacy and is in the best markets. The strength and quality of its tenants is good and it has one of the best shopping centre portfolios globally. It trades at a great discount to the private market value of its real estate net asset…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Repositioning property portfolio for growth. Good yield of 4.4%. Reduced debt balance. Repurchasing units at a discount to NAV. Unlock Premium - Try 5i Free

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…

They manage one of Canada's largest portfolios of shopping centres in major cities. A very good stock. Retail isn't in favour, but REI has great assets in the right markets. Has a good development pipeline and he believes they can grow cash flow in that period.

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…

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.

(A Top Pick Dec 02/21, Up 7%) Boring is beautiful. Slowdown emerging in Europe. Lots of it is mission-critical, flexibility of proximity servicing. Undemanding multiple. Continues to tuck in smaller peers. Stock chart confirms its successful strategy.

Owns shares in the beginning, but not anymore.Large acquisition last year has negatively affected company financially.Recurring revenue strong.Stock in penalty box right now and makes it hard to raise money.Waiting to see what happens with the company.

A sizable company of $800 million. He follows it and is waiting for a pullback. Pays a 2.4% dividend yield, attractive. They provide enterprise cloud and flourished during Covd and remote wwork, but has retreated post-Covid. Is up in the past month. Would buy at $12-13. But cloud computing is a crowded space, unlike just…

(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%.

It is an interesting company which typically has a great yield. However its capital fluctuates based on the underlying commodity. Don't buy it if you don't like volatility.

(A Top Pick Feb 28/22, Down 7%) Large transaction required an increase of the issues outstanding. Good management. Increased liquidity because of increased size portends it will be a leader in the space. Price decline means he can buy more.

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.

Company prospects for land, stakes it and then gets other companies to do the major work at their expense. Because they have so many properties, long-term they should get a discovery.

$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.

The 3rd largest holding in his portfolio. They have seen the mines in Turkey and were impressed. The area is a danger zone with recent fighting and the stock has taken a hit. The mine is far enough away from the fighting so he thinks it will not be impacted. He paid just over $2…

They have three gold mines around the world. A huge 13.7% free cash flow yield; FCF grew over 200% YOY to $244 million. Sales were up 63% in the recent quarter. Cash flow is expected to grow in 2021 26%, and the ROE to be 26% in the coming year. Gold has momentum, says the…

(A Top Pick Feb 28/22, Down 7%) Large transaction required an increase of the issues outstanding. Good management. Increased liquidity because of increased size portends it will be a leader in the space. Price decline means he can buy more.

It is backed by bank accounts or deposit accounts at chartered banks, in other words a quasi money market fund.It is pretty stable with only the credit risk of individual banks. It has similar yield to a previous caller's suggestion - HSAV.

(A Top Pick Dec 04/18, Up 2%) Safety play. A place to park cash. Never touches a GIC, because they're not liquid.

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…

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.

It is low Beta and skewed toward the more conservative sectors. It follows sector allocations and uses a checks and balances system for individual stocks.

These top picks are conservative calls due to the higher volatility of inflation and the markets. He often does not own the ETF's themselves but uses the underlying Futures market. Supply chain problems continue to add to the volatility. A utilities ETF is conservative since it gives reliable revenue streams, therefore higher cash flow and…

Stock vs. Stock. FIE-T vs. CMR-T. CMR-T is a money market fund. FIE-T is a multi holding income strategy holding all kinds of assets, so there will be more volatility. When markets are up go into CMR-T and FIE-T when they are down.

It holds ultra-short term investment-grade bonds. MER is 40 basic points. The chart was smooth pre-COVID, then plunged 20% during the sell-off, then recovered. When times are calm, they act like bonds. When risk spikes in a crisis, there's volatility. This falls in line with your equities. He's surprised this had this much of a…

He doesn’t know this, but assumes it is an actively managed bond fund. If so, the question you are going to have is the duration of the bond fund at any given time. You can usually get that information from the people who market this ETF. If you have a duration of 10, then you…

ZFH-T is exposure to short-term high yield credit using a swap strategy to mitigate the interest rate risk. You still get credit risk. ZHY trade more like equities than bonds. People are seeking the higher yields. A floating rate note mitigates the interest rate risk only.

Good time to be buying under valued REIT. Healthy dividend. Attractive valuation.

Price not reflective of yield also included in shares. Yield seeker that will give 6-7% return. Less volatility than other dividend payers. Will include utilities and pipelines.

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)

It has raised its dividend again with dividend growth being 3 to 5%. annually. Although growth has slowed for Canadian Telcos, BCE is one of the biggest providers of cell phones.

Rogers will probably win the court battle, though there will be concessions. You better like Rogers.

(A Top Pick Dec 21/21, Up 69%) Energy performed very well this year. High energy prices will continue to hold. New discipline paying off for shareholders (returning capital to shareholders). Increasing dividends, paying down debt and share buybacks will reward shareholders. Thinks excess cash flow should be invested in renewables or, other growth areas.

Recent market selloff due to quality of acreage. Current share price presenting good buying opportunity (1x cash flow). Expecting stock buybacks next year. Low conviction on the name.

Involved in the UK North Sea. In the process of drilling a well with the Lundins that is very important. In about 1 month will start working with Husky (HSE-T) in the North West Territories. Between the winters of 2008 and 2009, you will have a good shot if they have any kind of drilling…

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.

They have cut back and preserved capital. They do not have a debt issue. They are a gas play. If gas prices stay strong, they should do well. She anticipates their 4th quarter production being lower. She is not buying it today, but the future looks good.

We've reached the tipping point where we're sick of really dirty oil. But don't get greedy with this now. Can't recommend buying it at current levels after such a big run.

He would like to see a couple of good quarters out from them. It is thinly traded. You have to be prepared to watch it quarter by quarter.

Zinc in Utah. This could go into production by itself. We could see this thing scale bigger in terms of tonnage. There is a lot more to be found. It is in an area where there are reduced environmental objection, just south of the Military testing grounds over the Salt Flats.

Intelligently run diamond exploration company. Has yet to see that they have economic pipes. Also into nickel but he has not been following this.

The best of the small cobalt companies in North America. It has an asset that is alive and well. It will be raising money for it while next door a mine is being decommissioned.

Located in Venezuela, which is a problem. If they have a major discovery there is a chance they could be expropriated.

More of a short-term trading instrument. Definitely don't just park money in it, money gets lost in it every time there's a move. Instead, play via a TOU or even some of the US pure-play nat gas producers.

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…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. As had a good quarter with beating estimates and raising results. Continues to see demand from the cloud and semiconductor industries. Revenues rose 27% and EPS also beat. They raised revenue outlook from $6.37B to $6.5B. Unlock Premium - Try 5i Free