This week’s new 52-week highs and lows… (Jan 9-15)

Opinion about ATD.B-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 68c matched estimates; sales of $20.90B missed estimates of $21.21B. EBITDA of $1.64B beat estimates by 3%. Supply-chain optimization could let Couche-Tard maintain fuel profitability across its key markets for the rest of the fiscal year. US fuel margins declined…

Opinion about EMP.A-T: The ultimate winner in inflation. Tough business, low margins, competitive. He owns COST. Loblaw is well run, as are MRU and EMP.A

Opinion about L-T: Has held in remarkably well; considered a defensive name when markets turn volatile with risk of economic slowdown. Traffic gravitated to its discount banners. Pharmacists' roles have expanded at SDM, which also helps drive traffic. Plans to open more pharmacy-based clinics across Canada. Executing very well. Not inexpensive at 22x forward PE,…

Opinion about NWC-T: (A Top Pick Oct 28/24, Down 15%) It's rangebound. He bought it closer to the bottom, but hasn't risen as hoped. He'd trade at $6. He'll give it the benefit of the doubt, unless it falls beneath support. He's collecting a nice 8% dividend, though.

Opinion about MRU-T: The ultimate winner in inflation. Tough business, low margins, competitive. He owns COST. Loblaw is well run, as are MRU and EMP.A

Opinion about BDGI-T: In an excellent position. Most operations are in US. Business is really booming. US election gave management clarity on how to allocate capital. Despite tariff concerns, what they're making is long-term, critical investments. If it stays cheap, possible takeout by private equity or a strategic acquisition.

Opinion about CMH-T: (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.

Opinion about DPM-T: Dundee is nowhere as large as Barrick, Franco Nevada or Agnico Eagle, which comprise a third of the Canadian materials sector, but it has outperformed it so far in 2024. Dundee shares have rallied 8.5% in this time period while Barrick is down over 16%. Also, Dundee holds more potential upside. Consensus…

Opinion about KNT-T: Stockchase Research Editor: Michael O'Reilly KNT has been producing gold in Papua New Guinea since 2018 and recently reported a 71% increase in Q1 production, just as gold hits all-time high prices.  Cash flow is so strong, they are able to build reserves while aggressively deploying capital on project expansions.  It trades…

Opinion about PRG-X: Has no current plans to own this. Has a high regard for management, but his suspicion is that their cost of capital is too low. He sees them having a very difficult time thriving in the next 18 months. There are much better names out there.

Opinion about SIL-T: (A Top Pick Jul 14/23, Up 51%) Company has increased share price since recommendation. However room left to grow. Mine continues to grow. Believes upside still left in the stock. 

Opinion about SSRM-T: 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.

Opinion about ABM-X: They make frack sand; not a commonly covered stock. Trades at 15x earnings. The 2021 outlook is much better, supported by strong demand. A good opportunity.

Opinion about GRT.UN-T: (A Top Pick Apr 16/24, Down 6%) 26% of net operating income is from MG, so being impacted by tariffs. He calls this a second-derivative target of tariffs. Shares are trading as though MG is going to move its operations to the US, but he doesn't think it's equipped to do so.

Opinion about SMU.UN-T: (A Top Pick Sep 28/22, Up 45%) Got taken out. Traded at a 25% discount in a sector that was in high demand.

Opinion about HR.UN-T: Would recommend holding. Majority of portfolio in sunbelt states like Arizona and Texas. Would expect income to increase as more people move to warmer Southern areas. Good balance sheet that allows company to maintain dividend payouts. Expecting better times for company ahead. 

Opinion about ACR.UN-T: 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…

Opinion about SRU.UN-T: Very defensive income profile. Main anchor is WMT, and the flipside of that stability means internal rent growth is quite low. Not a lot of earnings growth. Attractive yield in low 7% range, but high payout ratio. Better retail opportunities elsewhere.

Opinion about CMR-T: 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.

Opinion about PMIF-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research PMIF is a more active fixed income fund designed to be adapt the portfolio to market conditions. We think fixed income funds in general can be good options offering low-risk, predictable cash flows which offer a diversification from equities. While returns have…

Opinion about PSA-T: De-risking 40% of a portfolio at age 59. Likes the idea of PSA. TLT, he believes, is a leveraged play on the bond market and wouldn't do that. BNS high interest savings, for example, pays 4.75% for optionality and no risk. For an ETF filled with 1-year bonds that's very low risk, look…

Opinion about PSB-T: 1-5 year Laddered ETF. This will have a pretty short duration so will probably give you in the 2.5% range. It will suffer too much from rising interest rates. Not a bad place to park for a while.

Opinion about ZST-T: This hold short-term corporate bonds which yield a little more than the government equivalent, safe. You assume a little credit risk, not much

Opinion about XFR-T: Current yield of 5%. You want floating rates in your portfolio when yields are going up, as it mitigates the negative impact of prices changing. The floating nature means the coupons can set a lot more frequently than would a 10-year bond.If you think about a series of 3-month bonds or other…

Opinion about ZCM-T: Nothing wrong with this ETF at all. 5 to 6 year durations because they are mid-cap corps.

Opinion about ZCS-T: Parking cash, plus safety. Laddered corporate bonds. Gives you a bit more interest rate risk, but not necessarily much more incremental yield.

Opinion about RCI.B-T: No issue with defaulting on bonds from any of the big 3 telcos. For the equity side: not a lot of growth, price competition, CRTC always making new rules. 

Opinion about QBR.B-T: (A Top Pick Jan 23/24, Up 3%) Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

Opinion about SJR.B-T: It comes down to the Rogers deal, which the street thinks will happen, but this is the fourth deadline extension. The deal has been priced into shares, so there isn't much upside. Better to buy Rogers or Telus than Shaw.

Opinion about DR-T: 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.

Opinion about AEZS-T: 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.

Opinion about INE-T: This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

Opinion about ATP-T: 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.

Opinion about ENB-T: (A Top Pick Apr 30/24, Up 38%) We now have a gateway to Asia. With tariffs, Canadian energy will not be welcome in the US. Integrated nature of its pipelines make it a long-term asset with growth capabilities that will reward shareholders well. Buy when it goes on sale, trim any gains.…

Opinion about ROI-X: The business allows a USB device to reach into a database. Many of the clients were US military and security agencies. A recent acquisition gives them good forward prospects.

Opinion about GDC-T: Prefers Melcor Developments (MRD-T). When there have been housing difficulty like there has been, it’s extremely difficult for stocks like these.

Opinion about STLC-T: In the middle of a long-term range. Yesterday's news looked very positive. Good, solid support around $38. Potential to get to $50 before it stalls out, in a 3-6 month timeframe. Get out if drops below $40.

Opinion about EIL-X: 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.

Opinion about IFOS-X: Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have been growing their top-line quickly over the last quarters. Net profit margins are improving. Although debt is quite elevated, they have cash balances and equity positions that are decent. Valuation is cheap and future growth estimates are good.A smaller size…

Opinion about CGG-T: 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.

Opinion about ORE-X: 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.

Opinion about RGC-X: They have a project in Alaska. The grade looks nice, but isn't completely sold.

Opinion about GQM-T: 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.

Opinion about EGD-X: Been a nice success story. His opinion is that the commodity cycle has really played out here.

Opinion about GGI-X: Its BC nickel play. Doesn't like GGI. Last year this was a darling stock, but their drill holes haven't impressed him.

Opinion about GAL-X: A tricky one. Have a very small mine in Ireland that they are trying to put into production as well as a small jewellery division. There is no clear indication of what they are trying to be. Gold deposit is very small.

Opinion about UR-T: Cameras on satellites. Feels they’ve made a lot of progress in the right direction. Management is working hard and there is now more clarity. We may see some positive free cash flow one day. At this point, it is starting to become interesting, although clearly there are still a lot of unclear…

Opinion about ESP-T: They haven't won many contracts lately. They had signed a deal with Rogers to make them look like Apple TV and more user-friendly, but lost that contract, then signed a few new contracts, but those revenues haven't come to fruition. He still holds it thought it's been going down. There's lot of…

Opinion about EGL-T: 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.

Opinion about RYU-X: 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.