52-Week High: Canadian Markets are doing well this week and Alimentation Couche-Tard continues to make the list as it continues to go higher.
Here are the stocks hitting their 52-week high….
Has a 7% free cash flow yield. The market is annoyed they haven't made an acquisition recently, but he's fine with that. They've produced a ROE of 20% for decades, and are undervalued now. He doubled his position in the low-$40s. There is some concern over e-cars, but ATD has been testing EV stations in…
She owns another name in food retailing/grocers, who have benefitted from strong same-store sales growth, though this growth will moderate as economies open up more and eat out more. All retailers are increasing digital shopping and home delivery, though. It's a competitive space. All names have benefitted from the pandemic, but Empire doesn't offer much…
On strike in Newfoundland for the past month A steady business and doing well during Covid. Loblaw also owns pharmacies. It's reasonably priced in the high-$60s.
Allan Tong’s Discover Picks This consumer defensive name operates retail stores, selling groceries and household items, in the Canadian far north, Alaska and Caribbean. Because it operates in such an extreme geography, NWC enjoys a monopoly. North West Company pays 4.45% dividend. Read Best Dividend Stocks Canada for our full analysis.
You want defensive stocks right now. Big thing is Jean Coutu, and integration will create earnings and cash flow growth. More difficult issue is how to expand that brand beyond Quebec, and this is already priced into the stock. A defensive name, and you can do quite well. Yield is 1.7%.
They have been getting away from oil and gas work and more toward infrastructure. They have hydro-vac trucks to excavate so crews can get in and work on gas lines and so on. He got stopped out in March. He would have no trouble buying them back. They are quite well run.
(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 operate gold and copper mines in Bulgaria and Namibia. Earnings up 80% YOY, and boast a 9.2% free cash flow yield. Cash flow to grow 74% in 2020 and 17% in 2021. Price-to-cash flow is 5.9x. ROE expected this year is 21%. (Analysts’ price target is $9.23)
(A Top Pick Aug 09/19, Up 231%) A market darling centering around a gold operation in Papua New Guinea. The gold tailwind hasn't hurt. KNT was already gaining investor attention before this gold rally. He sees more upside here, so he's holding onto this. Also, this could be taken out down the line.
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.
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.
It stopped being a silver play a year ago. As they've made acquisitions, they've shifted from South American silver to North American gold. If gold pops, this stock could generate a lot of free cash flow.
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.
(A Top Pick Jun 25/20, Up 15%) They own industrial warehouses, the kind that Amazon and e-commerce uses and booming in this pandemic. It's doing well during the pandemic. Has a great balance sheet with low leverage and in a sector with stable, growing cash flows. They can make accretive acquisitions. Has a valuation gap…
(A Top Pick Feb 12/19, Up 32%) Scotiabank just announced a $13.75 target. Managers own about 10% of shares. There's good industrial rent growth in Toronto and Montreal. Vacancy rates are rock-bottom low.
(A Top Pick Sep 17/19, Down 52%) A diversified REIT. This is one they ended up selling. Their mall portfolio has suffered. He was afraid the dividend would come under pressure. Getting access to capital is tough for them.
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.
Lots of GTA multi-use with commercial too. With REIT that have commercial exposure, it's hard to see what they are doing. He would prefer warehouse REITs or grocery anchored REITs.
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.
Basically it's an ETF version of a mutual fund. All fixed-income and pays a yield over 3%. You can park money here until you figure what to invest in next.
(A Top Pick Jul 31/19, Up 0.4%) This is a way to lower volatility. A return of 2.15% per year, paid monthly. Hold it during volatility, sell it, and use the return to pick up your cyclicals during periods of seasonal strength.
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.
It holds all investment-grade bonds, cheap cost at 15 basis points, and lasts only for a two-year duration.
(A Top Pick Dec 04/18, Up 2%) Safety play. A place to park cash. Never touches a GIC, because they're not liquid.
This will improve, because bonds mature at par, then you re-load at higher interest rates. The ETF is down, but don't sell. This will correct and you will benefit from higher interest rates. Be patiebt.
He's held this for 30 years. Investors underestimate their infrastructure assets in their networks built-out. The stock is cheap now. They benefit from heavy streaming now. They generate good cash flow and a cheap valuation. (He also own BCE, Telus and Shaw.) Rogers' advantage as that it trades at a similar valuation, but pays the…
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…
Growing exposure to wireless, content, cable, low valuation at 6x operating cash flow. Likes the group, and this is a newer name he's added. Yield is 4.78%. (Analysts’ price target is $27.58)
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.
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.
It has been on fire this year (up 30%). Hydro Quebec is buying 10% of the stock. He would stay on the sidelines since it has rallied just based on a strategic alliance with Hydro Quebec.
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.
Enbridge (ENB-T) TSE
An income stock. Yield is about 8%, and thinks the dividend is safe. Payout ratio from operations is around 70%. Anything energy is out of favour. Disconnect between fundamentals and valuation. Attractive here. Reaffirmed cashflow targets for the year. It does have higher debt, but it continues to be investment grade.
Route 1 Inc. (ROI-X) TSXV
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.
52-week Low: There’s still volatility and people are playing defensive. See which companies are hitting their lows.
Here’s this week’s 52-week low stocks ….
Prefers Melcor Developments (MRD-T). When there have been housing difficulty like there has been, it’s extremely difficult for stocks like these.
A re-capitalization of the older company. It has started to come back. They signed a contract to get pellet supply, that seems favourable. They have some valuable land holdings in Hamilton. A nice risk-reward for some people on a small scale. He does not see enough safety around the dividend to recommend to his clients.
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.
Itafos (IFOS-X) TSXV
(A Top Pick May 15/18, Down 73%) A miner and processor of phosphate -- a precursor to potash. They took over a bankrupt project in Brazil, which they liked from a speculative perspective. They have had technical difficulty with the project and it did not work. If you are patient, it should eventually pay off,…
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.
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.
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.
Its BC nickel play. Doesn't like GGI. Last year this was a darling stock, but their drill holes haven't impressed him.
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.
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 questions.
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 cash on the…
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.
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.
Use this list wisely to identify buying opportunities.
Happy trading !!!