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….
It was flatlined for three or so years as they acquired, but they have done well recently. He has a similar idea in his top picks, so he won't comment much here.
A year ago they went through a restructuring and then a big acquisition in Safeway. They were left with a banner that had few discount brands in Western Canada, then tinkered with their loyalty program and that upset consumers. Last quarter the results were not liked. He used to have it but now prefers WN-T…
Threatened by online shopping? He likes it, because it dominates grocers in Canada with good real estate. It's a little vulnerable to online shopping, but grocers like Loblaw won't be affected much. Also, Loblaw has click-and-collect e-shopping where a customer orders groceries online then picks them up. He expects double-digit earnings growth after Loblaw absorbs…
It is one of the oldest companies in Canada. It is a no growth situation. There are far more interesting names to own in the food distribution space.
This typically does really well from April to July, but once you get into July, it tends to move lower. We are now past the period of seasonal strength. Stay away from this for now. There are other opportunities.
(A Top Pick March 23/17 - Down 27%). A controversial stock in the last years. A company the is in the hydro vac – high pressure water to move earth rather than digging. Largest in North America. Last year it had a bad quarter and the shorts were clobbered the stock. In the meantime, the…
This was formerly a closed-end fund of junior resources but changed its method of operations and now has two gold projects in Bulgaria and hope to produce as much as 500,000 ounces in 3 years. Also have exposure in several other junior stocks. Cheap.
Has been an investor in this for a long time. They bought a Papua New Guinea project from Barrick (ABX-T) for almost next to nothing. They are about to start producing, and there will be a lift when they go from “no” cash flow to cash flow. He is also hoping that when they get…
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.
Silvercrest Metals (SIL-T) or Silvercorp Metals (SVM-T)? This one is a fairly small deposit, but with high quality people.
(A Top Pick Jan 24/14. Down 11.04%.) He really likes this story. 80% of silver production comes from a by-product from copper mines and from mines that are really shutting down. Pure silver plays are rare. Located in Argentina which is probably why the price has been hurt a little more, but it hasn’t hurt…
Produces gravel in Fort McMurray. Management owns about 44%. Have produced enormous profits relative to their market cap but the stock trades for 5X trailing earnings. If you believe in the oil sands and the construction of these big plants and roads, this is the play for you because they are pretty much the dominant…
It announced a strategic review as MG-T is 80% of their tenant base. Everyone is waiting. There is so much potential because the balance sheet is so much under levered. He trimmed when the CEO left. You get paid 6% to wait.
The whole group has gotten cheap, but he sees little growth with this one, not until 2020 with some of their U.S. assets. Boasts a 12% discount in its NAV. It's a yield proxy. There are better REITs, but the current price of this is decent.
Recent IPO that he did not participate in. He was concerned with some of the tenant concentration and, one building in particular, where there was a head lease on the building which meant that the occupancy and the rents were being guaranteed, even though they were operating at well below what the company considered normalized.…
Which sector should I invest in: banks, REITs or pipelines? Banks. They have an oligopoly, earn steady profits, and have exposure to overseaS markets. But diversify. REITs have been neglected for many years due to exaggerated fears about a retail collapse (that Amazon will devour everyone). Retail REITs are trading below book value but have…
For short-term investors such as money market types. Simple way to get broad, low cost diversified money market exposure.
A safe way to play the fixed income side of a portfolio. This company roams the world looking for opportunities in the fixed income market. It has produced very good long-term returns, and he would recommend it.
All this does is to invest in high interest deposit accounts. It is a constant steady stream of income. He hates recommending cash, but this is essentially a place to park your cash during the summer. You will at least get your 1% annual income.
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.
This has lagged, because basically you are holding T-bills and equal-end type instruments. When you’re starting at 1%, there is not much room for price appreciation. This is more of a cash alternative as opposed to a bond alternative.
DEX Floating Rate ETF (XFR-T) or Vanguard Cdn. Aggregate Bond ETF (VAB-T)? If interest rates rise, which would you Buy? The aggregate bond is a little bit longer in duration with an average of 6 or 7 years and might be a little bit more sensitive to interest rate hikes so this one might be…
Short Term Corp Bond ETF. Doesn't think there are risks any more with corporate bonds. This will give you a bit of yield pickup without venturing into preferreds. (Similar to XCB-T, which he owns.)
(A Top Pick Oct 13/16, Up 19%) There is concern about how much they have to spend to build out the Wind network. He decided to take his profits.
The risk is they own a bunchof U.S. real estate tied to medical practices and there were changes in the competitive landscape in some states. They bought a company recently that spiked the stock. He's met and likes the management. But they carry a lot of debt. He believes they'll sail through it, but the…
(A Top Pick Sept 28/11. Up 22.45%.) Getting close to being fully valued and he is starting to Sell it. Has had phenomenal growth and is very conservatively managed. Doesn’t see much upside so is basically holding it for its yield.
Seasonality for utilities is just about to start in June. The bottom in February is really indicative of a lot of utility companies. Chart shows a nice nascent trend. If we get above $4, this will usher in a lot of new buyers. Thinks there is pretty good upside potential on this.
Enbridge (ENB-T) TSE
He has held a position with ENB all his career. Right now the company is in a weird spot, with Michigan and Minnesota creating headwinds. The lines need to be refurbished, but there is political delays. This could put the dividend growth at risk.
Route 1 Inc. (ROI-X) TSXV
His third-largest holding in his personal portfolio. Has a product that goes into the USB port on your computer and allows you to reach into any computer, where you have authorization, around the world. Has been trading in a band of 3.5 cents to 5 cents. Currently at break even on earnings and cash flow.…
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 ….
A land developer primarily in Alberta. They accumulate land and turn it into residential properties. A different way of playing the oil space in Alberta. Warning! One fund is about to be wound up so there will be a big block of this coming out one of these days.
They have totally different management. A good decade ino the past until it was up and trading. There were a lot of industrial companies in Canada in the late ‘90s and early 2000s. You are seeing a resurgence in the industrials. China has been the big importer of industrial steel and they just held a…
Steel manufacturing. Play on infrastructure in Western Canada. Has done a great job over the past 18 months amassing capacity. Has about 420,000 ft.² in Western Canada. An area where he sees growth leading up to the Olympics in 2010. Have some large projects that the market doesn't know about. First 9 months did $80…
Itafos (IFOS-X) TSXV
Agricultural company focused in Brazil. Has a phosphate deposit, which is expected to come Into production over the next few years. Also looking at other opportunities. Brazil is going to have to import fertilizer, so there is a cost advantage of producing in Brazil.
Has a very good project in China. If you are okay with investing in China, there are two companies that stand out, this one and Sino Gold. Not a fan of China.
Gold in Burkina Faso. Good management. His probabilities of success are very good based on management's previous success in selling a gold mine. Have started drilling. Speculative.
He doesn't invest in building small mines like Redstar. They continue raising money to build it, so market share is increasing, but your market share price is flat or declines. He wants something that's good enough that a major will buy it out.
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.
Doesn't know the stock that well but based on what he does know, it's in a favourable place. Undervalued. If the mining cycle continues, you should see good performance out of this one.
A typical Sprott speculation. It is either going to really work or really not work. The discovery hole was spectacular, although an odd style of mineralization for where it was in northwestern BC. Management is very credible. Don’t use money that you can’t afford to lose some of.
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.
(Market Call Minute.) They lost a customer which really concerned him. Have very high customer concentration and until he finds out what is going on with that customer he would consider this as a Hold.
Chart shows this has taken quite a dip in the last while. Changes in management because of production mishaps. Need to look at these from both a production standpoint and a commodity standpoint. Have a constrained balance sheet and not a lot of room to raise CapX for growth. More linked to oil than to…
A fairly new start-up company. Management has worked for different apparel companies in the past. Doesn’t follow this closely. They are billing themselves as kind of an upstart between Under Armour (UA-N) and Lululemon Athletica (LULU-Q) in that they have athletic wear for both women and men. Hasn’t done a lot of work on this,…
Use this list wisely to identify buying opportunities.
Happy trading !!!