This week’s new 52-week highs and lows… (Jan 9-15)
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….
PKI vs ATD'B They've done a good job rolling up fuel distribution. It's compared to ATD'B a lot, which he prefers because they're also in convenience stores as well as selling fuel--diversified. Also, ATD'B managers are phenomenal. PKI is too, but it's a different business. ATD'B allocates capital well in buying back shares and buying…
Very solid. Decent hold here. Low growth sector, about 5%. Good franchise. On weakness below $37, look at buying. If you're negative on the market, safe place to be. If you're positive on the market, there are better places for your money. Yield of 1.5% that will slowly increase over time.
(A Top Pick Sep 15/20, Up 31%) The gains are surprising. They've invested in long term areas, namely e-commerce. Costs to protect employees from Covid will roll off. Shoppers during Covid flocked to the top supermarkets, though are now returning to the discount chains, which Loblaw also owns. She's waiting for a pullback to add…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reports on Thursday. Likes the company somewhat. It’s cheap at 13x earnings and offers a nice, secure dividend. $591M in sales is expected with a $0.73 per share income. Unlock Premium - Try 5i Free
It is one of a small group of major grocers in Canada, a really well managed company. He would buy it on any weakness. It is a good defensive stock to hold over the long term. He sold it recently because it had had a long run.
More a derivative of infrastructure, as it services construction assets. Likes management. Still upside over the next 1-2 years. If you want steadier cashflows and less lumpiness, look elsewhere.
(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.
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…
Doesn't own because of he doesn't understand the geopolitics in Papua New Guinea. This is why he prefers investing in North America whose geopolitics he does understand. Otherwise the company looks good: properties, production, metals in the ground. He has a $12.50 target and his company has this as a buy.
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.
Great value. A buy, with a $26 target. Will perform well. Great company. Buy right, sit tight, and wait for the storm to hit. Meets all his criteria for something he'd buy.
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 32.42%) Has a lot more stability today. Trades at a slight discount to NAV. Close to a 10% return. Yield is 3.5%.
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.
Focused on the US sunbelt. Office industrial. There is a nice discount. The catalyst could be in the next quarter where they announce a spinout of at least one of their sectors. The new entity could have a better cost of capital or have a better growth rate.
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.
65% Walmart. It is retail, anchored primarily by Walmart. It comes with very low rent growth but an attractive distribution growth that is quite safe. He can find growth and value elsewhere, however.
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.
RCI.B-T vs. SJR.B-T. He is not buying either right now. He owns Bell and Telus. There is deal risk in the merger between Rogers and Shaw. You might want to take the money and run if you hold Shaw. Both are fairly priced.
Very cheap compared to peers. Challenge now is national expansion clarity. A cosy little monopoly in Quebec, but how will they compete against the big boys? Company wants to return capital to shareholders, which means share buybacks and dividend increases. You can buy a bit if it gets to $29-30, but don't expect it to…
They provide elective surgical services in the U.S., though it's a Canadian company. Because of Covid, those services have collapsed, but will recover as the economy reopens. Such surgical demand will be out of sight, because of huge pent-up demand. Also, the valuation is much lower than the historic norm. They will enjoy 2-3 boom…
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.
A small-cap green energy company. This sector will continue to grow and INE is expanding into the US. They issued some equity. Buy any green power producers on pullback.
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
Undervalued. Line 3 just completed. Where prices are, capacity will be maxed out. Line 5 issue will hopefully be resolved. Recent acquisition is a great asset long-term. Enough cashflow to maintain and increase dividend. Yield is 6.35%. (Analysts’ price target is $55.34)
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.
It's in capable hands now (it dodged bankruptcy in its history). They've removed legacy costs and are benefitting now from high steel costs. They're also buying back shares, but also from insiders which raises a yellow flag. Also, steel prices don't last forever, and Trump's old tariffs may fall. For these reasons, he's taking a…
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 !!!