New 52-Week Highs and Lows (Nov 21-27)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research IF growth returns then CWL could do OK, but it has seen revenues decline for nearly the last two years. Margins also took a significant dip in 2023 and CWL generated a net loss. Looking back to years when CWL did see significant growth, it's…

One of the stronger companies and brands in Canada. Successful transition to a digital company, offering subscriptions to data. Low capex, recurring revenue. Profitability was challenged, but now improving nicely. Very expensive at 43x PE. Small yield of 1.3%.Stay away for now on valuation, but watch, consider buying if shares correct.

It was all " gung ho" about 2 years ago. It is difficult to find out what is going on. Management have been rather shy for a long time. Overall revenues have not risen dramatically for a long time. There are a lot of competitors. He needs to look more closely into the company.

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.

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.

Good company, but dividend too high. Mature company. Better growth companies out there. Well run, and stable business. Lots of mortgage exposure but overall a good business. 

Great properties, but diversification means it doesn't get a great valuation from the market. Sunbelt properties are over-supplied. Owns office properties and retail. Transforming to multi-family and industrial. Trade action starting to pick up. Secure yield of about 6.7%. Growth will be a while, depends on your time horizon. Better names in the meantime.

A good dividend play. The yield is at 4.6%. People tend to focus on the tech side of green stocks, but this has utilities that have consistent income. They are a potential takeover target for Brookfield so the price has recently shot up. Could get decent returns.

Holding here around the 50-day MA. Generated a weekly sell signal last week. Don't buy here. If you have a nice gain, sell today.He just sold all his gold producers, as seasonality ended. Seeing some strength in the USD. One of the biggest inputs for Canadians is the USD against the CAD. You always want…

Just completed an expansion. A bit more debt leveraged. Fortunes rise and fall with copper, especially with a recession scenario. China's problems aren't helping. Should be back to $3 in next 3-6 months, $4 in a year. Operational issues in Q1. Second half should improve. Sit tight. You could dip your toe in Q4.

(A Top Pick Dec 15/20, Up 12%) Taken over. He got out when the deal was announced, as the acquirer wasn't somewhere he wanted to put his money.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It is certainly not beyond possibility. Bloomberg default ratio is 7.36%, which is very high for that indicator. Cash flow was negative in the last quarter, yet 12-month interest expenses were $36.1M net. With its small size and Cuban and other issues, we are not…

Expecting company to be bought. Would recommend holding.  

Forestry space He owns no names. The stocks are okay but face trade disputes and an economic slowdown that will hit housing stocks. The stocks have been beaten up.

(A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ELD has triggered its stop at $13.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous recommendations.  

Likes management. Note that there is nothing immediately happening. It’s not something to chase, but just accumulate over the summer. Turkey is not bad at all, it is a democratic system. Their mining code is working. He thinks they have permitted 10 mines in 10 years. This company is technically very, very competent. Sitting on…

Too much political risk. Too much financing risk. Nice deposit.

Hold until sale to Equinox, or buy more? He holds both to benefit from long-term effects of inflation. He thinks the takeout is great. EQX is well run, a buy, with a $12 price target.

It is in the metal fabrication business. They just raised their dividend this year and have dramatically changed their balance sheet for the better, so it is in much better shape than in past cycles. They also have a U.S. operation and have done a great job managing their working capital. Tariffs could hurt them…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 9c missed estimates of 17.5c; revenue of $72M missed estimates by 2%. EBITDA missed by 11%. SXP is down significantly over the last twelve months by ~42% and recent earnings pointed towards declining profits and revenues. Revenue fell $6M. Earnings and EBITDA margins…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research USA hit a 52-week high today. It is moving with the sector but also good growth and lower losses are expected. The recent consolidation of assets and financing have brought further interest to the company. We would be OK letting momentum ride here for a…

Agnico-Eagle (AEM-T) came in a while ago and made a 9.9% stake in this company. The stock went up, but it really hasn’t done much since then. Then Barrick (ABX-T) came in and said they really liked the deposit and wanted to do a joint venture. This is a much better approach that is better…

CCL.B-T A great label maker. A fantastic story over the years. He would never recommend selling it. You also have IPT-T and have been selling weak with all the hurricanes in the last weeks. They create a lot of value but there is better value with IPT-T. He holds this over CCL.B-T because IPT-T are…

The Barkerville district has a lot of prospectivity. Their individual drill results are excellent but under the control of the Osisko company. He doesn't own it, because has a hard time getting the drill holes to tie together. That said, the district has a lot of promise and the exploration team is strong. The stock…

Thinks there is another mine in this company. This is a story that is going to unfold and he likes it.

It’s a tough deposit. Erratic mineralization with the Uranium. He doesn’t think a lot of the deposit. Prefers others.

He's angry with their recent oily acquisition, just as people are warming up to natural gas. He sold. Can't agree with the company's strategy.

Their debt has always been an issue. Trading at in-line levels for their multiple. Does not check his boxes in his fund.

Oilfield services firm that has big fracturing technology presence. Horizontal drilling and shale boom not as strong. Very dependent on energy prices. Lots of assets that must be carried on the books. Not investing at this time. 

Bought at $8.50, now at $6.64. Sentiment remains challenged in the space (a common theme today), even though the Energy Index is up about 20% YTD. People are hiding in large caps, with few funds coming to small- or mid-caps. Hard to see it outperforming. Yield is 10.7%, pretty hard to replace. Not a name…

CNQ vs. SU He doesn't generally participate in the E&P space, as it's hard to make decisions based on the underlying commodity price. Bigger picture, still huge demand for Canadian oil and gas on world markets. EVs won't take over anytime soon.Very strong operations. Very focused on shareholders by returning $$ to them and paying…

Great company. Looking at the chart, big wall of resistance it just couldn't get through. Then it broke out. If you own it, hold. If it pulls back to the neckline, he'd be all over it.

One of the largest fleets of generation 3 and 4 deeper coil tubing. Two businesses: coil tubing and tools. Both are being run efficiently. Margin pressure in the sector. Great little story that will be a big beneficiary of LNG drilling. No debt. 5-year bull market target of $3. 2023 will be a pivotal year…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. KEL has strong drilling activity and currently no debt. We have KEL in the growth model portfolio, and we like it for its diversification benefits, being in the oil and gas sector. It is a strong name with a good balance sheet and healthy profit…

(A Top Pick Aug 31/23, Up 42%) Excellent company with very strong assets. Skilled management team that is able to allocate capital well. Market starting to recognize value of company - expecting 20-30% upside. Dividend very safe. 

Trucking and logistics primarily to the oil and gas industry. Well run. Tough business. When oil does well, this one does very well. Good dividend. You could own it here, but he'd rather own an oil business instead.

Got in at 50 cents. It takes discipline to not take profits too early and let your winners ride if the thesis is still playing out. The investor did well to do that, not many can.Believes his firm is still the second-largest shareholder. Continues to drill exceedingly great wells. Perception of an inventory challenge, but…

Companies with challenged balance sheets (high debt in this case) face difficulty in banks continuing to finance growth. He would not own this one.

They have two plays. It is pressured because of debt load. Production came down in the third quarter and should now increase. They should knock debt down with the sale of two non-core assets next year. It needs a catalyst before the market will revisit this story.

Tricky. In penalty box based on disastrous year. Dividend needs $80 to be truly sustainable. Based on poor share performance, CEO's job may be on the line. Risk in Colombia, sentiment remains challenged. He owns a very small position, gathering option premiums. Better names out there for new $$.

For full disclosure, she is on the Board of Directors of Blackpearl. International Petroleum has made an offer to acquire. It is expected to close in mid December. She would not be buying a stock that may only be around for a few weeks. Management is very strong and will be going to International Petroleum.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research At 8X forward earnings and with investors/analyst attention seeming to increase, we don't think much has to change here. As always, we would use prudent portfolio principles around trimming/re-balancing to limit a single company becoming too much of a portfolio but do not think it…

One of the more conservatively run oil service companies. A smaller oil service business. He likes some of the stuff they do in their rig matting and gas compression businesses. They have an acquisition strategy, and in this environment they may see some opportunities that could be accretive to shareholders. Balance sheet is pretty clean.…

Has held up well at 8x PE, even with nat gas prices low. Pristine balance sheet, using it to invest in equipment that reduces carbon footprint, which gives it a marketing advantage. One of the more volatile among the service companies. Yield is 3-4%.

Hit or exceeded numbers for 3 quarters in a row. People have come back to the story. 20 years of stay-flat inventory in the Clearwater, a massively economic play. Benefit of incremental FCF lowering the decline rate. Shareholders likely to get 60% of FCF for the next several years as it pays down debt. Mid-cap, but…

(A Top Pick Feb 09/21, Up 9%) Continues to hold.

Bought 9 years ago around $14. Pretty healthy yield of 6.9%, which is why most investors own it. Good exposure to economic wells in the Duvernay. You need a catalyst for investors to see your company in a different light. Daring to dream that oil gets to $80 in a year and a bit, share…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the…

This had been on his Short List of about 10 companies. There is absolutely nothing wrong with it. He thinks you could get an 8%-10% rate of return. It just didn’t seem to have that key catalyst driver that could make it exciting. (See Top Picks.)

Has become the go-to Canadian natural gas name, and for good reason. Attachie will add to its growth, and incremental FCF will result. Most FCF is being returned to shareholders. Several decades of inventory. Very conservative management and board. Very strong balance sheet. Long-term exposure to rising natural gas prices. He's also bullish on its production…

Just beat earnings and have increased production. Cheap valuation compared to peers. But it's getting more expensive heading into 2021. There's no growth here, but that goes with the entire oil patch. The real issue is will they survive. Their balance sheet is getting better, but still high for a blue-chip name. You'll be saved…

Not a good investment with current management team. Other energy companies available with better opportunities.

Sold assets, which crystallized massive value. This is their forte. Some of that windfall will make its way back to shareholders. You have to believe in their vision. He sold too early.

It is hard to like a stock that has cut it dividend by 75%. Weather (milder winters) is an issue for companies involved in the heating business. Its revenue base is not growing as fast as before. The stock has done nothing for a long time. It's interesting that15% is owned by Brookfield.  Propane is…

Uses intellectual acumen to stake prospects, mainly in the Athabasca Basin. A uranium explorer, which tend to move later in bull markets but more dramatically. If they're successful in the next 6 months on farm-out deals, he's likely to buy in. Has done well in past uranium bull markets.

Has been really hurt by the execution of this very difficult play they are in. Company is going through some high costs, to make sure this very extreme area in northern Alberta, is all pipelined in. There are good reasons why two very, very good, smart, rich people have got ownership of this company. He…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Debt becoming a concern. Delivery and take-out only sources of sales. Special dividend paid this quarter. Dividend reinstated at a lower rate.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. No longer backed by Aurora. Multiple attempts to redesign stores. Multiple products sold at steep discounts. Deteriorating margins.

It's never done anything and has disappointed shareholders. He owned shares 10 years and sold it because he got fed up with its lack of progress.

A star in Canada due to great execution and lack of competition. Shift to multiple price points is a winning strategy. Carved out a niche in Canada.

This has great assets globally. The biggest sourcing platform for organic foods. It is really hard to get an organic designation. It takes 3 years for a farm to convert. They spent a lot of time putting together assets and it hasn’t been managed well. The company did a strategic review, brought in an investor…

A definite series of lower highs and lower lows. Continues to languish, downtrend remains in place. Value trap. Unless something changes, just avoid. So many other good places to put your $$ to work.

Volatile, avoid. Comeback in revenue since Covid. Fundamentally weak, broken down. Slightly beat on revenue, but missed earnings. Trading sideways. A big rebound would take more than the company's capable of at this point. (Analysts’ price target is $12.58)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. There are no analysts/estimates for RET.A, insiders owns around 57% of the company. 4Q sales increased by 11.4%. Marketing helped store traffic but higher costs and macro headwinds hurt the quarter.Comparable sales rose 12.7%, with e-commerce sales 34% of the total. The 4Q profit was also…

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.

This ETF tracks Canadian oil prices. There is only $9 million of capital in this fund – be very, very careful.

Not interested at current pricing. Waiting for interest rates to rise. Not a good time to buy.

Very good product for long term investors. Preferred shares can be risky, but also offering lots of opportunity. Current pricing is offering lots of up side with dividend yield as well. 

HPB Energy Bull+ ETF. Immediate leverage to oil price moves. If you have a very good near-term bet that you want to make on oil this would be the way to go but if you are looking for an investment in the oil patch that has a long-term investment implications, then you should go to…

He would rather have direct access to floating rates. In Canada there are very few original floating rate preferreds left. One of the highest quality is the Brookfield BAM Preferred B or Preferred K and generally they are in the market and trading 17, 18, so they are at a big discount to their par…

Preferred share market is risky - not a good place for average investor.Not much upside with lots of downside risk.Income oriented investors have better options.Canadian Dividend Index a better product. 

The go-to energy ETF. He's bullish energy, particularly Canadian. Is market-cap weighted, so you get more exposure to big names like Suncor and less to smaller names.

An EM ETF? He's used this in the past and recommends it, if you're looking for a single EM ETF.

Excellent exposure to energy sector. Equal weight across the energy sector. Yield ~4.2% with a low management expense ratio. Energy cycle favorable to investors. 4% energy sector weighting on S&P 500 (traditionally higher) indicating room for further gains in sector as a whole. 

(A Top Pick Jul 25/23, Down 5.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ZPR has triggered its stop at $8.40.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 9%, when combined with our previous recommendations.  

(A Top Pick August 8/17, Up 8%) This holds what’s left over from the XIU 60. Wanted to get into some smaller stuff to get better diversification, and focus on this rather than the broader-based indices.

National Bank is buying it. Price of shares of CWB has risen because of National's performance. NA is paying more than fair value for CWB. Is confident the deal will happen.

The preferred shares, Series E Has a rate reset spread at 330 basis points, and pays a dividend yield of 15%. Something happened to the dividend last August. Doesn't know this name well. They are selling some retail assets to add stability to the stock.

Interesting transaction. Takeover at a discount, which is atypical and disappointing. Hard to assess this deal, not enough detail.

They own U.S. hotels, a high-risk, high-reward stock. He's bearish on hotels, which is struggling with labour costs and keeping labour. HOT.UN has done a good job restoring vacancies, in the low-70s, though their peak was in the 80s. However, they've made up the balance on their hotel rates. Their balance sheet is slightly higher,…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trading at high discount to NAV. Significant cash retention compared to peers. Diversified cash flow streams. Bid competition to slow acquisition growth.

Both companies have done quite well and both are cheap with secure dividends. It has been a good year for the sector but they may not get the same returns going forward.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Hut 8 is traditionally a bitcoin mining company which now has a few main operating segments; digital assets mining, managed services (infrastructure development), and high-performance computing (AI cloud computing). The majority of its revenue is from bitcoin mining (59%), 18% is from managed services, and…

They had a project where they had lent out some money to the big Urban Corp. real estate company, which defaulted on their loans. Fortunately, the loan was secured by some real estate. Terra Firma just announced getting full repayment of the principal plus interest for that property. Now it will be a function to…

Like a Mini-Me Coinbase. He's traded this, on relatively small positions in separately managed accounts. Not in his fund. Good way to ride the wave of blockchain and cryptocurrency.

Uses their GPS system to figure out where trains are, and to more accurately schedule trains and service vehicles for people working on the rails. Reported on Aug 14 and earnings were down 10%. That was against a 32% increase in sales. In the coming quarter, earnings are expected to be down 75% year-over-year. Great…

He rarely talks about Gold. He thinks it is a strong sector bet. It is been out of favor for so long that mines have closed, productions have closed, mergers and acquisitions happened. Central Banks are now massive buyers of Gold. they want to get out of the US dollar. The Fed is not raising…

They are doing distinctive infrastructure, where they are digging trenches to get that last mile to the home. They are doing this in the UK, and have a large contract with one company. He really likes the story, but is waiting to see some revenues and earnings drop to the bottom line over the next…

A play on where the next bull market's going to be, and that's going to be cyclicals. A cheaper valuation within the group.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Buses may be electric, CNG, or clean diesel and electric buses are offered by the company. Over the past five years, sales have shrunk by a compounded annual growth rate of 14.5%, while EBITDA and Net income have grown at a CAGR of more than 100%…

EXE vs. CSH EXE operates long-term care facilities which require a lot of capital, while CSH is more senior homes. CSH has been divesting lower-return investments to become more of a pure-play. You can charge whatever rent in a market if there's no competition. The seniors' population keeps growing. CSH is paying down debt, which…

There is so much concern on quality of earnings and when the companies will be profitable. He wants to see the industry mature. He likes it long term. The health side of this could be revolutionary over the next couple of decades.

A new CFO about six months ago is resulting in a change in their business operations. He thinks this is a lottery ticket if you already own it. He would wait until year end -- if it does not do well, take the tax loss then. Right now the company is running radio silent.