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

Decline in revenue. Can't see any consolidation coming

Just pulled back because of near-term concerns on upcoming European regulations, but believes that will ultimately create a tailwind as clients need to adapt a system to manage these new regulations. Trading at a 4-year low. He models a 6% EPS growth. They have an active Buy-back. Good balance sheet. Dividend yield of 3.1%. (Analysts’…

Spinal repair, less invasive. He has met them, and the company is run by a man that was formerly a nurse. 55 operations to date and now it has approval from the FDA.

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.

For short-term investors such as money market types. Simple way to get broad, low cost diversified money market exposure.

In the business of originating and then later bundling and selling mortgages, mostly to some of the larger Canadian banks. With his views on the Canadian consumer, where housing is and slowing mortgage growth, he thinks this company’s business will slow. Would prefer places where you get higher growth in financial services.

This REIT has been around a long time and holds a cluster of assets in Toronto, Vancouver and the US. Generally, it is well run and you could continue to hold it for the long term. He would prefer SRU.UN-T.

An independent power producer. They have about 3000 MW of basically US based, but they do have some projects, primarily wind, in Ontario and Manitoba. Trading very inexpensively. They have the ability through their parent Pattern Energy Group (PEGI-Q) to vend in new development projects, so they don’t sustain development risks. They are 89%-90% contracted…

B2GOLD (BTO-T) vs Alamos Gold (AGI-T) He wouldn't buy neither of the two, but if he had to choose he prefers BTO-T. BTO-T is forming more of a symmetrical triangle with the bottom going up and the top going down. You can only buy this kind of stock on a breakout to the upside. Eventually…

A fantastic story. Have about 5 billion pounds of copper and gold. Cash costs in this environment should be about negative. Sees upside in this one.

A gold company in Burkina Faso in West Africa. Has $60 million in cash and an 8-year mine life. Feels they have a really great asset, and with some further exploration, it will be bigger. The stock has the opportunity to go from about $400 million in market cap to about $600 million. Because of…

A fantastic looking stock. The last upward trend is really positive. If it can get above the high of around $1.70 it reached in early 2017, it is not going to have much resistance. If it could get above the $1.80 point, it could easily be a double.

Latin America. Their guidance was artificially high and they were punished. He thinks they will play catch up aggressively. Seasoned management team and a good pipeline.

Play on the US housing recovery as well as timber, as they ship to US and Asia. Management bought 3 sawmills in 2006 which have been losing money. Have recapitalized a couple of the mills and are looking for better utilization. With better timber prices, she is expecting it to turn around and will probably…

ELD-T is all international: Greece, China and Turkey. They have had political problems in Greece, and Turkey is not exactly stable. He sold 5 years ago because of the volatility. You are getting way away from gold and it is not portfolio insurance, but execution risk.

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…

(A Top Pick Nov 2/10. Down 0.42%.) Gold deposit in Armenia with about 1.4 million ounces at just under a gram. They should resource out this month. This will be a very low cost, high margin deposit in the 2 million ounce range.

A bit difficult to value when looking at their assets. Started off as a developer in Red Lake, and everybody speculated that Goldcorp (G-T) would acquire them. That hasn’t happened. The geology just didn’t work out the way the company had expected. The company has now gone and done a bunch of other stuff, and…

A steel and infrastructure play. He used to own it. The Trump steel tariffs have hit this stock, but Russel doesn't sell steel into the States, so it should not be hit by the tariffs. He likes this stock, but is growing concerned about limited infrastructure spending in North America.

Manufactures highly specialized envelopes. 55% market share in Canada. Just made an acquisition. Very focused on reducing costs.

Likes it. Idaho. Sunshine mine is back in production and silver is going up and these guys are starting to make some serious money.

Yukon. Million oz discovered. Large potential to expand.

Only drawback with this is perception, which is they don't have a 43101 resource and not well defined. In some circles, that is true but if you can actually get the ore and spend shareholders money to produce a profit, that's what you should do.

It would appear that they have got themselves into a whole mess of trouble. There are a lot of questions as to what is going on here. He had concerns that the high-grade mineralization was not being properly constrained and therefore being blown out across the whole thing. Currently it is under Cease Trading order.

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.

This has done an incredible job of production and getting their costs down. We have a real use of natural gas for electricity air conditioning generation across North America, so gas prices are up. This is not the day that you want to buy gas stocks.

(A Top Pick April 24/14. Down 36.76%.) Still a core holding. This company stands out as one of the best capital allocators in Calgary. They have a track record going back to 1998 of delivering exceptional returns to shareholders. A very disciplined company, and he considers it a cornerstone of his portfolio.

Trican (TCW-T) or Calfrac (CFW-T)? This is a better company operationally and geographically. Less debt, although they do have a lot of debt as well, so everything is not rosy. His preference would be Canyon Services (FRC-T).

A year ago this stock looked very low and the commodity price was low, however, the companies in this sector were still making money. He thinks there will be good returns in the sector, but he prefers more torque with companies that will benefit from tighter heavy oil differentials.

The best Canadian oil company and they have integrated purchases well. He's long owned this. The problem is that Canadian oil stocks have lagged the oil price, but CNQ will still benefit from this rising price.

A market darling for a few years. When things went difficult in the oil patch they didn't react fast enough. They are still a big oil producer. There is a lot of uncertainty in that regard. A $100 oil seems to be a far away dream now. Stable but what is the catalyst for this…

An oilfield services company. Longer-term, he likes this. They are the Western Canadian leader in the coil tubing service business. Long-term, there is a good opportunity in this space. In the short term, he would be a little bit cautious on the entire services space. Profitability is pretty muted.

He sees $9 as key support. Earnings are expected in the next day or so. This is one of the best performing oil and gas stocks this year. It is at a high relative level and with oil prices falling over $2 be careful. He would use $6.90 as a stop.

It dipped 15% in a few days in October and bottomed in December. Any oil and gas stocks are in the same position. It's a buying opportunity now with interesting volume that isn't fading. At a significant support level. I needs to get above resistance at $32. It looks good.

Trucking and well completion services. Pre-eminent logistics player on oil sands. Expected them to make acquisitions by this time. Long-term, great company to own. 3.4% yield.

Good buy. He met with company recently. Did a pretty good job of making the best of a challenging environment. They need to raise capital. They are muddling their way through into a higher gas price.

They've sold a lot of assets and repaid a lot of debt. They've got covenant amendments, so are still in operations. Sees the balance sheet turning the corner in 2019. The bad news is that the debt to cash flow is about 6 times. Very vulnerable if prices plummet. It is still very pricey on…

They are 9,200 boed and 71% natural gas. They are working at reducing debt and building a position in the Cardium area. He has a $2.40 per share target in the next 12 months and he holds it personally. Yield 0%. (Analysts’ price target is $1.75)

He bought it two weeks ago. They have improved their reserve life index from 4 to 11 years. Their netbacks are expected to grow 19% this year. They will likely buy back 10% of their shares next year. There is Colombian exposure, but for 4% weight in his portfolio he is happy to take the…

Western Canadian oil is not so much driven by Canadian investors, it is the global or even the US investor that incrementally pushes these things and where the money comes to do financing. We have so much oil and the US is so successful about Fracing that oil will probably go to $80-$85. If he…

Global pipeline coatings. As a Canadian we should all be very proud of this company. There are not many Canadian companies that are a world leader in what they do. Has held this as a Long position many times. The downside is that they are going through a rough patch right now. Management feels that…

(3 Top picks are in the energy services sector, a lagging indicator of oil/gas.) Supply a lot of equipment and manufacturing to the service side. Cheap. Has a lot of potential torque. Virtually debt free.

The utilization rate in the US is under duress. They slowed drilling in Q4. This stock is very cheap. The balance sheet is good. Book value is $3.27 and the stocks trades less than half that. The company has been buying back shares. You have to wait for the turn in the cycle. Buy it…

This is by far the cheapest of his oil/gas holdings and he really likes it. There is a bit of an overhang, because they made an acquisition, which gave them a lot of stock, and there has been some selling going on. This is probably the right time to start a position in some of…

(A Top Pick Sept 13/16. Down 42.91%.) Energy has gone through a shift where the growth in production is going to make it painful for a lot of companies. He viewed this as a trade, not a long-term investment, and exited his position in Jan/17.

It is one of those fallen darlings of the energy patch. It has a pretty good dividend yield. The management team is very good. They lay out objectives and generally meet them. It may not go up for the next little while but he does not think energy will disappear.

The company was producing 2900 BOE’s in December, which went to 4000 in February. They are now producing 6000. Even though the stock has gone up a ton, the valuation has remained the same because cash flow generation and production has gone up as much, if not more, than the valuation. In the last quarter,…

(Market Call Minute.) Just acquired one of her junior companies and she intends to take the shares and hold.

The stock has been devastated. Debt is not a concern. They are producing well. It is a high quality name.

They have a low Return on Capital employed. But now it is very cheap. It is a treasure trove of resources. You can make a bet assuming that the management will make better decisions in terms of capital allocation.

It hit upon hard times with an extremely highly leveraged balance sheet, but management has kept the company alive. They have significantly de-risked the company but it has shrunk. The balance sheet is very much improved. This is a very high risk/high reward kind of play.

They did a good deal with VII-T. They build long term assets before the stock got beat up. It has recovered nicely. If the price of oil comes down then it is possible after the winter we could see lower prices of $4-5. Hold off and wait until about late Q2 of this year.

(Market Call Minute.) Wouldn’t chase this one too much.

His Top Picks today are speculative and high risk and fairly illiquid, so don't use "Market Orders". Early stage. Have a lot of exploration projects.

Main focus is a play in Northern Alberta, Esteem River (?). Have about 40 sections of land, which contain a lot of oil so wells they drill are very economic. Some of the wells have paid back in less than 6 months. Have more than 150 locations to drill in future. Broke even last quarter…

There is fierce competition in the entire food sector.

He said several years ago to stay away because they needed such renovation of their stores. They are now reestablishing their western Canada presence and selling off their US stores. Cannabis may or may not be the savior of the stores.

They make bikes, baby furniture, baby equipment, car seats, etc. The family that is involved in it owns a significant stake. He sees better days ahead. It is trading at a reasonable valuation. Dividend yield of about 4%.

With a 20-year horizon It's on her watch list, but they had a few disappointing quarters. They've always traded at a premium to peers in America. DOL has grown their basket by gradually raising item prices. She wants to see a turnaround in traffic or how they plan their growth in the next few quarters.

Sold his holdings as he felt the company wasn't sufficiently forthcoming. If you own, continue to hold for the long-term, three years. Fully priced.

He sees value up to $50.90. Any new toy can be hit or miss and he thinks they have had a few toys go their way, but it is expensive here.

It got hit hard in the first half of 2018 over premium video on demand (shrinking shorter release windows of movies from cinemas to streaming/TV). It then got hit hard in Q4. This continues to be a show-me story. The Rec Room and gaming investments are still TBD in terms of how they affect the…

Retail markets is a tough area to be in right now so you should plan to hold for 5 years or more. Good quality retailer but will struggle with everybody else. About 8% dividend yield.

Uses natural gas to boost the efficiency of large engines. He has been hearing how great they are for at least 22 years. The company has done a really poor job in bringing out shareholder value. They like to raise money and have raised a lot over the years, but have never been profitable and…

An ETF that tracks Canadian crude oil prices. He predicts $35 West Texas crude. He would buy into dips below $40.

(A Top Pick July 8/13. Down 3.85%.) For people trying to collect dividends, preferred shares do sell off in the summer, especially in August but he thinks the selloff has been overdone. For fixed income portfolios, where you are not going to trade, but are going to hold them for perhaps 5 years, this is…

Why such a large correction? Preferred shares are a big part of this fund, and they took a hit because of higher interest rates.

Has been beaten up and you are getting double gearing to basket of producers. You are not taking single company risks.

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…

Doesn’t like preferreds. You are getting bond yields for stock risks, which doesn’t make sense. On this one you had negative resets when the rates went down, so they got clobbered. Yields are pretty good, but he is not a big fan of that asset class.

(A Top Pick April 12/16. Up 2.96%.) This is a classic seasonal play. Historically the energy sector in Canada does well from the 3rd week in January right through until the middle of June. If you own, continue to Hold until around the middle of June.

Pays a pretty decent yield, currently at about 4.65%. Basically it holds the emerging-market bonds. You could easily make the argument that the bonds of these countries are going to become more and more worthy down the road because the countries are becoming more competitive, more productive and debt levels are coming down.

He likes the equal weight approach. He is looking for a trade here. You could see a bit of a lift on this one.

Will the rise in value of this ETF continue? The TD Bank and Bank of Montréal launched some structured products into the market that were linked to the payouts of the preferreds, and they were wildly successful. The demand for these preferreds went through the roof. He doesn’t think this is sustainable and he sold…

If you are looking for a growth story in Canada, not including energy, you'll have to look at midcaps. Avoids volatility.

Has a long term Short on this. Looking back to the last downturn in 2008-2009, it took 17 quarters for them to get back to pre-recession provisioning levels. The current downturn in Alberta has been a lot longer and more protracted, so thinks the time horizon for provisions will probably be even longer than 17…

This started as a Western Canadian focused REIT and has expanded into the US. Their payout ratio is a little higher than others, but overtime this is an investment that will pay well and he has faith they will work to lower the leverage on the balance sheet. Yield 8.4%.

Cut their distribution by 37%. Assets are going to shrink. He thinks 2019 they can grow 13%. They have a plan to internalize construction. There are more compelling REITS. It is probably a turnaround story here.

This recently took a hit, because they did an issuance. Issued some shares to repay some debt. They’ve done a pretty good job. Thinks the payout ratio is fine. Hotels are a more cyclical area, so you have to be careful. Trading at a good multiple and has good distribution.

Excellent liquidity situation. Payout ratio is sustainable. Was a discount for management that was probably warranted but is now overdone. Have done very well over the last couple of years. Would like to buy it in the $8 range. 7.5% distribution is very safe.

The market does not give them value for their assets and therefore the stock normally trades below its net asset value. The dividend yield is strong. The space is strong. He would look more at Manulife or Sunlife. The yield is very safe. Does not expect major upside in the stock price.

If you can't buy the coin directly this is a very interesting leveraged play. It is one of the biggest bit coin miners out there. Two years from now the net asset value of the company could double. (Analysts’ target: $7.85).

(Real estate lending) Getting equity like returns with a debt like structure. Have positive earnings per share now and just recently did a financing to build up their loan book. Down the road it is going to be a great little company. The people behind it are very well-heeled and probably are looking at this…

He has never invested in it. When the company was raising funds, it was doing so at sizable discounts, which caused some concern. He does not yet understand how this technology will play out, so they are sitting on the sidelines. He is not sure this company could be a long term sustainable crypto-miner. He…

On his Watch List and he might be buying soon. The oil/gas seismic is part of their business, but they have had more of a growth in the trucking area where they have a solution for fleet management and tracking. This adds a lot of efficiencies.

They now have over $1 billion in terms of the value of the gold on hand. You are buying physical gold that this company is storing for you. They are also growing globally. Thinks the growth rate is going to be quite fast. He is interested both in the stock and what they are doing.

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…

Feels the market has been improving for them a little bit lately, with the increasing activity in oil/gas and some of the mining sectors. A cyclical company. Right now it is probably a good company to own. Management would be pretty determined to retain their dividend. Yield of 6.8%.

BUS vs. GPV. Swapped out of BUS for GPV. There’s a lot of money flowing into this space. Some of the emissions scandal money is going to school boards to buy busses. Chart tells him that there’s no rush to get back in. GPV has more upside in the short term. GPV is volatile, but…

Pays a decent dividend, but not loads of growth. You'll see 2-4% earnings growth. Also, this is interest-rate sensitive. Over 10 years, their chart has been sideways, and the next five years will likely be like the past five.

He does not buy companies that have not been around for 10 years. He does not dip into Marijuana stocks. You need to look at management and look at their track record. Many of these companies are going to fail.

His 2nd largest holding. Currently have a lawsuit underway against Saint-Gobain & Philips. Separate from the lawsuit, an analyst has a $4 target. If they are successful in the lawsuit, it could add another $1.25 to the stock.