This week’s new 52-week highs… (Dec 05-11)
This week we note a nice rebound from the Metro Inc. (MRU) stock. It’s jumping at its 52-week high just 2 months after hitting its 52-week low.
Here’s this week’s new 52-week highs stock list …
A recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)
It is a large, diversified REIT. It is recovering from the pandemic. It is trading $3-4 below its pre-COVID high. It is a good one to hold on to.
There are other ways to do real estate. He likes Tricon. He thinks there might be a continued setback for student residences. Tricon has housing in the US where there is demand for their houses.
Among Canadian apartment REITs, CAP REIT gets all the love, but also the price appreciation. Actually, Killam's chart is nearly identical to CAP REIT year-to-date and pays a healthy 3.88% dividend yield (CAP REIT pays 2.84%). Whereas CAP REIT is centered on Toronto, Killam focuses on Atlantic Canada, namely Halifax and Charlottetown. Another difference is…
A hold. A value name in apartments in Canada and the U.S. He's impressed with how stable their Toronto portfolio is, holding occupancy quite well. MGR is in the US sunbelt and Chicago. MRG is higher-leveraged. He's seeking REITs that are defensive. He doesn't see as much growth here vs. the REITs he already owns.…
It is a great company. There is not necessarily a grocery component in their centers. It is trading on parity with net asset value. It has the lowest earnings growth amongst its peers and so he is not looking to own this stock today. The yield is solid, however.
(A Top Pick Jul 30/20, Up 9%) We are going to see more of a transition into renewables. He continues to buy it.
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.
🛢 Basic Materials
A core intermediate gold producer. They own the largest Canadian gold mine and have a reputation for running high-grade mines like Fosterville in Australia. Their Detour acquisition was meant to stabilize their production base. He believes in management. It's about generating strong free cash flow to fund their new shaft, the Macassa Mine, which is…
Defensive. Underperformed the broader TSX since last March. He prefers the cyclicals. Very competitive industry, low margins. 16x forward earnings, 8% long-term growth rate. Headwinds ahead of it, such as massive competitors and higher wages.
Short vs. long term bonds. Generally as the expectation comes for rate hikes, you want longer term bonds. You don’t want corporate because if the economic slows, you just want government bonds.
He prefers corporate bonds because they yield more than government bonds. Prices will probably continue to fall. You are getting a bigger yield payment than the yield to maturity on the bonds themselves. CBO-T would be the replacement for this ETF.
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
(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.
Use this list wisely to identify buying opportunities.
Happy trading !