Canadian Markets have been trading up since the beginning of the year on optimism for a trade deal between the U.S. and China. Alimentation Couche-Tard still makes the list as it kept going up even when markets were falling.
Here are the stocks hitting their 52-week high….
Some bond ETFs. Can invest $50K Also consider ZAG which holds short-, mid- and long-term bonds. If rates stay flat or decline, ZAG will do well. If you have $50K, buy two or three of these ETFs to spread the risk. Check the duration and credit rating of each.
An ETF that holds short-term bank papers that are hard to buy individually. An alternative to not earning any money in a bank account. The fact that it shot up was a warning that it markets were in trouble.
(A Top Pick Nov 6/14. Down 75%.) One of their key assets is an oil/gas services business, so it has come under a lot of pressure. This is a high risk/high reward situation. Still very much a binary outcome. It is either going to come under a lot of pressure with bankruptcy risks, or the…
(A Top Pick March 2/17, Up 9%) Sold it, but then the stock got too cheap, so he bought it back. He was unhappy with their inability to solve metallurgical problems in Eritrea. The stock sold off because their Serbian deposit won't produce cash for a while. There were alleged human rights abuses in Eritrea.
The operate gold and copper mines in Bulgaria and Namibia. Earnings up 80% YOY, and boast a 9.2% free cash flow yield. Cash flow to grow 74% in 2020 and 17% in 2021. Price-to-cash flow is 5.9x. ROE expected this year is 21%. (Analysts’ price target is $9.23)
He likes it. His model price is $128 or 100% upside. The balance sheet is very small. It looks very, very good as a gold company. It has a totally different profile than most other gold companies. He would hold it here, but realize it might go down to $50. He would sell if it…
It stopped being a silver play a year ago. As they've made acquisitions, they've shifted from South American silver to North American gold. If gold pops, this stock could generate a lot of free cash flow.
(A Top Pick Jan 30/19, Up 85%) They have the market's attention. Later this year there is the decision whether they start up an older mine that has been mothballed for a while.
Quebec area. They have new management. New geophysics has been done. They realize there is a lot more going on in this area. He prefers other operating in the same area. He thinks there is nothing going on on the property MKR-X operates in.
Well-run and financed with good assets, and it's way way oversold. Had a nice new discovery in New Zealand. It seems their political problems in the Phillippines will soon be resolved. This cheap now.
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.
(A Top Pick Feb 12/19, Up 32%) Scotiabank just announced a $13.75 target. Managers own about 10% of shares. There's good industrial rent growth in Toronto and Montreal. Vacancy rates are rock-bottom low.
North West Company (NWC-T) TSE
Allan Tong’s Discover Picks This consumer defensive name operates retail stores, selling groceries and household items, in the Canadian far north, Alaska and Caribbean. Because it operates in such an extreme geography, NWC enjoys a monopoly. North West Company pays 4.45% dividend. Read Best Dividend Stocks Canada for our full analysis.
Has a 7% free cash flow yield. The market is annoyed they haven't made an acquisition recently, but he's fine with that. They've produced a ROE of 20% for decades, and are undervalued now. He doubled his position in the low-$40s. There is some concern over e-cars, but ATD has been testing EV stations in…
It is a greener form of cement. They use a lighter form of concrete to be a base, instead of Styrofoam. The product is fairly new but well received so far. They will probably look at making acquisitions.
It's a real estate play on medical facilities in the US. It was overleveraged a few years ago, then COVID declined their business, which are non-essential surgeries. But they're still profitable and paying dividends. He sees upside.
Use this list wisely to identify buying opportunities.
Happy trading !!!