This week’s new 52-week lows… (Dec 05-11)

They provide back-end software in hundreds of millions of cars, plus they have a strong cybersecurity business. They aren't growing that quickly. Trading at 30x PE. Still not super cheap.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Backlog reported looks better with $4-5M in revenue expected in the second half of this year. They have received a large new order from China. They also secured a $5M in equity financing. Risks are high with market cap at $28M and low volume. However,…

Asset trackers. New iteration uses cell, not Wi-Fi. Helps cell phone companies boost revenue, as price of phone plans decreases. Before stepping in again, he's looking for a big ramp up in the trajectory of revenue and earnings.

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 Top Pick May 20/15. Down 93.21%.) The company had some technology that allowed for compliance and payment processing technology. They started in the Bitcoin area, which didn’t work out very well. They then moved on to high risk areas, which would be considered gaming. Recently announced a strategic review of the company, so are…

Spiked up on the close last week. Everything looks really good about this for the long term, everything says you should own some. RSI against S&P since 2022 has been really good, up and to the right. Buy some today with a partial position, then add a second component on a further breakout, and a third.…

Stockchase Research Editor: Michael O'Reilly We reiterate this developer of modular structures as a TOP PICK.  Analysts like the resilience the company has demonstrated over the past few challenging quarters.  We look to the ramp up in infrastructure projects in its markets as a indicator of future earnings growth potential.  We like that cash reserves…

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. 

It is a liquids rich player with very high liquids content. The problem is that the market cap is below the radar, and the debt is high. It was a $4 plus stock when we had decent gas prices. They are looking to bring their debt down. He thinks the company will survive. They've been…

It is quite a small company. It is hugely volatile. There a lot of problems over the years with the pricing of data coming from India regarding a 10% stake in another company. They have too much debt. The price of the gas they sell has been negotiated. A tough name to predict.

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.

(A Top Pick Nov 20/21, Up 69%) Liked it for assets. Ultimately sold to Whitecap.

The company is very cheap in terms of price to book. Their book value was $4 at the end of June. However, they have a debt problem: $211 million of debt compared to an equity value of $369 million. He sees this as a takeover candidate especially now because he is seeing consolidation in the…

Excellent opportunity for rising gas prices. Believes demand for transition fuel will continue to rise. A.I. demands for power generation will increase natural gas demand. A.I. data centers requiring more power than can be provided. Excellent dividend yield with new projects on the West Cost. Good for long term investors. 

Debt concerns? BXE took bankruptcy protection when debt became too much. There is no equity value in it any longer. Companies that have debt that matures in 2020 or 2021 will have issues. He sees no issues with BIR or TVE on this topic. The new Federal relief program for large companies may be difficult…

It has exceeded consensus estimates for the last 5 years with growing revenue margins, working capital and debt reduction. A recent acquisition should add to growth. Energy demand is rising and management is strong. Impressive free cash flow yield looks impressive. She sees 32% upside. (Analysts’ price target is $10.41)

Some people own it for M&A takeover potential. He doesn't like to do that. It's a market where interest in small caps remains very low. Not hitting enough radar screens currently. Pursuing growth, so more modest cashflow. 

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…

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…

Bottoming phase in early ’09 then a rally. Profit taking at end of summer. $0.40 is support level; If it breaks through $0.67 level he would see a dollar.

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…

Does not own shares. Has been watching company closely. Believes natural gas will continue to be in high demand. Would recommend investors pay close attention. 

She sold this a year ago. She expected after their spin-off to improve margins and product line, but the dental industry is cyclical and tied to the job market. As interest rates rose, many patients deferred treatment. Also, it's in a competitive market and growth was soft in some geographies. Wait and see how the…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research More drilling 'should' result in more activity for the service sector, of course. PD is very cheap and seeing fundamental improvement. We would be comfortable in the $76 to $77 range. Unlock Premium - Try 5i Free

Will benefit along with others from LNG Canada. But it's dry gas, so not as much optionality. Lowest-cost producer around. Has no issues with the name, but depends what you're looking for. Other names she likes more.She owns ARX, which is more wet gas. You get the NGL plus the condensate. Long reserve life of…

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

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.

Excellent company. Trades at 18x cashflow. FRU is cheaper at about 9x.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research PXT is targeting average production of 45,000 boe/day in 2025. Capital expenditures will be $300M. Cash flow $445M and free cash flow $145M after dividends. This is essentially down a fraction from Q4 production results. The balance sheet is still strong and cash flow good.…

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…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research SES is cheap and has a decent balance sheet. It pays a 2.63% dividend which has shown a bit of growth. At $3.6B, it is significantly larger than QST ever was. SES has decent cash flow and the stock is up 48% in the past…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. STEP is down 35% this year, but up 59% in 52-weeks. Profit taking is probably part of the issue here. It did beat estimates in the 4Q, but the sector has been quite weak, and the company has recently seen two downgrades by brokers. EPS is supposed…

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%.

Hits $70, then back down to low $60s. Just cut and past the chart from A to B, expecting more of the same. Liked it below $60; he trims between $70-75. Thinks oil and gas prices will generally be range-bound for the next year or two, and so will this kind of stock. Well run.…

WCP vs. TVE vs. VRN -- looking for best total return from capital appreciation plus dividends. If you assume oil prices go up, and assume they all execute well, which is the buy right now? He likes the upfront dividend. VRN is cheapest on price and financial metrics. Production outlook posted a few days ago…

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

Loves these energy names at this point in the cycle. Yield of 7-8%.

BBI-X is the old ticker. The merger involves a 10 for 1 split. PIPE-X shows a couple of weeks of trading and that is what to go by. They are coming on with new production facilities soon. By the end of the year, they will go to 10 times that. He thinks it is cheap…

Why the selloff? Probably pulled back because of the 10-year treasury rising. Just increased dividend, that should continue. Coming out of a long turnaround. Core holding in his income fund. At $14, he'd probably trim; at $17-18, would probably exit. Yield is 6.4%.

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…

It has a great management team and the Yukon is a friendly place to develop. Infrastructure is the issue. Smaller mining operations can deal with this, but lack of power and transportation are challenging. Where copper prices are, this is still too levered -- you need copper prices to go higher.

It seems the hole went right down the throat of what looked like a structural intersection. Also, it was reverse circulation, and the recovery wasn’t that good. An interesting deposit and in the part of Peru that is very dry, which is part of the issue of getting diamond drilling there.

Been a nice success story. His opinion is that the commodity cycle has really played out here.

Doesn’t particularly like the deposit. Very speculative. It’s all over the map. There are safer names out there.

He is a geological advisor to them. Consulted on a project in Italy, but it was not what he thought it would be.

Would recommend buying on weakness. EV business will be strong. Expect volatility. Strong for the long term investor. Owns shares. Valuation and story is compelling.  

One of his recent “Bottom Fish” that he has put a little bit of tension on. They have the Cheechoo project, about 15 km south east of Eleonore, which is now in production, almost meeting its 300 ounce per year over put. The Cheechoo is a low grade system, but have been discovering that there…

Expecting company to be bought. Would recommend holding.  

Challenges with cartels in Mexico.Long history of development in Province.Socialist orientation of Mexican President a worry.Does not own shares at this time.Concerned about inventory & reserves.Drilling results have been fairly strong.Would prefer companies with larger reserves.

Wallbridge Mining to buy Balmoral It depends on your timeframe--some will take the premium in Balmoral and grab the profit. He expects in two years that the deal will benefit shareholders with lower costs. The Abitibi is a great gold district. If he owned this, he'd hang onto it.

Homebuilding stocks in the US have been going straight up, but Canadian forestry stocks have been going the other way. WFG has done the best in holding its share price.IFP and CFP have really started to bottom on the charts. He hasn't done enough digging to know who has a better earnings profile. But looking…

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.

It is not a mining company, but a project generator. The CEO has done this for 25 years. He then sells off projects to companies that try to turn them into mines. He gets stock and a royalty in exchange. He has about a 160 properties. Some day the CEO will want to sell the…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The sector and in particular the company has shown good momentum. Good cash flow off-sets their stretched balance sheet. Cheap on valuation. Unlock Premium - Try 5i Free

The company has suspended its dividend. They operate diamond mines in South Africa. They are looking into underground, from open pit. The cost is more expensive than thought. The price of diamonds has been reduced, though retail prices won’t change.

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.

(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.

(A Top Pick Oct 24/24, Up 9.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SHLE has triggered its stop at $13.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous guidance, this will result in a net investment gain of 14%.  

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research SJ saw its price decline recently on weak earnings, and it has also been seeing some weakness alongside the broader markets. It trades at a decent valuation of 12.9X forward earnings, but forward growth estimates are in the low single digits, and analyst estimates have…

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…

Likes the managers, but concerned with the topography. A decent-sized gold project. A good speculation.

A good story. Good management. Have a major gold discovery and process near the Galore Creek project where NovaGold (NG-T) halted their development. This knocked them back and they are very undervalued at this point. The road they built goes past Romios property, which helps them.

It's a 10 cent stock, when even the big companies aren't doing well. If you like it, sure go ahead. But there's nothing he can add.

Used to own it and would like to again this spring or summer. Knows the management team and where they're mining, Nevada, very well.

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 Top Pick Jan 23/25, Down 12.7%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with DOO has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.

They face the US tariff risk. The PE looks cheap, but look at the balance sheet. Lots of debt. Growth is declining.

Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.

Very good operators and acquirers. Post-pandemic funk, excess inventory had to be marked down. It'll take time for things to normalize. Murky construction and renovation outlook in US. More housing activity may be a good time to step back in.

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.

It is unbelievable where this stock is trading at. Acquisitions this year are worth less than half what they paid for them. It was trading at less than half what it was worth. They are trading below the amount of cash they have. It shocks him how far it continues to go down.

This has been a very difficult stock. Recently reported a very bad quarter. He would stay away from this one. Inventory has gone up a lot and their margins have fallen. Cut the dividend totally. Thinks they are in a bit of trouble.

Doesn't know this company. Loves the space. Names with a good name, like "green" move well. They produce organic foods, and people are looking to eat healthier. Fancy name. Fancy products.

A micro-cap. He holds debt securities and have been collecting those coupons. SPP is interesting, but highly speculative. They run little coffee shops. The coffee and food are really good. He wouldn't buy it for that reason, but it's okay in a portfolio.

Disappointing. Slowdown in farm division last year, and management anticipates continued challenges. Management keeps cutting guidance, so its credibility has taken a hit. Better use for capital elsewhere over the next year or so.

Broke the downward trend, upward trend hasn't broken. Positive when you're in an upward trend.

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 illiquid. They've good managers, though, and the stock has moved up, maybe overextended. He likes the story, but it's too illiquid for him. Recent quarters have not been strong. This space had to become good operators when lumber prices went down, and is starting to find momentum with more housing starts.

(A Top Pick Feb 15/24, Up 35%) Continues to like it. Paying a premium, but for specific reasons. Trades at 31x forward PE for 15% earnings growth. Recent decline is a good chance to add. In Canada, demand is growing for value-priced essentials.

Right now, interest rates are coming down and the yield curve is flattening. There is a risk off attitude. Thinks will go back to rising interest rates, but the rates have pushed this ETF down. Interest rates will probably go up less than prior to the conflict in Ukraine.

Likes this holding, because Canadian and US investors are going to have to start looking somewhere else to diversify a little more.

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

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…

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. 

Investing in India. He uses ETFs. Good one-stop way to get at the India 30, which has done well over the last couple of years. Over the next 30 years, India will be where China was. Very exciting area, investors should own.

Preferred shares act like equities during bear markets. Preferred shares are a challenging asset class - many are callable as rates go higher. He prefers to keep it simple with laddered preferred shares such as with BMO

This is hedged, so there's no currency exchange risk. He predicts int he next five years that international stocks will succeed. ZDM is perfect for this. Really likes it. Hold 10-15% of your portfolio internationally. This is a big cap ETF.

The caller's question was on which of these ETF's to buy for a start-up portfolio for his 20-year-old daughter. He prefers more sectors to be covered in this situation so he suggested XEI. There are more multi-asset solutions as well. He also suggested lowering the risk tolerance for a beginner investor.

(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.  

ZUB vs. ZUE US banks have been on fire, though valuations are higher. Interest rate margins are good. Do you expect banks to outperform? He suggests holding 25% in ZUB and 75% in the diversified S&P. It depends on how confident you are about the US banks.

If you like high-dividends with a covered call in Europe, this is a hold and buy on weakness. Most of the return comes from income, mostly international companies. It's tax efficient to get dividends with international exposure. A good diversifier. Likes it very much. ZWE is currency-hedged. 

All the insurance names, both in Canada and the US, continue to work. If interest rates do, in fact, go higher, that will only be beneficial for lifecos and other insurers. The chart looks fantastic. Good run, so there is some weakening in the intermediate term.If a long-term holding, best thing you can do is…

LBS vs. FTN An interesting structure, but they have their own at his shop. One is a play on ENB. Very optimistic about the potential for ENB to continue raising its dividend. He also has a real estate split with a mix of long-term value REITs and industrial exposure to access the e-commerce trend.

MFC has a slightly better dividend than SLF right now, though he likes both names. MFC is also slightly cheaper than SLF, so that's why MFC is in his portfolio.

Great management and great Board of Directors. They just finished a raise. Doesn’t think there are any headwinds anymore. With a fully loaded balance sheet, they’ve got a great growth in their client base, having gone from zero to 42 with 17,500 payers in the last year. Just signed on an ERP Vendor news cycle,…

Used to have a habit of running into sharp objects, but CEO has turned this around. Warrants consideration. Great domestic personal and commercial business, capital markets, and wealth management. Modest presence in US, and has stayed out of trouble there.If you already own NA and RY, consider TD or BMO before this one. But if…

Bought into the arbitrage. Upon closing will own NA, which is a really good bet for the long term.

Owned it a few years ago and cut his losses. Now, cut your losses. This business is struggling as an asset manager, specifically to retain and attract new clients. Also, their key managers, including the CEO, have been leaving. They won't generate much in performance fees, which has been an attraction for investors in the…

(A Top Pick Sep 27/24, Up 6%) (Note the short timeframe.)His target was $31, and it hit that. He got about 60% of his holding offloaded at that level. His only bank with about a 1% position. Holding for the nice dividend, expecting an eventual bounce off $28 level.

Stockchase Research Editor: Michael O'Reilly We reiterate ONEX as a TOP PICK.  Recently reported earnings showed growth again in cash reserves as the company bought back shares.  Its structured credit business closed on 23 transactions, raising over $5 billion in new fee generating business.  It trades at 9x earnings and under book value.  We recommend…

He's a real chicken, and looking for stocks that won't hurt too much if tariffs go the wrong way. Life insurance is fairly insulated. Won out as his pick compared to MFC. Cheap at 8.6x 2025, growing 6-7%. Market thinks growth will be 12% next year. A win-by-not-losing choice. Yield is 5.5%.Owns Mackenzie Investors Group,…

(A Top Pick Dec 04/19, Up 13%) He'd buy it again. Nice value stock. Nice yield. Trading at discount to book. Would benefit from rising interest rates, which he expects. Cheaper than all the banks.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It is not looking good, considering more than $900M in debt and cash flow of only $37M in the last 12 months. Interest expenses were $73M, nearly twice cash flow. It does of course have assets, but it is not a seller's market right now,…

In the construction space his favorite is WSP Global. SOX is similar and he thinks they may be a value trap as there is some concerns about the dividend, the strength of the balance sheet and their ties to the energy sector.

Suffered from exposure to commercial office space. More secondary markets. Suspended distribution entirely, in favour of buying back stock. Consolidated shares. Uphill battle.

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…

It is a company that invests in cannabis opportunities. The most recent is in Australia where it is one of the few companies that is licensed there. They also announced a deal in Jamaica where production is coming on line. It is a reasonably diverse way to participate in the space, but he thinks there…

Invests about 80% in industrial warehouse REITs, with the balance in office and retail. Elevated cost of capital, so it's in secondary markets. Above average leverage, resulting in a higher distribution yield. Limited growth because of cost of capital disadvantage. A yield play, not a growth play, and growth is what you want in this…

He's been adding. Their downturn lat year started with a seat supplier, then tariff worries hit. Eventually, shares will bounce. They have almost no competition in transit buses in the US. We'll see.

(A Top Pick Mar 01/18, Down 22%) This was disappointing. They were trying to grow at the expense of the bottomline. Their growth plans did not come to fruition. The CFO left. He does not see a lot of reason to be involved in this name at this point.

Recently added a small, 2%, position. Likes the dividend yield. Believes the industrial economy will pick up, though Canada may be slower than the US. Exposed to the Canadian industrial economy right across the country. Yield is 6.7%.His strategy is to ride the stock up. As it does, the yield drops. So if the yield…

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%…

Owns shares in company. Has done well the past year. Expecting further upside going forward. Dividend is expected sometime soon. Subcontracting business from Air Canada very good for reliable revenues. Price multiple not as high as it should be. 

Repeatedly compares this to TIH, and TIH always comes out on top in terms of ROIC and dividend growth.

Prefers Linamar to Magna for its much lower EV of 6x, and they have diverse businesses, like agricultural equipment.

This has been an extremely good performance year for long-term-care REITs. Not sure there's much more in terms of capital gains from where we are now. Unless substantial pullback, wouldn't buy now.

This is another company in the cannabis space. This is not a cannabis producer, it is a company that adds value in that space. They are mapping cannabinoids, looking for different formulations to treat different diseases.It is highly speculative, but he thinks there is opportunity for this type of company. He likes the management. In…

Very positive on the stock price, the company, and the partnerships they're announcing. Technicals indicate the stock may head toward 90 cents, but he says higher. Just won a contract from the Ontario government. Covid testing isn't going away. Sales should triple in the next 12 months.

Just announced a discovery in Columbia. Flow tested over 2000 barrels per day. This well could produce up to 5000 when brought into production. A very well distributed stock so it might not jump too fast. Company could get taken out.

Not a lot of love for cannabis or for small caps. Phenomenal execution by management. Sales of chocolates and gummies are doing well. Great growth, strong market share, across the country. Hopes investors will recognize its value once tax-loss selling is done.

Heard good things about their brand, quality production. Small player, so would hope they can do a joint venture with someone. Branding will be tough with regulations from Ottawa, so strong brand now could pay off.

It formed a nice base. It has a strong yield. It is coming out the last few days. We are getting close to a break out.