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

It got caught up in the Reddit squeeze. BB is still recovering from the collapse of its phone business and still have good patents what may pay off later. Be cautious given its recent run up. He wants to see fundamentals improve. Their cybersecurity efforts need patience. Look at this at C$10.

(Market Call Minute) He likes it. They are moving into virtual reality. There is an opportunity, but it is probably a hold.

He finds it interesting, but got "stop-lossed" out of it. They have a unique low powered cellular device that can be used for tracking. This is another type of device that consumers could look to buy. It could be used to track trailers, or even jack hammers. They did an equity raise a while ago…

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…

They recently had a joint venture with Baker-Hughes (BHGE-N), where Baker Hughes is co-marketing one of their products. It would make sense for Baker Hughes to take over this company. Schlumberger (SLB-N) is the only company with a competing product. (Analysts’ price target is $9.50.)

The dividend stocks as a group has underperformed. There's nothing wrong with the fund. He would prefer technology stocks although they don't pay dividends.

He won't buy any service stocks today. It just isn't profitable; the market isn't rewarding drilling. Stop drilling and buy stocks, is his message to the oil industry. He'd rather buy Trican who are buying back stock.

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 huge laggard this year. It is trailing other names at 20-30%. They have not yet reinstated dividends. They should reinstate it early next year. At current levels, the stock trades at 14% free cashflow yield. At $50-$60 oil, it trades at 30%-60% free cashflow yield for dividends and buy-backs. (Analysts’ price target is $2.46)

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…

(A Top Pick Mar 04/20, Up 4%) It remains his biggest holding. A lot lies ahead for ALA. They have exposure to the western Canadian natural gas market (he's very bullish about this) through their Ridley Island propane terminal. He feels good about ALA. It's very well-positioned. They raised their dividend at the end of…

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…

Capital issues? He would avoid this as he owns no service companies right now. Producers have been marginal with cash flow to survive, but there has been no surplus cash flow to increase drilling activity. CEU sells chemicals to US producers and have been forced to cut prices on their product. He thinks the market…

Enterprise value is very cheap. But the issue is they have debt. They did an infrastructure deal to reduce that debt. A big part of that debt is a 2024 maturity at a low interest rate, so Crew will survive. Their liquids are in a condensate-rich area. The stock has been hammered because of high…

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…

An oil and gas drilling company in North America. Oil and gas services companies have additional leverage on the oil markets which already have significant volatility. If we get into the positive sweet spot it can raise prices and make a lot of money, but we are not there yet. They have been through multiple…

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.

They sold major assets mid-last year at a decent price (though lower than they would now), so they're sitting on net cash now. Their drilling program runs until Q3 he thinks. There are better oil stocks with more upside.

For income investors, pipelines look great. Great dividend. The sector suffered neglect as people chased higher growth areas of the market. He owns ENB, PPL, and TRP. Also consider KEY, which has more exposure to the commodity. Makes a lot of sense for conservative investors.

(A Top Pick Apr 03/20, Up 252%) An example of a name that is up but still mis priced. A small cap so there are less buyers. A high quality company. Pursuing a growth mandate. Trading at 3.1x next year and would put a 4x multiple. Could still have 50% upside.

(A Top Pick Feb 12/20, Down 9%) He used to own 5% of the company and made a 40% profit in a few months--but he sold it way too early. Give this lesson, now he'd rather sit on oil names and ride it out, or else he'll miss the upside. Companies like this won't spend…

Natural gas? The outlook for natural gas has improved as associated production has impacted by shut in oil production. He is not fond of PEY as they have covenant violations (that should be worked out). He has others he prefers.

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

There is a rumour that Paramount has acquired a 9% holding in Nuvista. Paramount is outspending their cash flow and announced, if required, they may look to sell off assets and this could Nuvista. Both companies share prices have been pushed sharply lower as a result.

Likes royalty because there is less business risk. However, it is not risk free. Probably a good buy on dips. The reflation trade is interesting. For the next 6-12 months, it is okay for a trade.

Trading at a very low valuation. Biggest weighting for him. Likes it for the exploration front, partnership with government and valuation. Trading at 2.4x cashflow at $65. 28% free cashflow yield. Theoretically could keep production flat and pay 28% free cash. Sitting on $460M cash. What to do with the cash? Looking into new acreages.…

Pipeline coating. Quite global. Follows the path of crude oil prices. Earnings are cyclical. Not a regulated business the way pipelines are. Thesis that oil demand will decline. There are better secular themes to invest in.

A dividend of 5% and is only earning $0.05 per share and next year maybe up to $0.07. They are not paying out their entire cash flow. If it breaks above $5.13 it would be technically positive. He would wait on this one.

70% fracking and then they have coil tubing. They are pretty cheap. They are doing reasonably well. It is really, really cheap. The two biggest shareholders are funds so liquidity is an issue Buy on weakness; he would have a target of $5.

Doesn't see much upside here, though there will be pricing power finally for the pressure-pumpers now that foreign players have left Canada. He begs companies like this not to invest excess money to drill a lot, just keep drilling flat. And use excess cash to buy back shares. The space is less competitive than before.…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The sector rally has paused though TOU is still up 39% this year. The stock remains attractive on most metrics and good growth is expected this year. Next year should see slower growth. Cash flow is good and dividend was raised a couple weeks ago. Unlock…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There is good potential upside in the short term considering size and strong growth prior to the pandemic. It also has higher risk though. Cheap on valuation and has made good acquisitions. Unlock Premium - Try 5i Free

They're 45% into natural gas and 55% liquids. They exposes you to an improving natural gas business. They've reduced their growth rate in recent years, which lowered their decline rate. So they generate more free cash glow. The market doesn't appreciate how quickly their business model has changed. Based on $60 oil, he sees 190%…

A big fan of the company and management. Sold it around a month ago due to relative valuation. Bought it back this year. A net negative emitter. Could get a multiple expansion. At a 6x multiple and $60 oil, it would be 63% upside. Have differentiated to acquire further gains. Bought Torc and it is…

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…

135% payout ratio, not sustainable. But if business returns, as he thinks it will, payout ratio will go down to 62%. Real problem is balance sheet. Need to focus on asset sales. Has upside, but pretty risky. Better yield stories elsewhere.

(A Top Pick Dec 13/19, Up 6%) A steady business. It's a volume business. It's ridden through Covid with confidence and is set up very well to supply steel to the US in the coming 6 months. There'll be a surge in steel demand.

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.

(A Top Pick Sept 9/16. Down 2.7%.) Has a world-class property in Argentina and a world-class CEO who has done this before. They’ve raised money from various sophisticated institutions at about the current price. At some point, given lithium prices and electrification of cars it is going to get taken out. Highly speculative, but if…

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…

A takeover candidate Yes, it's possible, but also for a lot of these companies. He has a $4.25 target. He likes AR's recent drill results, showing good grades. Growth is coming from exploration and production. A fine company. AR could even acquire other companies.

Wouldn't be his top pick. Usually goes with the cycle pretty well. We are still in a sceptical stage of the market. Any silver company will do well once the optimistic phase begins.

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.

(A Top Pick Jan 27/20, Up 109%) He sold, albeit early. A commodity, so can be cyclical. Demand continues to be strong in NA, with tight market supply.

Copper is probably going higher. He is concentrating on silver right now, but copper will be next. CMMC is impressive with its assets. It is on his radar. The price is very high. There is leverage to the price as well. Look at cost, geopolitical risk, management and reserves on the ground for producers.

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.

It's a sum-of-the-parts story with three moving parts. The knock on it was they always needed to finance, but they financed. He likes their assets, including a joint venture with Barrick, which is worth PG's market cap alone. Their Ontario and Mexico assets are extraneous and will likely be sold. (Analysts’ price target is $3.93)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is a smaller and cheaper company than the big gold names. It has more leverage to deal with, discovery and multiple expansion is possible. There is more risk. Generally, small and mid cap gold outperform in a gold rally. You need to be okay…

(A Top Pick Jan 05/18, Down 86%) He sold out of this when it became apparent oil prices were not going to finish above $70 per barrel by year end. He sold out around $6.50. Demand for frac-sand is down and their is greater competition in the US. Spending plans have declined in Canada as…

(A Top Pick Mar 27/19, Down 19%) They're part of a duopoly. It enjoys highly recurring revenues. SJ shouldn't be impacted by the virus, just in their lumber segment. Strong balance sheet. More acquisitions to come for them in the pole side. The stock hasn't been this cheap in a decade. Trades at 13x earnings…

(A Top Pick Oct 23/19, Up 10%) A bit of a lagger but he continues to like and hold it. They had some Covid issues but everything is coming together, especially with their leverage. They stayed alive during the worse by mining low grade. They have started mining high quality gold.

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.

In general terms still on a downtrend. Bearish big picture. Could get back into the 20 dollars.

It is the consumer spending money into the economy. This is a good stock to be in and even though they have a good backlog, you will find that investors will start to lose interest starting late April. Put a trailing stop on it later on in April.

(A Top Pick Apr 13/20, Up 75%) Bigger risk, bigger reward. Valuation was so depressed at the time and is still cheap. Has been buying it recently. Chip shortage has hurt them all. Well positioned for the EV market.

Pleasantly surprised with the business fundamentals. Aspects of their business are growing. Very undemanding valuation. Continue to hold. It's on his watch list.

Benefiting from shift in consumer spending to the home. Doorknobs, cabinet hardware. Undergoing a positive rerating by the market. Strong consumer tailwinds as people forced to stay home. Good business model. Lots of growth runway. Half of revenue growth comes from accretive acquisitions. Margins have upside. Yield is 0.73%. (Analysts’ price target is $35.00)

It is a really well run company. It is a dominant player in the toy industry. The business is very lumpy month to month, year to year. Kids are sending more time on-line and not playing with toys.

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.

It is a small cap company in the AG space. He prefers NTR-T. They have the end-to-end business. He also likes Raven Industries (RAVN-T) – autonomous farm vehicles.

It's a very difficult story. People will take time returning to the cinemas. Cineplex did a good job offering ancillary services. Also, film studios like Disney are rethinking how they will exhibit movies (i.e. streaming). Will the Marvel blockbusters return to big screens?

Over time it will come back. They have a strong position in liquor retailing and have moved into Cannabis. They are clearly going to be a survivor. They are going to be able to consolidate.

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.

Allan Tong’s Discover Picks Dollarama sells cheap stuff and has enjoyed a near-monopoly on selling household goods during these lockdowns. No argument that DOL has done very well. It peaked December 9 at $54.58 November 1, just shy of its all-time high. DOL stock has since peeled back 10%. It continues to enjoy a strong…

He hates the life space. They have a big problem with low interest rates. He would avoid lifecos until we see yield curve normalization. We have a massive amount of debts and interest rates just cannot go up.

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

The ETFs are better to go because of diversification. There is a little more upside but not a whole lot more. There will not be increases in interest rates any time soon. Rates shouldn't go much lower either. The rates should remain stable.

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…

For recent years, he's been off and on preferred shares. Preferreds are volatile. When interest rates plunged 2-3 years ago, this asset class got reamed. HPR pays a big dividend, but also offers huge volatility. Also, it lacks the growth of stocks but carries the volatility. He had a terrible experience with this. Look at…

Europe, Australia, and Far East so has been affected by Brexit. A good ETF but hasn't performed well. Could buy ZWE, which is more European based. Would like to see more U.S. exposure.

A year ago all the rate reset preferrds got set lower down. He is not a big fan of this although he has a bit.

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.

ZEB is equal weight where as ZWB is equal weight banks with a covered call overlay. When you think the markets will go sideways or down, covered calls will perform better. However, the covered call gives away some of the upside potential so if you are bullish on growth, forego the covered call.

The ETFs are better to go because of diversification. There is a little more upside but not a whole lot more. There will not be increases in interest rates any time soon. Rates shouldn't go much lower either. The rates should remain stable.

In general, US financials have had trouble tracking the S&P. He's underweight financials. Net interest margins, loan losses, economic uncertainty. Had moved up, but now back down.

They are both identical. ZWP is not currency hedged. ZWE will hedge those currencies. Right now, he would want more exposure to a strengthening Euro than the CAD.

GWO vs. MFC Likes Great West because of its strong yield of about 4.76%. CMF dividend is 4.63%. Both have performed well since March 2020. Quite similar. MFC provides more foreign exposure, especially Asia. Insurers are doing well now, and benefit from steepening yield curves.

Very focused. Have positions in 4 life insurers and they are running a covered call program against the existing long positions. Going to have volatility given its exposure.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Looks to have faster growth compared to its competitors. It survived the 2008 crisis better than MFC. It is still cheap. A slight premium valuation due to perception as a better company. Good dividend growth record. Unlock Premium - Try 5i Free

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,…

It's a lot more competitively priced than Royal. It trades at 1.4x book and pays a safe dividend over 4.5%. He expects growth in the coming years. The banks have been unable to raise dividends, but that's likely to change if the recovery takes hold.

Fine as a holding. But the majors are cheap enough, and they'll move first. Slightly higher losses coming to CWB because of the oil patch. It's a hold. Wouldn't worry about the dividend too much, but he'd prefer one of the majors at this stage.

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…

An outlier in Canadian banking, a small regional player. They're cleaning house among management and trimming costs, but that's tricky because they're hemmed into one region, Quebec. LB is trying to go entirely virtual; LB has a lot of physical branches and moving hard to virtual. This dramatic change has effected their business. New managers…

Consolidating over the last year. Rally off the bottom has not been terribly convincing. If cost of capital is rising, makes it tougher on these businesses. You'll do fine, but he'd rather own companies that are more leveraged to public, not private, markets. Try TROW, BAM, or CIX.

Allan Tong’s Discover Picks Insurers will benefit whenever interest rates rise. When this happens is anyone’s guess, but likely not this year. Until then, there’s little to recommend POW stock, which I owned years ago. For the past five years, POW stock has traded within a strict range between, plunging to the mid/low-20s and rising…

(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.

He is not bull on the office space. They have been growing in sub-markets he is not keen on. 37% is in Atlantic Canada and he is not keen on their holdings.

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.

He would avoid this one. Office space is difficult to re-tenant. They have an external management structure for their assets, which does not necessarily leave great alignment.

(A Top Pick May 14/18, Down 21%) It had a tough go since he was on. He continues to believe it is one of the best plays to get exposure to bit coin. It is a well run company.

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…

Small and obscure and in commercial real estate that he doesn't like. This will suffer if there's a downturn. This is also small-cap; better to buy a larger-cap REIT.

An industrial sector stock that does well in this type of environment. Has been a volatile stock with negative ROE. Cashflow is poor too. Interest coverage is not good. Yield is there but payout ratio is high.

(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.

Stockchase Research Editor: Michael O'Reilly WJX is an integrated distribution company that provides rentals, sales, parts and services of heavy equipment to the major industrial sectors. They will benefit from the return to normal infrastructure development during the pandemic recovery in Canada. Not a massive growth stock, but provides an excellent dividend that is backed…

They've built a whole new bus category of smaller buses. Move to the US took longer to get all the pieces together, and stock sold off. Wind has come out of the sales of a lot of EVs. Upgrading to the TSX should attract investors. Keep on the radar.

Airlines continue to struggle and will take much longer than some expect to recover. There are better opportunities in other sectors, like metals. Yes, people want to travel again, but he thinks it will be a long while before people can actually travel, especially for business.

(A Top Pick Jan 10/20, Up 12%) Trades at around 14x with 32% growth rate. Has done great cost-cutting measures and expects this to go higher with the recovery. It pays a nice dividend. You want to buy when there is fear like right now.

The car parts suppliers trade at low PEs, but are vulnerable to the auto cycle. Good news is that car demand has picked up faster than expected. She owns none of these stocks, but Magna is best in this class, given its global platform and recent performance.

There's always something that stops him from entering the seniors space in REITs: labour, regulator issues, though again demographics are a positive. That isn't a good enough, though. How will governments with huge debts supplement the entire seniors home space? However, EXE is cheap. This space is too volatile.

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…

They're involved in Covid testing. Sales should more than double by Sept. 2021 year end to $25 million with a further 32% growth in sales of 2022 to $34 million. He expects Covid testing will continue to be common for employees and travellers. This stock could double from current levels. Other analysts target even higher,…

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.

They make edibles in cannabis. They're doing very well. He owns a small warrant position. Great opportunity in Canada. Enjoys low-cost production. Chocolates and gummies are popular here and in the States.

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.