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

Results have been sporadic for a number of years.Hard company to model going forward.Better names to own in the tech sector (predictable earnings).Not a strong business for the past 10 years.Customers turning over etc.

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…

Chart looks really good technically, recently broken out of its downtrend. Reaccelerating. Testing highs of 2020, and even those of 2018. Stock looks really powerful. 

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.

Not as bullish on energy services (not as much drilling). Good job at paying down debt. Capital allocation will ensure less activity in drilling services.

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…

Utilities very well positioned with energy recovery.Valuable assets that are hard to replicate.Financial guidance very strong.Current share price not reflecting value.~4.5% dividend very strong - room for growth.Not much risk downside.

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…

One of the largest producers of drilling fluids. Rig count has taken off like crazy. 65% revenue from US, with 17% market share. 35% revenue from Canada, with dominant market share. $11 target price in 4-5 years. Strong balance sheet. Diversifying internationally. He buys on weakness. Yield is 2.39%. (Analysts’ price target is $3.53)

He targets $6.40. Trade this and don't bet the farm. It now trades at $5.20. It moves up if oil prices do.

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.

Well run. Their theme is acquire land, develop it, drill it as efficiently as possible to bring up cashflow to realize NAV, sell it when it's de-risked. Management owns about 20% of it. Continues to like it, especially if you want a Canadian gas name.

One of the better stocks in the energy space. Relative strength is really accelerating. Energy's a big part of the TSX, so you always want to own some. Doesn't mind adding exposure, has the defensive dividend. 

Second largest investor in company and still owns shares.60% gas , but lots of condensate production.20+ years of inventory.Currently expecting 100% upside on stock.Committed to return at least 75% of capital to shareholders.

Energy is very cyclical. This will lose money when the economy is on the downturn. That happened a few years ago. Unless you are optimistic about oil prices, don't build a position.

PEY vs. BIR vs. ARX LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. Prefers PEY to BIR; management is…

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

Well respected CEO with Jim Riddell.Tightly held company within Riddell family.Company roughly debt free.Seeing meaningful upside. Potentially 100% upside in share price.

Always trading at premium since IPO. Doesn't have same reverence as other royalty names in the market. Sees 50% upside and not as much as other energy companies. Better names out there.

Not a great company to own.Value trap that has geopolitical risk.Better names to own in sector.Very risky buy.Inventory depth not as great.

Global maker of pipeline coatings. Owns shares in portfolio. Expecting company to do well with strong energy prices. Demand for energy pipelines will grow.

Very well run company. Does not have energy services exposure. Reservation is that more opportunity exists in energy producers. Energy companies not spending as much on energy growth and drilling.

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…

Depreciation is real. The more you pump, the faster the equipment wears down. Well service activity is much higher than 2-3 years ago. Rig counts are moving up, pricing is higher, and TCW will benefit. Sweet spot in the cycle right now, but he has concerns about length of cycle. Any near-term softening in nat…

The oil and gas companies were the best performers in 2022 and are now the worst performers. Tourmaline is the fifth largest natural gas producer in North America and probably the largest in Canada, with some of the best assets. It has a superstar CEO who has built other companies successfully and is buying stock…

(A Top Pick Jun 03/22, Down 31%) Active on M&A has been tough on shares.Overhang on share count being reduced post Deltastream acquisition. Paying down debt at high rate.Exposure to Clearwater oil play (most economic oil play in North America).Still 100% upside.

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

Pretty well managed. Consistently grows cashflow over time. Pretty favourable on it, though a bit expensive now. He owns other names that he's comfortable with.

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…

Does not own shares.Painful stock to own.High volatility Hard to determine future of stock.Dividends hard to predict. 

Very cheap valuation right now. Cyclical company that will perform well as economy recovers. Strong balance sheet and financials. Soft landing in the economy will be great for business.

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…

Gold is supposed to be the inflation hedge, but that hasn't happened. He owns no gold, because it pays no yield. Gold is a personal preference. Owning a little is fine, but in bars to be stored in a bank. Don't buy the funds, because you must pay a fee.

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.

He sold all lumber stocks after the huge runup. But if he had to look at one, this would be it. Over $10 cash per share, with stock at $24, which means over 40% of company value is net cash. Lots of optionality. Intriguing.

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.

Small oilfield services company.Large supplier of frac sand to energy business.Long term contracts that have recently rolled over at higher price.High debt levels are coming down.Cash flow being used to increase balance sheet strength.

Boring business (utility poles and railway ties). Very strong dividend. Has been performing well in terms of business. Good ling term prospects (infrastructure growth will require products.

(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 held up well during the downturn and is therefore resilient. It has rallied and maintained at these higher levels. The consumer goods sector and leisure products are doing well.

He does think there's some benefit in parts/repair. These companies are better value and have more upside. Interest rates will be challenging for a bigger purchase like a car. People who buy cars also tend to have mortgages. That's why he favours parts companies over the auto makers.

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

(A Top Pick Nov 30/22, Up 2%) Thesis remains intact. High quality. Benefited during Covid renovations. Now stock's over-corrected. Usually trades at a premium. Now at an attractive multiple. Significant pullback gives a good margin of safety in the face of economic slowdown.

Big pullback, then a double bottom, sideways trading, then stock broke out. Negative news today, but it's still holding in sideways trading channel. As long as we don't break below recent lows in the range, chart shows higher highs and higher lows, an uptrend. Now in sideways consolidation, a "pennant" in technical terms, which typically…

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.

Peak valuation now. He models $60, today's price. Would buy at $35. It's cyclical which will decline in a recession.

Too many good shows on competing streaming services. Kids don't go to a movie every Friday the way he used to. Doesn't know what the catalyst is. Dividend gone. Balance sheet probably not in good shape, pandemic did lots of damage. All depends on quality of movies. Media companies all losing money. No growth tailwinds…

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.

DOL vs. ATD Both are timely, great secular growers. If he really had to choose, he'd pick ATD because of the more attractive valuation of 15-16x. DOL is in the mid-high 20s multiple, but it's justifiable because it has a faster organic growth rate. ATD has a more under-levered balance sheet, a capable serial acquirer.…

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…

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…

If you're looking at a global ETF, remember that 60% of it's going to be US. For an Asian ETF, 52% is going to be Japan. People want diversification. To get decent global exposure, you're going to need to pick up a couple of ETFs, as just one can't do it all. One is XIN,…

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 banks pay high dividends and are in strong seasonality. The chart has been sideways since early 2022, but investors need a good place to hide, which is here. But if there's a recession, banks will underperform.

Stockchase Research Editor: Michael O’Reilly A Canadian preferred share ETF that is laddered up to five years managed by BMO. This includes rate resets that benefit from rising interest rates. It has a low MER of 0.5% and an attractive yield. Preferred shares have generally been under pressure as interest rates have gone up, so…

If a long term investor, a good buy. Not a good product for day traders. Don't worry about liquidity. Always a buyer for product.

Pays a high yield around 8%. Problem is he always loses money on Europe. Europe has fine companies, but lousy governments.

Dividend probably safe. Prefers the diversification with POW. Nothing against it, but he'd buy SLF and MFC ahead of this one. Fairly well managed and well capitalized. Good yield.

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.

(A Top Pick Mar 18/22, Down 7%) He'd still recommend it at these levels. Extremely well capitalized at 127%. Interest rate increases hit bond portfolios of all insurance companies, should get better with rates stabilizing. Internationally diversified. Yield is 4.5%.

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,…

Still likes it. Very discounted with what's happening in the financial world, especially in the US. An opportunity for long-term investors, around 8x earnings, yield 5.9%. 

Management pretty astute. Expanding fairly aggressively in Ontario. Lots of opportunities. Yield is over 5%, relatively safe. Good at measuring credit in the small business sector, and delivering personal service to small business clients. Reasonably good buy if you have a longer term focus.

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…

Hold or sell? Pretty competent new management. Hold, and give them a chance. Implementing 3-year plan to turn fortunes around. Real opportunity. Regionally bound in the past. Tiny by Canadian standards, at $1.5B market cap. Yield over 5.5%.

Very strong management team.Hard stock to value. Private equity firm.Trading at discount to net asset value.High interest rates makes it hard for company to grow.Better names to own.

His preference to owning its subsidiaries. Simplified company structure. Pretty nice dividend, just over 6%. Longer term, you can hold this one. Discounted price makes it a buying opportunity.

(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's bearish on office REITs, given work-from-home. SOT operates in secondary markets, which can be a good business, but is capital intensive. SOT is doing a fine job, but offices face double-digit vacancies. Money needs to be spend on improving spaces, less to shareholders.

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.

Smaller cap office space REIT focused in Canada. Has a bit more of government concentration so that provides some stability. Has a high distribution yield but it is not fully covered by cash flow.. Analysts have 4 holds.

Blockchain miner. Blockchain is like the internet in 1995-96. Once it gets going, you can't stop it. Technology moving forward is diversifying. Investors can participate in the building of the network. $20 target. No dividend. (Analysts’ price target is $22.99)

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 cap Canadian REIT with 50% assets in industrial real estate. Growing is tough given economic cycle. Looking into secondary markets. Better opportunities elsewhere.

It made a lot of deals where buses were sold at fixed prices but its costs are higher now due to supply chain issues. The company will survive but has to re-negotiate with its banks, which is always painful. It is a good company in a bad situation, therefore look elsewhere.

(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.

(A Top Pick Nov 11/21, Down 21.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WJX has triggered its stop at $22. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.

Changing its name and listing on the NASDAQ. Not the big salvation that most people think. Not familiar with the company details.

Their economic book value falls below his standards. The market is suspicious of its balance sheet. He is watching this, not buying it. We'll see what happens with airlines this coming year.

(A Top Pick Jan 13/22, Up 5%) Beat last quarter guidance.Great backlog of projects.Current share price cheap.Does not think industrial activity will slow too much.Great name to get exposure to large section of the economy.China re-opening a tailwind. 

(A Top Pick Dec 15/22, Up 4.2%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with LNR has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 12%, when combined with our previous recommendation to cover half the position.…

He's looking at the space, which is attractive. Off the highs. Business is materially tougher, but we need it. Regulatory issues and scrutiny on EXE. Labour situation also difficult. Likes the price, but wants to see more on the business fundamentals.

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.