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

(A Top Pick Dec 10/19, Up 22%) John Chen should get CEO of the year award. They've generated cash flow all along. BB gets no respect from investors. Recently, they got a boost with the Amazon self-driving car deal. The balance sheet is good with net cash. He likes it and has added to it.…

(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 Jan 06/20, Up 2%) Represents good value here. Will get solid, steady returns on their Washington utility. Will participate in the changes to NA electrical grid. Offshore nat gas in BC is at capacity. Firing on all cylinders. Increased dividend in December, ahead of schedule.

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.

Not a holding now. They paid off all their debt by selling some assets. They are at a net cash position. In the short term there is no reason to own the stock due to lack of catalyst.

An infrastructure stock that saw negative performance because of Covid, but core business wasn't that affected. Nat gas demand has rebounded to all-time highs. Good value at these levels.

The stock has been underperforming. While most revenue comes from liquids, 60% production is weighted for natural gas. There will be production growth for condensates in the near future. The gas side has pulled this stock down. There are more clear names to go to first, and this would be more second tier.

The biggest land driller in Canada and one of the largest in North America. They still generated free cashflow even during challenging times. At $50 oil, they can generate free cashflow equivalent to their market cap if producers drill to maintain production. Downside is limited since they generated free cash this year still. (Analysts’ price…

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.

Some of the highest operating margins, low break even price, no debt, share buybacks, cash on balance sheet. Dialled up capex spending in December. Lean, efficient, growthy producer that's financially very sound. No dividend. (Analysts’ price target is $25.60)

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.

He does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.

TOU is the cream of the crop. They focus on natural gas, which has lagged, but will catch up. The balance sheet outshines its peers. Their cash can pick up more companies. Managers have been buying shares. Lots of upside. (Analysts’ price target is $26.97)

A feed stock for another company that wants scale. Clean balance sheet and asset holdings. Trades at 13% free cashflow yield at $50, and 31% at $60. You get a free cashflow engine. (Analysts’ price target is $1.54)

A core holding. Management has done a good job repositioning the company. They are slowing production growth and maximizing free cashflow. They are deleveraging. Their ability to generate free cashflow is extremely high. 16% free cashflow yield at $50, and 34% free cashflow yield at $60.

WCP buying TORC Oil Like with Suncor, we've had a relief rally in oil and cyclicals. Instead of vibrant competition in this industry, all this pressure on oil will reduce this space to a handful of names. He's looking for the highest free-cash flow producers at their lows. WCP gets stronger with this merger and…

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.

They have benefited from the strength in housing. It is a very cyclical industry and not one she typically goes into. Hold it for now but watch lumber prices. She is positive on the housing market in the US.

Copper equities in general have had a huge move since the bottom. The commodity has been bust for the last 10 years. There is a lot more room for copper to grow. As long as the balance sheet is not too bad, and it is a good company, then it is a good buy.

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)

Long owned this. They make a lot of money for a small-cap. They now have a second mine in the Ivory Coast while their Burkino Faso one will continue to do well. A cheap stock that gives you exposure to gold. (Analysts’ price target is $2.47)

(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.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is showing better momentum and 5i likes it. It is cheap on valuation and is less vulnerable to changing customer taste. Unlock Premium - Try 5i Free

A cheap stock that's survived the downturn with a healthy balance sheet as they pay down debt. It trades at 4x forward operating cash flow which is growing, and probably boasts 10x forward earnings. The car business is coming back. Auto parts company can shift to meet demand in growing e-cars. (Analysts’ price target is…

They bought Newfoundland Capital. It is a radio operator now. Debt is high but they keep increasing their dividend. People see them as background music in a retail environment. It is an okay stock and he would like it a lot better with a lot less debt.

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.

Hit by Covid. Balance sheet not great. Problems with storage bins, and the market overreacted. Long-term growth story over time, a year or two, you can own it, but it's risky. Fairly cheap, decent growth. Good opportunity.

It was doing everything well and they were going to sell the business before the pandemic. Now, the business is ruined. With social distancing and lack of good movies, it is un-investable.

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.

Good name in the TSX. One of the better growth names. 15% growth rate going forward. 24x forward PE. He's not into consumer staples at this point, favours cyclicals.

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.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Banks remain attractive, especially for their valuation and dividends. The banking sector rallied strongly in November but the ETF is still a fine buy. Unlock Premium - Try 5i Free

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.

The difference between ZWE and ZWP is the currency hedge. If you think the CAD will do worse than European currencies, then you want a ZWP. If you think the CAD will strengthen against these currencies, get ZWE. He recently swapped into ZWP since he wants foreign currency exposure.

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.

Financials as a group will have a tailwind. Good global footprint. Worthwhile place to look. He'd be a buyer. Manulife is also attractive.

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,…

The banks lagged this past year, but their earnings delivered as capital markets delivered. Interest rates have hurt this year, but should tick higher in the future. The banks hold excess capital. They've more than covered loan-loss provisions. They will buy back shares again and do acquisitions. He now likes Canadian banks for the first…

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…

The dividend is probably safe. The Canadian and US banks are so cheap and out of favour that there is a lot of value to be had, but the discount on this one is not that substantial.

EIF-T Onex IS a holding company that owns industrials and several small airlines that served remote regions (i.e. northern Quebec). All airlines are struggling now, but these remote areas still depend on airlines flying there. Onex also owns light industrials, like one they bought in the US recently. Well-managed and a roll-up story. Are astute…

Not that enamoured. Doesn't like the business. Can't believe the high fees they charge. Family management team not proactive. More horsepower in Manulife for a similar business. It has better risk/reward long-term, with a good-sized dividend while you wait.

(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.

In the context of carbon tax announcements and the green push in US government Generally, yes, he'd buy this. There is a green push which will benefit NFI in the next couple of years. As for the Covid effect: People riding transit are extremely cautious and practice safety measures like distancing. Secondly, a company called…

(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.

Q3 earnings were really good, strong free cash flow. Had layoffs, downsizing. Still a very cheap stock at 9x. There's room for this one. Big move in last 2 weeks, so wait to add. If you have it, hold it and enjoy.

He did very well this in the past. They make smaller buses, used in less-busy routes, yet are more efficient than comparable vehicles. It took longer to set up and find a partner in the U.S.--and the stock slumped--but they have by now set things up. They're rolling out an e-vehicle--and this is really interesting,…

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 safer way to play copper with a nice dividend. This kind of name tends to outperform the market for a couple months after a trough. A name that has displayed rigorous cost containment over the last 5 years. (Analysts’ price target is $28.00)

Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.

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…

(A Top Pick May 17/19, Down 7%) He still holds this one. He participated in a financing about four months ago. They produce tests for HPV, but unfortunately COVID-19 has taken center stage. He likes their quality assessment tests and the outlook remains positive.

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.

It is one he quite likes in his Cannabis portfolio. They are the number one selling chocolate infused with THC. They can also infuse it into sugar for baking. The company has been ramping up as of late. Later this year we should see cash flow positive from this company and then it will hit…

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.