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

Likes what they're doing, but it's taking a long time to get this business around the corner. Not cheap. Super interesting involvement in the auto sector. Security division recently had a stumble. Better places to put your money.

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…

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.

CFW vs. TCW Issue has been the balance sheet. Lots of debt. Concerns about solvency. Upswing in the sector is helping them. Whereas TCW has a clean balance sheet with rising fundamentals that's all going to equity holders. TCW is a safer blue chip.

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 Sep 18/20, Up 107%) Was taken over. Liked it for the team, asset and valuation. Was sad to see it go. There were motivated sellers. 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…

(A Top Pick Sep 25/20, Up 15%)Preferred Shares K (ALA-PR-K). Played defense while still getting some return. An alternative to cash. Can be a source of cash for future buys.

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…

It is a stock that is very cheap. With high energy prices, that has lifted all of these companies. It was as low as 10% of its book value. His fair market value has been going literally straight up. He would stay with it. He recommended it as a speculative buy a while ago as…

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.

Management owns a large component of the company. Exposure to nat gas, with the current pricing very attractive.

Takeover candidate? Attractive assets. He can't speculate on the possibility of a takeover. If it happens, wonderful. Dividend growth is less likely. In the right space and acting quite well. Yield is 6%.

Had trimmed his position in the high $3 range. Bought back in around the same price. It is small but it is deep value. This is where the multi baggers are. While the market cap may be small, the asset base is good. Expects them to be massive returners of capital. Next year, could trade…

We are on a different cycle than in the past. The business model has shifted which is now positive for oil macro. Oil production growth is no longer elastic to rising oil prices. They are now taking free cashflow and companies are now buying back stocks. There is an opportunity for a rerate. Owned it…

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.

Great long-term land position, tilted toward natural gas which should benefit them in coming quarters. Performance was especially poor in the downdraft, as it had been a darling. Cut dividend. He owns FRU instead, a bit smaller and has returned their dividend, and they have catalysts with acquisitions south of the border. Both names will…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. One of their favourites in the sector. No debt and lots of cash. The stock is up 66% in the past year. A safer oil stock. The company continues to make the right moves. Dividend has started this year and they are buying back shares. Unlock…

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.

Their acquisition improved their free cashflow profile. Trading at 4.5x EV to EBITDA. We should see multiple expansion. Maybe a 30-40% upside potential, where as other small cap stocks could offer double. A challenging environment for service stocks going forward.

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.

TCW vs. CFW Issue for CFW has been the balance sheet. Lots of debt. Concerns about solvency. Upswing in the sector is helping them. Whereas TCW has a clean balance sheet with rising fundamentals that's all going to equity holders. TCW is a safer blue chip.

(A Top Pick Dec 29/20, Up 170%) They are great operators. The balance sheet is in great shape. They did smart acquisitions. Everyone is starting to discover this name. It is still a decent valuation.

(A Top Pick Dec 08/20, Up 257%) Crude oil was significantly lower than it is today a year ago. There has been a lot of talk about what the oil companies can do, now that their cashflow is good. Continues to like it in the space.

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 Top Pick Sep 09/21, Up 41.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WCP is progressing well. We now recommend trailing the stop (from $4.25) to $6.25. If triggered, this would all but guarantee a net investment return of 18%.

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…

A lot of bad things like lawsuits have happened to CHE and it fell out of favour. It pays a good dividend, but it isn't totally safe. Don't hold in a registered account, in case you suffer a loss. [Note: audio problems]

The shortage of steel allowed this company to do well. They are well managed and pay a decent dividend. They are exiting their oil tubular business and will be a better company for it. But the price of steel will come down in a year or so.

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…

Likes it. $3.25 target, a buy. Great project. Really likes the US. It's going to be one of the best mining jurisdictions. The light hasn't come on with US investors yet, but when it does, US money is going to chase these, and anything in the US will do well.

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 Jul 02/21, Down 3%) A play over the next year. If you look at housing demand in US and Canada over the next 5 years, there will be increasing demand for lumber. Trading at only 2x this year's earnings. Earnings for 2022 will be solid.

Highly leveraged to the copper price, and is a major producer. Has a great outlook. They are reducing costs to improve efficiency. Debt is an issue, but the high copper price solves this and enhances margins. It's up 500% in the past year. Too much beta for him though, but this is fine if you…

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…

Residential lumber exploded last year. Stock's come way down and has never been cheaper. Trading at 12x earnings for a great company with great cashflow. Significant room to bump up the dividend. Great time to buy a well managed, quality company. Yield is 1.62% (Analysts’ price target is $60.00)

(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. There is no news to account for the weakness. The stock rose last week and has essentially returned to those levels. Estimates have risen, which pushes expectations to beat on earnings. The company has beaten estimates 8 quarters in a row. Unlock Premium - Try 5i Free

Its valuation is cheaper than the rest and has under-performed this year. They are involved in the light-weighting of vehicles. Three times operating cash flow. The cycle will turn – the demand is still there. He likes the insider buying recently. (Analysts’ price target is $18.06)

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 Oct 07/20, Up 14%) She exited the position when the market started to move from COVID winners to recovery stories. It has held up quite well. She thinks the trends are very much still in place.

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.

Many agriculture stocks have done very well, but AFN has seen a few setbacks, like litigation. But AFN crop yields are improving and the agriculture space is well-positioned. Growth by acquiring has declined, but he expects their technological expertise to increase. (Analysts’ price target is $46.63)

People own this for the dividend, and pre-Covid this company was innovative with preferred seating and cafes, and programming opera and sports. But this is a difficult environment now; he doesn't see people returning to cinemas given social distancing. Also, the studios are releasing films on streaming. True, a lot of blockbusters will be released,…

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.

A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in…

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.

Has seen massive flow into this fund. 28 basis points. You could do it, but it is also religiously managed. With an inflationary framework, it should benefit the Canadian banks. Hard to argue against banks. Going forward, could we see deflationary pressures? Yes. The tech revolution, debt and demographics are deflationary.

Has short duration preferred shares. Also has rate reset features. If you think we will see rising rates, which is a good assumption, then they will ratchet their rates up to keep up with rising interest rates. These are not government bonds, and there is some risk. However, with 4% dividend rates, there is an…

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.

ZWE has a currency hedge. If there is a global downtown and it is meaningful, then you would be concerned. Doesn't think we will see this. It will be a normal 5-10%. When you get the big sell-offs, you don't want to hold covered calls because you don't get the upside capture. Right now, both…

They've made a big push into the U.S. retirement services business, basically a record-keeping market. It's a very defenisive stock, trades at a cheap 10x earnings and pays a 4.5% dividend. GWO will see earnings growth. Pays a 4% dividend. (Analysts’ price target is $40.00)

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.

Insurance companies have been quite sleepy this year. Stock's been flat since 2019. Not a ton of dividend growth. Good positive exposure to rising rates longer term. Well managed. He owns MFC instead, with more catalysts, cheaper, higher dividend yield. Trimmed weighting to insurance broadly and moved into utilities, renewables, and infrastructure.

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,…

(A Top Pick Dec 29/20, Up 35%) The banks had not performed at that point last year. They had over-reserved at the beginning of the pandemic.

Working to diversify, including owning Ontario real estate. Undergoing a review to calculate capital differently which, if successful, would let them compete more aggressively on loan products. Regional banks are trades for him, in and out. Prefers this to LB.

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…

Not time to be aggressive. Lot of risks for a name like this and Canadian banks, and investors need to pay attention. Mortgage portfolios are expanding, housing prices are up 30-40%, and this is a lot of risk in an economy that's slowing.

Private equity companies have really taken off. Trading at a discount to asset values. Can own private equity but at a discount. You get the benefit of the management company and holdings. A premier private equity company. (Analysts’ price target is $108.20)

Really likes the investment management sector. It should be pretty good business in a time of a decent market and reflation. When a group gets into gear, you want to look at the leaders.

(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.

Focused on office across Canada. High Quality buildings in secondary locations. They operate at a higher distribution level. The issue is that they are paying out all of their cash flow. It is highly cap-x driven. There should be some cushion between AFFO and distribution.

Hut-8 is another Canadian Bitcoin miner headquarted in Toronto, though it trades on the TSX. Daily volumes average 2.5 million, but swing wildly. Over 12 months, Bitfarms outperforms HUT-T 753% vs 858%, but the stocks have run in parallel the past month. Neither stock pays a dividend (no surprise). HUT's EPS in -0.22 while BITF's…

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.

Company cut outlook due to shortages of components. Has never executed well. On her watch list, but wants to see more from them before adding it to her portfolio.

(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 Founded in 1858, WJX is one of Canada's oldest diversified industrial products and service providers. Recently reported EPS of $0.57 easily beat consensus calls for $0.35. It trades at 11x earnings compared to peers at 34x and has a PEG of under 0.9 (demonstrating good growth) and is a just…

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

Offers growth, but is more of a cyclical.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock took a hit from political moves in Chile. Overall it is a good grower and more growth is expected over the next two years. Currently trading at 18x earnings. Metals and mining stocks have been doing well recently. It is worth holding at…

Like his MG-T comment today, but the valuation is not quite as attractive. He is not sure about the drive-train exposure. He is fine with the overall group however.

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…

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.

Certainly puzzling. They have partnerships with 2 US companies that gives them the right to market and sell their products in Canada. Top 10 companies in terms of sales. Chance that Canopy will buy out the company or do a partnership. Fantastic job with the edible market with 50% marketshare and growing revenues.

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.