Arc Resources Ltd, BlackBerry and 20 Stock and 1 ETF Top Picks (Jan 27-Feb 02)
This week were 20 Stock and 1 ETF Top Picks in a wide range of industries: Energy, Financials, Consumer, Industrials, ETF, Technology, Basic Materials and Communications.
Expecting $100 oil in the coming months. Planning for $6.80 share price this year. High oil torque and leverage to rising oil price. Pledged to return at least 75% of cash to shareholders (starting April). Expecting SIB & NCIB in the coming months. 31% free cash flow yield with $100 oil. 22% free cash flow…
Tamarack Valley Energy (TVE-T)
Very aggressive at consolidating Clearwater acreage. Company continuing to pay down debt. Expecting a $12 share price given strong oil prices.
Baytex Energy Corp (BTE-T)
New CEO is capable and market friendly. Potential to expand Eagleford potential. Clearwater exposure with strong free cash flow yield. Interest falling off the company which creates a buying opportunity. Expecting $20 share price assuming $100 oil. Company is very focused on paying down debt.
TC Energy (TRP-T)
TRP vs. BNS Two completely different sectors. First questions are what's already in your portfolio and at what weighting? Similar dividend yields and similarly disappointing to investors in 2022. BNS has had poor performance for quite some time, and now a leadership change. TRP has a good, strong management team, but cost overruns. At these…
Canadian Natural Rsrcs (CNQ-T)
Stockchase Research Editor: Michael O'Reilly At $80 WTI, CNQ is generating massive cash flow. In 2022 funds were up 66% and cash reserves are the highest level in at least 5 years and that is after paying down debt aggressively. This will be a play on forward global oil prices, but oil prices don't need…
Arc Resources Ltd (ARX-T)
Share price off significantly, by about 25%. Huge amount of undeveloped land. They own their own infrastructure. Buy on the dip, especially under $15. Premier nat gas company to own. Upside on LNG Canada export. Yield is 4.03%, growing. (Analysts’ price target is $24.43)
Likes it. They report Friday. Washington's stance on oil and gas hasn't helped stocks like Enbridge. It pays a 6.5% yield, supported by strong cash flow. Natural gas has swung from not enough to too much, high prices to low.
It owns retail shopping centres across Canada focused on grocery and pharmacy and is in the best markets. The strength and quality of its tenants is good and it has one of the best shopping centre portfolios globally. It trades at a great discount to the private market value of its real estate net asset…
Sun Communities (SUI-N)
It owns land and rents it out to RV's and manufactured housing. Basically people buy a home, put it on the land and pay land grants. It is in one of the most defensive asset classes - affordable rents. Trades at a double digit discount to NAV with an attractive cash flow. It has never…
American Homes 4 Rent (AMH-N)
It rents out over 58 000 single family homes across the U.S. It is unique in that it has its own in-house development pipeline. It can add another 15000 homes on lots that they own or have options on. Their homes are similar quality to ones you could buy from a developer. Has attractive internal…
Brookfield Corporation (BN-T)
Which Brookfield to own? Yield is around 1.5%, the lowest in the group. You have to evaluate each company separately. He owns BEP.UN and BIP.UN, as he finds those the most attractive long term. With those two, you tap into the Brookfield global, private equity expertise, with a focus on renewables and infrastructure. BN owns…
Low profitability, balance sheet stretched. A more expensive multiple than the market, so avoid. Instead, try NWC at 13x and a bigger yield at 4.5%.
Canadian Tire Corporation Ltd. (A) (CTC.A-T)
Whatever you need to buy, it's always an option. Management's done a good job moving competition away from online retailers. Impressive profitability of ROE around 18%, well above TSX average. Strong balance sheet. Expects nice capital appreciation. Yield is 4.30%. (Analysts’ price target is $186.73)
Stockchase Research Editor: Michael O'Reilly Recently reported earnings for GM beat analyst estimates by 30%, with sales up 28%. Improved supply chain issues are allowing momentum to build. They expect their EV division to have a banner year. It trades at 7x earnings compared to peers at 20x and is valued right around book value. …
Founded in 2012 and based in Phoenix, Carvana's mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than…
Wheels Up Experience Inc (UP-N)
Wheels Up, the leading brand in private aviation, is the only company in the industry to offer a total private aviation solution that includes world-class safety, service, and flexibility through on-demand private flights across all cabin categories, membership programs, corporate solutions, aircraft management, whole aircraft sales, and commercial travel benefits through a strategic partnership with…
Stockchase Research Editor: Michael O'Reilly We again reiterate ZWB, an ETF of Canadian banks with dividends enhanced by the use of writing covered calls managed by BMO, as a TOP PICK. Canadian banks are a safe haven during periods of market volatility and will respond well when the economy stabilizes. The yield enhancement gives some…
SoFi Technologies, Inc. operates as a financial technology company. The Company offers financial services platform for borrowing, saving, spending, and investing. SoFi Technologies serves customers in the United States. Social media mentions are up 58% in the past 24h.
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.
🛢 Basic Materials
Stockchase Research Editor: Michael O'Reilly BTO is a million ounces a year gold producer with assets in Mali, the Philippines and Namibia. Analysts expect quarterly production will be reported to have hit record levels in Q4:22 -- up over 25% on the year -- when earnings are released later this month. It pays a good…
Stable company. Rose last year on hype surrounding investments in agriculture and healthcare, but he likes those investments. Telus is using its tech know-how to expand opportunities in other business-use cases. Core business looks good. Further ahead than BCE on fibre build, capex starting to come down, free cashflow starting to rise. Dividend growth at…
Use this list wisely to identify buying opportunities.
Happy trading !!!