Stockchase Insights

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Negative sales growth, but improving. Distribution on path to being restored. Larger base of stores for recovery. Share fairly valued with attractive yield.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Seeing improvement in sales and margins. Well-positioned for re-opening of economy. Focused on cost cutting & aggressive pricing. Valuation is reasonable for long-term growth.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Investor Mistakes: Too Much Emphasis on Stories. In the past two years, there’s been tons of media exposure on a few companies and sectors, such as GameStop Corp., AMC Entertainment Holdings Inc., the electric-vehicle industry, the cryptocurrency sector and special purpose acquisition companies (SPACs). The media loves these sectors, they generate investor interest and trading, and result in a lot of FOMO amongst investors. But, really, are they that important? GameStop is a US$10-billion company in a declining industry. AMC is US$8 billion. They hardly matter at all in the big picture of the investment world. But together they account for more news stories than most large companies can ever hope to achieve. We ran GameStop through Google and got 143 million hits. We also ran AbbVie Inc., a US$270-billion company (27 times as large as GameStop) and got only 32 million hits. Investors need to put far more emphasis on the larger, important companies rather than the tiny companies that generate exciting headlines.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Stronger financial position compared to peers. Return to normal may take time. Valuation is in line with peers.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Slow growth. Sustainable superior margins relative to peers. Strong balance sheet with ample liquidity. Stagnant performance over the past 3 years.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Acquired UPS Freight. Reduced long-term debt by 35% in 2020. TFII will now report in USD.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Too Much Focus on The Short Term. All investment eyes were on exactly one data point last week: the consumer price index (inflation) number in the United States. Next, everyone will shift to corporate earnings reports. Sure, these are important when looking at the market, but one economic number — or one quarter of earnings — should not form the basis of your entire investment portfolio.  We know many investors who will sell a company after one bad quarter. But the best companies play the long game: focusing on long-term gains, even spending more money in the short term to get there. If you own a stock, you should strive for at least a five-year holding period: you want that compounding to work for you. Looking so closely and reacting to a 90-day period out of 1,825 days (not counting leap years) is likely doing your portfolio a huge disservice.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strong performance in asset management. Growing profits despite higher mortality rates. Increased dividend by 20%. Premium valuation justified.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Potential to improve margins. Proven, disciplined acquisition strategy. Low CapEx and working capital requirements. Conservative balance sheet.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Diversified revenue streams. Niche business model. Growing its client base and quality of clients. Technology-based tailwinds.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Lower Commissions are Bad for You. After launching in the United States, free stock trading has now started to expand in Canada. But are trading fees of $0 good for investors? Well, contradictory to our comment above about fees in general, we think free commissions are bad for investors. Zero commissions encourage trading, and trading can seriously hurt your long-term returns. Low-cost trading causes you to react rather than invest. You are more likely to sell on one piece of bad news, and more likely to take a 10-per-cent short-term profit rather than a 1,000-per-cent profit though longer-term compounding.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trades at a cheap valuation. Investors’ patience has run out. Recent acquisition gave it a new life. Current environment can be favorable.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strong and growing backlog. Margins shrinking considerably. Weak balance sheet. Recent covenant relief.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Good dividend yield of 4.5%. Recent acquisition of Midland Cogen Facility. Management increased FY2022 guidance. Long-term strategy to shift towards renewable energy.