Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Don Lato and Benj Gallander commented about whether JST-Q, RON-T, BBD.B-T, PONY-T, TECK.B-T, ITI-Q, HMY-N, FUNC-Q, WEED-T, MCBC-Q, EXE-T, ORAN-N, ACI-N, EQB-T, ZZZ-T, AAPL-Q, RCI.B-T, V-N, CPG-T, BMO-T, CSH.UN-T, POT-T, KKR-N, SWKS-Q, NXPI-Q, GOOG-Q, CCL.B-T, COS-T, STB-T, GILD-Q, VRX-T are stocks to buy or sell.
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The telecoms are getting a little rich. This one has had a very nice move. Had a lot of problems with subscriber losses and high marketing costs on the retention of subscribers, but it seems that since the new CEO came in, those metrics seem to be improving quarter by quarter. Just recently announced another strong quarter and better numbers, and less subscriber loss. On a multiple basis it is trading less than Telus (T-T) or BCE (BCE-T). This is still a good bet to keep paying their dividend and growing as well.
Reporting after the bell today. The valuation is just so compelling at 11.5X next year’s earnings. 8X if you strip out the cash. He probably wouldn’t be a buyer this afternoon just because you never know what you are going to get on the earnings. They continue to hit on all cylinders. Dividend yield of 1.8%.
Great company and very, very well-managed. Trading at about 14 or 15 times earnings for next year. It is the dominant retail mattress company in Canada. There is some talk that Hudson Bay (HBC-T) may be getting out of the mattress business, which opens the door for even further growth. A good defensive business. Dividend yield of 3%.
This got tarnished with the Home Capital (HCG-T) brush. The big decline that occurred in the spring and summer was partly due to Home Capital. He has a lot more confidence in their due diligence that they do on their lenders and the systems they have set up. Trading at 1.2X BV and 1.5X earnings.
A very contrarian stock. A lot of coal companies are on his Watch list. Unfortunately, most of them are in very, very scary positions. The regulatory environment has changed and the attitude towards coal has gotten far more against it. They had a $1.8 billion debt load in 2010 and it is now over $5 billion. Tried to do a deal with note holders but they said No. He sees Chapter 11 for this company, so anybody investing in it is taking a tremendous chance.
He doesn’t buy anything on the Venture Exchange. Marijuana is a tremendous growth market, and there are going to be a lot of companies that do well. Also, there is going to be a lot of charlatans that make a lot of money because people are going to pour into the field. You have to look carefully at the financials to see if they have revenues, debts or if there is dilution because they keep selling shares.
(A Top Pick Nov 17/14. Down 3.47%.) A small bank based in Oakland, Maryland with 25 branches. Recent quarterly results were not as good. Revenue and income was down a bit. Capitalization rates were down a bit, but are still very good. Prior to the recession it paid $0.20 a quarter as a dividend. They don’t pay a dividend now, but thinks they will start one before the end of 2016. He can see this tripling.
(A Top Pick Nov 17/14. Down 56.87%.) Sold his holdings at $0.70. Since he sold, 2 good things have happened. They have come to a wage agreement for the next 3 years with their employees. Also, their production is up about 10%. The balance sheet is not that bad. The key is going to be the price of gold and where it goes from here. This is a high cost producer. They are trying to cut back. A wonderful play in Papua New Guinea.
(A Top Pick Nov 17/14. Up 26.63%.) Traffic flow management. There are 2 negatives. 1) Lost a little money last quarter and 2) they moved into the agricultural field. Whenever a company moves into a new field, there is a certain danger. Often they spend a lot of money. In this case it appears that they have signed some good contracts, but he is cynical to some degree. By all their metrics, the company is doing well. Insiders own about 28%. Thinks it has a lot of potential. He is looking for another $1 upside.
Has a good chance of doubling. Often with companies like this, they can return to form. This has done this in the past and has the potential to do it again. It’s on his Watch list. He can see a better than 20% return a year. The balance sheet is not good at this time and commodity prices do not work for it.
Oil and gas is a great sector to invest in as a contrarian, if you can find the right ponies to play. Thinks this has lost money 3 years in a row. Their share count has just about doubled in the past number of years. They have a number of problems they have to deal with in terms of oil/gas prices. Thinks it has a lot of upside, but at this point in time it is premature to invest.
