Today, Fabrice Taylor commented about whether SIM-X, TECK.B-T, TOG-T, DHX.B-T, USCO-X, POT-T, INP-X, LTV-X, GUD-T, FRII-T, CCO-T, RUS-T, HSM-T, NLC-X, NFI-T, CLIQ-T, CHH-T, MRS-X, DIV-T, CXR-T, GCL-T, BUS-X, AC-T, DVR-CN are stocks to buy or sell.
2 years ago, the CEO said he was going to build up Rouge to compete at the lower end and Sunbelt as destination markets. Also was going to try to get some US traffic to use Air Canada. There were a lot of sceptics, and the stock didn’t do well for about 6 months, but it is proving out now. The model is working. It is currently hitting a 52-week high and thinks it is going to go higher.
They’ve executed very well. He guesses that if they come through with earnings and revenue surprises, the stock will pop. If looking for an earlier-stage version, there is one called GreenPower Motor Company (GPV-X) which makes electric buses. Both are interesting. Feels the bus business is a growth industry.
He loves turnaround stories with lots of debt. When you get them right, they really move. This one is not a turnaround yet. It has a lot of things that you look for, what it doesn’t have are signs of a turnaround. Wait until you see two quarters of deleveraging and improving margins. The stock will move from there. It still has bankruptcy risks.
Hit a big speedbump a couple of years ago, when they bought a royalty on an Alberta centric restaurant chain. The CEO is one of the best he has ever met. He managed to sell that chain, and then sat on the cash. He just bought the Air Miles trademark and a variety of related royalties in Canada. That sent the stock sharply higher. Dividend yield of about 7%. This is a great business to own.
In the military services type industry. He used to own this. They just signed a contract and the stock price jumped. If that contract pans out, then the stock is going higher for sure. You want to make sure that it is real. Sometimes companies announce agreements and they are not as great as they sound at first. Given the amount of volume it traded, there has to be something to it.
(A Top Pick Sept 9/16. Down 3.09%.) This was a kind of bet on a recovery in Alberta, because that is where most of their stores are. Has added more, because in the interim, they had a proxy battle and brought in new management and new directors. Pays a dividend of about 4%. At some point he thinks oil is going to recover. Also, what if they get a mandate in Alberta to sell marijuana like they did in Ontario. There could be some interesting upside here. Still a Buy.
(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 it gets taken out, it will be for a big premium.
A medical device that helps brain injury, as well as the potential to help with other diseases. He started recommending this at about $1.25, and it doubled in about a year, and he added more to his holdings. At this point, he has his original money out, but still owns a lot. Feels it has a lot of potential. It looks like FDA approval is a given and the data is coming out in a couple of weeks.
Market. For stocks hitting 52-week highs, everybody thinks they should be avoided. But if you look at stocks that hit the 52-week high list, they tend to keep on doing it. If you want to beat the market, you can look at the high list and pick winners. However, you have to do a little research, and understand that it does better for bigger names. Little stocks can hit a 52-week high and low in the same month, so it doesn’t work as well for volatile or illiquid stocks. It works quite well for the bigger names, because the market is the best analyst, and the smartest people are in their the earliest, and are telling you it is a Buy, and it will be a Buy for some time generally. He is about 50% cash because he knows a correction is going to come, and would rather be there ready to pounce on opportunities.