Today, Peter Imhof and John Hood commented about whether CYBR-T, MIND-T, VUG-T, VCN-T, XEI-T, XMH-T, VO-N, ZIN-T, VUN-T, HXT-T, HFR-T, WIR.UN-T, TOY-T, TVE-T, YGR-T, ARE-T, AFN-T, KXS-T, TCN-T, ACQ-T, JTR-X, BEW-X, SVI-T, FLY-X, WJA-T, SIS-T, RHT-X, DMI-X, TWM-T, DIV-T, BUS-X, VLE-T, QST-X, CLR-T are stocks to buy or sell.
He sold out a few months ago. The recent selloff has prompted some shareholder resentment and a call for strategic alternatives. The latest quarterly earnings were disappointing. There was discussion of a US acquisition, but he feels it may be a lower margin one. He does not know how they will change the momentum.
This software company is one of the best four Canadian public offerings along with the likes of Shopify. He bought the IPO at $13. There was a dispute with Samsung that resulted in them exiting an agreement with them. He took money off the table then under that uncertainty. It trades at 70 times earnings. He likes the management team.
A food infrastructure play. They produce augers and storage equipment. Their last quarter saw sales up 30%. They will be raising prices soon and should be able to protect their margin growth. Their backlog has grown and he thinks this confirms their growth opportunities. They are entering international markets, which could increase the likelihood of a take-over. Yield 4.2%. (Analysts’ price target is $67.38)
He doesn’t normally like to buy companies when it is like catching a falling knife, but when it fell 25% it was too good to pass by. Unlike other construction companies its multiples did not jump when PM Trudeau announced infrastructure spending, so the stock looks very cheap presently. They have a record high order backlog. Yield 3.3%.
He likes their growth prospects in the Alberta Cardium area and sees them as having the highest netback per share of any energy company. Their production will jump up sharply in the next two months and they should exit the year at 12,500 boed. They are at 8000 boed today. He likes how management does not issue equity and that growth is through the drill bit. Debt is manageable. Yield 0%. (Analysts’ price target is $7.69)
US Fed hikes interest rates by 25 basis points today: that's a positive, because the US economy is
doing very well, with low unemployment and a progressive tax regime. Banks will be
making more money. It's easy to look at Trump as mad. Yes, he's petulant, but your portfolio is making money, like it has this week. He remains very positive about the U.S. Re: Canada/US clash & NAFTA negotiations: This is really a spat that'll get sorted out. Friedland is doing a good job.
A small micro-cap name that he holds that has been disappointing. They have done a good job on recent acquisitions, however, he has yet to see margin expansion. On a price to sales level it trades cheaply, but on an EBIDA basis it is too expensive. They will eventually get taken out he thinks.