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Today, The Panic-Proof Portfolio (Stockchase Research) and Stockchase Discover commented about whether XLI-N, CTC.A-T, SIS-T, HD-N, LUMN-N, BTO-T, ACO.X-T, PXT-T, NVA-T are stocks to buy or sell.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

This $6 billion market cap producer in the prolific Montney region is setting production records. It trades at 1.4x book value and supports a 36% ROE.  Strong operating cash flow is allowing debt to be retired.  We recommend placing a stop-loss at $8, looking to achieve $16 — upside potential over 50%.  Yield 0%

(Analysts’ price target is $15.85)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

This TOP PICK is a Canadian based energy producer in Colombia that has successfully increased reserves for 12 consecutive years and increased production 11% over the year (81% oil vs 19% natural gas).  It announced a 50% increase in dividends and is aggressively buying back shares.  We recommend a stop-loss at $19, looking to achieve $35 — upside potential over 45%.  Yield 2.4% 

(Analysts’ price target is $35.13)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

We again reiterate this Canadian infrastructure utility, who just acquired a sizeable portfolio of wind and solar assets in Alberta and Ontario as a TOP PICK.  They inked a 15 year renewable energy deal with Microsoft. It trades at 1.2x book and at 12x earnings. We like that cash reserves are growing while paying down debt and buying shares.  It has a good dividend, backed by a payout ratio under 55% of cash flow. We recommend maintaining the trailing the stop at $40, looking to achieve $50 -- upside over 16%. Yield 4.2%

(Analysts’ price target is $49.81)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 02/23, Down 16%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with BTO has triggered its stop at $4.40.  To remain disciplined, we recommend covering the position at this time.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 29/22, Down 31.9%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with LUMN has triggered its stop at $3.65.  To remain disciplined, we recommend covering the position at this time.  

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 17/22, Down 0.1%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with HD has triggered its stop at $300.  To remain disciplined, we recommend covering the position at this time.  

BUY
Allan Tong’s Discover Picks

Savaria’s revenues have grown from $120 million in 2016 to $661 million in 2021 (the last reported full year). Accordingly, operating income has also climbed from $18.19 million to $49.18 million in the same time frame. However, the same cannot be said of net income, which was $12.3 million in 2016, then topped $26.46 million in 2020 but then fell to $11.54 million in 2021. Read: Canadian Tire, Savaria & XLI

BUY
Allan Tong’s Discover Picks

CTC’A trades at a 9.92x PE, pays a 3.95% dividend yield backed by a safe 33.24% payout ratio. That valuation, by the way, has been the same since last July and is a far cry from July 2020 through June 2021 when it topped 17x. CTC’A is trending above its 50-day moving average of $154.53 and 200-day of $159.03, while the street sees a higher PE of 10.16x. Quarterly revenue growth YOY rose 3.9% and earnings growth 4.6%. Read: Canadian Tire, Savaria & XLI

BUY ON WEAKNESS
Allan Tong’s Discover Picks

XLI charges only 10 basis points, pays a small 1.58% dividend yield, but it holds some heavy hitters: Honeywell, UPS, Union Pacific, Boeing, Raytheon and Caterpillar in that order. Yes, GE also sits in this basket, but so do Lockheed Martin and Deere. The biggest holding, Honeywell, has exposure to defense, but more so automation in manufacturing, a growing area and one that’s needed in the current labour shortage. Read: Canadian Tire, Savaria & XLI

COMMENT

Inflation is slowly declining as central banks are in the late inning of interest rate hikes. Investors hope banks reverse course later this year, but job numbers remain high and inflation in sticky. Sentiment is neutral. There's fear of missing out in “zero days to expiry” options trading on single stocks and U.S. indices. He remains cautious, patient.

DON'T BUY

A high-beta 1.5 stock. Not a pretty chart nor is it cheap at 20x PE. As the market goes, so goes this stock. No sign of an upturn. Exposure to China is double their peers which is a concern, so semis are being more and more restricted by governments, so that's a risk. Compounded returns over 5 years have been 14% annually, which beats the market, but AMD and others are double.

BUY

He added to it in the past week. They has an oil spill late last year and a big overrun in their Coastal Gaslink project. Valuation has been discounted. He likes their dividend which should grow. Little commodity or cycle risk. Strong balance sheet and credit rating.

BUY

Freedom Mobile will be a good purchase so it will diversify the business away from legacy cable into mobile phones, and the deal will be approved after a long wait. They're underexposed to wireless, which is why this trades at a lower PE vs. peers.

DON'T BUY

Prefers Quebecor. They rejected an approach from shareholder Rogers, so it's unclear what Cogeco's long-term future. Is overlooked by Bay Street. Has lagged the TSX the past decade. Pays a decent 4% yield. But they lack wireless and entertainment unlike its peers. And they're not in the major Canadian markets.

DON'T BUY

Not a nat gas producer, but processor with some utilities business. Hasn't owned this since 2016. From 2016 to Covid that had several trials, but they righted their ship and divested some holdings. A better stock not, but not compelled to own it. Has exposure to propane and nat gas, but there are better peers than this.