HOLD

Does not believe dividend us sustainable given current strip price.
Could take on debt to sustain dividend.
Challenges ahead for the company.
Depends on outlook for natural gas.


HOLD

Company is inventory light (less than 10 years).
Better names to own in energy sector.
Current shares are mis-priced, but very short term hold given inventory concerns.


BUY ON WEAKNESS

Exposure to medium and heavy grade oil.
Small cap that not many large investors care about.
Dividend is 10% and is very strong (sustainable above $70).
Older assets with abandonment liabilities.
Good name for next 1-2 years if you want yield.




DON'T BUY

Passed on last private placement.
Large abandonment liabilities.
Small company that doesn't attractive institutional investment.
Has taken on lots of debt.
No return of capital until 2024.
Weary on prospects of company.

BUY ON WEAKNESS

New CEO an outsider which is good.
Health and safety issues improving.
Concerns on longevity of assets.
4-5 turn around on company prospects.
Current share price presenting a buying opportunity for long term shareholders.

BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

 GIL has performed well amid a challenging macro outlook, and is now trading at a 10.5x forward P/E. In the 4Q, GIL’s revenue declined 8% to $720M, missing estimates of $761M and EPS of $0.65 slightly missing estimates of $0.68. 
GIL’s management expects margin pressure in the first part of 2023 but expects to deliver strong margin performance for the rest of the year. 
The company has executed well on its long-term growth strategy by taking advantage of the vertically integrated models as a low-cost manufacturer to expand production to low-cost labour areas such as Bangladesh. 
It does so while continuing to expand its margins and returns on net assets (RONA). 
Overall, the company has been executing well on its growth plans, has been increasing dividends, and plans on repurchasing shares over the next few years. 
Unlock Premium - Try 5i Free

BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

 EPS was 31c, up from 24c the prior year, but short of estimates of 37c. 
Revenue was $78.8M, up 19% and matching estimates. 
The dividend was raised 17%. 
The company plans to focus on cost savings and integration of its acquisitions this year. 
With the stock way up YTD and news of the CFO departing, investors decided to take some profits. 
The stock remains very cheap and the dividend news certainly indicates management confidence.  
Unlock Premium - Try 5i Free

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

The quarter was a big miss; EPS $1.21 down from $1.61 the prior year and estimates of $1.54. 
Revenue $189.8M was higher than the prior year $188.6M but missed estimates of $203.4M. 
For 2023, guidance was $5.28 to $5.64 per share (est $5.44), Revenue guidance $878M to $915M (est $881M). 
The guidance range vs the stock drop seems out of line here to us. 
Management commentary was not that negative going forward.
The 4Q miss scared investors, but with the stock already down we would not panic here. 
We think it will be OK, but would not add. 
The stock may flatline a bit.  
Unlock Premium - Try 5i Free

COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

Shouldn’t actively managed mutual funds justify the fees and get me higher returns than ETFs? In theory they should. However, the reality is that active management is often not worth the extra fees. In fact, studies show that 80% of actively managed funds underperformed passively managed funds based on five-year average annual returns in Canada and 75% underperformed in the US. In addition, mutual fund investing can be quite limiting to the DIY investor who wants to formulate and customize their own strategy since actively managed mutual funds tend to have very specific exposures based on the mandate of the fund. However, this can be a positive point for investors who want a ‘hands off’ approach to investing.

BUY

It reports Monday. Is restructuring through layoffs. WDAY is growing, but if it can accelerate growth, then its shares will roar.

WATCH

It reports Monday. Is restructuring through layoffs. If it reports any growth, shares will jump. He hopes so.

BUY ON WEAKNESS

It reports Tuesday. He's worried about the widespread slump in retail and that Target could revisit previous lows of December, but if so, then buy.

DON'T BUY

Oil prices have been slumping and Chevron's last quarter wasn't up to snuff. Shares at in no man's land.

BUY

They have an investor day Tuesday. Likes it for its 10x earnings, as low as it will get, because the capital markets business is dead.

BUY

It reports Tuesday. The CEO is an amazing salesman and he bets he will tell a good story that his movie chain is doing very well.