Today, Bruce Campbell (2) and Stockchase Insights commented about whether ETL-X, NWC-T, ET-T, QIPT-X, REKR-Q, YERB.U-X, CAE-T, BTE-T, GDNP-X, TGIF-CN, STLC-T, ACB-T, SHOP-T, LSPD-T, LSPD-T, VRNO-CSE, SGMD-X, NVEI-T, TWM-T, AVN-X, DOL-T, NWE-N, ETL-X, EMPS-CSE, WELL-T, EXRO-X are stocks to buy or sell.
Part of that is the size. US investors probably don't know LSPD, whereas they do know SHOP. SHOP is the 800-pound gorilla in Canada and the US for small companies that run their own website, as well as for big companies that run a website and do e-commerce.
LSPD has more of a niche in restaurants. They will be successful over time, but there have been challenges with restaurants. Over time, it should catch up to SHOP as far as percentage return goes.
Part of that is the size. US investors probably don't know LSPD, whereas they do know SHOP. SHOP is the 800-pound gorilla in Canada and the US for small companies that run their own website, as well as for big companies that run a website and do e-commerce.
LSPD has more of a niche in restaurants. They will be successful over time, but there have been challenges with restaurants. Over time, it should catch up to SHOP as far as percentage return goes.
EPS of 20c missed estimates of 22.5c. Sales of $125.8M beat estimates of $120.5M. Sales and earnings rose nicely. Cash is now $27M. It was a decent quarter, but there has been no long-term growth here. Even with a bounce this year, EPS will be slightly lower than it was in 2016. The stock is cheap because of this, but mostly only trades for its dividend. Investors need to see some consistent growth. The quarter was a good start but does not yet make a trend.
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The quarter is a big relief for worried investors. EPS of 83c beat estimates of 68c. Sales of $618M beat estimates by 2%. EBITDA of $83.3M beat estimates of $73.1M. Sales rose 6.8% with comp. sales up 4.7%. Profit rose 17%. EBITDA rose 15% year over year. TD has already raised its target on the news. The dividend was increased 2.6%. Expenses were kept in line and it was a solid quarter. The outlook sounded relatively positive as well. The write off of the Fox Lake store due to fire was embedded in these results and this should not have a material impact going forward.
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The EV/lithium sector remains hot and ETL's share price is breaking out to new highs. The company has $18M in cash, no revenues, and generates negative free cash flow. It recently provided an overview of its lithium assets in Saskatchewan, and it recently begun operations at Alberta's first direct lithium extraction field pilot plant. We do not see major red flags here other than its small size, sector and capital risk, but we would consider it to be highly speculative and it's hard for us to strongly endorse it at this time.
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If you can’t afford to invest yet, don’t.
This rule kind of seems obvious, but you might be surprised at how many people ignore it. We have seen people borrow money to invest on margin even while they have huge credit-card balances. We have watched people buy penny stocks even as they struggle to come up with rent money.
We think, instead, you should look at paying down debt as an investment in itself. Suppose you have a $5,000 balance on a credit card at 19.99-per-cent interest. Paying down that balance guarantees you a solid investment return through lower interest payments. Saving 20 per cent in charges is just as good as making 20 per cent as far as your net worth is concerned (even better if one looks at the after-tax impact).
Of course, there is nothing in the investment world these days (or ever, probably) that is going to guarantee you a 20-per-cent payback. So, you need to get your financial house in order before you consider investing.
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