Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Chris Blumas and Stockchase Insights commented about whether VQS-X, GNRC-N, FNV-T, GWO-T, ABT-N, BN-T, AMZN-Q, SHOP-T, INTU-Q, NTR-T, ENB-T, PPL-T, TRP-T, L-T, GIB.A-T, YUMC-N, TD-T, T-T, DIS-N, PKI-T, GOOG-Q, ENGH-T, ATD-T, BMO-T, DND-T, LMN-X are stocks to buy or sell.
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More focused, pruned non-core assets, now more about cashflow and organic growth. Heading in the right direction. Leveraging partnership with AMZN. Comes down to valuation. Generates free cashflow, but not that much, so multiple is really high (about 2x that of AMZN).
Momentum is in its favour. Let it run a bit more. Use a stop loss if you want to transition out.
Bit of a valuation discount because of real estate exposure. Built to be counter-cyclical, and this could be a challenging environment. Always capitalizing on volatility. At last count, $150B dollars of capital to allocate across its different platforms. Well positioned, global. Yield is 0.7%.
(Analysts’ price target is $68.73)Pharma is challenged on growth, whereas devices have robust growth. Its device business has grown exceptionally well, between 10-12% organically. Overhang has been unfavourable comparisons from Covid testing. Reasonable valuation for quite a good company. Yield is 2%.
(Analysts’ price target is $123.65)For income-oriented investors. Mature market focus in Canada, US, and mature parts of Europe; whereas MFC and SLF are pursuing growth more in EMs. Better on capital allocation, likes growth potential. Trades at less than 10x earnings. Attractive yield of 5.2%.
(Analysts’ price target is $44.20)Lower rates have not, historically, been very favourable to life insurance companies. That's why they were in the dumps. Thinks this rate cycle will be a lot shallower and shorter. Balance sheets of these companies have trued up to the current environment, so less susceptible on the downside. If downside isn't that deep, they'll be OK.
Gold ounces sold were 110,264, down 35% year over year. EPS was 75 vs 95c last year, and estimates 81c. EBITDA fell 19% to $221.9M and below estimates $237M. Results are fairly weak considering the price of gold rose 18% vs the comparable quarter. Guidance was moved to the lower end of the prior range. FNV did announced another smelter royalty. A disappointing quarter, but we think the decline today reflects the picture. We would continue to see it more as a BUY. We also quite like the sector outlook currently.
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We think it is a hold, although growth has been slow/declining and it is not cheap at 19x forward earnings. EPS is forecasted to grow at approximately ~20% annually for the next three years, so there is some appeal if GNRC can start consistently meeting/beating expectations. The risk is that it does not offer a safety net of any dividend, but GNRC does have a decent buyback yield at 3.51%. We do not think it is a must own, but it does have high cash flows and if revenue and earnings growth picks up it could look more attractive.
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VQS recorded Revenue of $11.6M increasing 10% year-over-year. Net loss was $0.6M which improved from a loss of $3.6M in the year prior. Adjusted EBITDA of $0.8M improved by $1.7M from the year prior. The company is seeing increased demand and profitability for its AI solution offerings albeit at a small scale. The results are solid but the company is so tiny at $12.65M in market cap, that we are skeptical if this can be sustained, in addition to the general size risk here.
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Attraction of Stable Dividends:
Canadians love dividends, it is not only the culture but also an implied encouragement in the tax system which treats dividend income favourably with the dividend tax credit. As a result, dividends are the most common form of capital returns to shareholders in Canadian public equities compared to the US which tends to prefer share buybacks. Because, unlike share buybacks (which ultimately should lead to capital gains) which could be subject to market volatility, the dividend received is “real money” at the end of the day, which could be either spent or reinvested. Numerous companies use their track record of consistent and growing dividend payments for decades as a badge of honour, and companies such as Royal Bank of Canada (RY) or Enbridge (ENB) are rewarded handsomely by the market with higher valuation multiples relative to US peers.
Very few businesses are stable and strong enough to withstand the pressure of competition because capitalism tends to attract fierce competition, especially in industries with above-average, attractive returns. Companies with consistent and growing dividends year after year even during economic downturns could possess some underlying competitive advantages that are difficult for competitors to copy, and therefore, are attractive candidates for long-term investment. This consistency demonstrates not only the resiliency in the business model or staying power but also the fact that the company possesses pricing power that helps it raise prices without losing market share over the years.
Buying and holding “dividend-growth” machines could be one of the safest ways to build generational wealth, it is the investors’ dream that the annual dividend received will eventually equal the cost basis. Here we have filtered out a small subset of high-quality companies that grew their dividend per share over the last ten years supported by a healthy growth in fundamentals.
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No real issues with it. Always trying different strategies to try to recognize value. Thinks it will always trade at a discount to peers. If you have a gain, don't need to run out and sell. If you're underwater, great candidate to sell, realize the loss, and buy ENB.
In the space, he owns ENB and PPL. Both have more robust plans for growth than TRP. ENB is very inexpensive today, so that's his preference.