Latest Stock Buy or Sell? Make More Informed Decisions!

CHE.UN is up 30% YTD, yet remains cheap at 12X earnings. It is a cyclical company with a lot of debt, with a fairyl weak earnings history. But it has improved over the past year, and debt is lower than the very high levels seen in 2019 and 2020. It had to cut its dividend in half in 2020 and has only raised it slightly since. It is expected to show about 7% EPS growth next year. It offers a 5.92% yield currently. We will give it points for its improvement, but with slow growth and a leveraged balance sheet, in addition to its cyclicality, it is still not one of our favourites. Of note, the stock remains at 50% of the price it was more than 10 years ago. 
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We think FRU can work here. FRU operates as a royalty company that owns royalty interests in the oil, gas and potash properties. It is a much less capital intensive energy play as a result which makes it an attractive business that typically trades at a relatively higher valuation. It is still cheap at 9x forward earnings and we think it is a good dividend name that benefits from lower rates. Other names we do prefer are ENB, H, and X due to more stable business models.
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Investing Theme to Watch: Demographics

An aging population is becoming an issue in many countries. Investing in this theme can cover a wide area: age care, hospitals, drug companies, housing, estate planning and so on. Companies that can successfully target aging consumers are likely to see faster growth.

There is also a big debate on whether rich baby boomers are going to transfer their wealth or spend it. There is another debate on how governments can possibly fund pensions if there are fewer young workers on the contribution side. When investing, we suggest asking yourself how your prospective company’s business is going to be impacted by an aging population.
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