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Unsure on how high gold prices can go. Record high gold prices due to the highest debt levels in USA ever. ~$35 Trillion balance sheet liabilities very worrisome. Canada in not much better position. Concerned that increased printing of money to cover debt costs will erode purchasing power. Long story short, high Federal debt levels, and record spending are the reason gold prices are rising. Gold remains a safe place for concerned investors as people look for a place to store value. In addition, the US Dollar might not be the leading fiat currency globally (another reason gold prices rising).
Very strong management team. Proven resources with excellent capital allocation skills. Investors can get returns without going downmarket into riskier name. Oil industry under valued with lots of opportunity for price appreciation. Balance sheet very stable, great option for the investors in the long term. Return of capital to investors is being expedited along with capital spending on new projects (best of both worlds).
Very strong company that continues to own. Suggest that nickel deposits are Tier 1 quality. Low nickel prices are not a concern as new mine won't produce for a few years. Not a good stock for impatient investors. However, over 10 year time frame - could be a "10 bagger".
Will continue to own shares. Excellent company that has performed well. Has done business with family for 3 generations. New assets and mines will continue to generate value. New gold discoveries are expected in Africa and South Africa. Lundin family may end up taking over the business, but is speculation.
Recent projects that are not on time very disappointing (market turned out to be correct). Problems with operations elsewhere in the company also a concerned. Investors could see another equity issue - but isn't sure. Company has a lot of debt. Will continue to hold share - believes in management.
SHOP is trading at 11.1x Forward Price/Sales. It is not cheap, but the valuation has come down to a more reasonable range for a high-quality name. The company is at the tipping point of being profitable. Stock-based compensation has been under control recently along with a healthy growth rate in its operating cash flows. SHOP seems to be on track to become a compounder again. Based on consensus estimates, it is expected to grow its revenue by more than 20% over the next few years. We think it is at a good price to add some here, but not too aggressively. We would be nimble to add to SHOP over time when opportunities present themselves.
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We cover EQB and we have also had it in our growth model portfolio for some time now. We are quite comfortable with the name - the management team is strong, the business is expanding into new product lines, and it is overall gaining market share. It will likely be more volatile than a large Canadian bank at times, but as a high-growth peer to the large banks, which is also trading at a discount to the Big 6, we feel it can complement the large banks nicely and add a growth component.
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BYD has faced recent weakness on slowing same-store sales, labour headwinds, and increased upfront expenses from greenfeield and brownfield investments. Its valuation is expensive given the companies historical trackrecord of execution and successfully integrating acquisitions. We think a reversal of the factors mentioned can push BYD back up to historical levels. We believe that these will reverse and analyst outlook calls for EPS to double next year, so we will be watching the upcoming earnings closely.
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Company Highlight: Intuitive Surgical (ISRG)
Intuitive Surgical (ISRG) is an industry leader in the robotic-assisted surgery industry, well-regarded for its da Vinci surgical system. Its technology allows surgeons to perform complex procedures with enhanced precision, control, and visualization, which greatly helps with the recovery time for patients. Its da Vinci system is the most widely used robotic-assisted surgical platform in the world. Its sales are from a mix of da Vinci systems, ongoing sales of instruments and parts, and maintenance fees of the systems.
ISRG has a strong track record of performance, with a 10-year total return CAGR of 25.0%. In terms of its financials, it is a large-cap healthcare name ($170.0 billion market cap), and it has grown its sales and earnings at a five-year CAGR of 13.4% and 11.6%, respectively. Forward analyst estimates call for a 13.7% next year sales growth rate and 16.6% earnings growth rate. Analyst estimates have been rising over the past few months, as optimism around its industry-leading healthcare robotics position continues, and it makes progress on the AI front.
While its share price has risen dramatically since the peak of 20221, its valuation has stayed roughly the same or declined slightly. This suggests its fundamentals are improving and that we could see its valuation compress more in the future if earnings continue to grow and its share price grows at a slightly lower rate. It is not cheap at a 68X forward earnings multiple, but we feel this is the price for a high-growth, industry-leading name in the robotics-assisted surgery industry.
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