It is best in class. It is a large manufacturer of vaccines but the primary driver is an immune therapy drug that is used across many types of cancers and has 200 ongoing trials. It is coming off patent later in the decade. The vaccine take-up could lead to slower growth but this is a shorter term issue. Buy 24 Hold 8 Sell 0
(Analysts’ price target is $124.60)It is integral to the systematic delivery of health care across the U.S. and is a leader in well vertically integrated companies. There are some headwinds which he thinks will dissipate. He likes the longer term prospects and is seeing the development of per capita growth.
Buy 29 Hold 1 Sell 0
SES is cheap and has a decent balance sheet. It pays a 2.63% dividend which has shown a bit of growth. At $3.6B, it is significantly larger than QST ever was. SES has decent cash flow and the stock is up 48% in the past year. 2025 earnings, however, are expected to decline, but this does seem reflected in the low valuation of 7X earnings. The business can be cyclical, but would consider it worth buying on valuation and potential.
Unlock Premium - Try 5i Free
Canadian telcos may be bottoming, at least until more bad news shows up, if it does. We would consider EQB to have more upside, but it is still a fairly small company at $4B, and we would size accordingly. But we like it. We would be OK with adding selling some telco exposure and adding but would not suggest a wholesale swap out.
Unlock Premium - Try 5i Free
NPI has struggled a bit in the past year, down 24%. But overall we would see it today as a decent income investment at 16X earnings and a 6.85% dividend, with good earnings growth expected this year and in 2026. If it can execute on expected growth the stock should respond accordingly. Lower interest rates should also help here. 12-month payout ratio is less than 30% so there is room for a dividend hike. The dividend has not been raised since 2017. We would see it as a hold for income, and some growth. Most of its exposure is outside of the US, but Trump may still have a 'sentiment' impact on the sector.
Unlock Premium - Try 5i Free
Clues on Investing: Companies that never issue stock
When a company never issues new shares, all of its growth is attributed and beneficial to its current shareholders. If a company is self-financing and never issues new shares, its stock typically can do very well. It can be very hard to find such companies, but they do exist. Constellation Software Inc., one of the best performing stocks in Canada over the past 20 years, has the same number of shares outstanding now as it did on its initial public offering. Many U.S. megacap stocks have fewer shares now than they did 20 years ago, so a long-term shareholder actually ends up owning more of the company (if they have never sold). Alphabet Inc., for example, with share buybacks now has one billion fewer shares than it had 10 years ago. Now, issuing stock for capital is the main reason for stock markets to exist. Companies need money. But companies that do not need money often turn out to be better investments. Since finding companies that never issue stock can be quite hard, when looking at a new investment try this: If you cannot even recall the last time the company issued new stock, you may be on to a good thing.
Unlock Premium - Try 5i Free
Canadian stocks are trading at a major discount to American ones, according to PE. A lot of Canadian businesses mostly operate in the US, listed or headquartered here, but earn most of their revenue in the US. Potential US tariff impact on Canadian stocks is a case-by-case basis. He looks for in Canadian stocks those in the knowledge industries. Canada has a fine educational system and we have technology hubs, such as Kitchener-Waterloo. We have a lot of innovation and high-end knowledge in Canada that gets us away from tariffs and inflation. He owns larger- and smaller-cap names, including new disruptors. We're in the early innings of small caps.
He was in on the IPO a few years ago. Wood-burning stoves is a large business for them, plus agriculture and some industrial. They acquire and integrate small businesses in order to lead the market. It pays a high dividend. During Covid, business in some parts spiked, but after Covid, their YOY comparables looked like an overall fall-off. The stock hasn't done well since. He sold most of his shares before that downturn. The CEO plans to aggressively buy more companies, but it hasn't happened yet. The dividend is safe, but look elsewhere.