Most Anticipated Earnings: DAY-N, X-T and more Canadian Companies Reporting Earnings this Week (Oct 27-31)

Opinion about CLS-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Analyst estimates continue to trend higher, sales and earnings growth are strong, and margins are expanding. It trades at a forward earnings multiple of 44X, which is not cheap, but this is a company that is benefiting from the AI revolution and…

Opinion about DAY-N: Dayforce sank 19% in May. It's a human capital management software play, which is in a bear market and a crowded space.

Opinion about CVO-T: Good job overall, well run. Exposed to some of the AI trends. Sizable competition for what they do. He's conservative on whether it can differentiate itself in the coming years. Must show it can get the big, multi-year contracts.

Opinion about DND-T: Cut losses? No, keep holding. Superstar that collapsed. Latent value that current management is not accessing. If you're patient, someone will find a way to surface some value. Intrinsic value higher than current share price. 

Opinion about LMN-X: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research LMN has been hit largely with concerns that AI is going to negatively impact the software sector. We have some comments posted, and there is a blog on the topic in our blog section. There is some risk here, but also potential.…

Opinion about TIXT-T: It has dropped 90% since its IPO. A buyout from Telus has been proposed so you could hold it until the deal closes for a bit more.

Opinion about X-T: Investor's down 11%. Within the sector, all of the exchanges have been backing off over the last 3 months. He came out of this name partway through July. Below 200-day MA, and all MAs are moving lower. 70% of S&P companies have performed better over last 12 months. Laggard. Better opportunities.

Opinion about MRG.UN-T: Apartments on both sides of the border. Always trades at wide discount to NAV, a good starting point when you invest. Nice portfolio. Keep holding if you own, but better ideas out there. Nice distribution of 5.5%.

Opinion about AP.UN-T: 80-85% office, some retail, and some parking. Across Canada, but mostly Toronto and Montreal. Trades at about half its book value. Believes dividend secure after speaking with management and stress-testing financials. Occupancy's running ~85%. Good dividend while they wait for shares to rerate. Yield is 9.56%. (Analysts’ price target is $19.00)

Opinion about PMZ.UN-T: Why higher implied cap rate than peers? He scratches his head about this too. Likes it here. A bit of concern about shopping malls in general, with their sensitivity to the consumer. From what his team sees, consumers are continuing to spend $$. And it's cold up here, we love our malls.…

Opinion about MRC-T: NAV materially higher than share price. Doesn't see catalysts for NAV increasing, so discount will continue. Asset base is mainly retail and office, sectors that are somewhat out of favour. Earnings potential not great. Higher than average cost of debt.

Opinion about TF-T: Pool of money trading on the stock exchange, which they invest in short-term first and second mortgages. Can't specify a rate of return, but you get 100% of the income on those mortgages. The income you get is based on the interest rate.The dip earlier this year on the chart was because…

Opinion about MRT.UN-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trading at high discount to NAV. Significant cash retention compared to peers. Diversified cash flow streams. Bid competition to slow acquisition growth.

Opinion about LFE-T: This is a seasonal period when Lifecos in general tend to do well. This is a special vehicle where they buy a lifeco, split it up and give the capital appreciation to one half, and the dividend to the other half. Dividend yield of 19% is extremely high, and he is having…

Opinion about ACD-T: (A Top Pick July 26/13. Up 18.07%.) A niche lender to small businesses. Very, very well run. They raise their dividend almost every year. Insiders own piles of stock. Very conservative. They are finding new ways to grow the bottom line. Have lots of capital, which is all deployed. Expects earnings will…

Opinion about TSU-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TSU has been under pressure over the years due to its asset impairment from a couple years ago, as well as recently a hardening insurance market. The stock has largely traded sideways for a few years, and it trades at a decent…

Opinion about AX.UN-T: Diversified across type and geography. Recent announcement would see it effectively sold at 44% discount to integral value. Distribution moving from monthly to quarterly, and much lower. Definitely avoid.

Opinion about RPI.UN-T: (A Top Pick Feb 08/24, Down 9.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with RPI.UN has triggered its stop at $31.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous buy recommendation, this will result in a net investment loss of 10%.  

Opinion about SII-T: To protect purchasing power? Yes, that's exactly the reason to own Sprott. It's a diversifier. Gold is a way as an investor to protect yourself from inflation and geopolitical concerns. This name brings leverage to gold because of assets they own and funds they manage. It also brings uranium. He sold some…

Opinion about NGD-T: Collection of Tier 2 assets. Never been fond of Ontario assets. He likes higher quality. Could do very well with a rising price for gold, which tends to favour the marginal over the lower-cost producer.

Opinion about CG-T: It's good to be in gold now, and CG is one of the cheapest gold stocks. They've diversified their portfolio geographically, which is good, but this stock always bounces around.

Opinion about AEM-T: Owns this in his firm's Canadian portfolio, with about a 4.5% position, which is about 40% of the weighting of gold in the TSX. His firm doesn't feel comfortable owning a full weighting in a commodity like gold. It's certainly kept up over the last 1-2 years but, over the very long…

Opinion about IVN-T: Unfortunate flooding and suspension of one of its premier mines in DRC. Still trying to assess infrastructure damage. Guesses it won't be back until late 2026. Inflection in FCF could be pushed beyond then. Investment and vote of confidence from Qatar Investment Authority. In limbo. Highlights scarcity of world-class mines, seeing M&A, could…

Opinion about AGI-T: It might have more upside in the short term. Is bullish gold, though the gold stocks have moved up a lot lately.

Opinion about NXE-T: He liked uranium in April, but now it's richly priced. However, he doesn't know the specific problems about NXE. He's been trimming uranium into strength.

Opinion about TKO-T: Does not own shares. Prefers companies companies with lower costs and higher return on capital. 

Opinion about ASTL-T: Amid new tariff threats. Go back to the 2017 timeframe and look at the last time he did this with steel and aluminum. Cheap for a reason. Need a high tolerance for risk and volatility to put a position on right now. These names are down, compared to US names that are…

Opinion about ARG-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We think ARG is doing the right things. Debt was an issue in prior cycles, and it has cut/eliminated its dividend in the past. Now, it is in strong financial shape and very cheap at 8X earnings. It has been cash flow…

Opinion about YGR-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter,…

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Opinion about CS-T: Copper is one of the reasons he thinks we're starting a new cycle. Both silver and copper have broken out to new highs; both have industrial uses and should benefit from a strengthening economy. If cyclical commodities are breaking out to new highs, then copper should continue to work into 2027. His firm's…

Opinion about ELD-T: (A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ELD has triggered its stop at $13.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous recommendations.  

Opinion about CIA-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS came in at $0.24 beating estimates of $0.20. Revenue came in at $506.89M beating forecasts of $486.08M and displayed growth of 31% year-over-year. Profit more than doubled on a year-over-year basis coming in at $126.46M. The board approved the company's $470.7-million…

Opinion about WRN-T: It has a great management team and the Yukon is a friendly place to develop. Infrastructure is the issue. Smaller mining operations can deal with this, but lack of power and transportation are challenging. Where copper prices are, this is still too levered -- you need copper prices to go higher.

Opinion about LI-X: The company and lithium has got over hyped. The world is awash with lithium. We are short of processing capabilities. This is not the best capital allocator either.

Opinion about TCW-T: Record high today. Only Canadian, pure-play, frack services provider. Leans toward the gas side. Leveraged to increases in Canadian drilling, which drives margins. Next-generation, low-emission fleets attracts a certain type of (large) customer. Key beneficiary of LNG Canada ramping up.Nice, disciplined approach. Lower capex needs. Very strong FCF. Trading below historic norm.…

Opinion about PSD-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Market cap is $180M, after a 61% gain this year so far. No analyst coverage. Dividend 1.96% with a 17% bump in April and semi-regular special dividends. Price/earnings 13X. No debt and $14M cash. Good cash flow. A big jump in last…

Opinion about TOU-T: Nice dividend, in his dividend growers mandate. Also pays special dividends -- this lets it not be beholden to a super-high dividend, but also honour commitment to return capital to shareholders. A more ambitious capex program might throttle back some of those special dividends, but this company is very good at capital…

Opinion about ATH-T: Is benefiting from weakness in American shale. The Oil Sands have been overlooked for a long while; the Oil Sands have supply unlike much of the world which is and will face oil supply shortages. ATH has no debt. They will have over 50 years of stay-flat inventory. Have low or no…

Opinion about TVE-T: His firm prefers the larger caps for safety, durability, and dividend yield. For smaller caps to outperform, you need the commodity to work for you (and right now oil and gas are working against). Gradually people are returning to Canada on the basis of our lower decline rates, better prospects for transporting…

Opinion about SGY-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research SGY is quite small at $510M, but the stock is very cheap. With a 10% dividend, a buyer (or privatization) could eliminate the dividend and use internal cash flow to pay for the whole company in about three years. But, that doesn't…

Opinion about STEP-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. STEP is down 35% this year, but up 59% in 52-weeks. Profit taking is probably part of the issue here. It did beat estimates in the 4Q, but the sector has been quite weak, and the company has recently seen two downgrades by…

Opinion about CFW-T: Oilfield services firm that has big fracturing technology presence. Horizontal drilling and shale boom not as strong. Very dependent on energy prices. Lots of assets that must be carried on the books. Not investing at this time. 

Opinion about CNQ-T: For a 29-year-old investor. Ultimate sleep-at-night stock for the oil market, which isn't really a sleep-at-night sector. (So many other guests sing its praises, he won't duplicate those comments.) Huge long-life reserves that will generate returns for decades. Park $$ here, collect a nice dividend, and wait for the day when oil's…

Opinion about ALA-T: A higher-quality player that you could put $$ into today. 

Opinion about POU-T: Intermediate gas producer. Recently sold assets to raise $$ to deploy into operations. Good operational momentum, high impact assets. Very strong financial liquidity. High growth. Canadian gas prices have been weak, expected to improve in winter as LNG Canada comes on.

Opinion about BTE-T: Has gone through lots of turmoil. Talk of selling its Eagle Ford assets. Split between Canadian heavy oil and lighter oil on one hand, and Eagle Ford shale. That sale would be a catalyst, making it a pure-play in Canada.

Opinion about OBE-T: Not a good investment with current management team. Other energy companies available with better opportunities.

Opinion about AKT.A-T: Very high efficiency levels and very low debt. Tremendously loyal to its employees and shareholders. Sustainable but modest dividend. Have been known for delivering very good service for the very large companies in the deeper plays. Likes this one long-term.

Opinion about IMO-T: Stop-loss of $118? Difficult time, as a lot of people lost their jobs in Calgary. Others were told they can keep their jobs if they move to Edmonton. Tricky for those people.Oil prices have been weakening over last 2 weeks, and it's affecting everybody. Stock price has more to do with that…

Opinion about CVE-T: Going to be lots of consolidation in the space, which has really good tailwinds. For the first time in many years, federal government is really intent on getting resources offshore. LNG Canada, despite delays, is up and operating.Cheap relative to group. Higher debt profile, but company aims to get it in line…

Opinion about ESI-T: (A Top Pick Sep 09/24, Down 18%) It had a market cap of $400 million before the pandemic and the market cap is still $400 million. Yet it has paid down 1/2 billion in debt and is still trading at its valuation pre-pandemic. As it continues to pay down debt the market…

Opinion about TMG-X: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TMG is a small-cap name that develops pollution control products and heat recovery systems. TMG’s revenue growth was solid over the last two years, above 20% on average two years in a row. As a result, TMG just became profitable due to…

Opinion about MX-T: 8/10 on value. EPS down 32% YOY, revenue forecast to be down 5%. Moderate buy on the street, with significant upside target of 38%. Well below 50-day MA and below 200-day MA. Wait for a solid turnaround to see conviction that it's trending upward. Decent dividend yield.Reports July 30, hinting at potential…

Opinion about ARE-T: Lots going on in the construction and infrastructure space, and this name will benefit. Trades at significantly lower multiple to peers, but that multiple should slowly increase over time as they get rid of cost-overrun projects. It'll be just in time for large-scale infrastructure and nuclear (where Ontario's at the forefront globally)…

Opinion about ADN-T: Unique company in Canada that gives investors a way to own an uncorrelated infrastructure-type asset. No sawmills, just a pure play on timber land. Many institutions and pension funds would have a small part of their portfolio in it. Pays a dividend.

Opinion about TIH-T: Is a lot of excitement baked into this stock and its peers, given the big building projects that will happen. The PE is too high, so would wait for a pullback. The big projects won't happen until later that some expect, he thinks.

Opinion about TFII-T: (A Top Pick Oct 30/24, Down 33%) Timing was not great on this one. Still one of the best trucking companies in NA. Indigestion integrating less-than-truckload acquisition; shook up that management, and that bodes well. Whole sector is facing overcapacity, pressuring rates. Long-term potential and compounding will return.

Opinion about FAR-T: Mining services, and rapidly growing water treatment. Very well run, nice clean balance sheet. Missed a couple of quarters because junior miners reduced activity. Numbers looked flat or down. With tariff threat, he wanted his best ideas only and he sold.Now, mining activity is picking up. May have seen the trough on…

Opinion about CNR-T: Attractive today. Makes sense in the narrow sandbox of Canada. Assets are pretty robust. Prince Rupert expansion should help volumes.However, take a closer look at UNP.

Opinion about MG-T: Very hesitant. Recent recovery has been sharp and quick, almost as though it's factoring in abolition of tariffs completely. We need more clarity on tariffs. Auto industry is highly cyclical and depends on health of the economy, and we're seeing signs of weakening.If you own it, don't need the cash, and have…

Opinion about GIL-T: A cheap, vertically integrated supply chain gives them an edge and moat. They grow by simplifying their products, optimizing factories and keeping prices sharp. This has expanded margins as peers struggle. Are a defensive play. Sees 16% upside. (Analysts’ price target is $92.10)

Opinion about CCA-T: Likes the chart here. The sector is underperforming. This and Quebecor are small caps compared to peers, which is tough for institutional investors to buy them. But the RSI shows momentum. He sees good upside. A leader in this space.

Opinion about CGO-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research CGO reported an EPS of $2.40, beating estimates of $2.18, while revenues came in at $758 million, a 2.4% decrease compared to last year (3.9% on a constant currency basis) due to the decline in the subscriber base. Adjusted EBITDA decreased slightly…

Opinion about SPN-X: This does mobile marketing for big brands, where you use your phone to run loyalty programs and purchase validations. Down 53% in the last year, because it got caught up in the downdraft in the TSX Venture. It would be higher today, except that their financing was the worst kept secret on…

Opinion about QSR-T: She's nervous about the consumer, particularly in Canada. Highly indebted consumer is being more cautious on discretionary spending. If it were just Tim's, she'd be OK with it because she likes the trade-down economics. Burger King is still closing stores, lots of competition and margin pressure.

Opinion about TOY-T: A definite series of lower highs and lower lows. Continues to languish, downtrend remains in place. Value trap. Unless something changes, just avoid. So many other good places to put your $$ to work.

Opinion about BDI-T: Traditional workcamp business on oil & gas projects, which might do better going forward with increased infrastructure spend in Canada. Real attraction is modular space business -- portable spaces that they rent out, mainly for construction projects. Portables for schools in NA and Australia. Low valuation. Very high insider ownership of ~24-25%.…

Opinion about TVA.B-T: A cash cow, owning many TV channels and make movies. But shares are down, because it's a small cap and there's pressure on TV ad revenues. Still cheap. Quebecor owns 70% and could easily privatize it around $5-6, which he thinks will happen one day. Generates a lot of cash. For patient…

Opinion about CJR.B-T: Penny stock. Don't get involved. Teetering on the verge of bankruptcy. Though only 10 cents, could still have 100% downside.

Opinion about DII.A-T: They had huge writeoffs in 2018 and more could be coming. They got hit by the 25% tariffs. They have diversified into car seats, bicycles and furniture. The dividend has been eliminated. He is watching it, but too early to buy.

Opinion about DII.B-T: It's never done anything and has disappointed shareholders. He owned shares 10 years and sold it because he got fed up with its lack of progress.

Opinion about CPX-T: People looking at long-life, more-utility-type assets are focusing more on electrical power generation than on the pipelines. In that camp, you might look at this name.

Opinion about PIF-T: (A Top Pick Aug 31/23, Down 6%) Company very cheap at current share price. Small company that institutions wont look at. Reliable revenues that translate into cash flow. Will continue to hold. Dividend very safe and reliable. New project pipeline very strong. 

Opinion about BHC-T: Kudos to the new executive at delevering and cleaning things up. Inexpensive valuation. Still a lot of debt. A turnaround story. 3% of your portfolio is a bit heavy. Add some diversity. Had a great move. Be cautious.