Bargain Stocks
Bargain stocks are typically stocks trading at low prices that don't reflect their value in terms of fundamentals such as earnings, cash flow and low debt. They may also carry undervalued assets on their balance sheets, hold large patent portfolios or spending high amounts on research and development.
ALIMENTATION COUCHE-TARD $30.76 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 242.4 million; Market cap: $7.5 billion; Dividend yield: 1.0%) is the largest convenience-store operator in Canada, with over 2,000 outlets. It also has over 3,900 U.S. stores. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K …read more »
Activist investment firm Pershing Square Capital Management is now the largest single investor in CANADIAN PACIFIC RAILWAY $61.46 (Toronto symbol CP; Shares outstanding: 170.5 million; Market cap: $10.5 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.cpr.ca), with a 12.2% stake.
Pershing has a long history of making undervalued companies more profitable. It often does this by encouraging management to sell real …read more »
The volatile markets of the past few years have offered up many tempting stocks at bargain prices. But it’s important to remember that not all bargain stocks are created equal.
Investment success depends more on the quality of your investments than on the price you pay for them. That’s why you have to be very selective about which undervalued stocks …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s tip: “How we use three financial …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice, including how to use financial ratios. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s …read more »
We hardly ever recommend buying new issues when they are first sold to the public, and often stay away from them for months, if not years, afterward. That’s because new issues often come to market when it’s a good time for the company and/or its insiders to sell, but that’s not necessarily a good time for you to buy.
Spinoffs …read more »
Torstar and Transcontinental should continue to benefit from rising advertising revenue as the economy improves. As well, both companies have bought new, efficient presses that have lowered their operating costs. Moreover, both are cheap in relation to their earnings.
TORSTAR CORP. $15 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.1 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.8; …read more »
TOROMONT INDUSTRIES LTD. $30.49 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 76.9 million; Market cap: $2.3 billion; Dividend yield: 2.1%) has two divisions: the equipment group and the compression group.
In the three months ended December 31, 2010, Toromont’s revenue jumped 56.7%, to $709.7 million from $452.8 million a year earlier. The increase was mostly due to …read more »
Symantec Corp., Nasdaq symbol SYMC, sells Internet security technology, including anti-virus and Internet content and email filtering software, to businesses and consumers.
In the three months ended December 31, 2011, Symantec’s revenue rose 3.6%, to $1.6 billion from $1.5 billion a year earlier. The stock market investment gets 52% of its revenue from overseas sales. If you disregard the negative …read more »
Metro Inc., symbol MRU.A on Toronto, is Canada’s third-largest supermarket, after Loblaw and Sobeys. Metro has about 600 supermarkets and 250 drugstores in Quebec and Ontario under banners including Metro, Metro Plus, GP, Super C and Food Basics. In Quebec, its franchises include Brunet drugstores and Cini-Plus pharmacies.
Metro is one of the bargain stocks we analyze in our Successful …read more »
