Growth Stocks
Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.
And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.
There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.
Read More
Close
DELPHI ENERGY $1.78 (Toronto symbol DEE; TSINetwork Rating: Speculative)(403-265-6171; www.delphienergy.ca; Shares outstanding: 155.5 million; Market cap: $269.0 million; No dividends paid) develops, produces and explores for oil and natural gas in Alberta. Its average daily production of 12,035 barrels of oil equivalent is 69% gas and 31% oil.
In the quarter ended December 31, 2014, Delphi’s cash flow per share rose 42.9%, to $0.10 from $0.07. That’s because it raised its production by 33.9% and realized higher oil prices.
Like Birchcliff, Delphi will cut spending this year: its outlays will now total $50 million, down from $101 million in 2014. However, that should still let it keep production steady at today’s levels. The company could also raise its spending later this year if oil and gas prices move higher.
...
In the quarter ended December 31, 2014, Delphi’s cash flow per share rose 42.9%, to $0.10 from $0.07. That’s because it raised its production by 33.9% and realized higher oil prices.
Like Birchcliff, Delphi will cut spending this year: its outlays will now total $50 million, down from $101 million in 2014. However, that should still let it keep production steady at today’s levels. The company could also raise its spending later this year if oil and gas prices move higher.
...
BIRCHCLIFF ENERGY $7.73 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $1.1 billion; No dividends paid) develops, produces and explores for oil and gas, mainly in the Peace River Arch area near the Alberta/B.C. border. About 85% of its output is gas. The remaining 15% is oil.
In the three months ended December 31, 2014, Birchcliff’s cash flow per share rose 17.1%, to $0.41 from $0.35 a year earlier. The company raised its daily output by 32.8%, offsetting lower oil prices and boosting its cash flow.
Like many oil and gas producers, Birchcliff plans to cut back on exploration and development spending. This year, it will devote $266.7 million to this purpose, down from $450.0 million in 2014.
...
In the three months ended December 31, 2014, Birchcliff’s cash flow per share rose 17.1%, to $0.41 from $0.35 a year earlier. The company raised its daily output by 32.8%, offsetting lower oil prices and boosting its cash flow.
Like many oil and gas producers, Birchcliff plans to cut back on exploration and development spending. This year, it will devote $266.7 million to this purpose, down from $450.0 million in 2014.
...
IAMGOLD CORP. $2.67 (Toronto symbol IMG; TSINetwork Rating: Speculative)(1-888- 464-9999; www.iamgold.com; Shares outstanding: 391.3 million; Market cap: $1.0 billion; No dividends paid) will sell its 1% revenue royalty on the Diavik diamond mine in the Northwest Territories to Sandstorm Gold Ltd. (symbol SSL on Toronto).
Diavik is Canada’s largest diamond mine and has been in operation since 2003.
Sandstorm will pay $52.5 million U.S. in cash plus three million warrants. IAMGold can exercise the warrants for up to five years after production from a new zone at Diavik starts up. The exercise price is $4.50; Sandstorm currently trades at $4.38.
...
Diavik is Canada’s largest diamond mine and has been in operation since 2003.
Sandstorm will pay $52.5 million U.S. in cash plus three million warrants. IAMGold can exercise the warrants for up to five years after production from a new zone at Diavik starts up. The exercise price is $4.50; Sandstorm currently trades at $4.38.
...
BMTC GROUP $16.50 (Toronto symbol GBT.A; TSINetwork Rating: Extra Risk)(514-648-5757; No website; Shares outstanding: 44.9 million; Market cap: $725.0 million; Dividend yield: 1.5%) is one of Quebec’s biggest retailers of furniture, electronics and appliances, with 37 outlets. It mainly sells these items through its two affiliates: Brault & Martineau and Ameublements Tanguay.
In March 2012, BMTC introduced a new banner, Economax, which offers lower-priced products. The company rebranded four outlets that it had operated as Brault & Martineau liquidation centres.
BMTC has opened seven more Economax stores since then. It has also bought land in Drummondville for a new store to open in late 2015.
...
In March 2012, BMTC introduced a new banner, Economax, which offers lower-priced products. The company rebranded four outlets that it had operated as Brault & Martineau liquidation centres.
BMTC has opened seven more Economax stores since then. It has also bought land in Drummondville for a new store to open in late 2015.
...
REITMANS (CANADA) LTD. $7.26 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384- 1140; www.reitmans.com; Shares outstanding: 64.6 million; Market cap: $451.7 million; Dividend yield: 2.8%) owns 823 women’s clothing stores across Canada.
The chain consists of 341 Reitmans, 139 Penningtons, 107 Smart Set, 105 Addition Elle, 76 RW & Co. and 68 Thyme Maternity stores. It also has 21 Thyme Maternity boutiques in Canadian Babies “R” Us stores.
In the quarter ended January 31, 2015, Reitmans’ sales fell 1.8%, to $236.3 million from $240.7 million a year earlier. Sales declined because it closed 55 lessprofitable stores. Same-store sales gained 2.1%.
...
The chain consists of 341 Reitmans, 139 Penningtons, 107 Smart Set, 105 Addition Elle, 76 RW & Co. and 68 Thyme Maternity stores. It also has 21 Thyme Maternity boutiques in Canadian Babies “R” Us stores.
In the quarter ended January 31, 2015, Reitmans’ sales fell 1.8%, to $236.3 million from $240.7 million a year earlier. Sales declined because it closed 55 lessprofitable stores. Same-store sales gained 2.1%.
...
CALIAN TECHNOLOGIES $18.50 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 7.4 million; Market cap: $136.6 million; Dividend yield: 6.1%) has won a $15- million contract with the Royal Canadian Air Force (RCAF) to provide airworthiness engineering and support. The contract starts immediately and will run to March 31, 2017. It includes one additional option year.
Calian, through its Amtek subsidiary and in conjunction with subcontractor Valcom Consulting Group, will supply 40 engineers to help the RCAF meet its regulatory requirements for the safe and effective operation of its equipment.
This latest deal will add to Calian’s revenue, which should reach $220 million this year. It also demonstrates the company’s ongoing ability to win recurring orders from Canadian federal government departments, including the Department of National Defence.
...
Calian, through its Amtek subsidiary and in conjunction with subcontractor Valcom Consulting Group, will supply 40 engineers to help the RCAF meet its regulatory requirements for the safe and effective operation of its equipment.
This latest deal will add to Calian’s revenue, which should reach $220 million this year. It also demonstrates the company’s ongoing ability to win recurring orders from Canadian federal government departments, including the Department of National Defence.
...
STANTEC INC. $31.42 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.8 million; Market cap: $2.9 billion; Dividend yield: 1.3%) (all figures adjusted for a 2-for-1 share split in November 2014) sells a range of consulting, project-delivery, design and technology services. Its clients operate in a variety of industries, including oil and gas, transportation and construction.
In the three months ended December 31, 2014, Stantec’s revenue rose 15.1%, to $519.6 million from $451.3 million. Earnings gained 6.7%, to $38.1 million, or $0.41 a share, from $35.7 million, or $0.38.
The company continues to grow through acquisitions. One of its latest is Sparling, a 130-person design firm with offices in Seattle, Portland and San Diego. Sparling focuses on electrical engineering and lighting design, and its recent contracts include the University of California San Diego Jacobs Medical Center and Amazon.com’s Seattle South Union Campus.
...
In the three months ended December 31, 2014, Stantec’s revenue rose 15.1%, to $519.6 million from $451.3 million. Earnings gained 6.7%, to $38.1 million, or $0.41 a share, from $35.7 million, or $0.38.
The company continues to grow through acquisitions. One of its latest is Sparling, a 130-person design firm with offices in Seattle, Portland and San Diego. Sparling focuses on electrical engineering and lighting design, and its recent contracts include the University of California San Diego Jacobs Medical Center and Amazon.com’s Seattle South Union Campus.
...
ALIMENTATION COUCHE-TARD $49.82 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 418.1 million; Market cap: $29.0 billion; Dividend yield: 0.4%) (All amounts except share price and market cap in U.S. dollars) operates 6,314 convenience stores throughout North America. Canadian outlets operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand.
In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
...
In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
...
AURICO GOLD $4.15 (Toronto symbol AUQ; TSINetwork Rating: Speculative)(604-681-2802; www.auricogold.com; Shares outstanding: 250.0 million; Market cap: $1.0 billion; Dividend yield: 2.8%) has agreed to merge with Alamos Gold (symbol AGI on Toronto).
AuRico owns the Young- Davidson mine in northern Ontario, which holds as much as 5.6 million ounces of gold. The mine started up in 2013 and will reach full production in 2016. But meanwhile, it’s moving from open pit to underground mining, which will sharply increase its costs.
Alamos owns the Mulatos mine in Mexico, but its main asset is its $358.0 million cash holding. The combined entity, called Alamos Gold, will use that cash to fund Young-Davidson, and boost the company’s gold output from 400,000 ounces this year to 700,000 in 2018.
...
AuRico owns the Young- Davidson mine in northern Ontario, which holds as much as 5.6 million ounces of gold. The mine started up in 2013 and will reach full production in 2016. But meanwhile, it’s moving from open pit to underground mining, which will sharply increase its costs.
Alamos owns the Mulatos mine in Mexico, but its main asset is its $358.0 million cash holding. The combined entity, called Alamos Gold, will use that cash to fund Young-Davidson, and boost the company’s gold output from 400,000 ounces this year to 700,000 in 2018.
...
AGT FOOD & INGREDIENTS $28.09 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $656.1 million; Dividend yield: 2.1%) buys and processes a range of pulses—which include peas, beans, lentils and chickpeas—as well as other specialty crops.
Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa.
AGT has grown quickly in the past five years, with revenue rising 111.8%, from $642.1 million in 2010 to $1.36 billion in 2014. Before one-time items, it made $1.76 a share in 2014, up sharply from $1.09 in 2013.
...
Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa.
AGT has grown quickly in the past five years, with revenue rising 111.8%, from $642.1 million in 2010 to $1.36 billion in 2014. Before one-time items, it made $1.76 a share in 2014, up sharply from $1.09 in 2013.
...