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.
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AEROPOSTALE INC. $0.04 (symbol AROPQ on the U.S. over-the-counter market; TSINetwork Rating: Speculative) (646-485-5410; www.aeropostale.com; Shares outstanding: 80.0 million; Market cap: $2.5 million; No dividends paid) has delisted from the New York exchange and filed for Chapter 11 bankruptcy protection.
The company has suffered along with many other retailers that focus on the teen market such as Abercrombie & Fitch and American Eagle....
The company has suffered along with many other retailers that focus on the teen market such as Abercrombie & Fitch and American Eagle....
AMERIGO RESOURCES $0.14 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 174.7 million; Market cap: $21.8 million; No dividends paid) processes copper and molybdenum from the waste rock of the El Teniente mine in Chile; that’s the world’s largest copper operation.
In the quarter ended March 31, 2016, Amerigo’s copper production jumped 45.0%, to 12.86 million pounds, at a cost of $1.82 per pound....
In the quarter ended March 31, 2016, Amerigo’s copper production jumped 45.0%, to 12.86 million pounds, at a cost of $1.82 per pound....
BMTC GROUP $12.85 (Toronto symbol GBT.A; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 37.9 million; Market cap: $483.8 million; Dividend yield: 1.9%) has 38 outlets and is one of Quebec’s biggest retailers of furniture, electronics and appliances....
NISSAN MOTOR (ADR) $18.95 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.2 billion; Market cap: $43.3 billion; Yield: 3.1%) has agreed to buy a 34% stake in Mitsubishi Motors for $2.18 billion U.S....
DEVON ENERGY CORP. $34.12 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 523.9 million; Market cap: $18.1 billion; Dividend yield: 0.7%) is one of the largest U.S.-based oil and natural gas explorers and producers....
CIMAREX ENERGY $116.12 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 94.8 million; Market cap: $11.0 billion; Dividend yield: 0.3%) produces and explores for natural gas and oil. Gas makes up 64% of the company’s output; the remaining 36% is oil.
The company’s properties are mostly in the Wolfcamp shale area of Texas and New Mexico....
The company’s properties are mostly in the Wolfcamp shale area of Texas and New Mexico....
PENGROWTH ENERGY CORP. $2.08 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 547.4 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.4; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has more than tripled from its low of $0.66 in January 2016. That’s partly because prominent Toronto investor Seymour Schulich recently acquired 16.6% of the company’s shares. The purchase makes him Pengrowth’s largest shareholder. Meanwhile, the company continues to sell less-important properties to focus on its main Lindbergh oil sands project. That’s why its production in the first quarter of 2016 fell 10.5%, to 62,056 barrels a day (61% oil and liquids, 39% natural gas) from 67,934 barrels a year earlier. In addition, weaker oil and gas prices cut its cash flow per share by 4.8%, to $0.20 from $0.21. Pengrowth used the cash from its recent assets sales to pay down its long-term debt. It now stands at $1.7 billion (or 1.5 times its market cap). That’s down 9.3% since the end of 2015....
Exchange-traded funds (ETFs) give you a low-cost, flexible alternative to mutual funds. Here are five ETFs we recommend and one to sell.
PEYTO EXPLORATION & DEVELOPMENT CORP. $30.95 (Toronto symbol PEY; Shares outstanding: 159.2 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.peyto.com) produces and explores for oil and natural gas in Alberta. Its average daily production of 97,028 barrels of oil equivalent is 93% gas and 7% oil. In the three months ended December 31, 2015, Peyto’s cash flow fell 15.9%, to $0.95 a share from $1.13 a year ago. It raised its production by 16.5%, but that was offset by lower oil and gas prices. Its realized oil price year over year fell 28.1%, and natural gas prices fell 20.9%. The company has cut it’s original 2016 capital spending of $600 million to $650 million down to between $500 million and $550 million. It spent $594 million in 2015....
BONAVISTA ENERGY $2.76 (Toronto symbol BNP; Shares outstanding: 214.0 million; Market cap: $626.1 million; TSINetwork Rating: Extra Risk; Dividend yield: 4.4%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its output is 68% gas and 32% oil. In the quarter ended December 31, 2015, Bonavista’s cash flow per share fell 30.2%, to $0.44 from $0.63 a year earlier. Most of that drop came from lower oil and gas prices, but also because of falling output. It declined 6.9%, to 79,862 barrels of oil equivalent per day from 85,810 barrels. Like many producers, the company will cut its exploration and development. In 2016, it plans to spend $145 million to $190 million. That’s a reduction from Bonavista’s initial announcement of $210 million, which is down from the $283.4 million it spent in 2015. It spent $639.6 million in 2014....