Latest Stock Advice
Sun Life Financial Inc. and Manulife Financial Corp. each offers a combination of solid earnings growth, ongoing share repurchases, and impressive dividend yields.
Groupe Dynamite Inc. is a high‑quality specialty retailer with gains ahead.
Teck Resources Ltd. is a solid bet on higher copper prices with its big merger winning approvals
Toromont Industries Ltd. should see continued earnings growth thanks to its leading market share and Canada’s plan to increase spending on infrastructure projects.
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When investing in rare earth metals, you need to look at the unique geographical and political environment the mining company produces in.
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RUSSEL METALS $18.27 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 61.7 million; Market cap: $987.9 million; Dividend yield: 8.3%) is one of North America’s largest metal distributors, serving 39,000 clients at 53 locations in Canada and 12 in the U.S. In the three months ended December 31, 2015, Russel’s revenue fell 33.6%, to $673.0 million from $1.01 billion a year earlier. Sales mainly declined because revenue fell 43% at the company’s energy products division. That unit sells pipes to oil and natural gas drillers. Earnings, excluding one-time items, dropped sharply, to $10.0 million, or $0.16 a share, from $38.0 million, or $0.62. Russel’s earnings fell faster than revenue because steel prices moved down in the latest quarter. That hurts its profit margins and causes it to suffer losses on its inventory....
FIRSTSERVICE CORP. $53.00 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.9 billion; Dividend yield: 1.1%) provides residential property management and property improvement services. In the three months ended December 31, 2015, the company’s revenue gained 12.0%, to $316.1 million from $282.2 million a year earlier (all figures except share price in U.S. dollars). Excluding one-time items, earnings per share more than doubled, to $0.28 from $0.13. The higher earnings came from the increased revenue, cost cuts and a focus on more profitable business units. FirstService is raising its quarterly dividend by 10.0% with the April 2016 payment, to $0.11 U.S. from $0.10 U.S. The stock now yields 1.1%....
INTACT FINANCIAL $84.98 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341-1464; www.intactfc.com; Shares outstanding: 131.5 million; Market cap: $11.2 billion; Dividend yield: 2.7%) is Canada’s largest provider of property and casualty insurance. Its brands include Intact Insurance, Canada BrokerLink and belairdirect. In the three months ended December 31, 2015, Intact’s revenue rose 7.5%, to $1.91 billion from $1.78 billion a year earlier. Revenue improved across all of the company’s insurance lines and geographic regions. Canadian Direct Insurance, which Intact purchased for $197 million in early 2015, also added to its sales....
CALIAN TECHNOLOGIES $18.60 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613- 599-8600; www.calian.com; Shares outstanding: 7.4 million; Market cap: $137.6 million; Dividend yield: 6.0%) has two main divisions: Business and Technology Services (which supplies 70% of the company’s revenue) provides engineers, health care workers and other skilled professionals on a contract basis; Systems Engineering (30% of revenue) sells hardware and software for testing, operating and managing satellite and other communication systems. In the three months ended December 31, 2015, the company’s revenue rose 15.2%, to a record $64.5 million from $56.0 million a year earlier. Excluding onetime items, Calian earned $3.3 million, or $0.45 a share. That’s up 22.2% from $2.7 million, or $0.37 a share, a year earlier. The Business and Technology Services division continues to benefit from recurring orders from Canadian federal government departments, including the Department of National Defence. This segment’s revenue rose 9.0% in the latest quarter....