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As business booms, RTX Corp.’s (formerly Raytheon Technologies) outlook remains strong.
Perimeter Solutions Inc. reported strong revenue and earnings as it benefits from its unique position in aerial retardants backed by a multi‑year government contract base.
T. Rowe Price Group trades cheaply despite offering a high 4.8% yield with a 40‑year dividend‑growth track record and net cash balance sheet.
Mattr Corp. (formerly ShawCor) offers upside thanks to end-market demand drivers as well as potential for further tuck-in acquisitions or internal expansion.
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Human nature puts the odds against you when you invest in new stock issues (also known as IPOs or Initial Public Offerings). Insiders decide when to bring a new issue to market. They mostly do so only when it’s a good time for the company or its insiders to sell stock to the public. That means new issues tend to come to market when the company or its industry is enjoying what may be a temporary improvement in business or profit. If the improvement is only temporary, this generally isn’t a good time for you to buy. Investment industry practice makes things worse. Financial institutions know how to package a new issue to make it seem like a great deal. This tends to raise the price that you pay for a new issue, compared to a stock that is already trading in the market. That’s a second reason why new issues tend to be overpriced in relation to a balanced assessment of their prospects. In addition, the underwriting process adds costs, for commissions (usually 5% to 7% of the funds raised), plus legal and accounting expenses....
Kinaxis Inc., $47.86, symbol KXS on Toronto (Shares outstanding: 24.1 million; Market cap: $1.1 billion; www.kinaxis.com), provides cloud-based software that big companies use to manage their supply chains. The business concept is SaS—software as a service. Subscribers pay a monthly or yearly fee for software implementation, support and upgrades. This provides the software company with steady income, rather than series of larger one-time payments for the initial sale and upgrades. Kinaxis’s main product is RapidResponse. Applications include matching functions like production and inventory to demand, analyzing sales patterns and forecasting. This Ottawa-based company has a much longer history than most new issues, and is much more mature as a business. It was founded in 1984. It operated under the Webplan Inc. name until May 2005, when it changed its name to Kinaxis. It first sold shares to the public at $13 and began trading on Toronto in June 2014....