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Activist investors are circling: uncover dividend-paying companies with resilient payouts and strong fundamentals from TSI’s latest Globe and Mail feature.
Nutrien Ltd. offers exposure to potash and nitrogen prices, a stable retail base and strong profitability.
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
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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.
There will always be stocks you’ll wish you bought, especially after you see their growth. Here’s what to look for so you won’t miss out.
NORDSTROM INC. $52 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 173.5 million; Market cap: $9.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.8%; TSINetwork Rating: Average; www.nordstrom.com) owns and operates 323 stores in the U.S. and Canada that mainly sell upscale clothing and footwear. Due to investments in its online business and the opening of new stores in Canada, Nordstrom’s earnings in its 2016 fiscal year, which ended January 30, 2016, fell 15.3%, to $3.15 a share from $3.72 in 2015. Sales rose 6.9%, to $14.4 billion from $13.5 billion, while same-store sales gained 2.7%. Online sales jumped 20.2%, and accounted for 19.6% of its total sales. Nordstrom is still a buy....
BAXALTA INC. $39(New York symbol BXLT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 679.3 million; Market cap: $26.5 billion; Price-to-sales ratio: 4.3; Dividend yield: 0.7%; TSINetwork Rating: Average; www.baxalta.com) plans to merge with Ireland-based Shire (Nasdaq symbol SHPG), which makes drugs for rare and life-threatening diseases. Taken together, the companies are developing new treatments that should boost their combined annual revenue from $14 billion in 2015 to $20 billion by 2020. Plus the new firm will save $500 million a year by eliminating overlapping operations. Also, the merged company will be based in Ireland, so its income tax rate will be 16% to 17%— compared to the 23% Baxalta currently pays. Under the proposal, Baxalta investors would receive $18.00 a share in cash and 0.1482 of a Shire American depositary receipt (ADR) for each share they hold, giving them 34% of the combined company. Based on current prices, Shire’s offer is worth $41.78 per Baxalta share....
ARCHER DANIELS MIDLAND CO. $34 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 593.9 million; Market cap: $20.2 billion; Priceto- sales ratio: 0.3; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, flax seed, peanuts and other crops into a variety of food ingredients, such as flour, oils and sweeteners. The company has agreed to pay an undisclosed sum for a controlling stake in Iowa-based Harvest Innovations. This private firm makes soy proteins and oils for gluten-free pastas and other foods. Harvest’s expertise will help Archer Daniels profit as increasingly health-conscious consumers eat products made with organic and non-genetically modified ingredients. Archer Daniels Midland is a buy....
C.R. BARD INC. $194(New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.7 million; Market cap: $14.3 billion; Price-to-sales ratio: 4.2; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.crbard.com) has acquired Liberator Medical Holdings for $181 million. This firm distributes a variety of medical products such as urological catheters and diabetic supplies, directly to consumers’homes. Under the deal, Bard plans to expand the availability of its own medical devices. That should add $70 million to its annual sales of $3.4 billion, and $0.05 to $0.10 a share to its annual earnings in 2017; Bard will probably earn $9.97 a share in 2016. The stock trades at a reasonable 19.5 times that forecast. C.R. Bard is a buy.