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Toromont Industries Ltd. should see continued earnings growth thanks to its leading market share and Canada’s plan to increase spending on infrastructure projects.
ARC Resources keeps returning its cash flow to shareholders through a growing dividend and substantial share buybacks.
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Top pick Linamar Corp. is trading cheaply despite delivering higher sales and profits.
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The Direxion iBillionaire Index ETF, $21.51, symbol IBLN on New York (Units outstanding: 1.4 million; Market cap: $30.1 million; www.direxioninvestments.com), is designed to profit from copying the moves of billionaire investors such as Warren Buffett, Carl Icahn, Daniel Loeb and David Tepper.
The ETF began trading on August 1, 2014. Its MER is 0.65%—lower than most mutual funds, but high for an ETF.
The Direxion iBillionaire Index ETF selects up to 10 billionaire investors from a pool of 50, based on their personal net worth, source of wealth, stock turnover and performance over time. It then selects stocks from their investment firms or hedge funds.
Each of the companies in the index is equally weighted (3.33% each) and rebalanced quarterly. That’s because the ETF’s managers aim to ensure that each stock’s contribution to the fund’s performance is identical.
The fund’s managers select stocks by looking at Form 13F, a publicly available document that institutions, such as banks, hedge funds and investment firms, must file with the Securities and Exchange Commission (SEC). Form 13F discloses long positions, or stocks held with the intention of profiting if their prices go up.
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The ETF began trading on August 1, 2014. Its MER is 0.65%—lower than most mutual funds, but high for an ETF.
The Direxion iBillionaire Index ETF selects up to 10 billionaire investors from a pool of 50, based on their personal net worth, source of wealth, stock turnover and performance over time. It then selects stocks from their investment firms or hedge funds.
Each of the companies in the index is equally weighted (3.33% each) and rebalanced quarterly. That’s because the ETF’s managers aim to ensure that each stock’s contribution to the fund’s performance is identical.
The fund’s managers select stocks by looking at Form 13F, a publicly available document that institutions, such as banks, hedge funds and investment firms, must file with the Securities and Exchange Commission (SEC). Form 13F discloses long positions, or stocks held with the intention of profiting if their prices go up.
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Dream Global REIT (formerly Dundee International REIT), $7.65, symbol DRG.UN on Toronto (Units outstanding: 113.0 million; Market cap: $885.0 million; www.dream.ca/global), is a Canadian real estate investment trust that focuses on investing outside the country. It aims to grow by acquiring different types of properties in certain European countries, starting with Germany.
The REIT first sold units to the public in August 2011. Initially, it sold 27 million units for $10 each to raise $270 million. It raised a further $140 million in an issue of debentures.
The trust used the total proceeds of $410 million to help buy a $1-billion portfolio of properties in Germany from Deutsche Post, Europe’s largest postal company. These buildings are located in major cities and towns, often on a central square near the main train or bus station. Deutsche Post now leases back much of the space.
In the first nine months of 2015, Dream Global sold a 50% stake in eight properties to a joint venture partner. It also sold 100% of 54 other properties.
As of September 30, 2015, it owned 214 commercial properties that contain a total of 13.2 million square feet, all in Germany. These buildings had an 86.8% occupancy rate.
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The REIT first sold units to the public in August 2011. Initially, it sold 27 million units for $10 each to raise $270 million. It raised a further $140 million in an issue of debentures.
The trust used the total proceeds of $410 million to help buy a $1-billion portfolio of properties in Germany from Deutsche Post, Europe’s largest postal company. These buildings are located in major cities and towns, often on a central square near the main train or bus station. Deutsche Post now leases back much of the space.
In the first nine months of 2015, Dream Global sold a 50% stake in eight properties to a joint venture partner. It also sold 100% of 54 other properties.
As of September 30, 2015, it owned 214 commercial properties that contain a total of 13.2 million square feet, all in Germany. These buildings had an 86.8% occupancy rate.
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SolarWindow Technologies, $3.18, symbol WNDW on the U.S. over-the-counter bulletin board (Shares outstanding: 26.9 million; Market cap: $84.9 million; www.solarwindow.com), believes it has developed a commercially viable method for spraying see-through electricity-generating solar cell coatings onto glass surfaces.
The company says it has successfully scaled up its technology from a single solar cell—only one-quarter the size of a grain of rice—to a working array of solar cells that form a one-foot-by-one-foot working prototype.
To date, SolarWindow has reported no revenue, and it used up $595,189 of cash in the three months ended November 30, 2015. Of that, it spent $441,694 on promotion and administration and $148,922 on research. As of November 30, 2015, the company held cash of just $169,057 and had $3.4 million of long-term debt (owed to shareholders in the company and mostly convertible into common shares).
SolarWindow faces many major challenges. For one, it’s far from certain whether it will be able to develop a commercial version of its spray-on technology; thin-film solar technology, and its variations, have eluded major solar power companies around the world.
As well, SolarWindow has just five employees right now, and it must find either a way to raise the funds it needs to keep operating or a major partner to buy the technology it has produced so far. Above all, it needs a great deal of growth to justify its current market capitalization of $84.9 million or anything higher.
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The company says it has successfully scaled up its technology from a single solar cell—only one-quarter the size of a grain of rice—to a working array of solar cells that form a one-foot-by-one-foot working prototype.
To date, SolarWindow has reported no revenue, and it used up $595,189 of cash in the three months ended November 30, 2015. Of that, it spent $441,694 on promotion and administration and $148,922 on research. As of November 30, 2015, the company held cash of just $169,057 and had $3.4 million of long-term debt (owed to shareholders in the company and mostly convertible into common shares).
SolarWindow faces many major challenges. For one, it’s far from certain whether it will be able to develop a commercial version of its spray-on technology; thin-film solar technology, and its variations, have eluded major solar power companies around the world.
As well, SolarWindow has just five employees right now, and it must find either a way to raise the funds it needs to keep operating or a major partner to buy the technology it has produced so far. Above all, it needs a great deal of growth to justify its current market capitalization of $84.9 million or anything higher.
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Fission Uranium, $0.66, symbol FCU on Toronto (Shares outstanding: 483.9 million; Market cap: $338.8 million; www.fissionuranium.net), is focused on its Patterson Lake South uranium discovery just south of Saskatchewan’s Athabasca basin.
Fission aims to build a profitable mine on the property, which it believes holds one of the world’s largest uranium deposits. It is now investing $7 million in a winter drilling program at Patterson to prepare a prefeasibility study on the economics of building the mine.
Last year, Fission rejected a $483-million merger with Denison Mines, symbol DML on Toronto. However, in December 2015, China’s state-owned CGN Mining bought 97 million Fission shares at $0.85 per share, giving it a 19.99% stake. CGN and Fission also plan to finalize an agreement for CGN Mining to buy all uranium production from Patterson if a mine is built.
The arrangement stays within Canadian foreign investment restrictions on strategic resources; Foreign companies are only barred from owning more than a 49% share in any producing uranium mine.
Anti-nuclear sentiment remains high following the March 2011 earthquake and tsunami that released radiation at the nuclear plant in Fukushima, Japan. This sentiment has curtailed plans for some new nuclear plants, especially in the U.S. However, regulators in that country are moving toward loosening regulations on nuclear plants. That could eventually revive nuclear plant construction in the U.S.—and uranium demand. But this nuclear revival, if it comes at all, will be a slow process.
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Fission aims to build a profitable mine on the property, which it believes holds one of the world’s largest uranium deposits. It is now investing $7 million in a winter drilling program at Patterson to prepare a prefeasibility study on the economics of building the mine.
Last year, Fission rejected a $483-million merger with Denison Mines, symbol DML on Toronto. However, in December 2015, China’s state-owned CGN Mining bought 97 million Fission shares at $0.85 per share, giving it a 19.99% stake. CGN and Fission also plan to finalize an agreement for CGN Mining to buy all uranium production from Patterson if a mine is built.
The arrangement stays within Canadian foreign investment restrictions on strategic resources; Foreign companies are only barred from owning more than a 49% share in any producing uranium mine.
Anti-nuclear sentiment remains high following the March 2011 earthquake and tsunami that released radiation at the nuclear plant in Fukushima, Japan. This sentiment has curtailed plans for some new nuclear plants, especially in the U.S. However, regulators in that country are moving toward loosening regulations on nuclear plants. That could eventually revive nuclear plant construction in the U.S.—and uranium demand. But this nuclear revival, if it comes at all, will be a slow process.
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