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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.
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.
PENGROWTH ENERGY CORP. $1.41 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $762.4 million; Priceto- sales ratio: 0.8; Dividend yield: 2.8%; TSINetwork Rating: Average; www.pengrowth.com) continues to sell less important properties and focus on more promising operations like its Lindbergh oil sands project in Alberta. The company has now agreed to sell its Bodo project in eastern Alberta for $95 million. Including this deal, it has now sold $260 million worth of properties in 2015 and expects to reach its full-year goal of $600 million in asset sales. Pengrowth will use the proceeds to pay down its long-term debt, which stood at $1.9 billion on June 30, 2015. That’s a high 2.5 times its currently depressed market cap....
TRANSCANADA CORP. $45 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 709.0 million; Market cap: $31.9 billion; Price-to-sales ratio: 3.0; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.transcanada.com) is buying the Ironwood gas-fired power plant in Lebanon, Pennsylvania. The facility is close to the Marcellus shale region, which gives it access to large supplies of cheap natural gas. The company will pay $654 million U.S. when it completes the purchase in early 2016. The plant will add $90 million U.S. to $110 million U.S. to TransCanada’s annual gross profits; in 2014, its gross profits totalled $5.5 billion (Canadian). TransCanada is a buy.
Transcontinental and Torstar (see next article) recently announced big acquisitions. Expanding in this way adds risk, as insiders at the companies being sold know a lot more about them than the buyers. However, these deals will leave these two companies less reliant on their flyer-printing and newspaper businesses, where revenue is shrinking. TRANSCONTINENTAL INC. $20 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.0 million; Market cap: $1.6 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.4%; TSINetwork Rating: Average; www.tctranscontinental.com) recently purchased Brooklyn, New York-based Ultra Flex Packaging, a privately held maker of flexible plastic packages for candy, coffee and other foods. Transcontinental paid $80 million U.S. for Ultra Flex, which will add $72 million U.S. to its annual revenue and $12 million to its gross profits. This purchase looks like a good fit with U.S.-based Capri Packaging, which makes plastic bags and pouches for cheese and other dairy products. Transcontinental paid $146.1 million for Capri in May 2014....
TORSTAR CORP. $4.12 (Toronto symbol TS.B; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 80.3 million; Market cap: $330.8 million; Price-to-sales ratio: 0.4; Dividend yield: 12.7%; TSINetwork Rating: Average; www.torstar.com) has purchased 56% of VerticalScope, a private firm that operates over 600 online forums and a variety of websites, including AutoGuide.com, Motorcycle.com, ATV.com and PetGuide.com. This purchase should help Torstar offset slowing advertising revenue at its newspapers as advertisers shift their spending to the Internet. The company paid $200 million, but VerticalScope plans to pay a distribution to its shareholders later this year. That would cut Torstar’s purchase price to $178 million. Meantime, Torstar recently launched a digital version of The Toronto Star, its flagship newspaper, for tablet computers. In addition to newspaper content, this free app, called Star Touch, gives users quick access to related information like photos, maps and videos....