Latest Stock Advice
Coupang Inc. operates in a competitive market, but its growth prospects are positive, especially with its expansion into Taiwan.
Motorola Solutions Inc. offers compelling value through its dominant market share, accelerating growth and strategic positioning for secular growth
Legacy Hardware Leader Pivots to Software and Security Subscription Model
Zebra Technologies Corp. benefits from helping its customers improve productivity and operational efficiency.
Become a Successful Investor
Learn why even the best mining penny stocks entail high risk for investors. But if you follow these rules, you’ll have a much better chance of success
Investment climate indicators can be useful tools when evaluating the market. But they are just part of the big picture.
TransCanada recently had to write off its investment in its Keystone XL oil pipeline project after the U.S. government rejected the plan. Political pressure in Canada could also force it to cancel its huge Energy East pipeline. Despite these setbacks, TransCanada’s future looks bright. The company recently announced a big acquisition in the U.S. that should fuel its growth for years to come. As well, it will soon complete $13 billion of smaller pipelines and power plants. The projects already have long-term commitments from future customers. Those contracts cut the risk of these new ventures. TRANSCANADA CORP. $50 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 702.3 million; Market cap: $35.1 billion; Priceto- sales ratio: 3.1; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.transcanada.com) operates a 67,300- kilometre pipeline network that pumps natural gas from Alberta to Eastern Canada and the U.S. This system supplies 20% of North America’s natural gas needs. In 2015, gas pipelines provided 47% of TransCanada’s revenue and 54% of its earnings....
CENOVUS ENERGY INC. $18 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 833.2 million; Market cap: $15.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.1%; TSINetwork Rating: Average; www.cenovus.com) owns oil sands projects and conventional wells in Western Canada. It ships its oil to its 50%-owned refineries in Illinois and Texas. Due to low oil prices, Cenovus has shrunk its workforce by 31% since the start of 2015. These cuts should save it $200 million this year; it lost $403 million, or $0.49 a share, in 2015. The cuts should also help Cenovus quickly expand profits when oil prices recover. Cenovus is still a buy.
CANADIAN PACIFIC RAILWAY LTD. $192 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.0 million; Market cap: $29.4 billion; Price-to-sales ratio: 4.2; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) has abandoned its plan to merge with U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combination would have created North America’s largest railway. Norfolk rejected CP’s latest offer of about $30 billion U.S. in cash and shares. In addition, U.S. transportation regulators probably would have blocked any deal no matter how CP structured the transaction. CP’s shares gained 5% on the news. That’s because big acquisitions like this usually come with substantial risk. In addition, investors feel that CP will now use some of the cash it had for the takeover to buy back shares....
ANDREW PELLER LTD. (Toronto symbols ADW.A $28 and ADW.B $30; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $406.4 million; Price-to-sales ratio: 1.2; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer, after Constellation Brands. It accounts for 14.2% of the country’s wine sales, and 37.1% of wines produced in Canada. Peller continues to benefit from strong sales of its premium-priced brands. These include its 2011 deal with hockey star Wayne Gretzky to make and distribute wines under his name. This brand is now one of the best-selling wines in Canada. To keep up with strong demand for Gretzky wines, the company is building a new winery next to its existing operation in the Niagara region of Southern Ontario. This new facility will open in the spring of 2017....