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Coupang Inc. operates in a competitive market, but its growth prospects are positive, especially with its expansion into Taiwan.
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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.
CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.9 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.0%; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators and operator of pilot-training schools in over 30 countries. The company recently won several contracts for flight simulators and related equipment from military clients in Canada, the U.S., the U.K. and Australia. In all, these deals are worth $175 million, or 7% of the company’s $2.4 billion of annual revenue. CAE’s military businesses supply 35% of its sales. That cuts its reliance on cyclical commercial airlines....
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....
CANADIAN NATIONAL RAILWAY CO. $81 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 786.4 million; Market cap: $63.7 billion; Price-to-sales ratio: 5.0; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway. Its network stretches across the country and through the U.S. Midwest to the Gulf of Mexico. The company has agreed to repurchase up to 11.2 million of its shares from a private seller at a discount to the market price. It aims to complete this transaction by September 9, 2016. The move is part of CN’s plan to buy back up to 33.0 million of its common shares, or roughly 5% of the total outstanding, by October 29, 2016. Share buybacks raise earnings per share and other per-share calculations. That gives the remaining shareholders a larger stake in the company....