acquisition

Demand for Major Drilling’s specialized services now looks to be moving up. Meanwhile, Computer Modelling is benefiting from expanded oil and gas drilling in response to overall higher energy prices. We think there are gains ahead for both stocks.


COMPUTER MODELLING GROUP, $6.86, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 82.5 million; Market cap: $566.2 million; Dividend yield: 2.9%) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs....

Intact Financial is now close to its recent, all-time high. That translates into a spectacular 612% gain since we first recommended the shares at $42.95 in April 2010! Our analysis suggests this Power Buy is poised to keep moving higher for you, our subscribers.


INTACT FINANCIAL, $305.99, is a Power Buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 178.3 million; Market cap: $54.6 billion; Dividend yield: 1.7%) is Canada’s largest provider of property and casualty coverage: its policies cover more than five million individuals and businesses....

Pharmaceutical stocks are often riskier than most investors realize. Drug companies must spend large sums to develop new medications and therapies, many of which will fail. Those that do succeed, will eventually lose their patent protection and face strong competition from generic drug producers.

Drugmakers also face political risk....

SNOWFLAKE INC., $208.18, symbol SNOW on New York, provides cloud-based data storage and analytics to more than 11,500 customers worldwide.

San Mateo, California-based Snowflake was founded in 2012 to help companies manage data they store in the cloud—the remote servers and software services that firms use to store and process vast amounts of information....

NORTH WEST COMPANY, $49.95, is a buy. The retailer (symbol NWC on Toronto) sells food, and everyday products and services through 230 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the wider South Pacific and the Caribbean.

North West’s food offerings consist of perishable and non-perishable products including groceries, dairy, produce, meat, convenience foods, food service, home meal replacement, health and beauty aids, paper products and cleaning supplies....

Despite the negative impact of U.S. tariffs on Canadian oil imports, the long-term outlook for Cenovus is bright. The company’s high-quality reserves will last 29 years, and its rising production will give it more cash to reward shareholders with higher dividends and share buybacks.


CENOVUS ENERGY INC....

TELUS INTERNATIONAL (CDA) INC. $4.96 is now a hold. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.3; No dividend paid; TSINetwork Rating: Average; www.telusdigital.com) operates as Telus Digital Experience....

These two financial services firms continue to benefit from plans to focus on their core businesses. While we like both, we prefer IGM for your new buying due to its modestly lower p/e and higher dividend yield.


GREAT-WEST LIFECO INC. $50 is a hold. The insurance company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 930.7 million; Market cap: $46.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial....

Ovintiv recently increased its presence in B.C.’s Montney region. Combined with its other high-quality properties and focus on cutting its drilling and other costs, the company is in a strong position to increase its cash flow.


OVINTIV INC. $56 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 261.1 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) operates three core properties: Montney (B.C.), Permian (Texas) and Anadarko (Oklahoma)....

These three leading industrial firms have moved up lately, even though tariffs will likely add to their costs. Those gains reflect the vital products and services these companies sell to niche markets.


All three also have solid long-term prospects and trade at attractive multiples to their earnings....