mckeough
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stock tips as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.
This week we had a question from an Inner Circle member about a Canadian seafood company whose stock has risen in recent months. Clearwater Seafoods has enjoyed strong financial results while benefiting from a positive outlook for seafood markets. Pat examines the factors behind the company’s strong showing. He also assesses Clearwater’s longer-term outlook in light of both rising global demand and stiff global competition.
Q: Pat: Can you offer any information or advice on the recent price rise and volume of Clearwater Seafoods on the TSX? Thanks.
A: Clearwater Seafoods (symbol CLR on Toronto; www.clearwater.ca) is one of North America’s largest seafood companies and the biggest holder of shellfish licenses and quotas in Canada.
The stock has risen on the company’s strong financial results and a positive outlook for its seafood markets.
...
This week we had a question from an Inner Circle member about a Canadian seafood company whose stock has risen in recent months. Clearwater Seafoods has enjoyed strong financial results while benefiting from a positive outlook for seafood markets. Pat examines the factors behind the company’s strong showing. He also assesses Clearwater’s longer-term outlook in light of both rising global demand and stiff global competition.
Q: Pat: Can you offer any information or advice on the recent price rise and volume of Clearwater Seafoods on the TSX? Thanks.
A: Clearwater Seafoods (symbol CLR on Toronto; www.clearwater.ca) is one of North America’s largest seafood companies and the biggest holder of shellfish licenses and quotas in Canada.
The stock has risen on the company’s strong financial results and a positive outlook for its seafood markets.
...
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor. ENBRIDGE INC. (Toronto symbol ENB; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State. Since 2008, Enbridge has spent $20 billion on 39 new pipelines and other projects. Thanks to these investments, the company’s revenue soared 164.1%, from $12.5 billion in 2009 to $32.9 billion in 2013. Its revenue probably increased to $37.7 billion in 2014....
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
Extendicare Inc. (symbol EXE on Toronto; www.extendicare.com) is one of North America’s largest retirement- and nursing-home operators. Its 259 long- and short-term senior-care facilities can house 28,401 residents.
The stock fell sharply in November 2014, from over $8, when Extendicare announced an agreement to sell most of its U.S. business for $870 million U.S. in a deal with two investment firms, Formation Capital and an affiliate of Safanad Inc.
These operations generated $868.9 million U.S. of revenue in the first nine months of 2014—more than half of Extendicare’s $1.6-billion U.S. total in that period.
The company will keep 10 nursing homes in the U.S. for now, but it intends to sell them. It will also hold on to two other U.S. businesses: Virtual Care Provider, which supplies computer support and consulting to long-term care providers, and Laurier Indemnity, which insures against liability risks.
...
Extendicare Inc. (symbol EXE on Toronto; www.extendicare.com) is one of North America’s largest retirement- and nursing-home operators. Its 259 long- and short-term senior-care facilities can house 28,401 residents.
The stock fell sharply in November 2014, from over $8, when Extendicare announced an agreement to sell most of its U.S. business for $870 million U.S. in a deal with two investment firms, Formation Capital and an affiliate of Safanad Inc.
These operations generated $868.9 million U.S. of revenue in the first nine months of 2014—more than half of Extendicare’s $1.6-billion U.S. total in that period.
The company will keep 10 nursing homes in the U.S. for now, but it intends to sell them. It will also hold on to two other U.S. businesses: Virtual Care Provider, which supplies computer support and consulting to long-term care providers, and Laurier Indemnity, which insures against liability risks.
...
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on buying stocks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday. This week an Inner Circle member asked about a company whose rental trucks are a familiar sight on North American highways. Ryder System makes the bulk of its revenue leasing truck fleets under long-term deals. It extends its service to helping clients manage warehousing and distribution. The company has also entered into a venture with a clean energy firm to develop a truck to run on compressed natural gas, potentially a money-saver when gasoline prices are higher. Pat examines the company’s financial situation and assesses its growth prospects. ...
Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.
CINTAS CORP. (Nasdaq symbol CTAS; www.cintas.com) provides a range of products and services to over one million businesses, mainly in North America.
The company gets 71% of its revenue by renting uniforms that it makes and cleans. This business also rents a variety of related products, such as mats, towels, mops and cleaning supplies. Cintas gets a further 10% of its revenue by selling uniforms.
In addition, the company sells first aid kits, fire extinguishers, sprinklers and emergency-exit lights (11%). It also shreds corporate documents (8%). In April 2014, it merged its shredding operations with Shred-it International. In exchange, Cintas received 42% of the combined company, which uses the Shred-it brand, plus $180 million in cash.
Cintas used the proceeds from the deal to pay a special dividend of $0.85 a share. It also increased its regular annual dividend by 10.4%, to $0.85 a share from $0.77. The new rate yields 1.1%. The company has now raised the payout annually for the past 31 years.
...
CINTAS CORP. (Nasdaq symbol CTAS; www.cintas.com) provides a range of products and services to over one million businesses, mainly in North America.
The company gets 71% of its revenue by renting uniforms that it makes and cleans. This business also rents a variety of related products, such as mats, towels, mops and cleaning supplies. Cintas gets a further 10% of its revenue by selling uniforms.
In addition, the company sells first aid kits, fire extinguishers, sprinklers and emergency-exit lights (11%). It also shreds corporate documents (8%). In April 2014, it merged its shredding operations with Shred-it International. In exchange, Cintas received 42% of the combined company, which uses the Shred-it brand, plus $180 million in cash.
Cintas used the proceeds from the deal to pay a special dividend of $0.85 a share. It also increased its regular annual dividend by 10.4%, to $0.85 a share from $0.77. The new rate yields 1.1%. The company has now raised the payout annually for the past 31 years.
...
Telus continues to upgrade its wireless and Internet services, spending $2.2 billion on these improvements in 2014. That’s helping it attract more subscribers in a highly competitive market.
As well, last year the company bought $1.1 billion worth of wireless frequencies, or spectrum that should let it cover more of Canada, particularly smaller cities and rural areas.
TELUS (Toronto symbol T; www.telus.com) gets 55% of its revenue from its 8.0 million wireless subscribers across Canada. It also has 3.2 million phone customers, 1.5 million high-speed Internet users and 888,000 TV subscribers.
Telus also continues to expand its health care division, which helps doctors, pharmacies and hospitals convert patient records and other information to electronic formats.
In September 2014, the company paid an undisclosed sum for ZRx Prescriber, an app that lets doctors write prescriptions through their tablet computers and smartphones. The app can also access a patient’s drug-insurance information, which speeds up claims and cuts down on errors. Over 520 clinics in Ontario and Quebec use ZRx Prescriber to process 400,000 prescriptions a month.
...
As well, last year the company bought $1.1 billion worth of wireless frequencies, or spectrum that should let it cover more of Canada, particularly smaller cities and rural areas.
TELUS (Toronto symbol T; www.telus.com) gets 55% of its revenue from its 8.0 million wireless subscribers across Canada. It also has 3.2 million phone customers, 1.5 million high-speed Internet users and 888,000 TV subscribers.
Telus also continues to expand its health care division, which helps doctors, pharmacies and hospitals convert patient records and other information to electronic formats.
In September 2014, the company paid an undisclosed sum for ZRx Prescriber, an app that lets doctors write prescriptions through their tablet computers and smartphones. The app can also access a patient’s drug-insurance information, which speeds up claims and cuts down on errors. Over 520 clinics in Ontario and Quebec use ZRx Prescriber to process 400,000 prescriptions a month.
...
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
Metalore Resources (symbol MET on Toronto; www.metaloreresources.com) produces natural gas in Southwestern Ontario. It owns or controls approximately 40,000 of petroleum, natural gas and mineral leases in Norfolk County.
Right now, the company is producing gas from 85 wells. It also distributes gas to 85 businesses and consumers along its gathering pipelines through an agreement with Union Gas Ltd.
...
Metalore Resources (symbol MET on Toronto; www.metaloreresources.com) produces natural gas in Southwestern Ontario. It owns or controls approximately 40,000 of petroleum, natural gas and mineral leases in Norfolk County.
Right now, the company is producing gas from 85 wells. It also distributes gas to 85 businesses and consumers along its gathering pipelines through an agreement with Union Gas Ltd.
...
Pat McKeough responds to many requests from members of his Inner Circle on specific stock picks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle.
This week an Inner Circle Member asked us about a stock that has risen and fallen sharply in the past year. AutoCanada has almost four dozen franchised auto dealerships across Canada and continues to add more through takeovers. While the company has benefited from a rebound in car sales, it also faces several challenges in a cyclical, competitive business. Pat examines the risk of its growth-by-acquisition strategy and the potential impact of lower oil prices on Western Canadian car sales.
Q: Pat: I am a new member and I have a question. What is your current view of AutoCanada? Thanks.
...
This week an Inner Circle Member asked us about a stock that has risen and fallen sharply in the past year. AutoCanada has almost four dozen franchised auto dealerships across Canada and continues to add more through takeovers. While the company has benefited from a rebound in car sales, it also faces several challenges in a cyclical, competitive business. Pat examines the risk of its growth-by-acquisition strategy and the potential impact of lower oil prices on Western Canadian car sales.
Q: Pat: I am a new member and I have a question. What is your current view of AutoCanada? Thanks.
...
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.
ANDREW PELLER LTD. (Toronto symbol ADW.A; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Vincor International. Its wineries in Nova Scotia, Ontario and British Columbia account for 13.4% of the Canadian wine market.
In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. The company also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
...
ANDREW PELLER LTD. (Toronto symbol ADW.A; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Vincor International. Its wineries in Nova Scotia, Ontario and British Columbia account for 13.4% of the Canadian wine market.
In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. The company also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
Gogo Inc. (symbol GOGO on Nasdaq; www.gogoair.com), offers a service that lets passengers with Wi-Fi-enabled devices get online on Gogo-equipped aircraft.
The company offers Internet access on more than 10 major airlines and 2,000 individual airliners. Over 6,000 business jets also use its systems. Gogo charges $59.95 a month or $16 for an all-day pass.
...
Gogo Inc. (symbol GOGO on Nasdaq; www.gogoair.com), offers a service that lets passengers with Wi-Fi-enabled devices get online on Gogo-equipped aircraft.
The company offers Internet access on more than 10 major airlines and 2,000 individual airliners. Over 6,000 business jets also use its systems. Gogo charges $59.95 a month or $16 for an all-day pass.
...