stock pickers
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.
A sinkhole recently forced Russia’s Uralkali to close its Solikamsk-2 mine, which accounts for 20% of Uralkali’s potash production and 3.5% of global capacity.
Uralkali didn’t say how long it would take to reopen the mine, but it could close it permanently.
Regardless of the length of the shutdown, high potash inventories will continue to weigh on prices. Moreover, this year’s record U.S. harvest has hurt corn, soybean and wheat prices, prompting farmers to store excess crops while they wait for a rebound.
However, we feel that steady sales from Agrium’s retail stores give it an advantage over bulk fertilizer producers like Potash Corp.
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A sinkhole recently forced Russia’s Uralkali to close its Solikamsk-2 mine, which accounts for 20% of Uralkali’s potash production and 3.5% of global capacity.
Uralkali didn’t say how long it would take to reopen the mine, but it could close it permanently.
Regardless of the length of the shutdown, high potash inventories will continue to weigh on prices. Moreover, this year’s record U.S. harvest has hurt corn, soybean and wheat prices, prompting farmers to store excess crops while they wait for a rebound.
However, we feel that steady sales from Agrium’s retail stores give it an advantage over bulk fertilizer producers like Potash Corp.
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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.
Otter Tail Corporation (symbol OTTR on Nasdaq; www.ottertail.com) is the parent of Otter Tail Power Company, which supplies electricity to over 130,000 customers. Otter Tail Corporation also has manufacturing, plastics and construction operations.
Otter Tail Power Company’s customers are in a 50,000-square-mile area that covers parts of Minnesota (48% of electrical revenue), North Dakota (43%) and South Dakota (9%). Commercial and farm clients supply 37% of electrical revenue, followed by residential (33%), industrial (23%) and other (7%).
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Otter Tail Corporation (symbol OTTR on Nasdaq; www.ottertail.com) is the parent of Otter Tail Power Company, which supplies electricity to over 130,000 customers. Otter Tail Corporation also has manufacturing, plastics and construction operations.
Otter Tail Power Company’s customers are in a 50,000-square-mile area that covers parts of Minnesota (48% of electrical revenue), North Dakota (43%) and South Dakota (9%). Commercial and farm clients supply 37% of electrical revenue, followed by residential (33%), industrial (23%) and other (7%).
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PLEASE NOTE: This is our last Hotline for 2014. Our next Hotline will go out on Friday, January 9, 2015. SHERRITT INTERNATIONAL, $3.23, symbol S on Toronto, has jumped over 42% this week after Cuba and the U.S. announced that they will re-establish diplomatic ties. The company has operated in Cuba for over 20 years and gets about 74% of its revenue from the country. Its Cuban operations include 50% of the Moa nickel and cobalt joint venture, as well as power plants and oil and gas projects. Sherritt is Cuba’s largest foreign investor....
Pat McKeough responds to many requests from Members of his Inner Circle for specific stock tips 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 a report on one of the stocks profiled in 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.
Recently we had a question from an Inner Circle Member about the biggest defense contractor in the U.S., and the world, Lockheed Martin. Well-known for its fighter jets, Lockheed also supplies many more defense needs, including rockets and satellites, missiles and information systems. Pat looks at the company’s financial results and its expanding program of share buybacks. He also assesses the risk of depending heavily on military budgets against possible shifts in U.S. government policy.
Q: Pat: What is your opinion on Lockheed Martin Corp.? Thanks.
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Recently we had a question from an Inner Circle Member about the biggest defense contractor in the U.S., and the world, Lockheed Martin. Well-known for its fighter jets, Lockheed also supplies many more defense needs, including rockets and satellites, missiles and information systems. Pat looks at the company’s financial results and its expanding program of share buybacks. He also assesses the risk of depending heavily on military budgets against possible shifts in U.S. government policy.
Q: Pat: What is your opinion on Lockheed Martin Corp.? Thanks.
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ShawCor makes coatings for oil and natural gas pipelines. Its shares have fallen with the recent drop in the price of oil. However, it is a leader in its niche industry and should rebound strongly when energy prices recover. The drop also means the stock now trades at an attractive multiple to its projected earnings.
SHAWCOR LTD. (Toronto symbol SCL; www.shawcor.com) makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also makes industrial products, like electrical wire and protective sheaths.
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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.
Exchange Income Corp. (symbol EIF on Toronto; www.exchangeincomecorp.ca) operates in two main areas: aviation and manufacturing.
The aviation business (63% of revenue) includes regional airlines Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters and Regional One. These airlines serve communities in Manitoba, Ontario and Nunavut.
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Exchange Income Corp. (symbol EIF on Toronto; www.exchangeincomecorp.ca) operates in two main areas: aviation and manufacturing.
The aviation business (63% of revenue) includes regional airlines Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters and Regional One. These airlines serve communities in Manitoba, Ontario and Nunavut.
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TIM HORTONS INC., $99.00, symbol THI on Toronto, has completed its merger with U.S.-based BURGER KING WORLDWIDE INC., $35.50, symbol BKW on New York.
On Monday, December 15, 2014, the combined company, called Restaurant Brands International Inc., will begin trading on the Toronto and New York exchanges under the QSR symbol.
Restaurant Brands is the world’s third-largest fast-food restaurant operator, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion U.S.
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On Monday, December 15, 2014, the combined company, called Restaurant Brands International Inc., will begin trading on the Toronto and New York exchanges under the QSR symbol.
Restaurant Brands is the world’s third-largest fast-food restaurant operator, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion U.S.
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Pat McKeough responds to many requests from members of his Inner Circle for specific tips on investing in 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 a report on one of the stocks profiled in 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 received a question from an Inner Circle Member about one of Canada’s leading packaging firms. CCL Industries makes 83% of its revenue from pressure-sensitive labels, and the U.S. and Europe supply 73% of its overall revenue. The company grows by acquisition and bought three companies in 2014 alone. Pat balances CCL’s ability to build market share with its size and technology against the risk of growth by acquisition and exposure to volatile commodity prices.
Q: Pat: Do you have any comments on CCL Industries as an investment? Thanks.
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This week we received a question from an Inner Circle Member about one of Canada’s leading packaging firms. CCL Industries makes 83% of its revenue from pressure-sensitive labels, and the U.S. and Europe supply 73% of its overall revenue. The company grows by acquisition and bought three companies in 2014 alone. Pat balances CCL’s ability to build market share with its size and technology against the risk of growth by acquisition and exposure to volatile commodity prices.
Q: Pat: Do you have any comments on CCL Industries as an investment? Thanks.
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If you’re looking for stock-market bargains, December is the best time of year to find them.
Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.
Toward year-end, it occurs to these investors that they’ll have to pay taxes on their capital gains, regardless of whether they made money overall. This leads some investors to dump their losers near year-end, simply to establish a capital loss for tax purposes, to offset a capital gain.
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Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.
Toward year-end, it occurs to these investors that they’ll have to pay taxes on their capital gains, regardless of whether they made money overall. This leads some investors to dump their losers near year-end, simply to establish a capital loss for tax purposes, to offset a capital gain.
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Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation 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.
CAE INC. (Toronto symbol CAE; www.cae.com) gets 55% of its revenue by selling flight simulators and pilot-training services to commercial airlines. Another 40% comes from simulators and training for military clients, mainly in the U.S.
CAE gets the remaining 5% of its sales by making medical-simulation products, such as mannequins, for training nurses and medical students.
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CAE INC. (Toronto symbol CAE; www.cae.com) gets 55% of its revenue by selling flight simulators and pilot-training services to commercial airlines. Another 40% comes from simulators and training for military clients, mainly in the U.S.
CAE gets the remaining 5% of its sales by making medical-simulation products, such as mannequins, for training nurses and medical students.
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