stock pickers
The Canadian penny is on its way out, and cash transactions are increasingly rare as well. Although it may not be a household name, this maker of transaction-processing software is aggressively seeking an even greater share of the market in credit card, debit card and smartphone payments. ACI WORLDWIDE (Nasdaq symbol ACIW; www.tsainc.com) makes software that is used to process transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments....
WAJAX CORP., $49.00, symbol WJX on Toronto, sells and services cranes, forklifts and other heavy equipment. It also sells related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). In the three months ended March 31, 2012, Wajax’s revenue rose 17.8%, to $358.1 million from $303.9 million a year earlier. Demand remained strong across all of the company’s markets. Earnings rose 33.6%, to $17.1 million, or $1.03 a share, from $12.8 million, or $0.77 a share. The stock trades at just 11.9 times this year’s forecast earnings of $4.12 a share....
STANTEC INC., $31.53, symbol STN on Toronto, sells a range of consulting, project delivery, design and technology services. The company’s clients operate in a variety of industries, including transportation, construction and oil and gas. Stantec has over 11,000 employees in 170 locations throughout North America. It also has four international offices. In the three months ended March 31, 2012, the company’s revenue rose 7.4%, to $439.1 million from $408.7 million a year earlier. Acquisitions were part of the reason for the gains; Stantec is also working on a number of new projects. Earnings rose 4.5%, to $24.9 million, or $0.55 a share, from $23.8 million, or $0.52....
CHESAPEAKE ENERGY CORP., $17.39, symbol CHK on New York, is down about 50% from its high of $35.75 last August. That’s largely because natural gas prices have fallen to near 10-year lows. However, the drop has accelerated lately, partly on news that the company’s co-founder, CEO and chairman, Aubrey K. McClendon, took out loans that could put him in a conflict of interest. The U.S. Securities and Exchange Commission (SEC) is now investigating....
THE WESTAIM CORP., $0.73, Toronto symbol WED, owns Jevco Insurance Co., which sells insurance to high-risk drivers, as well as owners of motorcycles, snowmobiles and recreational vehicles. Jevco operates in Ontario, Quebec and Alberta. Westaim bought Jevco for $264.2 million in March 2010. Westaim jumped 9% this week after it agreed to sell Jevco to Intact Financial Corp. (Toronto symbol IFC); Intact is a recommendation of Stock Pickers Digest, our newsletter that focuses on aggressive investing. Westaim will receive $530 million when the sale closes in the fall of 2012. That’s equal to 1.3 times its market cap of $423.7 million....
Over the course of the average month or year, we look at a great many stocks for our newsletters, our Inner Circle and our portfolio management clients. Of all the stocks we look at, we add only a tiny minority to those stocks we might think about recommending. There are several very good reasons why we are so particular with our stock choices....
SHERRITT INTERNATIONAL CORP., $5.70, symbol S on Toronto, reports that its revenue fell 2.6% in the three months ended March 31, 2012, to $462.2 million from $474.5 million a year earlier. Lower nickel prices were the main reason for the decline. Cash flow fell 17.0%, to $117 million, or $0.40 a share, from $141 million, or $0.48 a share. That was due to the lower revenue and higher production costs. The company’s long-term debt of $1.7 billion is equal to its market cap. However, it holds cash of $592.9 million, or $2.00 a share....
A positive outlook for the Canadian economy will continue to boost stocks across many industries. Some stocks benefit by supplying different industries, like this heavy equipment supplier we have just added it to the list of growth stocks we cover in our newsletter for aggressive investing, Stock Pickers Digest. WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services heavy equipment, including cranes and forklifts. It also sells related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions)....
Pat McKeough responds to many personal questions on specific stocks and other investment topics from the members of his Inner Circle. 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. Last week, an Inner Circle member, pleased with his investment in one U.S. stock, wanted to know if it would continue to pay off. This company uses personal sales representatives to sell its skin care and nutritional products and gets most of its sales in foreign markets like China....
CANADIAN PACIFIC RAILWAY LTD., $76.45, Toronto symbol CP, reported higher-than-expected earnings this week. In the three months ended March 31, 2012, the company’s earnings soared 317.6%, to $142.0 million from $34.0 million a year earlier. Earnings per share rose 310.0%, to $0.82 from $0.20, on more shares outstanding. That beat the consensus estimate of $0.75 a share. Severe winter weather and avalanches in B.C. delayed the company’s trains and depressed the year-earlier results. This was the main reason for the earnings jump....