We see only limited growth prospects for these stocks

Article Excerpt

We’re constantly re-evaluating our stock picks. That means moving out of picks with limited growth prospects in favour of stocks in high-growth areas such as, say, pharmaceuticals and technology. These two face market conditions that will weigh on them for the foreseeable future. We still like their long-term outlooks, but right now we see both as sells. ENERFLEX LTD. $6.00 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (www.enerflex.com; Shares o/s: 89.7 million; Market cap: $521.9 million; Dividend yield: 1.3%) rents and sells equipment and services for natural gas production. However, it needs a rebound in gas prices to report higher revenue and profits. How soon that rebound will occur is uncertain. Sell. SIERRA WIRELESS $14.37 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (www.sierrawireless.com; Shares o/s: 36.5 million; Market cap: $516.1 million; No dividends paid) makes digital components that connect products to the Internet. That machine-to-machine networking is commonly known as the “Internet of Things,” or IoT. That’s an expanding field, but Sierra…

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