Growth Stocks
Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.
And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.
There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.
Read More
Close
Growth Stocks Library Archives
MART RESOURCES $0.25 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403- 270-1841; www.martresources.com; Shares outstanding: 356.6 million; Market cap: $89.2 million; No dividends paid) has been successfully taken over at $0.25 a share by a consortium. Midwestern Oil and Gas Company Ltd., San Leon Energy plc and 1038221 B.C. Ltd. make up the group of buyers. Apart from regulatory and shareholder approvals, the deal was contingent on the consortium arranging financing. The transaction ran into a number of delays, but was finally able to attract the funds it needed for the takeover....
YAMANA GOLD $5.43 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www. yamana.com; Shares outstanding: 947.2 million; Market cap: $5.3 billion; Dividend yield: 0.5%) owns and operates 10 gold mines in Canada, Mexico, Brazil, Chile and Argentina. It also holds a 12.5% stake in the Alumbrera copper/ gold mine in Argentina and has a number of other properties in advanced stages of development. In the three months ended December 31, 2015, the company’s gold production fell 1.9%, to 345,788 ounces from 352,572 a year earlier. The decline was the result of lower output at some of Yamana’s smaller mines. Gold prices fell 8.2% in the latest quarter. That, plus the lower production, cut Yamana’s cash flow by 14.8%, to $150.5 million from $176.7 million. (All figures except share price and market cap in U.S. dollars.) Cash flow per share declined 20.0%, to $0.16 from $0.20, on more shares outstanding....
ALAMOS GOLD $7.83 (Toronto symbol AGI; TSINetwork Rating: Speculative) (604-681- 2802; www.alamosgold.com; Shares outstanding: 268.2 million; Market cap: $2.1 billion; Dividend yield: 0.3%) owns the Mulatos and El Chanate mines in Mexico and the Young-Davidson mine in northern Ontario. In the three months ended December 31, 2015, Alamos’s gold production rose 5.7%, to a record 104,734 ounces from 99,083 a year earlier. However, lower gold prices offset the higher production. That caused the company’s cash flow per share to fall to $0.07 from $0.22 (all figures except share price in U.S. dollars). Alamos holds cash of $289.6 million. The company’s outlook is positive, but like most gold producers, its shares will be heavily influenced by the future direction of gold prices....
MITEL NETWORKS $8.78 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel.ca; Shares outstanding: 120.8 million; Market cap: $1.1 billion; No dividends paid) develops products for business telephone systems. It will buy another industry company—Polycom (symbol PLCM on Nasdaq)—for $1.96 billion U.S. in a friendly takeover. Activist investor Elliott Management Corp. has pushed Mitel to join with Polycom. Elliott first acquired stakes in the two companies in October 2015. It now holds 6.6% of Polycom and 9.6% of Mitel. Mitel will pay $3.13 U.S. in cash plus 1.31 Mitel shares for each Polycom share....
ATLANTIC TELE-NETWORK $71.94 (Nasdaq symbol ATNI; TSINetwork Rating: Extra Risk) (340-777-8000; www.atni.com; Shares o/s: 16.1 million; Market cap: $1.2 billion; Dividend yield: 1.8%) owns wireless and land-line operations in the U.S., Bermuda, the Caribbean and Guyana. It also owns solar power plants that sell electricity under long-term contracts. The company has now purchased the development business of U.K.-based Armstrong Energy Global. Armstrong develops, builds and owns solar farms in India. Over the next six to nine months, Atlantic plans to build solar plants in India with generating capacity of 50 megawatts. The company sees India’s favourable climate and unmet energy needs as ideal for solar power operations. It believes that solar energy development costs in many regions of India have reached grid parity. That means Atlantic can generate electricity at a profit without relying on direct government subsidies— something rarely, if ever, accomplished....
WYNDHAM WORLDWIDE $77.67 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 112.5 million; Market cap: $8.7 billion; Dividend yield: 2.6%) is one of the world’s largest hospitality companies, with 7,800 franchised hotels globally. Wyndham also manages vacation resorts, rental properties, luxury clubs and timeshares. It currently has around 112,000 vacation-rental properties in 100 countries. In the three months ended December 31, 2015, Wyndham’s revenue rose 6.5%, to $1.31 billion from $1.23 billion a year earlier....
MITEL NETWORKS CORP., $9.11, symbol MNW on Toronto, develops and markets products for business telephone systems. It will buy another industry company—Polycom (symbol PLCM on Nasdaq)—for $1.96 billion U.S. in a friendly takeover. Activist investor Elliott Management Corp. has pushed Mitel to join with Polycom. Elliott, founded by hedge-fund manager Paul Singer in 1977, first acquired stakes in the two companies in October 2015. It now holds 6.6% of Polycom and 9.6% of Mitel. Mitel will pay $3.13 U.S. in cash plus 1.31 Mitel shares for each Polycom share....
J.P. MORGAN CHASE & CO., $61.88, New York symbol JPM, is the largest banking firm in the U.S., with assets of $2.4 trillion. In the three months ended March 31, 2016, Morgan earned $5.5 billion, or $1.35 per share. That’s a 6.7% drop from $5.9 billion, or $1.45, a year earlier. Even so, earnings beat the consensus forecast of $1.26 a share. Revenue fell 3.0%, to $24.1 billion from $24.9 billion, but that also beat the consensus forecast of $23.4 billion....
WESTJET AIRLINES, $20.49, symbol WJA on Toronto, carried a record 5.3 million passengers in March 2016, up 8.4% from 4.9 million a year earlier. The company’s load factor rose to 83.2% from 81.3%. Load factor is the percentage of available seats that are occupied by paying passengers. Revenue passenger miles (the total number of paying passengers on each plane multiplied by the distance travelled in miles) rose 7.2% in the latest quarter....
PFIZER INC., $32.50, New York symbol PFE, is the world’s largest pharmaceutical company. It has cancelled its merger with Irish drugmaker Allergan plc (New York symbol AGN), which is best known for the anti-wrinkle drug Botox. The deal was meant to cut the combined firm’s corporate tax rate to 18% from 25%. New U.S. tax rules now prevent that savings. Under the terms of the agreement, Pfizer must pay Allergan a $150-million break-up fee. To put that in context, Pfizer earned $3.3 billion, or $0.53 a share, in the three months ended December 31, 2015. The company will now speed up plans to divide its operations into two separate companies: one would focus on patent-protected drugs. The other would own established products without patent protection. Pfizer will make a final decision by the end of 2016....