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.
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Growth Stocks Library Archives
ALARMFORCE $9.86(Toronto symbol AF; TSINetwork Rating: Speculative) (1-800-267- 2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $122.3 million; Dividend yield: 1.0%) has completed the strategic review of business opportunities that it launched in August 2012....
Zargon trades at just 3.1 times cash flow per share, but that cash flow may be headed down for a year or so. Trilogy trades at 9.6 times cash flow, high for an oil and gas stock, but that’s mostly because its shares are up 50% over the last year.
We see both stocks as worthwhile holds, but there are better oil and gas stocks available for new buying— such as Bellatrix (see box this page) and Chesapeake (see box on page 57).
ZARGON OIL & GAS $6.39 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 30.0 million; Market cap: $189.3 million; Dividend yield: 11.3%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota....
We see both stocks as worthwhile holds, but there are better oil and gas stocks available for new buying— such as Bellatrix (see box this page) and Chesapeake (see box on page 57).
ZARGON OIL & GAS $6.39 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 30.0 million; Market cap: $189.3 million; Dividend yield: 11.3%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota....
BELLATRIX EXPLORATION $6.74 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 107.9 million; Market cap: $715.5 million; No dividends paid) has entered into a joint venture agreement with Grafton Energy that should speed up the development of its Cardium shale oil deposits in Alberta.
Under the agreement, Grafton will pay Bellatrix $100 million....
Under the agreement, Grafton will pay Bellatrix $100 million....
ATLANTIC TELE-NETWORK $54 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.7 million; Market cap: $855.6 million; Yield: 1.9%) expects to soon complete the sale of its Alltel wireless business to AT&T (symbol T on New York) for cash of $780 million....
INTUITIVE SURGICAL $415.54 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 40.2 million; Market cap: $17.0 billion; No dividends paid) is down over 16% since it released a preliminary revenue forecast for the latest quarter that was below the consensus estimate.
In the second quarter of 2013, the company expects to report revenue of about $575 million, up 7% from $537 million a year earlier....
In the second quarter of 2013, the company expects to report revenue of about $575 million, up 7% from $537 million a year earlier....
AEROPOSTALE $14.15 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $1.1 billion; No dividends paid) now plans to launch the Aeropostale brand in Mexico through a licensing agreement with Distribuidora Liverpool, S.A....
ALIMENTATION COUCHE-TARD $63.38 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $11.6 billion; Dividend yield: 0.5%) reports 44.9% higher sales in the three months ended April 28, 2013, up to $8.8 billion from $6.1 billion a year earlier....
CHEMTRADE LOGISTICS INCOME FUND $17.30 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics- .com; Units outstanding: 41.7 million; Market cap: $716.7 million; Dividend yield: 7.0%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base-metal processors....
ALCOA INC., $8.10, New York symbol AA, is closing smelters and cutting costs in response to declining aluminum prices. It also continues to expand its more profitable engineered-products business, which makes wings, fasteners and other components for the aerospace and automotive industries. In the three months ended June 30, 2013, Alcoa lost $119 million, or $0.11 a share. That’s much worse than the $2 million, or nil per share, it lost a year earlier. If you exclude plant-closure costs and other unusual items, Alcoa’s earnings per share would have risen 16.7%, to $0.07 from $0.06. On that basis, the latest earnings beat the consensus estimate of $0.06 a share....
PASON SYSTEMS INC., $19.23, symbol PSI on Toronto, has lost a patent dispute with its main competitor involving its AutoDriller product, which helps companies run their drilling operations more accurately and efficiently. The judgment awards the competitor $52.9 million of damages. Pason rents equipment for monitoring and managing land-based oil rigs. It also provides communication systems that companies use to remotely collect data from their drilling operations. The company serves oil and natural gas firms and drilling contractors throughout Canada, the U.S., Mexico and Argentina. In the three months ended March 31, 2013, Pason’s revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Strong international sales were offset by slower drilling activity in the U.S. and Canada. Cash flow per share fell 7.9%, to $0.58 from $0.63. Pason holds cash of $168.9 million, or $2.06 a share, and has no debt....