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
AASTRA TECHNOLOGIES, $16.56, symbol AAH on Toronto, develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems and includes products that integrate land lines and mobile phones. In the three months ended June 30, 2012, the company’s sales fell 15.5%, to $147.1 million from $174.1 million a year earlier. Sales declined in all regions, including Western Europe, where Aastra gets the majority of its revenue. The lower sales caused the company’s earnings to fall sharply, to $1.9 million, or $0.15 a share, from $6.1 million, or $0.43 a share. Cash flow per share fell 43.8%, to $0.45 from $0.80....
BROADRIDGE FINANCIAL SOLUTIONS $21.70 (New York symbol BR: TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 124.9 million; Market cap: $2.7 billion; Dividend yield: 3.0%) serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing. The company processes 90% of all proxy votes in the U.S. Broadridge’s earnings rose 11.0% in the three months ended March 31, 2012, to $36.2 million from $32.6 million a year earlier. Earnings per share rose 12.0%, to $0.28 from $0.25, on fewer shares outstanding. Sales rose 3.8%, to $547.0 million from $527.1 million. Contributions from recently purchased companies helped push up Broadridge’s latest results. As well, the company continues to do a good job of attracting new clients and holding on to existing ones....
MART RESOURCES $1.50 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403-270 -1841; www.martresources.com; Shares outstanding: 337.0 million; Market cap: $505.5 million; Dividend yield: 13.3%) is up over 40% since late June, when it declared a special dividend of $0.10 a share, payable on August 8. Mart will then pay quarterly dividends of $0.05 a share starting in September. The stock is now up 328.6% since we first recommended it in our May 2010 issue at $0.35. Mart produces oil at its 50%- held Umusadege field in the Niger Delta region of southern Nigeria....
CIMAREX ENERGY $58.40 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 85.7 million; Market cap: $5.0 billion; Dividend yield: 0.8%) produces and explores for oil and natural gas. Gas makes up 53% of its output. Cimarex’s properties are in the Mid-Continent region of the U.S., which includes Oklahoma, Kansas and Texas; the Permian Basin of western Texas and southeastern New Mexico; and the Texas Gulf Coast. In the three months ended March 31, 2012, Cimarex’s production averaged 603.5 million cubic feet of natural gas equivalent per day (including oil). That’s up 2.5%, from 590 million cubic feet a year earlier....
SASOL LTD. (ADR) $43.01 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082 -883-9697; www.sasol.com; ADRs outstanding: 644.7 million; Market cap: $27.7 billion; Dividend yield: 3.3%) paid $2.2 billion last year for a 50% interest in two major shale gas properties held by Talisman Energy in northeastern B.C. The partners were investigating whether it would be feasible to build a gas-to-liquids plant that would use this gas. However, Talisman has said that it is not interested in pursuing this project right now. Instead, it will focus on increasing its production. Talisman and Sasol will continue to develop the two shale gas properties, although they will likely slow work on them while they wait for natural gas prices to recover....
CAMECO CORP. $22.34 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.3 million; Market cap: $8.8 billion; Dividend yield 1.8%) is the world’s largest uranium producer. It supplies roughly 25% of global production and has large, high-grade reserves, low-cost operations, significant market share and a number of uranium mines. Cameco also holds a 31.6% stake in Ontario’s Bruce Power partnership, which operates four of the eight reactors at the Bruce plant, North America’s largest nuclear power complex. In the three months ended March 31, 2012, Cameco’s revenue rose 22.1%, to $563 million from $461 million a year earlier. It sold more uranium in the latest quarter, and its selling prices also rose. Earnings per share jumped 47.6%, to $0.31 from $0.21....
NEW GOLD $9.84 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315- 9715; www.newgold.com; Shares outstanding: 461.7 million; Market cap: $4.5 billion; No dividends paid) has started up its fourth mine. The $765- million New Afton gold mine in B.C. processed the first ore through its mill on June 28, 2012. New Gold’s target for commercial production at New Afton, defined as 30 days of operation at 60% capacity (or 6,600 tonnes per day) remains August 2012. New Afton should produce an average of 85,000 ounces of gold and 75 million pounds of copper annually over its 12-year life. There is still room to expand the mine’s reserves and increase its production through exploration drilling....
STANTEC INC. $27.36 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 45.7 million; Market cap: $1.3 billion; Dividend yield: 2.2%) sells a range of consulting, project delivery, design/build and technology services. The company’s clients operate in a wide variety of markets, including industry, environment, transportation and construction. In the three months ended March 31, 2012, Stantec’s revenue rose 7.4%, to $439.1 million from $408.7 million a year earlier. Acquisitions were one reason for the gains. Stantec is also working on several new projects. Earnings rose 4.5%, to $24.9 million, or $0.55 a share, from $23.8 million, or $0.52 a share. Stantec continues to grow by acquisition. In 2011, it bought five companies. Its purchases this year include engineering-consulting firm Cimarron Engineering Ltd., which develops, designs, installs and maintains oil and gas pipeline systems and station facilities. Demand for these services is growing quickly....
AEROPOSTALE INC. $20.26 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 81.3 million; Market cap: $1.6 billion; No dividends paid) has hired 15-year-old Chloe Grace Moretz as a celebrity endorser. Ms. Moretz has recently appeared in movies such as Dark Shadows and Hugo. She also starred in the cult hit Kick-Ass. Over the last few quarters, Aeropostale has focused on more fashionable clothing instead of the basics. The company hopes Ms. Moretz will draw attention to these products and boost its sales....
REITMANS (CANADA) LTD. $11.97 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 65.5 million; Market cap: $784.0 million; Dividend yield: 6.7%) owns 925 women’s clothing stores across Canada. The chain consists of 364 Reitmans, 154 Penningtons, 153 Smart Set, 114 Addition Elle, 74 Thyme Maternity and 66 RW & Co. stores. In the three months ended April 28, 2012, Reitmans lost $53,000, or nil per share, compared to a profit of $624,000, or $0.01 a share, a year earlier. The company’s sales were down 1.0%, to $217.1 million from $219.3 million. Same-store sales declined 0.7%....