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
MCGRAW-HILL COMPANIES INC., $45.29, New York symbol MHP, rose 17% this week after it announced that it will split into two separate, publicly traded companies.
One of these new firms, McGraw-Hill Markets, will sell a variety of financial-information products. This business will include Standard & Poor’s, which provides credit ratings on bonds, and McGraw-Hill’s J.D. Power market-research firm. McGraw-Hill Markets will have annual revenue of $4 billion. International sales will account for 40% of that total.
The other company, McGraw-Hill Education, will publish textbooks for schools and colleges. This business will have $2.4 billion of annual revenue.
...
One of these new firms, McGraw-Hill Markets, will sell a variety of financial-information products. This business will include Standard & Poor’s, which provides credit ratings on bonds, and McGraw-Hill’s J.D. Power market-research firm. McGraw-Hill Markets will have annual revenue of $4 billion. International sales will account for 40% of that total.
The other company, McGraw-Hill Education, will publish textbooks for schools and colleges. This business will have $2.4 billion of annual revenue.
...
SASOL LTD. (ADR), $46.17, symbol SSL on New York, has developed a technology to convert coal and natural gas into motor fuels.
The company is now the world’s largest producer of fuel from coal at its facility at Secunda, South Africa. Sasol also produces synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical-production interests, and produces oil and gas in Africa. Sasol is also South Africa’s third-largest coal producer.
In the fiscal year ended June 30, 2011, Sasol’s revenue rose 16.1%, to $19.5 billion from $16.8 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 27.4%, to $4.65 from $3.65. Higher oil prices were the main reason for these gains.
...
The company is now the world’s largest producer of fuel from coal at its facility at Secunda, South Africa. Sasol also produces synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical-production interests, and produces oil and gas in Africa. Sasol is also South Africa’s third-largest coal producer.
In the fiscal year ended June 30, 2011, Sasol’s revenue rose 16.1%, to $19.5 billion from $16.8 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 27.4%, to $4.65 from $3.65. Higher oil prices were the main reason for these gains.
...
BELLATRIX EXPLORATION $4.29 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 114.2 million; Market cap: $448.9 million; No dividends paid) produces oil and natural gas in Alberta, B.C. and Saskatchewan. Gas makes up about 62% of its output; the remaining 38% is oil. In the three months ended June 30, 2011, Bellatrix’s production rose 51.8%, to 11,643 barrels of oil equivalent per day (including natural gas) from 7,671 barrels. The company’s drilling success continues to add to its production: in the first half of 2011, it drilled 23 wells with a 100% success rate. Cash flow per share doubled in the latest quarter, to $0.22 from $0.11. The increased production and higher oil prices were the main reasons for the gains. The company’s long-term debt is $93.0 million, or a low 20.7% of its market cap....
BROADRIDGE FINANCIAL SOLUTIONS $20.52 (New York symbol BR: TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 126.8 million; Market cap: $2.5 billion; Dividend yield: 3.1%) serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing. Broadridge’s systems help its customers cut costs. Broadridge recently acquired privately held Paladyne Systems Inc., whose software helps over 150 hedge funds, mutual fund companies and wealth management firms manage their investments and lower their operating costs. Paladyne will retain its name and staff. Broadridge paid $76.5 million for Paladyne. That’s equal to 44% of the $175.8 million, or $1.37 a share, that it earned in the year ended June 30, 2011....
YAMANA GOLD $15.95 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www.yamana.com; Shares outstanding: 745.4 million; Market cap: $12.2 billion; Dividend yield: 0.7%) owns six operating gold mines in Brazil, Chile and Argentina. It also holds a 12.5% stake in the Alumbrera copper/gold mine in Argentina, and has four other properties in advanced stages of development. In the three months ended June 30, 2011, Yamana’s revenue jumped 63.1%, to $573.3 million from $351.4 million a year earlier (all figures except share price and market cap in U.S. dollars). Cash flow per share rose 69.2%, to $0.44 from $0.26. The company raised its production, and gold prices hit new record highs. During the quarter, Yamana produced 278,737 ounces of gold, up 10.1% from 253,264 ounces a year earlier. Its selling price for gold rose 25.6%....
IMPERIAL METALS $22.45 (Toronto symbol III; TSINetwork Rating: Speculative) (604-669-8959; www.imperialmetals.com; Shares outstanding: 37.5 million; Market cap: $800.5 million) owns the Mount Polley copper/gold mine and the Huckleberry copper/molybdenum mine, both in B.C. The company’s cash flow per share rose 30.4% in the three months ended June 30, 2011, to $0.30 from $0.23. Higher gold and copper prices were the main reason for the gains. Imperial aims to use the cash flow from its existing mines to build a $228-million open-pit mine on its Red Chris copper/gold property in northwestern B.C. The company bought Red Chris in 2007....
PASON SYSTEMS $12.77 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 91.3 million; Market cap: $1.0 billion; Dividend yield: 2.8%) rents equipment for monitoring and managing oil and gas rigs. It also sells communications systems, such as its satellite system, which companies use to remotely collect data from their drilling operations. Pason serves oil and gas companies and drilling contractors throughout Canada, the U.S., Mexico and Argentina. In the three months ended June 30, 2011, Pason’s revenue rose 22.3%, to $62.4 million from $51.0 million a year earlier. The company benefited as its clients increased their drilling, especially for shale gas and oil. Earnings rose 33.5%, to $8.2 million, or $0.10 a share, from $6.2 million, or $0.08 a share. The increased drilling pushed up Pason’s earnings. Strong demand also let the company raise its prices. Cash flow per share rose 21.7%, to $0.28 from $0.23....
COMPUTER MODELLING GROUP $13.93 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403- 531-1300; www.cmgroup.com; Shares outstanding: 37.6 million; Market cap: $502.5 million; Dividend yield: 3.2%) reports that its revenue rose 32.2% in the three months ended June 30, 2011, to $15.9 million from $12.1 million a year earlier. Earnings rose 57.6%, to $6.7 million, or $0.18 a share, from $4.2 million, or $0.12 a share....
CIMAREX ENERGY $66.72 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 86.1 million; Market cap: $5.5 billion; Dividend yield: 0.6%) produces and explores for oil and natural gas. Gas makes up 55% 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 June 30, 2011, Cimarex’s production averaged a record 585.7 million cubic feet of natural gas equivalent per day (including oil). That’s down 1.5% from a year earlier. The company did not offset natural declines at its Gulf Coast wells with new production....
ALIMENTATION COUCHE-TARD $28.34 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 242.4 million; Market cap: $6.9 billion; Yield: 0.9%) is the largest convenience-store operator in Canada, with over 2,000 outlets. It also has nearly 3,700 U.S. stores. In the three months ended July 17, 2011, Couche-Tard’s earnings rose 9.9% to $139.5 million, or $0.76 a share. A year earlier, it earned $126.9 million, or $0.68 a share (all figures except share prices in U.S. dollars). Sales rose 23.9%, to $5.2 billion from $4.2 billion. The gains came from higher fuel prices, the stronger Canadian dollar and higher merchandise sales. Couche-Tard continues to introduce new products with higher profit margins, including new drinks and improved fresh and take-out food....