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
ENDEAVOUR SILVER $10.36 (Toronto symbol EDR: TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 88.8 million; Market cap: $888.1 million; No dividends paid) operates the Guanacevi and Guanajuato silver/gold mines in Mexico. In the three months ended June 30, 2011, Endeavour’s revenue rose 84.7%, to $36.4 million from $19.7 million a year earlier (all amounts except share prices in U.S. dollars). It earned $0.20 a share in the latest quarter, compared to a loss of $0.05 a share. Higher production and sharply higher gold and silver prices were the main reasons for the gains. Endeavour is nearly finished expanding the Guanajuato mine. That will let it produce 3.7 million ounces of silver in 2011, up 12.1% from 3.3 million ounces in 2010. The company has lots of room to increase the reserves of its two mines. It also has three other properties with exploration potential....
DELPHI ENERGY $2.18 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 119.7 million; Market cap: $250.3 million; No dividends paid) explores for oil and natural gas in Alberta, Saskatchewan and B.C. Gas makes up 70% of Delphi’s daily output; the remaining 30% is oil. In the three months ended June 30, 2011, Delphi’s average daily output rose 10.8%, to a record 8,906 barrels of oil equivalent (including natural gas) from 8,035 barrels a year earlier. The higher production pushed up Delphi’s cash flow by 40.1%, to $17.5 million from $12.5 million. Cash flow per share rose 25%, to $0.15 from $0.12, on more shares outstanding....
BELLATRIX EXPLORATION $4.31 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 97.4 million; Market cap: $459.6 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, the company’s production fell 2.9%, to 11,783 barrels of oil equivalent per day (including natural gas) from 12,141 barrels. However, the decline was mostly due to wet weather conditions, which held back well development. Bellatrix still plans to increase its 2011 capital spending budget by 70%, to $170 million from $100 million. As well, it has confirmed that it still expects to produce 15,000 barrels a day at the end of this year, up from its earlier forecast of 13,000 barrels....
AASTRA TECHNOLOGIES $15.80 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905-760-4200; www.aastra.com; Shares outstanding: 14.2 million; Market cap: $222.4 million; Dividend yield: 5.1%) develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centered around business phone systems, and includes products that integrate mobile and land-line phones. In the three months ended June 30, 2011, Aastra’s sales rose 2.2%, to $174.1 million from $170.3 million a year earlier. That’s mainly because the euro and Swiss franc rose against the Canadian dollar (the company gets three-quarters of its sales from Europe). Earnings rose 18.3%, to $6.1 million, or $0.43 a share. A year earlier, it earned $5.1 million, or $0.37 a share. The improved earnings are largely the result of lower research and development costs....
DOMINO’S PIZZA $26.01 (New York symbol DPZ; TSINetwork Rating: Average)(734-930-3030; www.dominos.com; Shares outstanding: 60.8 million; Market cap: $1.6 billion; No dividends paid) reports that in the three months ended June 19, 2011, it earned $25.2 million, or $0.40 a share. That’s up 11.5% from $22.6 million, or $0.37 a share, a year earlier. Sales rose 6.2%, to $384.9 million from $362.4 million. Same-restaurant sales rose 4.5% in the U.S. and 7.4% internationally. The consensus estimates were for earnings of $0.36 a share on sales of $372 million. The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest....
MOSAID TECHNOLOGIES INC. $39.66 (Toronto symbol MSD; TSINetwork Rating: Extra Risk) (613-599-9539; www.mosaid.com; Shares outstanding: 12.1 million; Market cap: $479.9 million; Dividend yield: 2.5%) is now the subject of a takeover bid from Wi-LAN Inc. (symbol WIN on Toronto). The offer is for $38 a share in cash for all of Mosaid’s shares. Mosaid mainly licenses patented computer chip and telecommunications technology, including patents for technology used in smartphones and laptops. Mosaid is now trading at $39.66 a share, or above Wi-LAN’s bid. This indicates that investors are anticipating a higher or rival offer....
DUNDEE REIT $30.90 (Toronto symbol D.UN; TSINetwork Rating: Speculative) (416-365-3535; www.dundeereit.com; Shares outstanding: 58.9 million; Market cap: $2.0 billion; Dividend yield: 7.1%) will buy 29 office buildings in Ontario and Alberta for $831.8 million. The sellers are U.S.-based Blackstone Real Estate Advisors LP and Canadian firm Slate Properties. As part of the agreement, Dundee will sell off five of these properties for $142 million. The 24 properties it will keep are worth $689.8 million, and cover 2.7 million square feet. Eleven of these buildings are in Toronto’s financial district, two are outside the city’s downtown, two are in Ottawa, five are in Calgary and four are in Edmonton. The deal should close on August 15, 2011. Dundee has now spent $1.6 billion on acquisitions in 2011. That follows $900 million of acquisitions in 2010....
GOODYEAR TIRE & RUBBER CO. $13.34 (New York symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 247.0 million; Market cap: $3.4 billion; No dividends paid) is the world’s largest tire maker. The company operates over 60 plants in 25 countries. In the three months ended June 30, 2011, the company’s sales rose 24.1%, to a record $5.6 billion from $4.5 billion a year earlier. North American sales climbed 17.7%. Sales rose 33.5% in Europe, the Middle East and Africa; 21.0% in Latin America; and 36.4% in the Asia-Pacific region. Before one-time items, the company earned $0.65 a share, compared with $0.12 a share a year earlier. The latest earnings were much higher than the consensus estimate of $0.27 a share. The record sales and a shift toward higher-priced items were the main reasons for the higher earnings. The company also cut its costs, including pension expenses....
MACY’S INC., $25.55, New York symbol M, operates 850 Macy’s and Bloomingdale’s department stores in 45 states. It also sells goods over the Internet. The company reported higher-than-expected sales and earnings this week. In the three months ended July 30, 2011, Macy’s earnings rose 63.9%, to $241 million from $147 million a year earlier. Earnings per share rose 57.1%, to $0.55 from $0.35, on more shares outstanding. That was well ahead of the consensus estimate of $0.48 a share. Sales rose 7.3%, to $5.9 billion from $5.5 billion. That beat the consensus sales estimate of $5.8 billion. Same-store sales rose 6.4%. The company continues to benefit from its plan to tailor its merchandise to local tastes. Its private-label products are also selling well. In addition, Macy’s has been improving its customer service. That helps build customer loyalty....
CALIAN TECHNOLOGIES, $19.10, symbol CTY on Toronto, operates in two areas: the business and technology services division, which accounts for 74% of Calian’s revenue, provides engineers, health-care workers and other professionals to clients on a contract basis. The systems-engineering division contributes the remaining 26% of revenue, and sells hardware and software that is used for testing, operating and managing satellite and other communication systems. In the three months ended June 30, 2011, Calian’s revenue rose 1.7%, to $58.5 million from $57.6 million a year earlier. However, earnings fell 10.2%, to $3.5 million or $0.45 a share, from $3.8 million or $0.49 a share. This was mostly due to a slowdown in government contracts during the spring federal election campaign, and the higher Canadian dollar....