Topic: How To Invest

Power Growth Investor Hotline – Friday, June 12, 2020

Article Excerpt

NORTH WEST COMPANY, $27.91, is a buy. The retailer (symbol NWC on Toronto) sells food and everyday products and services through 244 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the wider South Pacific and the Caribbean. In the quarter ended April 30, 2020, overall sales jumped 19.8%, to $592.6 million from $494.5 million a year earlier. The rise was due to higher spending by customers in the wake of COVID-19. As well, the company lowered prices for the food it sells in northern Canada. This was aimed at capturing more local spending dollars and to lessen the impact of COVID-19 on customers. At the same time, that price cutting ended up contributing to the higher overall sales. Excluding one-time items, earnings in the latest quarter climbed 63.1%, to $24.6 million, or $0.51 a share, from $15.1 million, or $0.31. The gain was mostly…