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Energy Stocks

Two resource services stocks set to prosper

Demand for Major Drilling’s specialized services has now mostly recovered. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for both stocks.

MAJOR DRILLING, $9.68, is a buy. This large contract driller (Toronto symbol MDI; TSINetwork: Speculative) (majordrilling.com; Shares outstanding: 82.1 million; Market cap: $794.7 million; No dividends paid) is an industry player, mainly serving miners.

In the quarter ended January 31, 2024, the company’s revenue fell 11.0%, to $132.8 million from $149.2 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Chipotle splits its stock 50-1

CHIPOTLE MEXICAN GRILL, $2,902.96, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.6 million; Market cap: $80.2 billion; No divid.) now plans to split its stock on a 50-for-one basis....

1 min read

Pat McKeough

Growth Stocks

ATS expands its markets and expertise

ATS Corp., based in Cambridge, Ontario, is a new pick for subscribers to Power Growth Investor. The company is at the forefront of the rapidly expanding market for factory automation technology. Part of that is its big move into EV battery assembly systems, as well as industries where reliability and system integrity are key such as food and beverage, and life sciences....

2 min read

Pat McKeough

Mining Stocks

Alamos makes a savvy acquisition of a new mine

Alamos is now undertaking an acquisition that will make it the third-largest gold producer in Canada. Notably, the new mine is next to its existing Island mine. That means lots of cost savings for Alamos in addition to higher overall production.

ALAMOS GOLD, $20.56, is a buy. The company (Toronto symbol AGI; TSINetwork Rating: Speculative)(www.alamosgold.com; Shares o/s: 397.0 million; Market cap: $8.2 billion; Dividend yield: 0.7%) is now acquiring Argonaut Gold (symbol AR on Toronto) and its troubled Magino mine in northern Ontario in an all-stock deal valued at $325 million U.S.

The transaction will create $515 million U.S....

1 min read

Pat McKeough

Growth Stocks

Good moves by EXPE

EXPEDIA GROUP INC., $128.73, is a buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $17.5 billion; No dividends paid) operates the world’s largest travel booking platform....

1 min read

Pat McKeough

Dividend Stocks

AltaGas aims to keep expanding

AltaGas took on significant risk with a huge U.S. acquisition in July 2018. The company nonetheless stuck to its promise of selling its non-core assets to pay down the debt it took on. At the same time, its regulated cash flows expanded. We still believe in this leader’s strong prospects and its bright outlook....

2 min read

Pat McKeough

How To Invest

Here’s our Spinoff Stock Portfolio for May 2024

You Can See Our Spinoff Stock Portfolio For May 2024 Here.

Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees....

1 min read

Pat McKeough

Spinoffs

Be wary of this recent IPO

ASTERA LABS INC. $73 is a hold. The company (Nasdaq symbol ALAB; Manufacturing sector; Shares outstanding: 155.5 million; Market cap: $11.4 billion; No dividend paid; Takeover Target Rating: Medium; www.asteralabs.com) designs computer chips that speed up the transfer of data between cloud-based networks and artificial intelligence (AI) software applications.

On March 22, 2024, the company completed an initial public offering of 19.8 million common shares at $36.00 a share....

1 min read

Pat McKeough

Spinoffs

Let our stock updates help direct you

INDIGO BOOKS & MUSIC INC. $2.46 is a hold. The company (Toronto symbol IDG; Consumer sector; Shares outstanding: 27.8 million; Market cap: $68.4 million; No dividend paid; Takeover Target Rating: Lowest; www.chapters.indigo.ca) operates 172 bookstores, mainly under the Chapters and Indigo banners.

Indigo’s major shareholders, Gerald W....

2 min read

Pat McKeough

Spinoffs

One is up and one is down—we like both

Medical device maker Enovis (formerly called Colfax) spun off its non-medical businesses in 2022 as a separate firm called ESAB.

So far, the former parent is down 19% while the new firm is up an impressive 113%. We feel Enovis will turn around given it benefits from the aging population....

2 min read

Pat McKeough

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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.