It's a pipeline builder in Northern BC that had a big run then crashed partly on poor earnings and the sentiment towards energy.
I'd like to own it on the assumption that LNG and other projects go ahead. They will mint money. I don't know about valuation though, sorry. It's on my screen though. NQ
Good price to get in. Accord is a finance firm with the most amazing track record of increasing its dividend. Look at Element Financial's valuation. If Accord was given that multiple it would be a $40 stock (not that it's worth that.) NQ
I phased out coverage because I just don't have time to cover too many companies and we'd made a lot on it, getting in at about 10 cents. It went to 70 cents then pulled back to its current 45-50.
I own some, bought recently at about 45 cents. I think it's good value there. They're in the penalty box for poor communication with The Street but make about $8 million a year and that's growing so the valuation is good. The new CFO will help mend fences with the Street and they are in their best quarter now so I expect the stock to improve. NQ
The good news is that Colabor recently struck a deal with CRA (the taxman) that won't result in an huge penalties regarding trust conversion. Cervus has a similar issue, so this may be a sign that they won't have to pay a lot of cash either.
That said, the outlook for farming equipment isn't great from the research that I've read. I'd be cautious. NQ
I don't but just looked it up. Looks interesting, I will study it further. Thanks for the idea.
I used to own it and did very well. It's extremely well run and has some international exposure which adds some diversification. It is nonetheless in the oil and gas services space so sentiment is not your friend. But the dividend is decent and safe. NQ
Have you looked at Input Capital Corp. Fabrice? It generates money by generating royalty streams out of canola crops. I own a few shares myself, and wondering what your thoughts are.
They approached us when they were private to see if we'd invest. I liked the concept of financing a farmer's input costs (fertilizer, seeds etc.) in return for a piece of his crop. So good, interesting and unique concept, and simple, which I always like.
The only issue with it is that it's not really tested so I watch it to see if they can work out the kinks. If so I'd buy. NQ
Paradigm just initiated with a buy so I'm intrigued because the story's been around a while (i.e. it's not a report on some banking deal they just did.) The analyst made a good argument.
But the chart is not good, so what I would do as a retail investor is wait, watch and let the market be your analyst. Sure, you may pay more than today's price, but you'll reduce your risk because in a turnaround, which this looks like, once the turn happens it goes on for a loooong time. NQ pls
Don't know it well. The chart looks very good. I'm just reading about it and it has some oil and gas exposure but apparently that's not hurting sentiment. Thanks, I'll dig deeper. NQ pls
2pm is sneaking up on us. Before we let you go Fabrice, can you name another stock you have high conviction in at this time … perhaps one of your very top picks?
Yes, Alabama Graphite. Now this is very risky so a small slice of your portfolio. But the graphite space is heating up a lot with the construction of the new gigafactory by Tesla and the rise of the electric car. It appears that the prevailing battery technology will require graphite - and lots of it.
ALP (that's the ticker) is in my view the best bet if you like the big picture on graphite. And it's held up very well in this downturn which is significant.
It's another example of picking my spots in little pockets of growth in an otherwise poor market. NQ
While we’re on the subject of small caps, I’d just like to let our readers know that we now publish a daily Small Cap Stocks to Watch file at Globe Investor/Inside the Market. It highlights key stocks making news and/or on the move, and often has analyst and other insight on the small cap news of the day. We hope you find it useful and if you have suggestions on how to make it better, please drop me an email at firstname.lastname@example.org
Fabrice, we need to wrap up shortly. Any final thoughts or picks for our audience today? It's been a great chat.
Remember the cycle, build cash, take profits when you're up and losses when you're down and think you made a mistake. The biggest mistakes I see from retail investors (and I still make them) is being illiquid (i.e. no cash) and being emotional. There are always stocks going up. You can make money today but it takes more work. It's worth it though.
OK, good thought to leave on. Thanks very much Fabrice for the insight today.
Thank you for having me. Best of luck to all.
Thanks all for tuning in and for being Globe Unlimited subscribers. Look for another live chat soon. Bye all.