KeyStone’s Stock Talk – Canadian & US Small-Cap Growth & Dividend Stocks, Tips & Portfolio Building Strategies

Stock Talk Podcast Episode 148

This week, we are excited to be announcing the launch of our next Live Webinar Series entitled: Summer School for your Portfolio. Ryan will give a preview and some advice on how to construct your portfolio to take advantage of long-term winners.

 

We have two YSOT segments this week. The first, Linamar Corporation (LNR: TSX), manufactures powertrains and drivelines for vehicle and power generation markets. The majority of the company’s revenue comes from the vehicle segment. A listener asks us if it offers good value as a re-opening investment with the economy continuing to open up once again.

 

Our second question came in from a listener on a new IPO or initial public offering, Element Nutritional Sciences Inc. (ELMT: CSE), a Canadian nutraceutical company specializing in the development of science­based products for the global consumer packaged goods market, focused specifically on men and women over the age of 50. The listener asks us about the company specifically, but also if we have any recommendations regarding what information we would typically like to know about a new IPO to make an informed decision regarding investigating or even following the stock as a possible future investment?

Stock Talk Podcast Episode 147

This week, we start by revisiting one of our popular “Case For” Battles from a year ago. The battle, pits two renewable energy companies, Greenlane Renewables Inc. (GRN: TSX) and Xebec Adsorption Inc. (XBC: TSX) in a no-holds-barred cage match. Just like one year ago, Aaron takes the Bull case on Xebec, and Ryan crushes him mercilessly with the Bull case for Greenlane. May the best renewable, that Ryan is arguing for, win. Uncle Brennan sits in as judge, jury, and executioner. Our YSOT this week comes from a listener on Jack Nathan Medical Corp. (JNH: TSX-V) - an omnichannel healthcare provider that builds turnkey, barrier-free medical and dental clinics in high-density centers in Canada and internationally. The question is a follow-up to a YSOT from February of this year in which we gave a firm no to buying the company at $0.85. The stock is down over 43% since that time and a listener asks us if there is value in the current range.

Stock Talk Podcast Episode 146

This week, we start with some brief comments about the volatility in cryptos and the shift near-term from growth stocks.

 

In our YSOT segment, we take 2 listener questions. The first is on, Vicinity Motor Corp. (VMC: TSX), a Canadian company that supplies electric, CNG, gas, and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada. Great first-quarter deliveries and strong revenue growth failed to push the stock higher near-term, we take a look at why.

 

Our second YSOT is on Brookfield Renewable Partners L.P. (BEP.UN: TSX), which operates one of the world’s largest publicly traded, pure-play renewable power platforms, consisting of hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia. A listener asks if the company, which has retreated significantly of late, is well placed to capitalize on the green wave. He asks if we see value at the current price.

Stock Talk Podcast Episode 145

This week, Ryan starts by taking a look at a shift from growth to value and cyclical and how one can structure a portfolio ahead of these shifts.

 

Our Star of the Week is no stranger to KeyStone Clients Dynacor Gold Mines (DNG: TSX), having been a Focus Buy recommendation for the past several years. On Monday, the company, which purchases ore from small-scale miners (artisanal miners) across Peru, processes it and sells the gold, reported record financial results. The unique dividend-paying gold miller has a great balance sheet and its stock has jumped over 50% this year. Congratulations to all clients who own the business – the company appears poised for a record 2021.

 

Finally, in our Your Stock Our Take Section we answer two listener questions. The first on ADF Group Inc. (DRX: TSX), which engages in the design and engineering of connections, fabrication, industrial coating, and the installation of steel structures, as well as miscellaneous and architectural metalwork in the U.S. and Canada. The stock appears to trade at low valuations and could be facing the tailwinds from what is expected to be a strong infrastructure spending cycle, but it is the right company to participate in this potential boom?  

 

Our second question comes in on AutoCanada Inc. (ACQ: TSX) which owns automotive dealerships in Canada. The company sells 19 brands through dealerships including Chrysler, Dodge, Jeep, Ram, Audi, Volkswagen, BMW, and Nissan. The stock has booked tremendous gains since the March lows in 2020 – we let you know if it is justifiable and potentially sustainable.

Stock Talk Podcast Episode 144

This week, we start by looking at a tweet on Microsoft (MSFT: NASDAQ), which led to some interesting debates about market psychology and valuations.

 

Our Star of the Week is no stranger to KeyStone Clients, Photon Control (PHO: TSX), having been a Focus Buy recommendation for the past 7-years. On Monday, the company, which is the leading manufacturer of fiber optic measurement solutions, announced it will be acquired for $3.60. The stock is now up over 680% since our original recommendation.  

 

Our Dog of the week is Village Farms International (VFF: TSX), one of the largest greenhouse growers in North American with total sales of over $170 million in 2020. The company grows tomatoes, cucumbers, and cannabis.

 

Finally, in our Your Stock Our Take Section we answer a question on Cielo Waste Solutions Corp. (CMC: CSE), a Canadian company engaged in the business of refining municipal and construction waste into high-grade renewable fuels. The stock has been a highflyer this year but is the share appreciation justifiable – we will give you, our thoughts.

Stock Talk Podcast Episode 143

This week we have a One-On-One Versus Debate between two heavyweights in home improvement, The Home Depot Inc. (HD: NYSE) and Lowe's Companies Inc. (LOW: NYSE). Both have produced strong gains year-to-date driven by stay-at-home DIY projects and a great deal of free money sloshing around – we debate which is the better value today. Brennan takes Lowes and Aaron gives you his pitch for Home Depot. I will sit in as judge, jury, and executioner. 

Stock Talk Podcast Episode 142

This week in Our Case For / Case Against debate we take a look at Care Cloud (MTBC: NASDAQ), a healthcare information technology company that provides a full suite of proprietary cloud-based solutions, together with related business services, to healthcare providers and hospitals throughout the United States. Brennan argues the bull case, I crush him with the bear case and Aaron sits in as judge, jury, and executioner.

 

In our Your Stock, Our Take Segment, we answer a listener question on Northland Power Inc. (NPI: TSX), a renewable power producer which owns 2.3 GW net of generating capacity. Most of Northland’s power is offshore wind but the company also has a pipeline of onshore renewable assets. We take a look at current valuations and the company’s growth prospects into the future.

Stock Talk Podcast Episode 141

This week in Our Case For / Case Against debate we take a look at a well-run network management services provider for the mortgage lending and insurance industries, Real Matters Inc. (REAL: TSX). Despite the fact it holds a great balance sheet and the company’s record financial results in 2020, the stock has been cut in half since its highs and is flat over the past year. Aaron argues the bull case, I crush him with the bear case and Uncle Brennan sits in as judge, jury, and executioner.

 

In our Your Stock, Our Take Segment, we answer a listener question on PowerBand Solutions Inc. (PBX: TSX-V), a well-promoted auto-fintech. PowerBand has an integrated, cloud-based transaction platform that facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used vehicles, on any phone, tablet, or PC connected to the internet. A listener asks what to make of the company’s reported sales numbers and if the drop is an opportunity of a sign of things to come.

Stock Talk Podcast Episode 140

We have a busy show for you this week – in Our Case For / Case Against debate we take a look at unknown, high-growth small-cap, Apollo Healthcare Corp. (AHC: TSX). Apollo is one of the largest private label personal care product manufacturers which saw its sales and profitability skyrocket in 2020 as one of the 3 largest producers of hand sanitizer and private label cleaning products sold at most of the big box retailers including Costco. Aaron argues the bear case, Uncle Brennan is on the bull case and I sit in as judge, jury, and executioner.

In our Your Stock, Our Take Segment, we answer a listener question on Gran Colombia Gold Corp. (GCM: TSX), which engages in the acquisition, exploration, development, and operation of gold and silver properties primarily in Colombia.

Stock Talk Podcast Episode 139

This week in Our Case For / Case Against debate we take a look at e-retail and cloud computing services giant, Amazon Inc. (AMZN:NASDAQ). Aaron argues the bear case, I crush him with the bull case, and Uncle Brennan sits in as judge, jury, and executioner.

In our Your Stock, Our Take Segment, we answer a listener question on the very topical Enthusiast Gaming Holdings Inc. (EGLX:TSX), who’s principal business activities are comprised of media and content, entertainment and eSports. The stock has had a tremendous run and is growing at a high clip via-acquisition – we look into whether it is sustainable.

Stock Talk Podcast Episode 138

We have a busy show for you this week – in Our Case For / Case Against debate we take a look at Skylight Health Group Inc (SHG:TSX-V), which owns and operates a proprietary virtual telehealth platform, and a network of over 30 medical clinics across 16 states in the US, providing integrative, primary, and urgent care services to over 155,000 patients annually.

In our Your Stock, Our Take Segment, we answer a listener question on the very topical AstraZeneca PLC (AZN:NASDAQ), the British-Swedish multinational pharmaceutical and biotechnology company now best known for developing one of the 3 covid-19 vaccines approved for use in Europe. The vaccine is also approved for use in Canada but, to date, not in the United States. We let you know how the business looks from a fundamental perspective and if it is an opportunity or one to avoid.

Stock Talk Podcast Episode 137

This week we are start by introducing our new Webinar series. Our Dog of the Week is Xebec Adsorption (XBC: TSX), a market darling in 2020 and to start 2021, which saw it share price drop over 60% from its highs after reporting a revenue shortfall. Xebec is a provider of clean energy solutions for renewable and low carbon gases used in energy, mobility and industry applications. The company specializes in deploying a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, oxygen and nitrogen. Is the drop an opportunity or a sign of things to come?

In our ask us anything, we talk about a recent survey of 1,984 adults conducted by Bloomberg, found that 1 in 10 Americans are unfamiliar with cryptocurrencies. With nearly half of the respondent’s saying that they had only heard of some of the coins, such as Bitcoin & Ethereum. And 61% of those who had heard of crypto admitted that they had no idea how it actually worked.

In our Your Stock Our Take Segment, we answer a listener question on Mene Inc. (MENE:TSX-V), a Canadian Small-Cap with strong revenue growth. Mene designs, manufactures, and markets gold and platinum jewelry. Customers buy jewelry, monitor the value of their collection, and sell or exchange their pieces by gram weight at prevailing market prices.

Stock Talk Podcast Episode 136

This week we start our discussion with a new U.S. ETF that has been getting a great deal of attention. The VanEck Vectors Social Sentiment ETF (BUZZ) – apparently the ETF is able to “cut through the noise of millions of online conversations to identify stocks with bullish investor sentiment.” And trade them. We will give you our thoughts.

Our Case For / Case Against debate is back to take a look at TFI International (TFII:TSX), a North American leader in the transportation and logistics industry, operating in Canada and the U.S. Brennan argues the bear case, Aaron has the bull case, and I sit in as judge, jury, and executioner.

In our YSOT segment we answer a listener question on Cameco Corporation (CCO:TSX), one of the world's largest uranium producers. The company’s shares have performed well at the start of 2021, following renewed optimism in the nuclear power market after doing little but decline for 10-years. We will let you know if the move is sustainable.

Stock Talk Podcast Episode 135

In our Ask Us Anything segment, Brennan answers a listener question on Churchill Capital Corp IV (CCIV:NYSE) a SPAC that is set to merge with pre-revenue Electric Vehicle company Lucid Motors.

Our Case For / Case Against debate is back to take a look at Air Canada (AC:TSX), Canada's largest domestic and international full-service airline. Brennan argues the bull case, I crush him with the bear case, and Aaron sits in as judge, jury, and executioner.

For the third week in a row, one of our Stars comes directly from our Canadian Small-Cap Growth Stock Research. VersaBank (VB:TSX), a Canadian Schedule I chartered bank with a difference. VersaBank ranks among the world's first fully digital financial institutions. The stock was recommended to clients a couple of years ago as an alternative to Canada’s Big Banks when it traded at $7.15. VersaBank’s shares trade today at $15.80, have jumped 41% in the past 30-days, 72% year-to-date, and 120% since our recommendation – crushing the performance of the Big Banks over that period. Congratulations to clients who own the stock.

The second Star is Groupon Inc. (GRPN:NASDAQ), a global voucher and e-coupon marketplace. Groupon reported its Q4 financial results on February 25th and in the four trading days since the release, Groupon’s stock has shot up nearly 60%. We look into the rally and whether or not the fundamentals suggest it should continue.

Finally, in our YSOT segment we answer a listener question on Good Natured Products Inc. (GDNP:TSX-V), a high growth small-cap which produces and distributes high-performance bioplastics for use in packaging and durable product applications.

Stock Talk Podcast Episode 134

This week, we start with a brief discussion regarding Warren Buffet’s right-hand man, Charlie Munger’s, comments on trading platforms such as RobinHood.

For the second week in a row our Star of the Week is a company directly from our Canadian Small-Cap Growth Stock Research. Adcore Inc. (ADCO:TSX-V), a profitable digital advertising or AdTech company, was recommended to clients 1-year ago this month at $0.69. Adcore’s share price jumped 47% this week, 138% this month, and 315% in the past year since our recommendation. Congratulations to clients who own the stock.

In our YSOT segment, Aaron answers a question on TripAdvisor Inc. (TRIP:NASDAQ), one of the world’s leading travel platforms. The website and app provide travellers with more than 878 million reviews on 8.8 million hotels, restaurants, airlines, cruises and experiences. The stock has surged on optimism of travel normalizing over time – has it come too far too fast?

Finally, Brennan answers a listener question on Jack Nathan Medical Corp. (JNH:TSX-V), an omni-channel healthcare provider that builds turnkey, barrier-free medical and dental clinics in high-density centers in Canada and internationally. Does its growth-by-acquisition model offer potential value? We take a look.

Stock Talk Podcast Episode 133

This week, we start by discussing the testimony from WallStreetBets, Reddit et all before the House Financial Services Committee on the GameStop issue.

Back by popular demand, we start with a Case For and Case Against debate on surging small-cap, Peak Fintech Group Inc. (PKK:CSE), a Fintech service provider to the Chinese commercial lending sector. Brennan argues the bull case, I crush him with the bear case, and Aaron sits in as judge, jury and executioner.

In our YSOT segment, Aaron answers a question on two REITs sent in by a listener. While both REITs, Granite Industrial REIT (GRT.UN:TSX) and BSR REIT (HOM.U:TSX) are not directly comparable, given that they operate in differing segments, Aaron lays out the valuations and some of the investment merits of each company.  

Finally, Brennan answers a listener question on Tecsys Inc. (TCS:TSX), a great Canadian software success story, which provides supply chain solutions that equip organizations with services and tools designed to create clarity out of the complex supply chain challenges.

Stock Talk Podcast Episode 132

To start this week, we highlight a couple of Stars from our coverage universe. The first, Sangoma Technologies Corporation (STC:TSX-V) is a Communications as a Service or (CaaS) solutions for businesses of all sizes. In the past week the company made a US$437 million transformational acquisition of Star2Star Communications, a top-ten vendor of cloud communications solutions in North America. After resuming trading Monday, the stock has jumped 35% in two days from $3.87 to $5.20. Sangoma was recommended to clients 3 years ago at $0.72 – now a 630% gain to clients – congratulations to those who own the stock!

The second star of the week is CRH Medical Corporation (CRH:TSX), which saw its stock jump 80% yesterday after it was announced that Well Health (WELL:TSX) would acquire the business.

In our YSOT segment we take a look at PowerBand Solutions Inc. (PBX:TSX-V). The company is a fintech provider which offers an integrated, cloud-based transaction platform facilitating transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric- and non-electric vehicles, on any phone, tablet or PC connected to the internet.

Finally, Aaron Dunn will look at GameStop Corp. (GME:NYSE), and the phenomenon that is WallStreetBets. WallStreetBets and it’s forum or “subreddit” on the popular website Reddit, drove GameStop to dizzying heights on a massive short-squeeze, only to see the struggling business predictably crater. Is GameStop even worth its current price – we take a look.

Stock Talk Podcast Episode 131

We start the year off with a special 2021 predictions episode. Including predictions on Bitcoin, Gold, SPACs, the U.S. & Canadian markets, Cannabis stocks, Government Handouts, FaceBook & Google, the pandemic, Tesla, Brennan’s Case For Debate record and more.

At the end we tag on a question from a listener on Nuvo Pharmaceuticals (MRV:TSX), which actually changed its name to Miravo Healthcare. Miravo is a profitable Canadian healthcare company, that target areas including pain, allergy & dermatology. We let you know how the company screens using our criteria.

Stock Talk Podcast Episode 130

This week we start with a Case for Debate on food delivery giants DoorDash, Inc. (DASH:NYSE) and Uber Technologies, Inc. (UBER:NYSE) – Aaron takes the case for DoorDash, while Brennan has the case for Uber. Ryan will act as judge, jury and executioner.

We also discuss frothy valuations in the alternative energy segment on the heels of a significant acquisition by a Canadian small-cap, Xebec Adsorption Inc. (XBC:TSX-V) which was the subject of a Case For debate just two weeks ago.

Finally, we take a look at a listener’s question on a recent listing, WeCommerce Holdings Ltd. (WE:TSX-V), which has tripled in the past week since its listing on the Venture exchange. The company acquires and owns a family of companies and brands in the Shopify partner ecosystem.

Stock Talk Podcast Episode 129

This week we start with a Case for Debate on a unique Canadian Small-Cap Quarterhill Inc. (QTRH:TSX) is a Canadian company that focuses on intellectual property and the Intelligent Transportation Systems industry (ITS). It is a cash rich business, which success of failure is  tied to management’s ability to successfully navigate mergers and acquisitions (M&A) as well as a substantial judgment in a lawsuit against Apple (NASDAQ:AAPL).

In our YSOT segment we answer a listener question on Chemtrade Logistics Income Fund (CHE.UN:TSX), which provides industrial chemicals and services to customers in North America and the World. The company looks to have an attractive dividend yield of over 13%, but it was recently cut. We let you know if it is sustainable. 

Our Dog of the week is CloudMD Software & Services (DOC: TSX-V), a company which is helping digitize the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The stock is down 35% from its October high of $3.20 per share. We let you know why.