Below are the eight Canadian companies that are on our radar with the analyst estimates for the coming year.
| Symbol | Name | Price | P/E | EPS | Yield | P/B | % from low |
| BEI-UN.TO | Boardwalk Real Estate Investment Trust | 60.69 | 12.44 | 4.88 | 5.66% | 0.91 | 4.40% |
| IGM.TO | IGM Financial Inc. | 44.68 | 14.05 | 2.98 | 5.03% | 2.41 | 6.10% |
| ACO-X.TO | ATCO LTD., CL.I, NV | 46.76 | 13.55 | - | 2.11% | 8.00 | 7.82% |
| CJR-B.TO | Corus Entertainment Inc. | 21.73 | 36.83 | 0.59 | 5.24% | 1.42 | 8.22% |
| CM.TO | Canadian Imperial Bank of Commerce | 95.39 | 12.12 | 7.86 | 4.31% | 2.14 | 8.35% |
| REF-UN.TO | Canadian REIT | 47.05 | 38.25 | 1.98 | 3.71% | 1.03 | 9.37% |
| RY.TO | Royal Bank of Canada | 77.70 | 12.89 | 6.00 | 3.86% | 2.30 | 9.37% |
| HCG.TO | Home Capital Group Inc. | 43.30 | 9.67 | 4.45 | 2.03% | 2.10 | 9.90% |
Analyst Estimates
Below is a snapshot of the analyst’s estimated earnings assuming a price-to-earnings ratio of 15 for the next 12 months and the percentage change in price that is implied based on these earnings estimates.
Watch List Summary
A strong interest stock from the current watch list is Home Capital Group (HCG.TO). Home Capital Group is described as:
“Home Capital Group Inc., through its subsidiary, Home Trust Company, provides deposit, mortgage lending, and retail credit services in Canada. The company offers various deposit products, such as fixed and savings deposit accounts; and single-family residential and insured securitized residential first mortgage, as well as residential and non-residential commercial mortgage lending services. It also provides credit card lending services, including Equityline Visa product that is secured by residential property, cash-secured Visa products, and preferred unsecured Visa cards to mortgage customers; other consumer retail lending for durable household goods, such as water heaters and larger-ticket home improvement items; and consumer and credit card loans.”
HCG.TO is experiencing a decline along with the rest of the housing/financial sector in reaction to the fall in commodities like oil. However, while there is the perception that the market is/was in a bubble, HCG.TO might be worth reassessing when and if the market moves higher. Below are the Altimeter and Speed Resistance Lines and for HCG.TO.
The Altimeter indicates that a intermediate bottom may have been achieved. However, the low from 2008 at the 104 level is a risk. If HCG.TO were to decline to the 2008 level the stock should be valued at $20.80.
Applying Speed Resistance Lines to HCG.TO, we see that the stock has already declined to the conservative downside target of $37.92. Because it appears that we are in the early stages of the economic decline in Canada, HCG.TO might be worth watching to see if the stock can decline to the $28.21 level. The extreme downside target is $18.51 which confirms the Altimeter low of $20.80. HCG.TO should be considered in three stages starting below the ascending $37.92, $28.21 and $18.51 levels.
One stock that is part of the Canadian companies that we track but has never been on a single watch list is CCL Industries (CCL.TO). CCL Industries is described by Yahoo!Finance in the following:
“CCL Industries Inc., a specialty packaging company, develops label solutions. It operates through three segments: Label, Avery, and Container. The Label segment offers pressure sensitive, shrink sleeve, stretch sleeve, in-mould, and expanded content labels; and pharmaceutical instructional leaflets to consumer product marketing companies in the personal and beauty care, food and beverage, household, chemical, and promotional segments, as well as to pharmaceutical, healthcare, durable goods, and industrial chemical companies. The Avery segment supplies printable media, including address labels, shipping labels, marketing and product identification labels, indexes and dividers, business cards, and name badges and specialty media labels, as well as customized software solutions. This segment also provides binders, organization and presentation products, and writing instruments under the Avery and Zweckform brand names. The Container segment manufactures extruded aluminum aerosol containers for the personal care and homecare markets; bottles for beverage customers; and other specialty products, such as piston activated aerosol cans, aluminum caulking cartridges, and refrigeration cans.”
We would love to get our hands on a company like this if the price is right. After running Edson Gould’s Altimeter and not finding any consistencies we’ve outlined the downside targets for CCL.
The downside targets for CCL don’t appear likely or on pace to happen soon. However, when and if CCL gets close to the conservative downside target of $80.86, we would recommend reassessing the fundamentals for possible acquisition. As a sidebar, another company in the same industry with a similar pattern of exceptional growth is Multi-Color Corp. (LABL).