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North American indices continue to reach for and touch new all-time highs. But below the surface, it’s been tough sledding for a whole pile of stocks. With “stocks” being the key word, as generally speaking, company performance has not warranted the market treatment received.
I recently looked at the collection of companies we’ve recommended in Stock Advisor Canada over the years, comparing their current prices to their respective 52-week highs. Now, by no means does this register as in-depth market analysis, but it didn’t come as a surprise that on average, our recommended companies are currently trading about 23% below that somewhat superficial 52-week mark.
So if you’re wired to go shopping when there’s a sale on — as we are — suffice to say, the shopping is pretty good right now.
A bevy of fine companies, at good prices, awaits.
Foolishly yours,
Iain Butler
Chief investment advisor, The Motley Fool Canada
Best Buys Now #1
Rockpoint Gas Storage (TSX: RGSI)
Rockpoint Gas Storage (TSX: RGSI) provides natural gas storage services to a blue-chip roster of customers including utilities, producers, pipeline operators, power generators, LNG operators, financial institutions, commodity traders, and marketers.
I’ve been closely following the stock since December, and about the biggest change that’s occurred since then is that Rockpoint is cheaper than it was. The price is lower and the dividend yield, at 5.2%, more enticing.
But what’s really interesting is that Rockpoint offers unexpected exposure to AI. You see, data centres require firm, dispatchable power 24 hours a day, and that power is increasingly supplied by natural gas generation. As AI infrastructure drives demand for new gas-fired generation capacity across North America, the demand for gas storage services grows in parallel. Every new gas peaker plant or combined cycle facility built to power a data centre needs storage access to manage supply timing — and Rockpoint’s Alberta and California facilities are strategically located near major pipeline infrastructure and load centres.
We like finding this kind of behind-the-scenes exposure to the investing theme-du-jour, and Rockpoint suits our tastes perfectly.
Claude Sonnet 4.6 was used for portions of this article.
