Analysts were in a good mood Thursday, upgrading the following three TSX stocks. 

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) got an upgrade from Desjardins Securities analyst Keith Howlett ahead of the convenience store operator’s September 4th earnings announcement. 

Howlett upgraded Couche-Tard from “hold” to “buy,” while also lowering his earnings expectations for the first quarter from US$1.05 to US$0.95. The analyst lowered his estimate based on weaker gas margins. 

“Couche-Tard has proven itself a patient, disciplined acquirer over the last 40 years,” the analyst said. “The company’s other major long-term advantage is the uncommon ability to successfully operate convenience and fuel retail stores, being one of the most challenging segments of retailing. Couche-Tard has acquired a number of consolidators (CST Brands, Pantry) who failed to replicate its success.”

Howlett also raised his target price on Couche-Tard by a dollar to $88. 

Canadian Pacific 

While it wasn’t a specific analyst that upgraded Canadian Pacific Railway (TSX:CP)(NYSE:CP), the fact that Zacks Equity Research upgraded its stock is worthy of some consideration on a Friday. 

Zacks sees CP’s rising earnings estimates and improvement in its underlying business as a major reason to consider its stock at current prices. CP is expected to earn $12.74 a share in fiscal 2019 — a growth rate of 13.8%. 

In the crop year ended July 31, CP announced that it moved 2.8% more grain in the past crop year (2018-2019) than in the previous year. In total, CP shipped 26.8 million metric tonnes of Canadian grain. 

The company broke several records over the past year, including three consecutive months shipping more than 15,000 carloads of western Canadian grain to the Port of Vancouver. This was the first time it’s ever shipped so much grain over three consecutive months. 

AGF Management

AGF Management (TSX:AGF), the mutual fund company down on its luck in recent years, was upgraded earlier this week by CIBC from “neutral” to “outperform” while also raising its 12-month target price from $6 to $7.50, providing investors with 34% upside based on current prices. 

Also contributing to the positive outlook on AGF could be the possibility that London-based Smith & Williamson, which AGF owns 33.6%, is in discussions with Tilney Group about a merger that would create a company with $66 billion in assets under management, making it one of Britain’s largest wealth managers. 

AGF has owned a piece of Smith & Williamson since 2002. 

Barclays Capital analyst John Aiken maintains that investors aren’t giving AGF’s stake in the British wealth manager the value it deserves. Should the merger go through, a $7.50 target might be conservative.   

The post Leading Brokers Name 3 TSX Shares to Buy Friday appeared first on The Motley Fool Canada.

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Investors continue to debate where interest rates are headed. The minutes from the most recent meeting of the Federal Reserve suggest even they’re not so sure. 

Despite the lack of confidence from investors, these three stocks raced ahead on the TSX Wednesday.

Kinder Morgan Canada 

Kinder Morgan Canada (TSX:KML) jumped 32% Wednesday on the $4.3 billion takeover offer from Pembina Pipeline (TSX:PPL)(NYSE:PBA).

Under the terms of the deal, Pembina will pay 0.3068 of one of its shares for each share of Kinder Morgan Canada. That’s approximately $15.02 per KML share. In addition, Pembina will pay $2.1 billion for the 2,900-kilometre Cochin pipeline that runs from Fort Saskatchewan, Alberta, to Riga, Michigan. 

Kinder Morgan, which owns 70% of Kinder Morgan Canada, will get a stake in Pembina worth $1.2 billion. 

Pembina wouldn’t have done the deal if the U.S. portion of the Cochin pipeline wasn’t included in the purchase. 

“I suspect Pembina was pretty adamant that they do include that and eventually there was enough pressure in the process,” Raymond James analyst Chris Cox said. “The valuation seems fair; they are definitely good assets.”

With Pembina one of the few producers winning on the markets in 2019, the latest news ought to be good for the long-term trajectory of its stock.

Bausch Health

Bausch Health (TSX:BHC)(NYSE:BHC) gained 5.4% on Wednesday closing out trading at $29.83, up 18% year to date through August 21. 

Although there wasn’t any news that would have moved Bausch stock by more than 5% on Wednesday, it’s probably still basking in the glow of strong second-quarter results and increased guidance for the remainder of fiscal 2019. 

“Our strong second-quarter results demonstrate that our team’s efforts to pivot to offence continue to gain traction,” CEO Joseph Papa said on a conference call August 6. 

The company expects to generate at least US$8.4 billion in revenue in 2019 along with US$3.4 billion in adjusted EBITDA. 

Since Papa took over in 2016, the company has focused on reducing its debt while concentrating on growing its “significant seven,” which includes its optical products and treatments for glaucoma and bloodshot eyes. 

Ceridian HCM

Ceridian HCM (TSX:CDAY)(NYSE:CDAY) saw its shares rise 4.3% Wednesday to $75.35. 

Like Bausch Health, Ceridian’s move had less to do with specific news and more to do with its second-quarter earnings report from July 30. 

The company’s Dayforce cloud-based human capital management software continues to capture the interest of more and more businesses around the world. In the second quarter, Dayforce’s revenue grew 27.1% to US$134.5 million. Its Dayforce recurring revenue grew even more impressively, growing by 32.1% year over year excluding currency. 

As a result of its strong start to the fiscal year, the company expects Dayforce to grow revenues by between 29% and 31% in the second half of the year. 

Ceridian’s stock will continue to ride the success of Dayforce. Until its growth slows, expect more impressive quarterly reports in the future.  

The post Why Kinder Morgan Canada (TSX:KML), Bausch Health (TSX:BHC), and Ceridian HCM (TSX:CDAY) Raced Ahead on the TSX Wednesday appeared first on The Motley Fool Canada.

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A number of companies on both sides of the borders have announced quarterly earnings this week. Stocks should struggle Thursday, as the Federal Reserve appears done with interest rate cuts.  

Here’s what to watch on the TSX on Thursday. 

Canadian banks begin quarterly reports

Royal Bank (TSX:RY)(NYSE:RY) reported its third-quarter earnings Wednesday, and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) reported its Q3 2019 earnings today.

Royal Bank’s earnings were a mixed bag with a 5% increase in profits to $3.26 billion, prompting the bank to raise its dividend. However, earnings were lower than analyst expectations. Furthermore, it expects the company’s lending margins to shrink in the coming quarters, as the Bank of Canada and Federal Reserve consider rate cuts. 

As for CIBC, its third-quarter income rose 2% to $1.4 billion, or $3.06 a share. On an adjusted basis, earnings were $3.10 a share, $0.04 higher than analyst expectations. As a result of its latest earnings, CIBC increased its dividend by 2.9% to $1.44.

On the downside, the bank reported provisions for bad loans of $291 million — $36 million higher than in the previous quarter and 21% higher than in the same quarter last year. Analysts have been worried about CIBC’s exposure to the Canadian residential mortgage market. 

Thursday’s trading in all the Canadian bank stocks should be interesting.     

Will Pembina buy Trans Mountain?

Pembina Pipeline announced Wednesday that it was buying Kinder Morgan Canada for $2.3 billion. The deal includes Kinder Morgan Canada’s ownership of the Canadian portion of the Cochin pipeline. In addition, it will pay $2.1 billion for Kinder Morgan’s ownership of the Cochin pipeline on the U.S. side of the border.

While it’s possible that Pembina could eventually purchase the Trans Mountain pipeline from the Federal government, at the moment, it’s non-committal about its interest in the controversial pipeline. 

The deal provides Kinder Morgan Canada shareholders a 38% premium on its share price before Wednesday’s announcement. 

Canadian companies thirsty for their stock

Large American companies have been in the news a lot in the past few years for ploughing all of their free cash flow into share repurchases. 

Well, it appears that Canadian companies are also getting in on the act. 

According to research done by the National Post, 15 TSX companies accounted for more than 60% of the stock repurchases of the S&P/TSX 60 between 2001 and 2019. 

In 2018, the TSX 60 repurchased $58 billion in stock — 58% higher than in 2017 and 118% higher than in 2016. According to FactSet, TSX 60 companies are buying back more stock today than they have in the past two decades. 

“While companies seem to be flush with incremental cash, they are quantifiably focusing more on a shareholder-friendly approach of returning capital rather than reinvesting in their businesses,” said Arjun Deiva, a consulting manager at FactSet.

According to the Post’s article, TSX companies are undertaking far more substantial issuer bids, which allows them to go above and beyond normal course issuer bids. 

The post 3 Things to Watch on the TSX Index on Thursday appeared first on The Motley Fool Canada.

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Here are three things to watch north of the border that could affect the TSX on Tuesday. 

Cable companies might get dumped

Disney revealed August 19 that it would launch its Disney+ streaming platform in Canada on November 12. Charging $8.99 a month or $89.99 per year. Unlike the U.S., it will not launch as a bundle as it’s doing south of the border. 

However, Rogers Communications (TSX:RCI.B)(NYSE:RCI) and BCE (TSX:BCE)(NYSE:BCE) and the rest of the cable companies in Canada ought to be worried about the entertainment company’s latest venture prompting some Canadians to cut the cord. 

“It just makes the household less dependent on cable-delivered video,” Kaan Yigit, a technology analyst at Solutions Research Group, told Canadian Business. “Some of those households will look to shave the cord — or cut the cord for that matter — over and above the intentions they might’ve had prior to Disney.”

The biggest question investors ought to be asking themselves today is whether Disney+ will provide enough content to damage the cable companies own offerings. Given the licensing differences between Canada and the U.S., however, the Canadian version isn’t likely to be nearly as persuasive. 

I guess we’ll see. 

Hudson’s Bay privatization plan in jeopardy

Catalyst Capital Group announced Monday that it had bought more than 18 million shares of Hudson’s Bay (TSX:HBC) at $10.11 a share. 

By doing so, it has proven that the privatization bid by HBC Executive Chairman Richard Baker is inadequate. At the same time, it gives Catalyst an ownership stake that’s large enough to have a say about what ultimately happens to the company. 

“Catalyst is committed to working with the Special Committee and the HBC Board to seek out every alternative that can maximize value for all shareholders,” Catalyst said in a release.

The fight for Canada’s largest department store just got a whole lot more interesting. 

Bruce Linton buys more Canopy Growth

Former co-CEO and board chairman Bruce Linton is reported to have purchased more Canopy Growth (TSX:WEED)(NYSE:CGC) stock despite the fact he was pushed out of his job in July. 

Linton confirmed in an email to BNN Bloomberg that he bought the cannabis company’s shares after they dropped to below $37 last week on weaker than expected earnings. Linton did not confirm how much he purchased. The former chief executive held 2.5 million shares as of June 28. 

“[Canopy] continues to execute on the emerging opportunity for increasingly sophisticated global and national recreational and medical products. This is a vision and dedication exercise that is designed to reward shareholders over a huge and rapidly emerging market,” Linton said.

“August has always been a buying opportunity.”

If Canopy shares continue to fall, investors pro-cannabis might want to consider doing the same.

The post 3 Things to Watch on the TSX Index on Tuesday  appeared first on The Motley Fool Canada.

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The TSX is now up 12.76% year to date through August 16, which is 44 basis points higher than the S&P 500. 

The big news in Canada this week is the release of June’s manufacturing and retail sales and July’s Consumer Price Index. 

In the meantime, here are three of the worst-performing stocks on the TSX during the week of August 12-16. 

Lightspeed POS

Lightspeed POS Inc. (TSX:LSPD) lost 18.6% on the week. 

Despite announcing significant revenue growth a week earlier in its Q1 2019 quarterly report, Lightspeed stock lost significant ground last week due to some profit-taking. 

Perhaps of even more significance is the news that several of Lightspeed’s insiders, including founder and CEO, Dax Dasilva, will be selling 5.3 million shares in a secondary offering. In addition, the company will sell 1.16 million shares to the public. It intends to use the net proceeds for general corporate purposes. 

Despite the 19% correction this past week, Lightspeed stock is still up 147% since its IPO in March, making it one of the best tech IPOs in TSX history.   

I’d continue to expect good things for Lightspeed stock in the future.

Canada Goose 

Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) lost 13.4% on the week.

The company reported strong revenue growth on August 14. However, because it sold a lot of lower-margin lightweight spring product, gross margins dropped dramatically in the quarter.

Analysts were expecting gross margins of 61.6; Canada Goose delivered gross margins of 57.5%, 410 basis points lower than the consensus and 640 basis points lower than in the first quarter a year earlier. 

To make matters worse, its net loss increased from $18.7 million in Q1 2018 to $29.4 million in Q1 2019. 

A big positive: Canada Goose hired Woody Blackford as its Executive Vice President of Design and Manufacturing. Blackford has more than 25 years in the apparel industry and will help take the brand to even higher levels. 

Canada Goose stock needed a bit of good news. It’s down 25% over the past three months as investors doubt its ability to grow beyond cult status. 

Green Organic Dutchman 

Green Organic Dutchman Holdings Ltd. (TSX:TGOD) lost 8.4% on the week.

A lot of good news out of TGOD last week so it’s hard to know why its stock lost so much ground during the week. Cannabis stocks as a whole performed poorly including Canopy Growth.

On the plus side, it reported 20% sequential growth during the second quarter, most of the growth coming from its European operations. It also announced that its Hamilton cultivation facility is almost completed. 

In addition, it announced that it made its first shipment to the Ontario Cannabis Store, the government-run online cannabis store. It is the company’s first foray into the Canadian recreational cannabis market.

The company’s premium organic cannabis should do well in the Canadian market. Last week’s dip is an excellent opportunity to buy on the dip.   

The post These Were the Worst-Performing Stocks on the TSX Last Week appeared first on The Motley Fool Canada.

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Analysts were in a good mood on Thursday, upgrading the following three TSX stocks. 

Canadian Apartment Properties REIT

National Bank Financial upgraded Canadian Apartment Properties REIT (TSX:CAR.UN) on Thursday from “sector perform” to “outperform” with a $5 increase in its target price to $57.   

The REIT was upgraded due to strong rent growth prospects combined with a tight near-term supply of multifamily residential in Canada. 

Industrial Alliance Securities analyst Brad Sturges, who has a “buy” rating on CAP REIT, raised his target price by $3 to $56. 

“While the REIT may experience higher insurance costs and property taxes year-over-year, CAPREIT is anticipated to generate above-average 2019 same-property average monthly rent growth year-over-year,” Sturges said in a note to clients.

The residential REIT’s stock rose 1.3% Thursday on the news. 

Freshii

CIBC analyst John Zamparo upgraded Freshii Inc. (TSX:FRII) from “underperform” to “neutral” on his improving outlook for the restaurant chain that sells healthy food. This upgrade came from Zamparo despite Freshii stock falling 6% Wednesday on a decline in same-store sales in the second quarter. 

“We believe numerous priorities exist in order to steer Freshii in the right direction. POS integration, mobile app improvement, expedient menu innovation and, above all, greater focus on in-store execution remain critical to recovering same-store sales growth (SSS) and strengthening average unit volumes (AUVs),” Zamparo noted. 

Zamparo sees Freshii slowing its rate of store closures, reducing the number of strategic decisions it has to make, getting back to running a restaurant business instead of putting out fires. 

Superior Plus

Superior Plus (TSX:SPB) delivered second-quarter results on Tuesday that met analyst expectations. As a result, Industrial Alliance analyst Elias Foscolos raised his rating on Canada’s leading provider of propane to homes and businesses. 

In the second quarter, Superior Plus had adjusted EBITDA of $60 million. The company believes it will deliver adjusted EBITDA between $490 million and $530 million in fiscal 2019. Foscolos estimates it will be $514 million. 

Superior Plus’ stock fell 7% on the Q2 2019 results. 

“Superior’s stock has unexpectedly dipped below its peers despite the in line quarterly results,” Foscolos wrote in a note to clients. “The Company continues to optimize its assets while exploring additional tuck-ins and mid-sized acquisitions in the U.S. With a potential total return of 30 per cent; we are upgrading.”

Superior Plus is up 28% year to date through August 15. 

The post Leading Brokers Name 3 TSX Shares to Buy Today appeared first on The Motley Fool Canada.

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Investors panicked Wednesday as the bond market sent a strong signal that we’re headed for a global recession. For a brief time on Wednesday, the 30-year U.S. Treasury bond yielded less than the two-year bond. When this happens, history suggests a recession is imminent. 

Despite the total lack of confidence from investors, these three stocks raced ahead on the TSX Wednesday.

TMAC Resources

TMAC Resources Inc. (TSX:TMR) jumped 13% Wednesday on double the average daily volume.  

Maverix Metals announced that it acquired an additional 1.5% net smelter return (NSR) royalty from TMAC’s Hope Bay gold mine in Nunavut. Maverix paid US$40 million for the additional NSR royalty. It now has a 2.5% NSR royalty on the gold mine operated by TMAC. 

Also, TMAC reported Q2 2019 results Wednesday, with 38,520 ounces of gold produced during the quarter generating $66.1 million in gross revenue at an average gold price of US$1,751 an ounce.

In 2019, TMAC expects to produce as much as 170,000 ounces of gold at an all-in-sustaining-cost (AISC) of US$950-1,050.  

SunOpta

The natural organic food company has had a new CEO for just four months, but Joseph Ennen is already making progress on Sun Opta’s (TSX:SOY)(NASDAQ:STKL) latest corporate priorities. 

“We’re taking a more focused approach toward evaluating what businesses we want to be in and what businesses we don’t want to be in,” Ennen said during an August 7 conference call with analysts. “We are developing clear, long-term points of difference for how we’re going to win in each of our businesses.”

The company has not been performing well as of late. In the second quarter, it lost US$11.1 million, more than double its loss a year earlier. 

However, in a show of confidence, Ennen recently bought US$100,000 worth of SunOpta stock on the open market for prices between US$2.29 and US$2.21 a share. He now holds a total of 319,000 shares.   

Premium Brands

Premium Brands Holdings (TSX:PBH) raced ahead 2.9% Wednesday on news that Industrial Alliance Securities analyst Neil Linsdell raised his target price on the food company’s stock by $3 to $98 on better than expected second-quarter results. Linsdell has a “buy” rating on PBH. 

Premium Brands delivered revenues of $945.5 million in the quarter, up 24%, on adjusted earnings per share of $1.03, 13 cents higher than the consensus estimate. 

“As PBH continues to execute on its growth strategy, its share price should deliver some tasty returns for investors seeking long-term capital and dividend growth,” Linsdell said in a note to clients. “We continue to see considerable organic growth and acquisition opportunities for PBH and reiterate our Buy rating.”

After losing some of its momentum in 2018, Premium Brands stock appears to have gotten back on its feet and should be a strong performer through the end of 2019 and into 2020.

The post Why TMAC Resources, SunOpta and Premium Brands Raced Ahead on the TSX Wednesday appeared first on The Motley Fool Canada.

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However, China’s comments about working with the U.S. on trade could deliver gains Thursday, rebounding nicely from a disastrous Wednesday.  

Here’s what to watch on the TSX on Thursday. 

Canopy Growth delivers anything but…

Canopy Growth (TSX:WEED)(NYSE:CGC) stock dropped by 14% in pre-market trading Thursday after Canada’s largest cannabis company delivered a stinker of an earnings report Wednesday. Analysts were anything but complimentary about its slowing growth. 

The company was expected to generate $107.1 million in revenue in Q1 2020. It was only able to produce $90.5 million in sales in the quarter. On the bottom line, analysts expected it to lose $0.70 in the quarter; it actually lost $1.28 a share, 83% worse than the consensus. 

There were two positives from the quarter. 

First, revenues were up 249% from the $25.9 million last year. Second, Canopy harvested more than 40,000 kilograms of cannabis in the second quarter, a company record, 183% higher than in the fourth quarter. 

It will be interesting to see how Canopy’s stock trades on Thursday now that investors have had a chance to digest the numbers. 

Bombardier looks attractive

Bombardier (TSX:BBD.B) traded four cents lower on Wednesday, closing the day’s trading at $1.71, just 12 cents off its 52-week low. 

Citi analyst Stephen Trent characterized Bombardier’s stock as “fairly battered” but believes its long-term prognosis is good. 

“Is Bombardier done with asset sales? Only management could answer that question with certainty.

That said, Bombardier now seems well focused on its business jet and transport segments,” Trent wrote in a note to clients Wednesday. “Our forecast does not assume any asset sales, beyond what has already been announced, such as the Q400 and CRJ commercial aircraft programs.”

Trent’s target price for Bombardier is $2,75, below the average analyst price of $3.36, but still providing 61% upside based on current prices. 

Canada Goose looks ready to fly 

Talk about stocks that have taken it on the chin in 2019. 

Canada Goose (TSX:GOOS)(NYSE:GOOS) reported Q1 2020 results Wednesday. Investors weren’t happy with its results or outlook sending its stock down by more than 7.5%. 

However, if investors take a closer look at Canada Goose’s results, D.A. Davidson analyst John Morris believes the company is one of the best names out there, doing everything it can to continue growing. 

“We continue to view GOOS as well-positioned given the company’s growth initiatives, global expansion opportunities, and continued investments in IT and infrastructure to support flexibility and scalability opportunities,” Morris said in a note to clients. 

The analyst has a “buy” rating on Canada Goose with a US$48 target price.

The post 3 Things to Watch on the TSX Index on Thursday appeared first on The Motley Fool Canada.

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The wall of worry continues to grow higher. As investors look for actionable news on Tuesday, here are three TSX stories to watch that could affect your portfolio.

Genworth MI Canada gets a new owner

In July, Genworth Canada MI’s (TSX:MIC) parent, Genworth Financial, announced that it would look at all strategic alternatives for its 57% stake in its Canadian subsidiary, so it could sell itself to a Chinese company that was having a hard time getting the Canadian government to grant regulatory approval of the sale.

On Monday, Genworth announced that it had found a buyer for its stake. 

Brookfield Business Partners (TSX:BBU.UN)(NYSE:BBU) will acquire 48.9 million shares of Genworth Canada MI for $48.86 a share for a total acquisition cost of $2.4 billion. 

Owners of Brookfield Business Partners ought to be happy with the company’s latest private equity acquisition. Genworth Canada is a leading mortgage insurance company in Canada with high barriers to entry and healthy profits.      

Jim Pattison bets on forestry

The forestry industry got a leg up Monday when Jim Pattison, one of Canada’s wealthiest people and owner of 51% of Canfor (TSX:CFP), offered to buy the remaining 49% for $16 a share. As a result of the unsolicited bid, shares of forestry stocks jumped nicely on Monday. 

Is it possible that the rally will carry into Tuesday?

“The bid shines a big light on Canadian lumber names, but how lasting that effect is will be interesting to see. I think the share prices will stay up this week and then probably drift lower unless something positive happens to lumber prices,” RBC Dominion Securities Inc. analyst Paul Quinn said in an interview.

Pattison, who also owns 12% of West Frase Timber, is confident that lumber prices will eventually recover, and when they do, Pattison will be a slightly wealthier billionaire as a result of his bold Canfor bid.  

Air Canada ups offer for Transat A.T.

Thanks to the competitive efforts of the Group Mach’s $14 bid for Transat A.T. (TSX:TRZ) along with protests from some of Air Canada’s (TSX:AC)(TSX:AC.B) shareholders, the airline has been forced to sweeten its offer for the tour operator to $18 a share, adding $200 million to the final cost of the takeover.

Without the increased offer, it’s unlikely that Letko Brosseau and Associates Inc., Air Transat’s largest shareholder with slightly more than 19% of its stock, would have voted for the sale. 

Group Mach had been acquiring Class B Transat shares to stop the transaction from going ahead. Transat’s board called on Quebec securities regulators to halt what it felt was a “clear abuse” of the capital markets. Group Mach CEO Vincent Chiara believes the actions of Transat should be examined given the board’s initial support of a $13 bid that was clearly inadequate.

Where will Air Canada stock go from here?

The post 3 Things to Watch on the TSX Index on Tuesday appeared first on The Motley Fool Canada.

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The TSX is now up 14.09% year to date through August 9 — 108 basis points higher than the S&P 500. 

Except for the announcement of existing home sales for July, not much is happening in Canada on a macroeconomic level in the week ahead. Down south, both the Consumer Price Index for July and the University of Michigan Consumer Sentiment Index for August are out.

In the meantime, here are three of the worst-performing stocks on the TSX last week.  

CI Financial 

CI Financial (TSX:CIX) continues to face significant headwinds, as it tries to win over Canadian investors. Last week, it reported net redemptions of $2.47 billion in the second quarter, its seventh consecutive quarter with net redemptions. Since Q4 2017, CI has seen $15.4 billion in assets walk out the door. 

CI stock lost 8.8% on the news. In four days of trading last week, it lost 9.8%. It’s off more than 50% since peaking in May 2014.

To turn around the company, CI announced that it had hired Kurt MacAlpine as its CEO. Starting with the company September 1, MacAlpine was executive vice president of WisdomTree Investments in New York.

Until MacAlpine can come up with a new strategy for the company, investors will have to make do with cost-cutting measures. In its latest quarter, it took a $35 million charge to account for senior staff cuts. 

Linamar

Auto parts company Linamar (TSX:LNR) lost 11% last week after reporting a mixed bag when it comes to its second-quarter results.

On the downside, Linamar reported both a 3.3% drop in sales and a 15.8% decline in normalized earnings. Its industrial segment, which includes its Skyjack and MacDon product lines, saw revenues drop 7.9%, primarily due to weakness in the agricultural sector as a result of the U.S./China trade war. 

Linamar CEO Linda Hasenfratz mentioned in its quarterly conference call that farmers are suffering badly from the dispute between the two countries. The sooner the trade dispute is resolved, the better.

However, on a positive note, despite declines in the global light vehicle market, Linamar’s transportation division’s revenues were flat for the quarter while it managed to generate $179 million in free cash flow, despite the decline in overall earnings.

In the second half of 2019, it expects EBITDA to resume growing. Linamar stock is now down 15.8% year to date and 28.9% over the past year. 

Badger Daylighting 

Badger Daylighting (TSX:BAD) lost 9.7% last week. Although it was down for the week, including dividends, it’s managed to gain 30.2% on the year.  

The primary reason Badger stock lost some momentum last week had everything to do with missing analyst estimates for its Q2 2019 results. 

Analysts were expecting $166 million in revenue from the largest hydrovac excavation fleet in North America; it delivered $161 million. The consensus estimate for adjusted EBITDA was $43 million. Badger came in $4 million below that estimate. 

The good news: the average target price by analysts is $52.75 — 27% higher than where it’s currently trading.   

The post These Were the Worst-Performing Stocks on the TSX Last Week appeared first on The Motley Fool Canada.

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