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What is your favourite CDN growth stocks?

70K views 110 replies 19 participants last post by  Pluto 
#1 ·
To define the question further, I'm not talking about the latest "hot" small cap that may be flash in the pan. Rather, ones that have been around for a long time, and for you, kept on giving, and giving interms of capital growth, and which may or may not pay a dividend.
 
#5 ·
Doesn't the worst big 5 bank have a 30 or 40 year CAGR of 12%.

OSB did $5 to $37 in 9 years, and a few months ago would have been $5 to $50.
MX did $8 to $84 in 9 years.

What is nice about OSB and MX is the volatility. You can often buy them at value stock prices as opposed to others that are always priced for perfection.
 
#10 ·
Another very good source are the funds listed in the MAWER New canada Fund - run by Jeff Mo.
MTY Food Group Inc. 5.8
Enghouse Systems Limited 5.1
Boyd Group Income Fund 4.9
Altus Group Limited 4.5
Stella-Jones Inc. 4.5
NFI Group Inc. 4.4
EnerCare Inc. 4.3
Morneau Shepell Inc. 3.9
Winpak Ltd. 3.6
Solium Capital Inc. 3.5
Parkland Fuel Corporation 3.4
Stantec Inc 3.3
Richelieu Hardware Ltd 3.3
 
#11 · (Edited)
Methanex has been one of my better holdings. Low div (2% yield), so mostly growth. I bought 1000 shares back in 2003. Took profit when it first doubled, so present holdings cost me nothing really. Here is a chart since inception:



Hit over $100 a month or so ago, but dropped back recently. Methanol is a commodity, but Methanex have market cornered, it seems.
 
#15 · (Edited)
James, this is going off-topic, but I don't get the various equity portfolios, or how they can even be managed.

I have one portfolio that: 1) stock picks Canadian blue chip equity, 2) indexes ex-Canada equity, 3) 5 year GIC/bond ladder for FI, 4) prefs in taxable account, 5) HISA reserve. I don't consider each of those portfolios in themselves.

Added: I don't own momentum stocks but have those like CTCa and CNR that are low dividend....and may be considered growth I suppose.
 
#16 · (Edited)
James, this is going off-topic, but I don't get the various equity portfolios, or how they can even be managed.

I have one portfolio that: 1) stock picks Canadian blue chip equity, 2) indexes ex-Canada equity, 3) 5 year GIC/bond ladder for FI, 4) prefs in taxable account, 5) HISA reserve. I don't consider each of those portfolios in themselves.
It doesn't sound like mine is too different, other than what I'm calling a "portfolio". As far as I can tell the only difference versus what you described above is that I have one additional Canadian strategy. You have a single batch of Canadian stock picks, and I have two batches of Canadian stock picks (with distinct strategies).

I separated them so that I can track them and evaluate them over time. It doesn't seem like a lot of work to me. In fact I don't think it would be a good idea to combine them into one because there are separate methodologies for the two methods. This is not about which account the stocks are in, but how I pick and manage them.

My 5-pack portfolio is quite passive and very close to XIU. My Lowdiv portfolio is much more active, risky, and uses a totally different methodology.
 
#18 ·
someone better call in the LTA Police, i believe i might be getting back on topic, oh the horror

going forward i don't have any fave canadian growth stocks for the future, i see mostly risky ridges ahead

looking back, onex & td have been my bestest, along with merck in the RRSP but this latter was boosted by the huge gain in USD. Commenced buying onex & the big green in the low to mid 30s. I still buy a few now & then in non-reg'd but such buying is strictly for tax purposes, the idea is to raise cost base. If i were a new investor i would not go for any of these 3 at the present time.

if i were new investor w long life ahead, i'd be holding licked thumb up in the air to see if i could catch the faintest breeze of extremely early new-cycle buying in the resource sector. Speaking of ultra-faint early breezes combined with a mention of ONEX, this company is partnering with blackRock & the CPPIB to buy the remnants of US aluminum giant alcoa.
 
#25 · (Edited)
Using Canadastockchannel calculator provides some interesting data.

For example (since Jan 1 2004~15 years), Total returns of stocks I had on Jan 1st 2004 (Also had some etfs and MFs back then plus bonds & GICs.

TSX
with dividends reinvested XIU 7.2% XIC 7.04%
with dividends not reinvested XIU 6.66% XIC 6.31%

BANKS
with dividends reinvested BMO 8.72% BNS 9.55% TD 12.32% NA 11.56% RY 12.03%
with dividends not reinvested BMO 6.69% BNS 8.02% TD 10.43% NA 9.42% RY 10.12%

OTHERS
with dividends reinvested BCE 9.09% EIF 19.01% TRP 8.45% EMA 10.56% REI 10.75% MX 15.45
with dividends not reinvested BCE 7.18% EIF 13.77% TRP 7.06% EMA 8.63% REI 7.88% MX 13.67

BASEMENT
with dividends reinvested PWF 5.35% L 1.97% POW 4.65%
with dividends not reinvested PWF 4.6% L 1.28% POW 4.0%

What I found interesting:
- XIU/XIC underperformed the banks, utilities and other dividend payers on a Total Return basis
- Even without re-investing dividends, the dividend payers provided excellent portfolio growth beating out XIU's Total Return (incl divs)
- EIF (Exchange Income Fund) was best performer! MX was second.
 
#27 ·
Interest rates go up in order to slow down the economy and keep inflation in check. So yes, as interest rates increase, I expect businesses and therefore share prices to do well.

Go back and check market performance vs interest rates last time there was an extended period of growth in interest rates. Say 1960 to 1980.
 
#29 ·
Wow, this is a fine list of growth issues. My strategy is to have about 80% in large dividend stocks that grow dividends, and about 20% in faster growers. My theory is one only needs one or two fast growers to signficantly improve capital growth, while getting income and some growth from the others - for me, the others are mostly banks and utilities. (I used to shun banks and utilities.)

Currently my hopes for a fast grower amidst the stalwarts is GSY.T. It reports on, I believe, Nov 12, and expectations are high. It is also consolodating recently after a significant runup in price.
P/e around 16, but recent growth has been 30% so p/e could expand.
 
#30 ·
You have to be lucky to find fast growing smaller cap stocks. Especially ones that would beat the growth of those dividend paying stalwarts I listed above.Just read a bit about GSY. Rents out furniture, offers personal loans, etc:

goeasy Ltd. is a leading full-service provider of goods and alternative financial services that provides everyday Canadians with a chance for a better tomorrow, today. goeasy Ltd. serves its customers through two key operating divisions, easyfinancial and easyhome. easyfinancial is a non-prime consumer lender that bridges the gap between traditional financial institutions and costly payday lenders.
No idea if it will do well, but not something I would buy. By the way, I see it has taken a 12% drop today so far and is still dropping!
 
#31 ·
^
Yes it is not for everyone. Just reported revenue up 26%, EPS up 24%. Volatility is to be expected. has a high beta. To me not a big deal as it offers buying opportunites. Unconfirmed reports are that there is a CEO change, so that might have made some investor nervous.

In the meantime I was looking into MX as a possible buy. Its debt/equity is reported to be in the range of 100 to 113. So I'm looking deeper into that. Retrun on equity is a nice 20%. Debt/equity is a concern.
 
#32 ·
GSY is a very strong growth company. It may have gotten slightly ahead of itself. It is now trading at a trailing P/E of 10, and a forward P/E of around 8, which is low but interestingly not that far off comparables, plenty of small companies trading at very low valuations. A really good company and if it falls another 10-20% without a drop in outlook then a very strong buy.
 
#35 · (Edited)
^And I bet you are happy.

Another CDN growth name that came to mind is CAE. I always coveted this one, but when I was looking to buy it was "too expensive". Always seems to be too expensive. that seems to suggest it is a great company.
 
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