Anthony Menard – Inovestor Inc.

August 2, 2021

StockPointer® Canada Portfolio Transactions – July 2021

We have rebalanced the Nasdaq Inovestor Canadian Index based on our Stockpointer® Canada model portfolio. These trades are effective as of Friday, July 16 after market close. Here are the details of the trades:

Ins:

North West Company (NWC) – Market Trend. Increase in the Consumer Staple sector as shown by the Top 100 index, therefore, increasing our position in the portfolio. We chose the company because of its high SP score.
GDI Integrated Facility Services Inc. (GDI) – Intra-sectorial transaction market. In the top of its sector.

Outs:

Quebecor (QBR.B) – Market Trend. Decrease in the telecommunication sector as shown by the Top 100 index, decreasing our position in the portfolio.
Evertz Technologies (ET) – Intra-sectorial transaction and market. No longer in the top of its sector.

July 13, 2021

Anthony Menard In Number Cruncher Extra

Number Cruncher Extra – Netflix, Nike, Etsy & Amazon

In our last Number Cruncher we discussed how Netflix (NFLX), Nike (NKE), Amazon (AMZN) & ETSY (ETSY) are companies with multiple qualities. Now, we will look at these stocks with our software Stockpointer.

Here is the screener we used to find these stocks

Let’s start with Netflix

The SP score of Netflix is 52 which is explained by its performance score of 71 and risk score of 53. The risk score is high compared to other companies and this is why the SP score is impacted. The company grew at a relatively constant rate of 29.1% in the last 5-year period while earnings grew by an impressive 81.8% per share during the same period. T

We can see here the margin improvement we talked about in the Number Cruncher, but translated into return on capital. The return on capital passed from 8.1% to 13.1% in the last 5-year. On the other hand, the company was judged less risky by investors. The cost of capital decreased from 12.1% to 8% during the same period. Consequently, the performance spread increased from -4% to 5.1% between 2017 and 2021.

The SP score of Nike is 63 which is explained by its performance score of 75 and risk score of 41.The last year performance of Nike is easily visuzalied by the earnings per share growth of 123.5% while sales grew by 19%.

Nike is a fantastic company, but we think investors need a bit of caution concerning the valuation. The share price tripled in the last 5-year, but earnings grew by only 50%.Was the market pricing not aggressive enough in the past or maybe the future is rosier than it was in the past? It is possible, but it is good to keep in mind that the valuation is not what it used to be.

ESTSY has a SP score of 57 which is explained by a performance score of 63 and a risk score of 44. ETSY is a small E-commerce company, but with a lot of potential. Its 5-year sales growth almost doubled Amazon (as we’ll see next). The company seems to have reached a size large enough to reach a certain threshold of profitability as we see the explosion of the EPS in the last year. Without a surprize, the company has a growth score in the top of our database with a score of 93.

The current operating value (COV) of ETSY multiplied by 10 since 2016 showing that the company created substantial tangible value during this period. The share price exploded by 20 during this period. The difference between the share price and the COV is explained by the increased expectations about the company. Back in 2016, investors probably had low expectations. The expectations increased given the extraordinary results in the pandemic environment,

Amazon has a SP score of 64 which is explained by a performance score of 76 and a risk score of 40. Amazon, the McDonald of E-commerce, is the largest and most known e-commerce company in the world. This monster is getting bigger and bigger every year. The company has one of the highest, if not the highest, revenue of our entire database, which includes Canadian, U.S. and ADR stocks, as shown by the 100 percentile.

The NOPAT (orange line) and the share price (blue line) touched themselves in 2019 and again in 2021 showing lower valuation based on historical figures. The EVA (green line) increased substantially since 2020 showing robust value creation by Amazon during the pandemic.

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com

July 13, 2021

Anthony Menard In Number Cruncher

These 11 growing companies from the S&P 500 are becoming increasingly attractive

What are we looking for?

U.S. equities with improving valuations and fundamentals.

We look for a negative three-month price-to-earnings (P/E) ratio and a positive three-month current operating value (COV) change to discover stocks with an attractive signal. A divergence in these metrics implies paying less now for more value than just three months ago.

The screen

We screened Standard & Poor’s 500 stocks focusing on the following criteria:

· Three-month price-to-earnings (P/E) change lower than 5 per cent. We want a company with downtrending valuation;

· Positive three-month current operating value (COV) growth. We want a company with improving fundamentals. The COV is based on discounted cash flow with no growth. The parameters are determined automatically by our platform. It is an approach to evaluate the minimum value of a business;

· Three-month sales growth higher than 4 per cent. We want a growing company;

· Economic performance index (EPI) higher than 1.25. This is the return on capital divided by the cost of capital. A value higher than one demonstrates a company’s ability to create value for its shareholders.

For informational purposes, we have also included the P/E ratio, three-year median P/E ratio, one-year price return, market capitalization and dividend yield. Please note that some ratios may be reported as of end of the previous quarter.

More about Inovestor

Inovestor for Advisors is a fundamental-analysis research platform specializing in the economic value-added (EVA) approach. With Inovestor, advisers can quickly identify attractive investment opportunities, outsource their stock picking by using model portfolios and easily communicate investment decisions with clients through client-friendly reports. In addition, Inovestor allows users to create personalized filters, build custom portfolios and carry out in-depth analysis on more than 13,000 companies (Canadian and U.S. stocks and American depositary receipts).

TICKER	NAME	PRICE	MKT. CAP ($MIL)	P/E CH. 3M (%)	COV GRTH (%)	3M SALES GRTH. (%)	EPI	P/E	P/E (3Y MEDIAN)	DIV. YIELD (%)	1Y PRICE RTN. (%)
NFLX-Q	Netflix, Inc.	535.98	237645	-23.3	4.3	5.6	1.6	63.1	84.6	N/A	2.0
NKE-N	Nike, Inc. Class B	161	254219	-17.7	8.9	15.8	2.6	44.2	46.3	0.7	66.9
ETSY-Q	Etsy, Inc.	195.09	24549	-11.5	3.8	18.7	2.1	50.3	63.5	N/A	86.6
ABMD-Q	Abiomed, Inc.	324.77	14703	-7.9	0.9	4.3	1.6	65.0	62.0	N/A	22.8
FDX-N	Fedex Corporation	296.4	78647	-7.0	4.3	6.7	1.4	15.2	26.5	1.0	89.7
AMZN-Q	Amazon.com, Inc.	3719.34	1874547	-6.9	5.6	8.6	2.4	69.4	77.8	N/A	19.8
ABT-N	Abbott Laboratories	119.74	212756	-6.1	17.0	7.9	1.6	37.3	52.2	1.5	28.6
PKI-N	Perkinelmer, Inc.	153.96	17254	-5.9	35.7	17.3	2.7	16.0	38.7	0.2	47.3
QCOM-Q	Qualcomm Inc	141.43	159674	-5.7	6.1	10.2	2.2	19.9	25.7	1.9	54.9
CINF-Q	Cincinnati Financial Corpora	118.87	19138	-5.3	94.8	30.9	2.6	6.2	13.8	2.1	69.6
CDNS-Q	Cadence Design Systems, Inc.	138.5	38540	-5.2	2.6	4.4	1.5	58.0	43.2	N/A	39.8

What we found

The leading streaming service, Netflix Inc. had the largest P/E decline in the past three months while registering 4.3 per cent growth in its COV. Many players have joined the streaming party over the past few years: Amazon Prime, Disney+, HBO and many others. But Netflix still has the largest content library and continue to fuels it with aggressive investments by acquiring or developing new series and movies.

The company spent US$11.8-billion on its content last year alone despite COVID-19 disruption in the film industry. Since 2018, Netflix’s gross margin has increased by 1 per cent each year, meaning a dollar spent on content has produced more and more additional revenue. As the saying goes: Content is king.

The multinational sporting goods company Nike Inc. had a strong year as consumers rushed to buy sports equipment during the pandemic. In its most recent quarter, the company again beat analyst estimates with diluted earnings of 93 U.S. cents a share versus 51 U.S. cents expected.

Over time, Nike has allied itself with many professional athletes who have contributed to the brand’s recognition. This recognition by consumers can be seen in the EPI of 2.6. Customers are potentially willing to pay more for Nike’s products than competing ones, which creates value for its shareholders. The company’s robust short-term results forced our algorithm to readjust its assumptions resulting in a 8.9-per-cent increase in the COV in just there months.

Etsy Inc. and Amazon.com Inc. have similar profiles. Etsy connects buyers and sellers, and offers mostly handmade and vintage items on its platform, while Amazon follows the equivalent process, but with a much wider variety of products. Amazon also has a huge division offering cloud computing services.

Both companies have benefited from the shift in consumer habits toward e-commerce. Is their growth borrowed or has the pandemic accelerated the transition to online shopping?

Close to a year and half after the start of the pandemic, Etsy’s three-month sales growth of 18.5 per cent and Amazon’s 8.5 per cent expansion show no signs of going backward. But both companies are also selling below their historical P/E ratios: 50.3 today for Etsy, versus 63.5 historically, and 69.4 for Amazon, versus 77.8 in the past. The lower valuations may indicate the market is not convinced growth can continue at the rates seen in recent years.

Investors are advised to do further research before investing in any of the companies listed in the accompanying table.

Anthony Ménard is an investment analyst at Inovestor Asset Management.

For more details about these stocks, subscribe to the Inovestor for Advisors platform for free: inovestor.com/en-CA/store/

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

June 15, 2021

Anthony Menard In Number Cruncher Extra

Number Cruncher Extra – Stella-Jones, Alimentation Couche-Tard & Metro

In our last Number Cruncher we looked for stocks that don’t attract attention. We managed to find Stella-Jones (SJ), Alimentation Couche-Tard (ATD.B) and Metro (MRU) as potential candidates. In Number Cruncher extras, we use our software Stockpointer to reveal more insights about our picks.

Let’s start with SJ

SJ is identified by our system as a quality stock. The company has achieved stable return on capital with a large spread between its return on capital and cost of capital. The company also generated meaningful growth as sales and EPS grew by 16.4% and 10.3% respectively in the last 5-year.

The company still trades around the same price then 5 years ago despite higher EPS impliying a cheaper valuation. While the slowdown in the share price could be rational as the lumber prices should come back to earth, the share price stagnation over this period of time is surprizing considering the performance of the company.

ATD.B is also identified as a quality company by our software. The small momentum score reflects the hard start to the year as mentionned in the Number Cruncher. Sales are heavily down year-over-year, but the EPS accelerated to 34.4% compared to its 5-year trend of 25.9%. The lower sales came from lower gasoline revenues, but the margin improvements mitigated the lower gasoline volume.

The company NOPAT and EVA improved significantly in the last year. The share price seems to have trouble passing the $45 mark. The market is cautious with oil-related companies. ESG investments are increasingly popular potentially putting pressure on energy-focused companies. The recent green bond issuance combined with the last year great performance could help the stock to go beyond $45.

Metro has a similar profile than ATD.B, a great company with long-term growth, a decent valuation, but with poor momentum. Sales grew below its 5-trend, but the long-term trend incorporates the acquisition of Jean Coutu, a well-known drugstore in Quebec. The beta of 0.14 combined with its low risk score of around 20 demonstrates how little risky the company is.

if we compare the performance and risk score to peers, the company seems to be a solid pick in terms of both performance and risk.

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com

June 14, 2021

Anthony Menard In Number Cruncher

Ten strongly profitable TSX stocks that investors may be overlooking

WHAT ARE WE LOOKING FOR?

Canadian stocks with strong profitability but whose unspectacular price movements may mean they’re not attracting much investor attention. We use the six-month price return to find stocks that may have been overlooked. A lack of buyers favours undervaluation.

THE SCREEN (access and save it on the Inovestor for Advisors platform)

We screened Canadian stocks focusing on the following criteria:

Market capitalization greater than $1-billion;
Return on capital (five-year mean) greater than 8 per cent – we’re looking for profitable companies;
Six-month price return between minus 5 per cent and 5 per cent – we want companies whose run-of-the-mill price movements are not attracting attention;
A price-to-earnings ratio that is less than 40 – we want a company that had a positive net income in the trailing 12-month period and we exclude companies with a stretched valuation.

For informational purposes, we have also included the one-month price return, one-year price return, five-year median price-to-earnings ratio, one-year earnings per share growth, annualized two-year EPS growth, and dividend yield. Please note that some ratios may be shown as of end of previous quarter.

MORE ABOUT INOVESTOR

Inovestor for Advisors is a fundamental-analysis research platform specializing in the economic value-added (EVA) approach. With Inovestor, advisers can quickly identify attractive investment opportunities, outsource their stock picking by using model portfolios and easily communicate investment decisions with clients through client-friendly reports. In addition, Inovestor allows users to create personalized filters, build custom portfolios and carry out in-depth analysis on more than 13,000 companies (Canadian and U.S. stocks and American depositary receipts). For more details about these stocks, subscribe to the Inovestor for Advisors platform for free: inovestor.com/en-CA/store/

TICKER	NAME	PRICE	MKT. CAP ($MIL)	ROC (5Y MEAN, %)	1Y EPS GRTH. (%)	2Y EPS GRTH. (ANN., %)	1M PRICE RTN. (%)	6M PRICE RTN. (%)	1Y PRICE RTN. (%)	P/E	P/E (5Y MEDIAN)	DIV. YIELD (%)
SJ-T	Stella-jones Inc.	46.15	3020	12.0	51.0	30.9	-10.1	4.3	25.6	13.0	19.6	1.6
ATD.B-T	Alimentation Couche-tard Inc	45.32	48870	12.5	34.4	20.4	8.1	3.2	-0.9	15.4	18.2	0.8
SVM-T	Silvercorp Metals Inc.	7.68	1120	9.7	29.6	-12.9	7.9	3.4	-4.1	24.2	13.9	0.4
MRU-T	Metro Inc.	58.39	14340	13.0	14.5	14.6	0.4	-1.5	3.1	17.7	18.5	1.7
JWEL-T	Jamieson Wellness, Inc.	34.34	1380	8.3	13.3	18.0	-9.9	-2.0	-4.2	35.6	32.2	1.5
DOL-T	Dollarama Inc.	55.75	17040	28.3	1.1	3.6	4.8	4.2	19.6	29.4	26.8	0.4
KL-T	Kirkland Lake Gold Ltd.	52.43	14000	17.1	-7.4	31.4	4.3	0.0	-15.9	15.9	16.6	1.8
PKI-T	Parkland Corporation	41	6170	9.0	-16.2	-18.4	4.1	-1.9	24.5	32.4	38.9	3.0
RCI.B-T	Rogers Communications Inc. C	62.5	31680	8.4	-19.4	-10.2	1.4	3.1	16.6	19.9	17.9	3.2
CNR-T	Canadian National Railway Co	134.21	95020	14.5	-19.9	-9.0	-1.3	-4.7	10.1	27.1	19.3	1.8

Source: Inovestor

The top 10 stocks that met our criteria are ranked by one-year EPS growth.

Stella-Jones Inc., a producer and marketer of pressure-treated wood products, has the highest one-year EPS growth and the lowest P/E of our list, at 51 per cent and 13 respectively. Given a median P/E of 19.6 in the past five-year period, the company gives the impression of having a noticeable margin of safety. Its major business segments, utility poles and railways ties, counting for approximately 60 per cent of its sales, recorded a sluggish 1 per cent organic growth. It is plausible that clients delayed their investments owing to high lumber prices. On the other hand, other divisions, including residential lumber, more than compensated by registering a 131 per cent organic growth as renovation and lumber prices continued to strengthen. In the next quarters, those divisions are likely to decline as the lumber prices normalize, but the core business could pick up, mitigating the impact.

Alimentation Couche-Tard Inc., the convenience store and gas station giant, had a difficult start to 2021 as the stock stumbled by 16.3 per cent in the year’s first two weeks. The company’s preliminary takeover discussions with French supermarket chain Carrefour SA were not particularly appreciated by investors – nor by France’s government, which opposed any deal. More generally, in recent years investors have been increasingly nervous about the long-term outlook for gasoline-powered vehicles. On May 10, the company issued $1-billion in green bonds to be used exclusively for environmentally friendly projects and community initiatives. The market seems to consider the issuance as a signal management has a long-term transition plan. The share price is up 8.1 per cent in the past month.

Grocery and drugstore owner Metro Inc. registered a steady annual growth of 14.5 per cent and 14.6 per cent (annualized) in the past two years. The pandemic has helped the company to generate higher sales and maintain its robust growth. Despite this, the stock is up only 3.1 per cent in the past year as the market expects a slowdown in revenue as restaurants reopen. Adding Metro to a portfolio would certainly be a contrarian move because the economy should be at full speed next year. Nevertheless, the market is a complex machine of anticipation: Buying at a reasonable price when few others are interested can generate a meaningful return on longer horizons – especially if expectations in the market switch in the meantime.

Investors are advised to do further research before investing in any of the companies listed in the accompanying table.

Anthony Ménard is an investment analyst at Inovestor Asset Management.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

May 18, 2021

Anthony Menard In Number Cruncher Extra

Number Cruncher Extra – Canfor, Labrador Iron Ore Royalty & Calibre Mining

In our last Number Cruncher, we’ve found Canfor (CFP), Labrador Iron Ore Royalty (LIF) & Calibre Mining (CXB) as potential candidates with robust momentum and excellent fundamentals to play the commodities boom. In Number Cruncher extras, we use our Stockpointer platform to reveal more insights about our picks.

Let’s start with CFP

The company has a high exposure to value, growth quality factors as well as momentum and volatility to a lesser extent. Its price/earnings ratio of 3.77 certainly explain a part of its high value factor exposure. The company has a solid 1-year sales growth of 33% as well as a decent annual sales growth averaging 10.6% in the last 5-year. The comapny grew its EPS by 24.1% per year in the last 5-year period.

Canfor is higher than the X axis which means the company is creating value for its shareholders. The comapny is also at the right of the Y axis meaning that the company is selling at a discount. The company is exactly where we want it to be as a potential buyer. The stock also looks better than its peers, both in terms of profitability (the higher than its peers) and price (rightmost than its peers).

The strong income stream is well identified by our yield factor with an incredible score of 95. It has a balanced factor exposure to quality, value and growth ranging from 75 to 80. The company has a particularly strong five-year EPS growth of 26.7%, showing that it is able to navigate different market environments.

The company has some volatility in its results, but considering the volatility of iron ore it is quite reasonable. We come to the conclusion that royalties are potentially less volatile than actual extraction. The NOPAT grows despite large dividends and the EVA constiously grew in the past years. These 2 metrics show a company that creates value for their shareholders in the long term.

Calibre Mining has a robust growth factor exposure with a score of 91 which is explained by the extreme annual sales growth and EPS growth in the last years. We need to put it in perspective. Calibre Mining seems to have started to extract gold ore recently and therefore the year-over-year values probably don’t show an adequate picture even if it doesn’t dimish the fact that the recent results are solid.

CBX was on a downtrend for few years and our model indicated the company was overvalued due to the intrisinc value being below the share price. In mid 2020, the intrinsic value surged, but the share price didn’t follow as much. At the first quarter of 2021, the intrinsic value stabilized while the share price slipped. We see here a potential entry point.

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com

May 4, 2021

Anthony Menard In Model Portfolio

StockPointer® Canada Portfolio Transactions – April 2021

We have rebalanced the Nasdaq Inovestor Canadian Index based on our Canadian Model Portfolio, effective April 16 after market close.

Here are the details:

Ins:
1. Power Corporation of Canada (POW) – Market trend. Increase in the Financial sector as seen in the Top 100 index, therefore, increasing our position in the portfolio. The company is in the top of its sector
2. goeasy Ltd (GSY) – Market trend. Increase in the Financial sector. The company is in the top of its sector
3. Canfor (CFP) - Market trend. Increase in the Material sector. The company is in the top of its sector

Outs:
1. Thomson Reuters (TRI) – Market trend. Decrease in the Consumer Discretionary sector as seen in the Top 100 index, therefore, decreasing our position in the portfolio. The company has the second lowest SP score of the sector. Richelieu Hardware (RCH) has the lowest SP score by one point, but we preferred it over TRI.
2. Empire Company (EMP.A) – Market trend. Decrease in the Consumer Staples sector. The company has the lowest SP score of the sector.
3. Parkland (PKI)  – Both Market trend and the EPI fell below 1. Decrease in the Energy sector. It was the only stock in the Energy sector.

April 20, 2021

Anthony Menard In Number Cruncher Extra

Number Cruncher Extra – Clorox, Progressive & Autozone

In our last Number Cruncher we discussed how Clorox (CLX), Progressive (PGR) & Autozone (AZO) are companies with incredible adjusted profitabily adjusted for risk and valuation. Now, we will look at these with our software Stockpointer.

Let’s start with CLX

The company has a SP score of 78 which is explained by the performance (86.2) and risk (25.1) score. Last year momentum is easily observable in all key metrics such as sales, EPS and performance spread. The company managed to increase its earnings per share by almost 20% per year in the last 5-year period.

We see in this chart that the market potentially overreacted to the company’s short-term profitabily boost and that the share price fell since July. At the current level, the NOPAT continues to grow rapidly and the share price approach a more reasonable entry point.

Progressive has a SP score of 76 explained by its performance score (72.5) and risk score (14.6). The company offers as much as 3 factors exposure: quality, value and growth. PGR grew at a rapid rate of 16.3% per year in the last 5-year which helped to increase its earnings per share by 53.2% per year. This performance is possible due to the substantial increase in the performance spread.

We see that our system has been fairly close to the actual share price in the past. Currently, due to the short-term boost from the pandemic, the intrinsic value exploded, but the share price didn’t follow. Our system indicated a potential increase around January 2020 since the Intrinsic value was fairly higher than the share price. The stock currently trades around that price. We believe the stock could see a potential increase from this point even if we don’t consider the intrinsic value to be representative of the potential upside.

Autozone has a SP score of 77 explained by its performance score (76.3) and its risk score (19.3). The stock has a similar profile than Clorox, slower Sales growth (5-6%), but still maintain EPS growth at more than 15%. This stock is the only one of the three to have the “low risk” factor exposure. We’ll directly pass to the next graph to better visualize that.

The NOPAT increased each year in the past five years. In 2018, the performance spread decreased significantly, but it could be because of the Trump tax plan. We would need to look further on this. Otherwise, the large performance spread gives a huge margin of safety that it will add value to shareholders over time.

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com

March 22, 2021

Anthony Menard In Number Cruncher Extra

Number Cruncher Extra – Manulife, Quebecor & Hydro One

In our last Number Cruncher we discussed how Manulife (MFC), Quebecor (QBR.B) & Hydro One (H) are companies with multiple qualities. Now, we will look at these with our software Stockpointer.

Let’s start with MFC

The company has a high score of 72 which is explained by the performance (69.8) and risk (20.1) score. The company strengths are more oriented toward its low valuation risk than its incredible performance although the company’s sales grew at a respectable 21% in the last 5-year period. Its performance spread has been positive in the last 3 years, but it declined during the period.

If the FGV is below the historical average, the company is considered cheap relative to the historical average. The company is around its historical mean, but a favorable environment, as mentionned in the Number Cruncher, could push the stock towards its 2017 peak.

Let’s continue with QBR.B.

QBR.B has a solid SP score of 74 fueled by both its strong performance (80) and low risk (27.9) score. Our system evaluates QBR.B to be a quality and growth company. The company increased its performance spread, in other words, the difference between the return on capital and the cost of capital, increased on a relative basis by 56.6% compared to the previous year. The company rose significantly its EPS although annual sales growth matched the inflation during the period.

The company grew its earnings per share steadily in the last 5-year and as a consequence the share price followed the same trend. A fairly straightforward relationship.

Our third pick: H

Hydro has a strong score of 72 explained by its performance score (70.8) and risk score (25) while being identified as a quality and value by our software. Utilities tend to have lower performance score in our system because their return on capital is generally low, but they compensate it by having more leverage than a traditionnal company. Earnings per share rose strongly in the last 3-year and the performance spread has followed the same trend. Sales also started to expend more vigorously 3 years ago. On the other hand, the company’s dividend yield has declined over the past 3 years. The company has potentially increased its capital expenditures instead of hiking its dividend. We do not see this negatively.

As mentionned in the Number Cruncher, the company has an excellent ESG score. It is indeed involved in nuclear power, but it is certainly much better than coal-fired power plant. The company has had only a few events, and they have all been rated at a low level of controversy.

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com

February 2, 2021

Anthony Menard In Model Portfolio

StockPointer® Canada Portfolio Transactions – January 2021

We have rebalanced the Nasdaq Inovestor Canadian Index based on our Canadian Model Portfolio, effective today, January 22, after market close.

Here are the details:

Ins:

1. CCL Industries Inc. Class B (CCL.B) - Market trend. Increase in the Material sector as seen in the Top 100 index, therefore, increasing our position in the portfolio.

2. Hydro One (H) - Intra-sectoral transaction. In the top of its sector.

Outs:

1. Great-West Lifeco (GWO) - Market trend. Decrease in the Financial sector as seen in the Top 100 index, therefore, decreasing our position in the portfolio.

2. Fortis (FTS) - Intra-sectoral transaction. No longer in the top of its sector.