Montreal retailer Dollarama lost support this week after the unveiling of the company’s most recent quarterly financial performance.
Highlighting the stock’s 65% rise over the past two years, analyst Martin Landry at Stifel/GMP withdrew his buy recommendation, finding it unlikely that the valuation would continue to rise in the short term. With inflation slowing and discretionary spending decelerating, he sees a risk that comparable sales growth will be lower than in the past. He also believes investors could start looking beyond the recession to position their portfolios for a return to economic growth.
For essentially the same reasons, Brian Morrison of TD also withdraws his purchase suggestion.
There are now 7 analysts out of 13 to suggest buying.
Several Quebec stocks with a high dividend yield have recently appreciated (BCE, Power Corporation, Fiera Capital, etc.). This may be due to the fact that the next rate change will be downward rather than upward. “This creates a floor for the stock market and sends the signal that it is heading towards a significant increase in the coming months,” underlines portfolio manager Paul Beattie, of the Montreal firm BT Global, in his monthly financial letter sent on Friday. The most obvious opportunity, he says, is in stocks with a high dividend yield.
“Anything that yields more than 5 or 6 percent with some organic growth is going to bounce back,” he says. He names stocks like Brookfield Infrastructure Partners, Northland Power, BCE, Enbridge, Exchange International, TransCanada, etc. “Choose your high dividend yield stocks and take a stake. »
The Caisse de dépôt et placement du Québec has just revealed to the stock market authorities that it acquired a block of Stella-Jones shares worth $1.5 million on November 28. The largest shareholder of Stella-Jones, the Caisse began December with a 13.4% stake in the Montreal manufacturer of telephone poles and railway ties.
A member of the Stella-Jones board of directors sold nearly $400,000 worth of shares in the Montreal company this week. James Manzi sold a block of 5,000 shares on Monday. He has been a member of the council since 2015.
A CGI director has just purchased nearly $77,000 worth of shares in the Montreal technology services company. Sophie Brochu purchased a block of 540 shares on December 7. She has been a member of the CGI board of directors for three months.
Monday will be the first day of trading on the NASDAQ on the stock of LeddarTech, a Quebec supplier of automobile driving assistance software. This will be an opportunity to seize the initial enthusiasm and take the pulse of investors.
To reduce or not to reduce the dividend at Innergex? This is the question raised Monday by National Bank Financial. The dividend paid by the Quebec renewable energy producer represented more than 100% of free cash flow this year, underlines analyst Rupert Merer, in a report published earlier this week. The dividend yield is close to 8%, which makes this expert say that Innergex would benefit in the long term from a dividend reduction in order to invest more in growth or share buybacks. Share buybacks constitute the greatest opportunity, according to him.
Quebec securities of CGI and ADF hit a 52-week high this week on the Toronto Stock Exchange.
On the other hand, those of Metro, BRP, Taiga, Marché Goodfood, Alithya and PyroGenèse all slipped this week to a 52-week low.
