Bizworld’s 2023 five favourite stocks lost one-quarter of their value after accounting for dividends.
Despite improved earnings most dropped in price as uncertainties creating the bear market weighed on investors.
Alamos Gold, the only big gainer, brought shareholders a 25.4 per cent gain before the 5.4 per cent dividend.
Alta. Gas managed a 3.1 per cent return only because of the dividend.
Biggest loser was Savaria, dropping by one-third as the fast growing seniors’ mobility business only increased profits five per cent and wary investors sold.
Oil infrastructure operator Enbridge fell five per cent even though net profit was up by one-fifth.
Fuel retailer/wholesaler Superior Plus dropped 12 per cent while narrowing a $100 million loss to a $500,000 loss.
Dividends on the favourite five averaged 6.3 per cent offsetting losses and indicating the importance of dividends.
For the new year the five favourites are Ascot Resources, Alta. Gas, BMO, Manufacturers Life and Saturn Oil and Gas.
A low cost gold producer, Ascot will pour its first gold from an old rejuvenated B.C. mine by April. Production is set for 100,000 ounces this year and 180,000 in 2025.
Priced at 50 cents, analysts’ average estimate is $1.05.
BMO, the Bank of Montreal, should gain from the year-old takeover of Bank of the West and 500 branches in U.S. west and southwest, plus better loan margins as interest rates settle down.
BMO trades at $130.13 with average analysts’ bet at $133.50.
Alta. Gas, a major natural gas gathering processing distribution firm and exporter of propane at Prince Rupert should gain steam from expansions and three natural gas utilities in the U.S.A.
At $27.41 Alta. Gas is pegged for $32.40 by the analysts.
Saturn Oil and Gas, an Alberta/Saskatchewan explorer and producer, should do better as investors see profits increase.
An acquisition in February and drilling drove production to 16,500 barrels per day from 11,000 a year ago, yet the stock price has barely budged.
Priced at $2.30, the lone analyst of Saturn stock expects $5.65 in 2024.
Three of the five pay dividends: Alta. Gas, 4.34 per cent; BMO, 4.63; and Manufacturers Life, 5.02. Ascot and Saturn do not pay dividends
Prices used in this column were from Dec. 22, 2023.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
