Market-laggards

By The Investment Reporter / April 04, 2014 / www.adviceforinvestors.com / Article Link

Our Investment Planning Committee believes the stocks in the column below have little appeal and should underperform the market over the next six months. We view them as holds or sells. (Note that we aren't advising you to sell them short.) Remember to consult The Investment Reporter each week for changes in our opinion.

AIR CANADA $5.57 (TSX-AC.B; Quality rating: Conservatove) faces a lower loonie. Is in a poor industry, with few airlines making money for long. Hold.

ARMTEC INFRASTRUCTURE $1.48 (TSX-ARF; Quality rating: Higher Risk) keeps losing money. As a result, it has negative shareholders' equity. The company pays no dividend. Sell.

ASIAN TELEVISION NETWORK $2.62 (TSX-SAT; Quality rating: Speculative) pays no dividend. Is too costly relative to its earnings per share. Hold.

AUTOMODULAR CORP. $2.40 (TSX-AM; Quality rating: Speculative) will, after 2014, lose the business it does with Ford Motor, its only customer. Hold.

BELL ALIANT $26.36 (TSX-BA; Quality rating: Very Conservative) owns legacy businesses (such as long distance and local) that are in decline. Hold.

BLACKBERRY LTD. $10.32 (TSX-BB; Quality rating; Conservative) faces tough competition, including in emerging markets and pays no dividends. Hold.

BRICK BREWING $1.38 (TSX-BRB; Quality rating: Speculative) is over-priced given expected earnings of a penny a share. Pays no dividends. Hold.

CANEXUS CORP. $5.04 (TSX-CUS; Quality rating: Speculative) trades at an excessive price-to-earnings ratio of 50.4 times. Its expected 2014 profit of 10 cents fails to cover the dividend of 55 cents. Hold.

CORBY SPIRIT & WINE $19.45 (TSX-CSW.A; Quality rating; Average) is costly and is under the thumb of parent company Pernod-Ricard. Hold.

FORTRESS PAPER $3.61 (TSX-FTP; Quality rating: Higher Risk) keeps losing money year after year and pays no dividends. Sell.

HUDBAY MINERALS $8.15 (TSX-HBM; Quality rating: Conservative) is too costly given its 2014 expected earnings of 24 cents a share. Hold.

LE CHATEAU $2.84 (TSX-CTU.A; Quality rating; TVA GROUPAverage) faces fierce competition from many domestic and foreign retailers. Pays no dividend. Sell.

MANITOBA TELECOM SERVICES $18.89 (TSX-MBT; Quality rating: Very Conservative) is costly to its estimate of $1.74 a share, given low growth. Hold.

MIGAO CORP. $1.38 (TSX-MGO; Quality rating: Higher Risk) lost 36 cents a share last year and is expected to lose 50 cents a share in 2014. Sell.

NEWMONT MINING $26.18 US (NYSE-NEM; Quality rating; Conservative) is expected to earn 66 cents a share this year versus $1.40 a share last year. Hold.

NIKO RESOURCES $2.43 (TSX-NKO; Quality rating: Average) continues to lose money and pays no dividends. Sell.

The Investment Reporter, MPL Communications Inc.133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846

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