CIBC released this week a short list of its favorite stocks for the coming year in the country.
Only three Quebec titles are on this list of around thirty suggestions: Boralex, Couche-Tard and GDI.
The title of Dollarama is now up 30% this year as the main Toronto Stock Exchange index is down. Investors could choose to sell their shares of the Montreal retailer to invest elsewhere in 2023 when a movement of rotation of sectors will be triggered, believes analyst Martin Landry, at Stifel GMP. “I don’t see this happening in the short term, but the odds of seeing this scenario increase as the year progresses. »
The high volatility of the action of Goodfood Market since the beginning of the month demonstrates how difficult it is to properly calculate the value of the Montreal supplier of ready-to-cook meals. This surge also reminds speculators that at the start of the pandemic, many observers saw Goodfood as an acquisition target for a company with similar activities, a large grocer, or even a private investment firm.
An administrator of ECB has just purchased nearly $225,000 worth of shares in the Montreal telecommunications company. Jennifer Tory bought a block of 3,500 shares on Monday. She has been a member of BCE’s Board of Directors since April 2021.
TD launched earlier this week its official coverage of GDI without suggesting the purchase of the action of the Montreal company specializing in the maintenance of buildings. Analyst Derek Lessard believes that GDI’s growth opportunities are manifold and that the stock’s valuation will be supported in particular by the defensive nature of the activities and the favorable trends in the industry. “Given the expected decline in earnings per share next year, the contraction of the valuation multiple, and the rise in rates which make acquisitions less profitable, there are few elements that could push the stock substantially higher in the short term. »
A senior leader of Saputo has just bought a block of shares in the Montreal dairy processor. Frank Guido bought 1,000 shares on Dec. 5, days after a New York short seller tried to shake the stock off the stock market. Frank Guido is President and Chief Operating Officer of the Canadian Dairy Division.
An administrator of Savaria has just sold for nearly $155,000 shares of the Laval company specializing in accessibility for people with reduced mobility. Jean-Louis Chapdelaine sold a block of 10,000 shares on November 30. He has been a member of the board of directors since 2005.
Securities that have fallen since 1er January could come under additional pressure by the end of the year. “Given the poor performance of the markets in 2022, the attraction of tax losses is particularly strong this year”, underlines the portfolio manager Philippe Le Blanc, of the firm Cote 100, in his financial letter of the beginning of December.
He points out, however, that it is common for the stocks that performed the worst in one year to be the ones that did the best the following year (the opposite is also true). “By selling underperforming stocks, you’re likely to eliminate stocks that would provide your returns for the next year. That’s why when we sell a security to take a loss, our intention is to buy it back as soon as the 30 days prescribed by Canadian tax law have elapsed. »
It’s a double-edged sword, he adds, because an investor runs the risk of buying back at a higher price than the selling price. “And by selling a security, you end up with cash in your portfolio for at least 30 days. In the event of a rapid rebound in the markets during this period, the performance of your portfolio will probably be affected,” he warns.
A member of the management team of Fiera Capital has just sold shares of the Montreal asset manager. Peter Stock sold a block of 2100 shares on November 30.
The Quebec titles of Dollarama, ADF Group and Stella Jones all hit a 52-week high on the Toronto Stock Exchange this week. On the other hand, those of VAT, Alithya, Lassonde, Theratechnologies and Bitfarms hit a new 52-week low.