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Strategies & Market Trends : Underexposed Canadian Stocks

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To: Underexposed who wrote (48)	6/14/2018 6:37:52 PM
From: Underexposed	Read Replies (1) of 65

Our final candidate in this search is CanWel Building Materials Group Ltd. [TSX:CWX] This is the least expensive of the stocks that I have chosen. Here is a description of the company: CanWel Building Materials Group Ltd. is a Canada based wholesale distributor of building materials and home renovation products. The share price currently is $7.15/share The dividend yield is 7.843 % with a monthly payout of $0.140 /quarterly This is a large dividend yield with a lesser share price. We could get about 3500 shares which on a quarterly basis would yield $490.00/quarter.... pas mal! Canwell Building financials Balance Sheet (annual) Short term debt : pretty stable though drifting upwards Long term debt: getting bigger every year from $120 million to $205 million over 5 years Income Statement (annual) Total Revenue : has been rising year on year from $725 million to $1,135 million over the last 5 years Net Income: has been rising over the last 5 years to $28.8 million from $9.11 million five years ago. For some reason the net revenue was almost $50 million in 2016 which was a sudden leap for some reason There are no red flags in the FA for me... I like the steady rise in revenue over the last 5 years... it compensates for the rise in debt. Technical analysis P&F and Trigger charts The P&F chart shows this is a stock reaching for higher share prices. It has found a resistance at $7.50 and pulled back a bit. There is a decent support at a band from $6.80 - $6.90. It challenged that resistance back in May... here it is, mid-June, and it has not fallen to its support....yet. However, if it does, I think it will bounce off that support and take another crack at the resistance... that is my current thought I liked that rise in revenues CanWel Building Materials Announces First Quarter 2018 Financial Results Q1 2018 Financial Highlights: Revenues increased by 32.4% to a Q1 record $295.0 million Gross Margin increased to 15.5% EBITDA(2) increased by 90.6% to $15.6 million Net Earnings(4) increased to $6.5 million versus $1.7 million in Q1 2017 I went back and took another look at the news and found the above.... This is great news and a bullish continuation of that revenue rise from the past. I do wonder how NAFTA would affect things if the talks fail...... I also like the column SMA's... they have been bullish for about 2 years now and diverging more since April. The Trigger chart is not as encouraging The share price is exiting a period of consolidation. Back in early May the price had an amazing leap in price. It was above the upper bollie for 4 days and then pulled back into the bollie envelop in a very good way....sideways... it looks to me there was some profit taking bringing the price down again and it did what is normal in consolidation.... it drifted to the 20daySMA where it followed it for a while and then dropped again BUT it has recovered and is staggering back to the 20daySMA again with the Bollie squeeze getting close to happening. You can see that in the BBWidth which is in a position to suddenly rise at any moment. I would not want that to happen right now though as the MACD and Slow Sto are falling... Now the MACD has bee doing this for a while... the slow sto has been hovering around mildly bullish for a while now. If thing were really bad the charts would be reversed with a strong neg slope for the Slow Sto... so to my mind things could go either way... it is a neutral bullish watch right now for me in this chart. Sentiment and Ichimoku charts The sentiment chart actually does not look bad. The Par Sar is bearish right now but then the reversal to bear started at the end of the rise...not in the throat of a Bollie squeeze. It does not take much of a leap to see that if the share price rises more it will be nicely positioned for that Bollie squeeze / Par Sar reversal so that blunts the bearishness a bit... I would say currently it is only mildly bearish The Force 30 is bullish but declining so it is only mildly bullish the RSI(30) is flat but above 50... neutral bullish The DI+/- has been bullish throughout this consolidation... it looked as though there would be a bearish cross but that was avoided at the last minute and now it is still bullish but could go either way right now... neutral bullish The Ichimoku chart has mixed messages. the share price is still high above the clouds... bullish the thin red/blue lines are close to a bearish crossover... mildly bearish the onBal Vol is flat.... neutral the CCI is bearish Conclusion Let's do the bull/bear comparison Bullish:.................. 3 Mildly Bullish:....... 1 Neutral Bullish:.... 3 Neutral:................ 1 Neutral Bearish:.. Mildly Bearish:.... 2 Bearish:.............. 1 this is where we cancel opposites Bullish:.................. 2 Mildly Bullish:....... Neutral Bullish:.... 1 Neutral:................ 1 Neutral Bearish:.. Mildly Bearish:.... Bearish:.............. We had less mildly bullish to cancel out with the extra mildly bearish... so instead I cancelled 2 neutral bullish for one mildly bearish We are left with a bullish outcome but not an overwhelming bullish. we have to await the outcome of the bollie squeeze when it happens some time next week... it is only a watch right now Now I have to think about which one or two I will choose to add to the portfolio. Good trading UE

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