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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (83082)6/4/2020 6:07:31 PM
From: Goose94Read Replies (2) of 202180
 
Cascades (CAS-T) top pick from Jason Mann on BNN.ca Market Call Thirst-day June 4th @ 1200ET

Cascades produces paper and packaging products. This one hits for us on both value and price momentum, which is a bit of a rare find in this bifurcated market. It scores in the top 3 per cent on both metrics, trading at 6.2 times EV/EBITDA, 5 times cash flow, with a recent earnings beat. The balance sheet is again a little more stretched than we’d like to see, but the smallish yield at 2.3 per cent is more than sustainable with a low payout ratio. They’ve been a beneficiary of COVID-19, as some demand has been pulled forward in the tissue and packaging divisions (everyone still fully stocked on toilet paper, right?), but unlike a lot of other COVID beneficiary stocks, this one isn’t overpriced. We think of this stock as a safer forestry products business that is less cyclical, but one that still has room to run on valuations as the market rotates away from expensive growth and towards value
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