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Yangarra Resources Ltd. (YGR)
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Saturn Oil & Gas Inc. (SOIL)
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TELUS International (Cda) Inc. Subordinate Voting Shares (TIXT)
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Quipt Home Medical Corp. (QIPT)
Q: What are pros/cons of each of these, any multi-bagger here? Please take as many credits as necessary. I plan to make a purchase or two soon.
5i Research Answer:
Of this group, we think TIXT has the most potential here at 8X earnings, high single digit top-line growth expected, and decent fundamentals.
QIPT: Pros - healthy growth in recent quarters, okay balance sheet. Cons – risk of dilution from share issuance
SOIL: Pros – cheap on a P/E basis, Cons – cyclical business, no capital return, leveraged balance sheet, still issuing shares to reinvest heavily into drilling.
TIXT: Pros – high return on capital, strong balance sheet, decent margin. Cons – weak, declining sales growth recently.
YGR: Pros: cheap valuation, Cons – illiquid, cyclical business, no capital return and still issuing shares.