The number of stocks on the positive breakouts list (stocks with positive price momentum) stands at 49 companies. While the number of stocks on the negative breakouts list (stocks with negative price momentum) is remains low at just seven companies.
Discussed below is Clearwater Seafoods Inc. (CLR-T).
A brief outline is provided that may serve as a springboard for further fundamental research.
Clearwater Seafoods is an industry leader as North America's largest harvester, processor, and distributor of premium shellfish. According to the company's November investor presentation, scallops is the company's largest product offering, representing 37 per cent of its product mix, followed by coldwater shrimp at 21 per cent, lobster at 18 per cent, and clams at 16 per cent.
The company is a dominant player in the industry as Clearwater is the largest holder of shellfish licenses and quotas in the country. There are high barriers to entry in this market as Canadian regulatory authorities required companies to own licenses, and new licenses are seldom granted. Licenses and quotas limit competition, allowing Clearwater Seafoods to maintain its industry leadership.
The company has a global customer base with no individual customer representing more than 7 per cent of the company's sales. Customers include Loblaw, Whole Foods, The Keg Steakhouse and Bar, and U.S. supermarket operator, Publix.
Management's outlook for 2016 is strong. Ian Smith, the company's chief executive officer, indicated on the third-quarter conference call in November that he expects volumes to "significantly increase" due to factors such as the recent acquisition of Macduff Shellfish Group, and a ramp-up in clam volumes with one of the company's main clam vessels back in operation after undergoing unplanned maintenance.
The company's earnings momentum is anticipated to continue in 2016. Management anticipates the acquisition of Macduff will be accretive to adjusted earnings per share by up to 17 cents next year.
The Macduff acquisition raised the company's debt levels well above the company's leverage target. Management anticipated the company's debt levels will steadily decline to its target level over the next two to three years.
The company pays shareholders a quarterly dividend of 5 cents per share, or 20 cents yearly, equating to an annualized yield of 1.6 per cent.
According to Bloomberg, there are 3 recent buy recommendations with the average one-year price target at $15.67, suggesting that the share price may appreciate 26 per cent over the next year. Individual price targets are as follows: $13.50, $16.50, and $17.
The consensus earnings before interest, taxes, depreciation, and amortization (EBITDA) is $103.75-million in 2015, rising 33 per cent to $137.75-million in 2016. The consensus earnings per share forecast is 57 cents in 2015, rising 25 per cent to 71 cents in 2016.
Since May 2015, the stock price has been consolidating, trading sideways, in the $10 to $13 range. Year-to-date, this small cap consumer staples stock is up marginally, 3.8 per cent.
The stock's next overhead resistance level is around $13.25, then around $14, and after that at its record high of $15, which it reached on Feb. 18, 2015.
There is downside support in the $11.20 to $11.70 range, where its 200-day moving average lies ($11.71) and its 50-day moving average stands at ($11.20). There is large technical support at $10.
The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company's dividend policy, analysts' recommendations, and provides a brief technical analysis for a stock to provide readers with more information.
If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a stock appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.
A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.
Below is a list of stocks in the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows. Stocks on the positive breakouts list have displayed positive price momentum during this period. Stocks on negative breakouts list have experienced negative price momentum.
|AD-T||Alaris Royalty Corp|
|BNS-T||Bank of Nova Scotia|
|BIR-T||Birchcliff Energy Ltd|
|BEI.UN-T||Boardwalk Real Estate Investment Trust|
|BTB.UN-T||BTB Real Estate Investment Trust|
|CBL-T||Callidus Capital Corp|
|CNR-T||Canadian National Railway Co|
|CNQ-T||Canadian Natural Resources Ltd|
|CTC.A-T||Canadian Tire Corp Ltd|
|CSH.UN-T||Chartwell Retirement Residences|
|CLR-T||Clearwater Seafoods Inc|
|CCA-T||Cogeco Communications Inc|
|CUF.UN-T||Cominar Real Estate Investment Trust|
|CRH-T||CRH Medical Corp|
|ENF-T||Enbridge Income Fund Holdings Inc|
|EDR-T||Endeavour Silver Corp|
|FCR-T||First Capital Realty Inc|
|FN-T||First National Financial Corp|
|FVI-T||Fortuna Silver Mines Inc|
|GWO-T||Great-West Lifeco Inc|
|HGN-T||Halogen Software Inc|
|INE-T||Innergex Renewable Energy Inc|
|KMP.UN-T||Killam Apartment Real Estate Investment|
|KPT-T||KP Tissue Inc|
|MFI-T||Maple Leaf Foods Inc|
|DR-T||Medical Facilities Corp|
|MST.UN-T||Milestone Apartments REIT|
|MRG.UN-T||Morguard North American Residential REIT|
|MSI-T||Morneau Shepell Inc|
|NPI-T||Northland Power Inc|
|NVU.UN-T||Northview Apartment REIT|
|NWH.UN-T||NorthWest Healthcare Properties REIT|
|PXT-T||Parex Resources Inc|
|REI.UN-T||RioCan Real Estate Investment Trust|
|RCI.B-T||Rogers Communications Inc|
|SEA-T||Seabridge Gold Inc|
|VII-T||Seven Generations Energy Ltd|
|XSR-T||Sirius XM Canada Holdings Inc|
|SNC-T||SNC-Lavalin Group Inc|
|STB-T||Student Transportation Inc|
|SCC-T||Sears Canada Inc|
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