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This morning, the Bank of Nova Scotia reported its fourth-quarter financial results.

In terms of economic releases, U. S. gross domestic product (GDP) figures for the third-quarter will be released today, while Canadian GDP data will be reported on Wednesday.

Briefly recapping Monday's performance, all three U.S. major markets, the Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq composite index, were in decline, falling between 0.28 per cent and 0.56 per cent. In Canada, the S&P/TSX composite index lost 60 points, or 0.40 per cent. There were 110 securities in the TSX Index that advanced, 133 securities declined in value, and four stocks closed the day unchanged. In terms of sectors, only four of the 11 sectors closed in positive territory led by strength in gold stocks. Energy stocks were key laggards, ahead of the Wednesday's OPEC meeting, the conference of the Organization of the Petroleum Exporting Countries being held in Vienna, Austria..

The S&P/TSX composite index is up 1.54 per cent month-to-date, up 1.97 per cent quarter-to-date, and has a year-to-date gain of 15.41 per cent.

On today's TSX Breakouts report, there are 27 stocks on the positive breakouts list (stocks with positive price momentum), and eight securities on the negative breakouts list (stocks with negative price momentum).

Discussed today is a stock that appears on the positive breakouts list. It offers investors an attractive 4.9 per cent dividend yield. The stock price has rallied 27 per cent year-to-date, with analysts anticipating further double-digit returns over the next year. The security highlighted is KP Tissue Inc. (KPT-T).

A brief outline is provided below that may serve as a springboard for further fundamental research.

The company

KP Tissue manufactures and markets tissue products, such as bathroom tissues, facial tissues, and paper towels under popular brands such as Cashmere bathroom tissue, Purex bathroom tissue, Scotties facial tissues, White Swan, and White Cloud.

KP Tissue is an industry leader, holding the top dollar market share position in Canada within the bathroom tissue and facial tissue segments at 36.8 per cent and 31.5 per cent, respectively, and holds the second largest dollar market share position in Canada in paper towel products at 23.8 per cent.

Before the market opened on Nov. 3, the company released strong third-quarter financial results that sent the share price climbing over 2 per cent that day. Revenue came in at $312.8-million, up 6.5 per cent year-over year, relatively in-line with the Street's forecast of $314.3-million. However, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $45.7-million, up 31.3 per cent year-over-year, and well above the consensus estimate of $38.9-million.

Mario Gosselin, the chief financial officer, noted in the earnings release that, "The Consumer segment drove these results with higher volume, improved pricing, and favourable product mix including higher TAD (Through-Air-Direct) product sales, as well as the benefits from strong manufacturing performance and operating efficiencies, and cost reduction initiatives."

Dividend policy

The company has maintained its quarterly dividend at 18 cents per share since 2013, or 72 cents on a yearly basis. This equates to an annualized dividend yield of 4.9 per cent.

Valuation

Analysts commonly value the stock on an enterprise value-to-EBITDA basis. The average one-year target price is $16.67, implying the share price may appreciate over 12 per cent over the next 12 months. Target prices range from a low of $16 to a high of $18. Individual target prices in numerical order are as follows: two at $16, two at $16.50, $17, and $18.

Analysts' recommendations

There are six analysts whom cover this stocks, five have 'buy' recommendations and one has a 'hold' recommendation. Firms providing research coverage on the company are as follows in alphabetical order: CIBC World Markets, Desjardins Securities, National Bank Financial, RBC Capital Markets, Scotia Capital, and TD Securities.

The Street is forecasting solid growth for the company. The consensus EBITDA estimate is $147.5-million in 2016, and forecast to rise over 13 per cent to $167.8-million in 2017.

Chart watch

Year to date, the stock price is up 27 per cent. The 50-day and 200-day moving averages are both rising and the share price is trading above these moving averages – a positive technical picture.

The shares have initial overhead resistance around $15, and after that around $16.

There is initial downside support around $14, near its 50-day moving average (at $14.22). Failing that, there is support around $13, close to its 200-day moving average (at $13.15).

The relative strength index is at 64, suggesting the shares are not quite in overbought territory. Generally, a reading of 70 or higher indicates an overbought condition.

Trading volume can be low for this stock, which can create price volatility. The historical two-month daily average trading volume is just over 10,000 shares.

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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 security 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 security 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.

Securities screened are from the S&P/TSX composite index, the S&P/TSX Small Cap index, as well as Canadian small cap stocks outside of these indexes that have a minimum market capitalization of $200-million.

A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.

Tuesday's TSX breakouts

Positive BreakoutsNov. 28 close
AGF.B-TAGF Management Ltd $5.24
ALS-TAltius Minerals Corp $12.50
AIF-TAltus Group Ltd $30.81
AVO-TAvigilon Corp $13.45
BAD-TBadger Daylighting Ltd $30.57
BPF.UN-TBoston Pizza Royalties Income Fund $22.20
CAE-TCAE Inc $19.84
D.UN-TDream Office REIT $17.81
FSZ-TFiera Capital Corp $12.93
GPR-TGreat Panther Silver Ltd $1.98
HCG-THome Capital Group Inc $29.12
JE-TJust Energy Group Inc $7.38
KPT-TKP Tissue Inc $14.80
LMP-TLumenpulse Inc $17.28
MAL-TMagellan Aerospace Corp $19.41
MDF-TMediagrif Interactive Technologies Inc. $19.51
MX-TMethanex Corp $54.89
MRG.UN-TMorguard North American REIT $13.65
NA-TNational Bank of Canada $50.00
NCC.A-TNewfoundland Capital Corp Ltd $10.65
PBH-TPremium Brands Holdings Corp $70.11
SII-TSprott Inc $2.59
TKO-TTaseko Mines Ltd $0.91
TA-TTransAlta Corp $7.35
TFI-TTransForce Inc $34.29
TV-TTrevali Mining Corp $1.37
WJX-TWajax Corp $24.47
Negative Breakouts
CU-TCanadian Utilities Ltd $35.58
DC.A-TDundee Corp $5.91
KBL-TK-Bro Linen Inc. $37.01
MND-TMandalay Resources Corp $0.74
NDQ-TNovadaq Technologies Inc $10.10
PLI-TProMetic Life Sciences Inc $2.24
RRX-TRaging River Exploration Inc $9.71
SPE-TSpartan Energy Corp $3.01

Source: Bloomberg