Canadian Stocks with High Margin Expectations for 2014: Investment Idea of the Day

Published:



Ubika Research has shortlisted twelve Canadian stocks across sectors which
are estimated to have strong profitability and appear to be productive
and efficient in 2014, according to Bloomberg polls. These stocks are estimated
to register strong profitability margins (Gross, Operating and Net Profit
margins) coupled with significant sales growth during 2014, based on the
consensus data provided by Bloomberg. We note these stocks have recorded
significant gains during 2013 and also in the past three months with daily
average traded volume in excess of 100,000.

Company Name

Exchange

Ticker

Industry

Market Cap

(C$MM)

Last Price

3-Months Average volume

3-Months Price Return

Price Return

(2013)

Sales Growth

(2014E)

Gross Margin

(2014E)

Operating Margin

(2014E)

Net Margin

(2014E)

Westshore Terminals Investment Corp

TSX

WTE

Energy

2,608.4

35.13

129,446

12.7%

25.6%

21.5%

59.0%

50.6%

38.8%

Ritchie Bros Auctioneers Inc

TSX

RBA

Industrial

2,665.9

24.95

247,078

24.9%

17.4%

5.3%

89.0%

27.7%

18.9%

High Arctic Energy Services Inc

TSX

HWO

Energy

183.6

3.68

119,885

46.0%

75.3%

3.6%

31.9%

18.0%

14.2%

Pason Systems Inc

TSX

PSI

Energy

1,880.5

22.89

151,773

4.7%

34.0%

3.2%

66.2%

34.6%

13.6%

Sandvine Corp

TSX

SVC

Technology

398.5

2.87

671,717

21.1%

124.2%

21.4%

73.6%

13.2%

13.4%

Avigilon Corp

TSX

AVO

Industrial

1,374.3

32.00

317,332

72.2%

162.8%

79.5%

52.0%

16.7%

13.3%

BSM Technologies Inc

TSXV

GPS

Communications

120.2

3.15

256,606

21.2%

141.5%

41.6%

65.5%

15.9%

13.1%

Solium Capital Inc

TSX

SUM

Communications

336.2

7.24

101,235

29.1%

183.4%

34.6%

100.0%

18.5%

12.2%

Norbord Inc

TSX

NBD

Industrial

1,711.4

32.11

229,192

15.0%

12.2%

16.1%

22.0%

18.4%

11.6%

Horizon North Logistics Inc

TSX

HNL

Industrial

1,100.1

10.01

599,867

32.2%

44.8%

11.7%

28.2%

15.8%

10.7%

Atrium Innovations Inc

TSX

ATB

Healthcare

754.6

24.11

208,582

36.2%

103.3%

9.0%

48.6%

15.8%

10.2%

Capstone Mining Corp

TSX

CS

Basic Materials

1,105.2

2.91

2,375,654

16.9%

24.5%

19.6%

49.0%

13.6%

9.7%

Source: Bloomberg

Company Description:

Westshore Terminals Investment Corp (TSX: WTE) 

Westshore Terminals Investment Corp. operates coal storage and loading
terminal in British Columbia, Canada.

Ritchie Bros Auctioneers Inc (TSX: RBA)    

Ritchie Bros. Auctioneers Incorporated auctions industrial equipment,
operating through various locations around the world. The company sells,
through unreserved public auctions, used and unused industrial equipment,
including equipment used in the construction, transportation, mining, forestry,
petroleum, and agricultural industries.

High Arctic Energy Services Inc (TSX: HWO)          

High Arctic Energy Services Inc. offers oilfield services. The company
offers underbalanced drilling and production services, equipment, design
and development services, and technical support and training.

Pason Systems Inc (TSX: PSI)        

Pason Systems Inc. provides rental oilfield instrumentation systems that
are designed and manufactured for use on land-based drilling and service
rigs. The company offers both well site rental services and Internet data
management services.

Sandvine Corp (TSX: SVC) 

Sandvine Corporation develops and markets broadband network management
tools for broadband Internet services providers.

Avigilon Corp (TSX: AVO)   

Avigilon Corporation manufactures surveillance equipment. The company
produces high definition, network-based video surveillance systems and
equipment for video capture, transmission, recording, and playback.

BSM Technologies Inc (TSXV: GPS)           

BSM Technologies Inc. and its subsidiaries provide asset management, asset
tracking, and asset monitoring solutions through traditional and wireless
technology. The company also provides key business functionality and defined
solutions such as secure credit card transaction processing, as well as
the development of custom electronic business solutions for corporations.

Solium Capital Inc (TSX: SUM)       

Solium Capital Inc. is a global provider of SaaS-based stock plan administration
technology and services.  Through innovative technology and a comprehensive
suite of services, we help to ensure the compliance, efficiency and accuracy
of equity plan administration, reporting and transactions.

Norbord Inc (TSX: NBD)      

Norbord Inc. is an international wood-based panel board producer. The
company’s product line include wall and flooring panels, decking and roofing
boards, as well as boards for shelving and furniture.  Norbord operates
in the United States, Canada, and Europe.

Horizon North Logistics Inc (TSX: HNL)      

Horizon North Logistics Inc. provides marine transportation, camp catering
and logistics services company. The company provides support services to
oil and gas exploration and production companies, oilfield services companies,
and mining companies working on oil sands projects in Northern Canada.

Atrium Innovations Inc (TSX: ATB) 

Atrium Innovations Inc. develops, manufactures, and markets products for
the cosmetics, pharmaceutical, chemical, and nutrition industries. The
company focuses primarily on growing segments of the health and personal
care markets. Atrium markets a broad portfolio of active ingredients, specialty
chemicals, and health and nutrition finished products.

Capstone Mining Corp (TSX: CS)    

Capstone Mining Corp. is involved in the exploration, development, and
production of various minerals, including gold, silver, copper, zinc, iron
and lead. The company operates projects in Canada, Mexico, and Chile.

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