Low betas for the TSX stocks on our list means that their value isn’t historically linked to market fluctuations
SmallCapPower | November 14, 2016: Beta refers to the response variable of a stock. As we enter a period of unrest and uncertainty in the markets, stocks with high betas will be seen increasing in value and falling in larger swings than the market does. On the other hand, the value of stocks with low betas (close to 0) will remain relatively stable throughout the upswings and downturns that the market may experience day to day, week to week, or month to month. The TSX stocks on our list today all have low five-year historic betas but have seen growth this year, and have positive net income.
Brick Brewing Co. Ltd. (TSE:BRB) – $2.87
Brick Brewing Co. Limited is a Canada-based brewery involved in the production, distribution and sale of alcohol-based products. It produces, sells, markets and distributes packaged and draft beer under the Waterloo brand name, and value beer under the Laker, Red Baron, Red Cap and Formosa brand names (collectively, the Brick Beer Brands). It also produces, sells, markets and distributes the Seagram Coolers across Canada, which includes vodka-based coolers, malt-based coolers and ciders.
- Market Cap: $101.13(mm)
- YTD Price PCT Change: 43.5%
- Net Income After Taxes (LTM, CAD, Millions): $3.41
- Beta 5 Year: 0.02
Clairvest Group Inc. (TSE:CVG) – $29.15
Investment Management & Fund Operators
Clairvest Group Inc. (Clairvest) is a provider of private equity financing to mid-market companies. The Company specializes in partnering with management teams and other stakeholders of both emerging and established companies. It seeks to form mutually beneficial investments with entrepreneurial corporations. Clairvest invests in various industries, such as contract manufacturing, defense services, financial services, gaming, textile rental service and waste management, among others. It provides loans to and earns priority distributions or management fees and carried interest from the CEP Funds.
- Market Cap: 445(mm)
- YTD Price PCT Change: 3.8%
- Net Income After Taxes (LTM, CAD, Millions): $43.65
- Beta 5 Year: 0.08
Avante Logixx Inc. (CVE:XX) – $0.32
Business Support Services
Avante Logixx Inc. is engaged in development of technologies, products and solutions for personal, condominiums and commercial monitoring, and control applications. The Company operates through its subsidiaries, Avante Security Inc. (ASI), INTO ELECTRONICS Inc. (INTO) and LVS Inc. It provides a range of home and corporate security services ranging from system design, installations and monitoring to services, such as alarm response, patrols, secured transport, international travel advisory and incident planning. Its monitoring services are provided through multiple channels, and applications of these services include virtual video patrols of retail stores, shopping malls, daycare centers and hotels.
- Market Cap: 26(mm)
- YTD Price PCT Change: 28.0%
- Net Income After Taxes (LTM, CAD, Millions): $0.04
- Beta 5 Year: -0.03
Caribbean Utilities Company Ltd. (TSE:CUP.U)- $12.55
Caribbean Utilities Company, Ltd. is engaged in generating, transmitting and distributing electricity in its license area of Grand Cayman. The Company uses diesel generation to produce electricity for Grand Cayman. The Company operates public electrical utility in Grand Cayman, Cayman Islands. Its power system comprises approximately 26 generating units (24 diesel and two gas turbine) with a combined capacity of 145.75 megawatts (MW). In addition, the Company has over 11 mobile units (four owned and seven rented), each with a capacity of 1.5 MW.
- Market Cap: 409(mm)
- YTD Price PCT Change: 12.1%
- Net Income After Taxes (LTM, CAD, Millions): $34.41
- Beta 5 Year: 0.15
Exchange Income Corp. (TSE:EIF) – $38.95
Exchange Income Corporation is focused on opportunities in two sectors: aviation services and equipment, and manufacturing. The Company operates through two segments: Aviation, which provides scheduled airline and charter service and emergency medical services to communities located in Manitoba, Ontario and Nunavut. These services are provided by Calm Air, Perimeter, Keewatin, Bearskin, Custom Helicopters and other aviation supporting businesses. Regional One is focused on supplying regional airline operators around the world with various after-market aircraft, engines and component parts. Provincial Aerospace Ltd. designs, modifies, maintains and operates custom sensor equipped aircraft, and Manufacturing, which provides a range of manufactured goods and related services in a number of industries and geographic markets throughout North America. The Manufacturing segment includes the operations of WesTower CDA, Stainless, Overlanders, the Alberta Operations and Ben Machine.
- Market Cap: 1,116(mm)
- YTD Price PCT Change: 36.6%
- Net Income After Taxes (LTM, CAD, Millions): $52.99
- Beta 5 Year: 0.06