SmallCapPower | January 26, 2016: A significant resource stock recovery seems unlikely in the coming year. Some investors, then, might want to get defensive in 2016 and consider stable cash flow businesses, such as the ones on our list today.
Sleep Country Canada Holdings Inc. (TSX: ZZZ) – $16.55
Home Furnishings Retailers
Sleep Country Canada Holdings Inc is a Canada-based mattress retailer that provides sleep products and accessories, such as bed frames, pillows, mattress pads, sheets, duvets, headboards and footboards. The Company provides its mattress products under various brands, such as Sealy, Serta, Simmons, Kingsdown, Contour Collection, Tempur-Pedic, iComfort, Sunset Collection, Dormeo Octaspring and Natura. Sleep Country operates approximately through 215 stores and 16 distribution centers across eight provinces in British Columbia, including Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia and New Brunswick.
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Market Cap: $608,485,030
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Revenue (LTM): $733,164,000
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Operating Income (LTM): $73,992,000
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Revenue Growth (1 year): 213.9%
Westaim Corp. (TSXV: WED) – $2.60
Appliances, Tools & Housewares
The Westaim Corporation (Westaim) is a Canadian investment company that is engaged in providing long-term capital to businesses operating primarily within the global financial services industry. Westaim’s investment objective is to maximize the intrinsic value of its businesses on a per share basis over the long term. The Company invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation.
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Market Cap: $358,553,659
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Revenue (LTM): $3,408,715
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Operating Income (LTM): $31,466,042
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Revenue Growth (1 year): 137.3%
DHX Media Ltd. (TSX: DHX.B) – $8.16
Entertainment Production
DHX Media Ltd. is a Canada-based children’s entertainment company. Its business is producing, distributing, broadcasting and exploiting the rights for television and film programming, primarily focusing on children, youth and family productions. Its segments include its production, distribution and merchandising operations; Copyright Promotions Licensing Group (CPLG), and DHX Television. It has five integrated business lines: production; library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.
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Market Cap: $1,019,414,163
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Revenue (LTM): $520,818,000
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Operating Income (LTM): $66,369,000
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Revenue Growth (1 year): 112.1%
Cara Operations Ltd. (TSX: CAO) – $25.85
Restaurants & Bars
Cara Operations Limited is a Canada-based food services company that owns and operates service restaurants. The Company operates a range of airport restaurants and bars. Its brands include Swiss Chalet, East Side Mario’s, Milestones, Casey’s, Bier Markt, Kelsey’s, Fionn MacCool’s, Montana’s and Harvey’s.
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Market Cap: $301,270,830
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Revenue (LTM): $471,234,000
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Operating Income (LTM): $110,555,000
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Revenue Growth (1 year): 93.3%
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