The Canadian stocks on our list have low volatility and a stock price above its 200-day moving average
SmallCapPower | July 2, 2019: Beta is a statistical value that measures the rate of change of a stock versus the price change of the overall market. It is commonly used to determine the volatility of a stock. When a stock’s beta is 1, it means the stock price moves with the market. When a stock’s beta is less than 1 but above zero it is less volatile than the overall market. Additionally, a stock’s 200-day moving average is a technical indicator that investors use to study price trends. The 200-day moving average is a stock’s average closing price over the past 200 days. Investing in low volatility stocks helps to diversify your investing portfolio to help add some stability from swings in the economy. When a stock’s price is above its 200-day moving average, it is generally considered to be experiencing an overall uptrend. Today we have identified four low volatility Canadian stocks with a beta less than 1 that has a stock price above its 200-day moving average.
*Share prices as at close June 27, 2019, data obtained from S&P Capital IQ
Mainstreet Equity Corp. (TSX:MEQ) – $55.20
Real Estate Management and Development
Mainstreet Equity is a Canadian real estate corporation that focuses on the acquisition, redevelopment, repositioning and management of mid-level market rental apartment buildings in Vancouver/Lower Mainland, Calgary, Edmonton, Saskatoon and Regina. On May 14, 2019, the Company released its Q2/19 financial results, which showed rental revenues increased in the quarter by 19% to $33.7 Million, compared to $28.3 Million in Q2/18. The Company also was able to decrease same asset vacancy rates to 6.0% from 11.1% in Q2/18.
- Market Cap: $517.9 Million
- YTD Return: 32.7%
- 90-Day Average Daily Volume (1,000s): 1
- Beta: 0.33
- 200-Day Moving Average: $20.47
High Liner Foods Incorporated (TSX:HLF) – $8.66
Food Products
High Liner Foods is a North American processor and marketer of processed frozen seafood. The Company produces a variety of products, which include breaded and battered items and seafood entrées. The products are sold to North American food retailers and foodservice distributors. The Company owns and runs three food-processing plants in Lunenburg, Nova Scotia, Portsmouth, New Hampshire, and Newport News, Virginia. On May 14, 2019, the Company reported its financial results for Q1/19, which showed sales decreased by $41.8 Million to $277.4 Million and adjusted EBITDA increased by $8.0 Million to $32.2 Million.
- Market Cap: $289.1 Million
- YTD Return: 13.1%
- 90-Day Average Daily Volume (1,000s):101
- Beta: 0.424
- 200-Day Moving Average: $7.63
Timbercreek Financial Corporation (TSX:TF) – $9.41
Thrifts and Mortgage Finance
Timbercreek Financial is a non-bank that offers financing solutions to eligible real estate investors who are usually in a transitional phase of the investment process. The Company offers shorter duration structured financing that is not typically serviced well by commercial banks. Timbercreek Financial lends primarily against income-producing real estate, such as multi-residential, retail and office properties. The Company focuses on cash-flowing properties to help manage its risk. On May 8, 2019, the Company released its financial results for Q1/19, which showed its net income and comprehensive income was $13.1 Million, which is up from $11.7 Million in Q1/18.
- Market Cap: $778.7 Million
- YTD Return: 7.5%
- 90-Day Average Daily Volume (1,000s): 71
- Beta: 0.61
- 200-Day Moving Average: $8.96
First Capital Realty Inc. (TSX:FCR) – $21.60
Real Estate Management and Development
First Capital Realty is an owner and developer of necessity-based real estate in Canada’s most inhabited urban areas. The Company mainly focuses on developing and managing properties that provide consumers with products and services that are part of people’s daily life. First Capital’s main developments are in the Greater Toronto Area, Greater Vancouver Area, Greater Montreal Area, Greater Edmonton Area, Greater Calgary Area and the Greater Ottawa Area. On March 31, 2019, the Company reported owning interest in 166 properties, which totals around 25.3 Million sq.ft. of gross leasable area. The Company is planning to have a population density of more than 300,000 people within five km of its properties by 2021. This would be a 20% increase from its current average population density of 250,000. On May 2, 2019, the Company announced its Q1/19 financial results, which showed net rental rates for the quarter grew by 10.6% on 612,000 sq.ft of lease renewals when compared to Q1/18.
- Market Cap: $4,732.0 Million
- YTD Return: 14.6%
- 90-Day Average Daily Volume (1,000s): 492
- Beta: 0.61
- 200-Day Moving Average: $20.07
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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