The Canadian stocks on our list could get an unexpected boost from their U.S. customers
SmallCapPower | July 12, 2018: The Trump administration has proposed an additional US$200B in tariffs on China, on a wide variety of goods. The move would bring the percentage of Chinese exports under tariffs to ~50%, in conjunction with the US$34B tariffs already in effect and US$16B previously proposed. Beijing has previously stated that they would respond in kind to any further tariffs, although the form that it would take is uncertain. We’ve previously discussed Canada-listed companies that could be exposed here. The Canadian stocks we have identified today sell goods on the U.S.-China tariffs list and are otherwise relatively unaffected by the ongoing trade war.
Chemtrade Logistics Income Fund (TSX:CHE.UN) – $16.10
Chemtrade Logistics Income Fund owns 64 production facilities of assorted chemicals throughout North America. The Company’s business segments are Sulphur Products & Performance Chemicals, Water Solutions & Specialty Chemicals, and Electrochemicals.
- Market Cap: $1,490.8M
- Enterprise Value to Sales: 1.8x
- 1 Month Total Return: 2.8%
- YTD Total Return: -13.8%
- Targeted Products: Chemicals
SunOpta Inc. (TSX:SOY) – $11.51
SunOpta is a Canada-based food processing company, focused on organic and non-GMO food products. The Company’s Global Ingredients segment sells grains, seeds, fruits, and vegetables. Its Consumer Products segment sells fruit products, snacks, aseptic beverages and premium juices.
- Market Cap: $999.8M
- Enterprise Value to Sales: 1.0x
- 1 Month Total Return: 9.9%
- YTD Total Return: 18.9%
- Targeted Products: Grains, Fruits, Vegetables
Clearwater Seafoods Inc. (TSX:CLR) – $5.62
Fishing & Farming
Clearwater Seafoods is North America’s largest vertically-integrated, publicly-traded shellfish harvester. The Company sold 94M lbs of seafood in 2017 to more than 40 countries. CLR owns 10 fishing vessels operating in Canada and Argentina.
- Market Cap: $367.3M
- Enterprise Value to Sales: 1.3x
- 1 Month Total Return: 8.3%
- YTD Total Return: -21.7%
- Targeted Products: Fish
AirBoss of America Corp. (TSX:BOS) – $15.53
Tires & Rubber Products
AirBoss of America is a Canada-based industrial company, focused on rubber products. The Company’s Rubber Solutions division sells over 1,000 custom compounds to North American customers, with a 400M lbs production capacity. The Engineered Products division sells rubber wearables, masks & filters, and collective protection.
- Market Cap: $363.7M
- Enterprise Value to Sales: 1.1x
- 1 Month Total Return: 10.2%
- YTD Total Return: 44.8%
- Targeted Products: Rubber Products
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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