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Bargains plus juicy yields: A dividend stock picking strategy that has produced monstrous returns

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Shell out! Shell out! Halloween is fast approaching and income investors want their dividends. They have bowls of candy to fill for the little witches and goblins who are soon to arrive at their doors.

Thankfully, Canadian dividend investors have a little extra to spend because they’ve done well in recent years. An investor who purchased an equal-dollar amount of the dividend stocks in the S&P/TSX Composite Index and rebalanced at the end of each year, would have gained an average of 10.2 per cent compounded annually from the end of 2001 to the end of 2017. By way of comparison, the market index itself climbed at a 7.5-per-cent annual rate over the same period. (All of the return figures herein include dividend reinvestment, but do not include fund fees, taxes or other trading frictions.)

Dividend investors would have fared even better by focusing on bargain stocks. But, before I reveal their monstrous returns, prepare for a fright.

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I started my investigation, like a budding Dr. Frankenstein, by slicing the dividend stocks in the index into two portfolios by dividend yield. Half went into the high-yield portfolio and the other half fell into the low-yield portfolio. I then proceeded to carve them into bits.

But rotting worms popped out in the process. Simply put, dividend stocks with negative earnings fared poorly. Stocks in the low-yield portfolio with negative earnings gained an average of 4.5 per cent annually over the period. Those in the high-yield group gained a mere 1.1 per cent annually. Both produced unhealthy returns compared with the market index.

Dividend stocks with positive earnings provided better results. The low- and high-yield portfolios were each carved up into five portfolios (quintiles) by price-to-earnings ratio (P/E). The 10 resulting (equally weighted) portfolios were fed through the Bloomberg back-tester, which tracked and refreshed them annually over the 16 years to the end of 2017. The results are shown in the accompanying table, which displays the average annual compound return of each portfolio.

Nine of the 10 portfolios beat the market index, and often handily. The only one to lag was the portfolio of low-yielding stocks with the second-highest P/E ratios, which trailed the index by an average of 1.5 percentage points annually.

Five of the 10 portfolios beat the portfolio containing all of the dividend stocks in the index, which climbed 10.2 per cent annually.

Generally speaking, the high-yield portfolios fared better than the low-yield portfolios. Score one for the high-yield team. On the other hand, stocks with lower-P/Es and low-yields beat the lower-P/E high-yield groups.

The lowest-P/E portfolios fared the best. The top return was seen by the lowest-P/E low-yield portfolio with an average annual return of 14.2 per cent. It beat the all-dividend stock portfolio by an average of four percentage points annually and the market index by 6.7 percentage points annually.

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You can find a list of the dividend payers in the S&P/TSX Composite Index, sorted by yield, at the end of the online version of this article. Half have yields of more than 3.1 per cent and half pay less.

Roughly speaking, stocks in the lowest-P/E group currently have ratios below 10.9. The second lowest group has ratios between 10.9 and 16.4.

Mind you, the ratios and yields vary from year-to-year as the market climbs and falls.

The ghost of money-manager Benjamin Graham would point out that the ratios of the lower-P/E portfolios are very similar to the rule of thumb he devised for defensive investors decades ago. He advised conservative investors to seek dividend stocks trading for less than 15 times earnings in his book The Intelligent Investor. His ideas might be a little dusty, but they’re still performing well.

The Intelligent Investor still haunts bookstores today because it was reanimated by Jason Zweig in 2005. It would make a great treat for young investors who’ve grown too old to wander the streets this Halloween.

Canadian Dividend Stocks by Yield and P/E, 2001-2017

(Compound annual growth rate, split in half by yield and into quintiles by price-to-earnings ratio)

Compound Annual Growth Rate
P/E Low Yield Portfolio High Yield Portfolio
1 (Lowest) 14.2% 12.1%
2 (Low) 11.1% 10.5%
3 (Medium) 8.6% 9.4%
4 (High) 6.0% 9.9%
5 (Highest) 8.2% 10.3%

Source: Bloomberg based on dividend stocks in the S&P/TSX Composite Index

Dividend Payers in the S&P/TSX Composite Index sorted by Yield

Company Ticker Price P/E Yield
AltaGas Ltd. ALA-T $21.52 48.15 10.18%
Artis REIT AX.UN-T $11.25 8.94 9.60%
TransAlta Renewables Inc. RNW-T $10.59 13.98 8.88%
Chemtrade Logistics Income Fund CHE.UN-T $14.30 49.35 8.39%
Alaris Royalty Corp. AD-T $19.55 53.98 8.29%
Ensign Energy Services Inc. ESI-T $5.91 16.42 8.12%
Inter Pipeline Ltd. IPL-T $21.99 14.75 7.64%
Exchange Income Corp. EIF-T $29.66 14.23 7.38%
H&R REIT HR.UN-T $19.29 7.87 7.15%
Enbridge Income Fund Holdings ENF-T $31.89 n/a 7.09%
Crombie REIT CRR.UN-T $12.70 23.32 7.01%
Dorel Industries Inc. DII.B-T $22.42 9.59 6.96%
Chorus Aviation Inc. CHR-T $6.92 6.83 6.94%
IGM Financial Inc. IGM-T $33.02 10.86 6.81%
Vermilion Energy Inc. VET-T $40.84 49.82 6.76%
Brookfield Renewable Partners BEP.UN-T $38.27 n/a 6.66%
Norbord Inc. OSB-T $36.32 4.84 6.61%
Extendicare Inc. EXE-T $7.27 25.86 6.60%
Capital Power Corp. CPX-T $27.41 26.28 6.53%
Northview Apartment REIT NVU.UN-T $24.98 13.58 6.52%
Cominar REIT CUF.UN-T $11.35 9.27 6.34%
Enbridge Inc. ENB-T $42.61 13.96 6.30%
Brookfield Property Partners BPY.UN-T $26.12 n/a 6.27%
Gibson Energy Inc. GEI-T $21.18 141.11 6.23%
Choice Properties REIT CHP.UN-T $11.87 6.54 6.23%
Laurentian Bank of Canada LB-T $41.56 7.03 6.16%
Emera Inc. EMA-T $38.46 36.20 6.11%
RioCan REIT REI.UN-T $23.80 14.34 6.05%
Dream Global REIT DRG.UN-T $13.37 19.03 5.98%
Russel Metals Inc. RUS-T $25.42 9.54 5.98%
Power Financial Corp. PWF-T $29.20 10.85 5.93%
Peyto Exploration & Development PEY-T $12.17 11.54 5.92%
Northland Power Inc. NPI-T $20.36 17.70 5.89%
BCE Inc. BCE-T $51.40 15.55 5.88%
Freehold Royalties Ltd. FRU-T $10.76 n/a 5.86%
SmartCentres REIT SRU.UN-T $29.89 16.12 5.85%
Superior Plus Corp. SPB-T $12.42 n/a 5.80%
Innergex Renewable Energy Inc. INE-T $12.11 54.63 5.62%
Sienna Senior Living Inc. SIA-T $16.40 36.18 5.60%
Power Corp. of Canada POW-T $27.57 6.74 5.54%
Canadian Utilities Ltd. CU-T $29.59 14.86 5.32%
TransCanada Corp. TRP-T $52.60 15.71 5.25%
Keyera Corp. KEY-T $34.51 22.70 5.22%
Pembina Pipeline Corp. PPL-T $44.11 21.52 5.17%
Algonquin Power & Utilities Co. AQN-T $12.88 14.29 5.17%
Granite REIT GRT.UN-T $52.94 16.94 5.15%
Cineplex Inc. CGX-T $33.92 26.16 5.13%
Great-West Lifeco Inc. GWO-T $30.83 10.12 5.05%
Computer Modelling Group Ltd. CMG-T $8.06 32.44 4.96%
Shaw Communications Inc. SJR.B-T $24.23 20.74 4.89%
Brookfield Infrastructure Partners BIP.UN-T $50.72 n/a 4.82%
Hydro One Ltd. H-T $19.29 14.58 4.77%
Western Forest Products Inc. WEF-T $1.89 8.57 4.76%
Genworth MI Canada Inc. MIC-T $39.91 8.12 4.71%
Crescent Point Energy Corp. CPG-T $7.64 n/a 4.71%
TELUS Corp. T-T $44.71 17.05 4.70%
North West Co Inc. NWC-T $27.60 17.46 4.64%
Bank of Nova Scotia BNS-T $73.83 10.82 4.61%
Canadian Imperial Bank of Commerce CM-T $118.54 10.02 4.59%
Lucara Diamond Corp. LUC-T $2.19 15.06 4.57%
First Capital Realty Inc. FCR-T $19.01 19.13 4.52%
Whitecap Resources Inc. WCP-T $7.39 27.98 4.38%
Dream Office REIT D.UN-T $23.29 17.89 4.29%
Atco Ltd. ACO.X-T $35.61 17.54 4.23%
Chartwell Retirement Residence CSH.UN-T $13.97 50.98 4.21%
ARC Resources Ltd. ARX-T $14.30 35.13 4.20%
Manulife Financial Corp. MFC-T $20.97 9.26 4.20%
TORC Oil & Gas Ltd. TOG-T $6.40 50.26 4.12%
Fortis Inc. FTS-T $41.44 16.17 4.10%
Transcontinental Inc. TCL.A-T $20.75 6.43 4.05%
Killam Apartment REIT KMP.UN-T $15.88 8.08 4.03%
National Bank of Canada NA-T $62.53 10.72 3.97%
Mullen Group Ltd. MTL-T $15.17 33.74 3.96%
Royal Bank of Canada RY-T $100.70 12.38 3.89%
Intertape Polymer Group Inc. ITP-T $18.76 12.01 3.88%
Maxar Technologies Ltd. MAXR-T $38.23 38.45 3.87%
Kinder Morgan Canada Ltd. KML-T $17.00 50.69 3.82%
Sun Life Financial Inc. SLF-T $49.82 11.36 3.81%
Boralex Inc. BLX-T $16.64 90.20 3.79%
Element Fleet Management Corp. EFN-T $7.91 17.29 3.79%
CI Financial Corp. CIX-T $19.15 8.32 3.76%
Allied Properties Real Estate AP.UN-T $41.71 23.89 3.74%
Bank of Montreal BMO-T $104.74 12.40 3.67%
Labrador Iron Ore Royalty Corp. LIF-T $27.87 16.44 3.59%
Toronto-Dominion Bank TD-T $75.65 12.41 3.54%
PrairieSky Royalty Ltd. PSK-T $22.19 50.70 3.52%
Pason Systems Inc. PSI-T $20.82 58.61 3.46%
Enercare Inc. ECI-T $29.04 42.88 3.44%
Canadian Natural Resources Ltd. CNQ-T $39.12 20.97 3.43%
Industrial Alliance Insurance IAG-T $49.06 9.28 3.38%
NFI Group Inc. NFI-T $45.41 13.24 3.30%
Secure Energy Services Inc. SES-T $8.34 n/a 3.24%
Restaurant Brands International QSR-T $73.80 23.08 3.17%
Canadian Western Bank CWB-T $32.93 11.34 3.16%
Thomson Reuters Corp. TRI-T $58.67 35.80 3.10%
Aecon Group Inc. ARE-T $16.33 26.93 3.06%
WestJet Airlines Ltd. WJA-T $18.36 10.50 3.05%
Cogeco Communications Inc. CCA-T $64.06 8.79 2.97%
Suncor Energy Inc. SU-T $48.80 19.91 2.95%
Rogers Communications Inc. RCI.B-T $65.26 17.36 2.94%
Canadian Apartment Properties CAR.UN-T $45.56 28.00 2.92%
Nutrien Ltd. NTR-T $71.64 n/a 2.90%
Morneau Shepell Inc. MSI-T $27.13 32.14 2.88%
Magna International Inc. MG-T $61.95 7.08 2.77%
Sleep Country Canada Holdings ZZZ-T $27.03 17.11 2.74%
Tricon Capital Group Inc. TCN-T $10.33 7.87 2.71%
TMX Group Ltd. X-T $86.37 18.49 2.69%
Intact Financial Corp. IFC-T $105.08 18.62 2.66%
Parkland Fuel Corp. PKI-T $44.30 28.17 2.65%
Cameco Corp. CCO-T $15.27 n/a 2.62%
SNC-Lavalin Group Inc. SNC-T $44.86 18.25 2.56%
Finning International Inc. FTT-T $31.60 19.13 2.53%
ShawCor Ltd. SCL-T $24.19 27.45 2.48%
Westshore Terminals Investment WTE-T $25.97 15.35 2.46%
Husky Energy Inc. HSE-T $20.45 14.06 2.44%
Canadian Tire Corp. CTC.A-T $148.65 14.53 2.42%
InterRent Real Estate Investme IIP.UN-T $11.47 5.06 2.35%
WSP Global Inc. WSP-T $65.75 25.70 2.28%
TransAlta Corp. TA-T $7.05 n/a 2.27%
Enerflex Ltd. EFX-T $16.82 21.40 2.26%
Premium Brands Holdings Corp. PBH-T $86.77 29.64 2.19%
Ritchie Bros Auctioneers Inc. RBA-T $43.61 34.12 2.15%
George Weston Ltd. WN-T $91.57 17.94 2.14%
Altus Group Ltd. AIF-T $28.40 n/a 2.11%
Boardwalk REIT BEI.UN-T $48.00 15.36 2.09%
Wheaton Precious Metals Corp. WPM-T $22.52 25.55 2.08%
Birchcliff Energy Ltd. BIR-T $4.93 18.44 2.03%
Osisko Gold Royalties Ltd. OR-T $10.06 213.12 1.99%
Lundin Mining Corp. LUN-T $6.07 8.14 1.98%
TFI International Inc. TFII-T $42.96 19.82 1.96%
Fairfax Financial Holdings Ltd. FFH-T $672.67 21.86 1.93%
Badger Daylighting Ltd. BAD-T $28.19 15.57 1.92%
Empire Co. Ltd. EMP.A-T $23.05 19.84 1.91%
Loblaw Cos Ltd. L-T $63.25 20.13 1.87%
Metro Inc. MRU-T $40.10 16.22 1.80%
Tourmaline Oil Corp. TOU-T $22.30 20.27 1.79%
Imperial Oil Ltd. IMO-T $42.83 38.80 1.77%
Open Text Corp. OTEX-T $44.60 33.14 1.77%
Methanex Corp. MX-T $97.28 15.35 1.76%
Stantec Inc. STN-T $31.92 24.14 1.72%
Saputo Inc. SAP-T $38.47 17.37 1.72%
Uni-Select Inc. UNS-T $22.05 13.52 1.68%
Cott Corp. BCB-T $18.85 50.28 1.65%
Cenovus Energy Inc. CVE-T $12.10 n/a 1.65%
Canadian National Railway Co. CNR-T $111.85 22.38 1.63%
CAE Inc. CAE-T $24.73 21.04 1.62%
Maple Leaf Foods Inc. MFI-T $33.12 23.81 1.57%
CES Energy Solutions Corp. CEU-T $3.81 22.37 1.57%
Gildan Activewear Inc. GIL-T $37.00 16.70 1.57%
Franco-Nevada Corp. FNV-T $80.66 50.53 1.55%
Martinrea International Inc. MRE-T $12.02 5.55 1.50%
Toromont Industries Ltd. TIH-T $63.23 31.11 1.46%
Cascades Inc. CAS-T $11.08 14.04 1.44%
Brookfield Asset Management Inc. BAM.A-T $54.96 14.61 1.42%
OceanaGold Corp. OGC-T $3.71 9.00 1.40%
Agnico Eagle Mines Ltd. AEM-T $45.29 59.73 1.26%
West Fraser Timber Co. WFT-T $66.18 5.86 1.21%
Stella-Jones Inc. SJ-T $41.92 17.80 1.15%
ECN Capital Corp. ECN-T $3.47 15.89 1.15%
Barrick Gold Corp. ABX-T $15.01 25.98 1.04%
Enghouse Systems Ltd. ENGH-T $75.00 35.60 0.96%
MTY Food Group Inc. MTY-T $62.30 23.04 0.96%
Canadian Pacific Railway Ltd. CP-T $269.66 22.79 0.96%
Pan American Silver Corp. PAAS-T $19.11 21.29 0.95%
CCL Industries Inc. CCL.B-T $54.93 20.67 0.95%
Richelieu Hardware Ltd. RCH-T $26.80 22.49 0.90%
Linamar Corp. LNR-T $55.10 6.14 0.87%
Quebecor Inc. QBR.B-T $26.45 17.58 0.83%
Yamana Gold Inc. YRI-T $3.28 60.50 0.79%
Enerplus Corp. ERF-T $15.28 18.69 0.79%
GoldCorp Inc. G-T $13.20 n/a 0.79%
Waste Connections Inc. WCN-T $98.50 38.84 0.74%
FirstService Corp. FSV-T $102.58 46.36 0.68%
Teck Resources Ltd. TECK.B-T $29.40 6.67 0.68%
BRP Inc. DOO-T $53.49 19.15 0.67%
Alimentation Couche-Tard Inc. ATD.B-T $61.04 17.27 0.66%
Brookfield Business Partners BBU.UN-T $53.76 n/a 0.60%
Constellation Software Inc. CSU-T $879.90 49.85 0.59%
Hudson’s Bay Co. HBC-T $9.45 n/a 0.53%
Encana Corp. ECA-T $15.30 20.86 0.51%
Kirkland Lake Gold Ltd. KL-T $24.59 17.96 0.49%
Alamos Gold Inc. AGI-T $6.02 74.92 0.43%
Boyd Group Income Fund BYD.UN-T $122.00 41.11 0.43%
Dollarama Inc. DOL-T $37.58 23.67 0.43%
Onex Corp. ONEX-T $85.78 11.22 0.41%
Hudbay Minerals Inc. HBM-T $6.20 5.38 0.32%
Winpak Ltd. WPK-T $45.43 20.86 0.26%
Colliers International Group CIGI-T $86.12 27.51 0.15%
First Quantum Minerals Ltd. FM-T $14.37 44.21 0.07%

Source: Bloomberg, Oct. 10, 2018

Norman Rothery, PhD, CFA, is the founder of StingyInvestor.com.

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Canada Post issues new offer to employees as eBay pressures Ottawa to end strikes

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Striking Canada Post workers picket at the South Central sorting facility in Toronto on Tuesday, Nov. 13, 2018.


THE CANADIAN PRESS/Frank Gunn

OTTAWA — Canada Post has issued what it calls a “time-limited” contract offer to its employees in hopes of ending rotating strikes that have created a historic backlog of undelivered parcels.

The offer Wednesday to members of the Canadian Union of Postal Workers came just hours after online sales and auctioning giant eBay called on the federal government to legislate an end to the contract dispute.

The Crown corporation’s four-year offer includes annual two-per-cent wage hikes, plus signing bonuses of up to $1,000 per employee.

The proposal, which the agency said was worth roughly $650 million, also contains new job-security provisions, including for rural and suburban carriers who have complained about precarious employment, and a $10-million health-and-safety fund.

But Canada Post said the offer was only viable if it can be agreed to before the holiday shopping rush. It has imposed a deadline of Nov. 17 for Canadian Union of Postal Workers members to accept the deal.

“This measure is to ensure we can reach a just-in-time resolution and deliver for Canadians ahead of the holiday rush,” the Crown corporation said in an email.

“The time limit is necessary as this offer is only affordable if we can clear the backlogs caused by the union’s strike activity and effectively deliver the quickly arriving massive Black Friday and Cyber Monday volumes.”

The head of eBay Canada sent a letter to the prime minister late Tuesday, urging him to force an end to the labour dispute. Andrea Stairs, eBay’s general manager for Canada, also warned that quick action was needed to ensure retailers don’t lose out on the Black Friday and Cyber Monday sales.

“I encourage the government to explore all available legislative solutions to alleviate the current situation,” Stairs wrote in the letter, which was also sent to Labour Minister Patty Hajdu and Public Services Minister Carla Qualtrough.

Continued rotating strikes at Canada Post will result in significant losses for small and medium-sized businesses across the country, Stairs warned, noting that smaller firms are unable to negotiate lower shipping fees with other delivery services.

While many businesses have adapted as best they can since the strikes began on Oct. 22, Stairs said adjustments online sellers have made so far to avoid delivery disruptions are unsustainable.

“Black Friday and Cyber Monday are critical sales opportunities for Canadian small and micro retailers, particularly those that sell into the U.S. — the largest consumer market in the world,” she wrote.

“Should the Canada Post service disruptions continue through this key retail moment, these (smaller businesses) will be seriously disadvantaged in competing for U.S. demand.”

Black Friday and Cyber Monday, which are annual shopping days known for their deep discounts, fall this year on Nov. 23 and 26.

Prime Minister Justin Trudeau warned last week that his government would look at “all options” to bring the Canada Post labour dispute to an end if there was no significant progress in contract talks. Trudeau did not elaborate on what actions could be taken, although the previous Conservative government passed legislation to end a two-week lockout of postal employees in 2011.

A spokeswoman for Hajdu said Wednesday the government recognizes Canadians and small businesses rely on the postal service, and encouraged corporate and union negotiators to keep talking.

“We urge both parties to reach a deal soon to reduce the impacts to Canadians, businesses, Canada Post and their workers,” Veronique Simard wrote in an email.

Canada Post said Wednesday it was facing an unprecedented backlog of shipments and warned the situation could escalate quickly.

Postal union members picketed in Toronto on Tuesday for the third time in the past two weeks. The latest job action in Toronto was over by Wednesday morning, but the shutdown added to the backlog of items already waiting to be sorted and shipped, said Canada Post spokesman Jon Hamilton.

“We have now surpassed 260 trailers of parcels and packets waiting to be unloaded,” Hamilton wrote in an email, referring to the Gateway parcel processing plant in Toronto.

“The union just took down their pickets but we are backed up beyond anything we’ve ever seen in our history. With Toronto out on strike, we also missed two days of customer pickups, which will likely push that trailer total over 300 today.”

The previous peak for backlogged trailers reached 220 during last year’s Black Friday and Cyber Monday shopping period, he said.

The union is negotiating contracts for 50,000 of its members in two divisions — urban carriers and rural and suburban workers. It said Tuesday that Canada Post had failed to address key issues, including health and safety, staffing levels and job security.

The two sides have been negotiating for almost a full year, with little success despite the assistance of government-appointed mediators.

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Canopy takes cautious approach to legal pot; posts loss, shares slide

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Section grower Corey Evans walks between flowering marijuana plants at the Canopy Growth Corp. facility in Smiths Falls, Ont., on Jan. 4, 2018.

Chris Wattie

Part of cannabis and investing

Canopy Growth Corp., Canada’s largest cannabis producer, saw its sales slide and its losses widen in the quarter that immediately preceded the launch of the legal recreational marijuana market.

Shares in the Smiths Falls, Ont.-based grower plunged more than 10 per cent Wednesday after the company revealed a $330-million net loss on revenue of $23-million in the quarter ended Sept. 30, an 11-per-cent drop in revenue from the previous quarter.

Co-chief executive Bruce Linton said the company took a deliberately cautious approach to the legalization of recreational cannabis on Oct. 17 – a tack that likely had a negative effect on sales. Just $700,000 of the company’s quarterly revenue came from deliveries to the recreational market – to stock shelves ahead of legalization. Canopy said it prioritized wholesale shipments to markets in Alberta and Quebec, which have bricks-and-mortar retail outlets, over online-only operations such as Ontario. He said Canopy stocked retailers with mostly flower to start, before expanding to soft-gel capsules and now prerolled joints, a category that proved to be among the most popular with consumers in the early days of legalization.

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The focus, Mr. Linton said, is on the long term.

“We want to be like a sustaining, winning race rather than a flash out of the gate,” he said on a call with analysts Wednesday.

Canopy is the third of the sector’s largest firms to report earnings this week, joining Aurora Cannabis Inc. and Tilray Inc. Together, the three companies – valued collectively at almost $30-billion – booked $66-million in total revenue and operating losses of $353-million.

Analysts had predicted that cannabis growers would sell more than they did in September to the recreational market, which launched two weeks after the reporting period ended. They expected Canopy to show revenue of as much as $91-million, according to a research note by Cowen Inc.

“It’s the first [time] in our history that I’m aware of where we actually had a slowdown,” Mr. Linton said, attributing the sales dip to lower medical sales in Canada and Germany. “But it was more of a distraction than a pattern.”

Canopy’s stock tumbled 10.9 per cent Wednesday in New York, falling to US$34.30 a share. Investors were dumping other pot stocks, too: Tilray fell 8.3 per cent, Aurora’s shares were down 8 per cent, and Aphria Inc. dropped 7.4 per cent

Despite supply issues plaguing the industry as a whole, Canopy is not low on product. As of Sept. 30, its inventory levels grew to 31,214 kilograms of cannabis flower, 21,499 litres of oil and 1,497 kilograms of soft-gel pills. That inventory and large production footprint may put Canopy “ahead of many other licensed producers (LPs) in its ramp and ability to supply adult-use channels,” analysts at BMO Nesbitt Burns Inc. wrote Wednesday. “We believe there is significant uncertainty for the industry’s ramp schedules.”

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But accelerating for recreational sales and overseas expansion isn’t coming cheap. Canopy posted operating losses of $215-million for the quarter. It took a net write-off of $16-million related to culling plants because it didn’t have a processing licence at one of its facilities.

Canopy is aiming to capture a 30-per-cent share of Canada’s recreational market. “Now, it’s crank time,” Mr. Linton said. “And the provinces are starting to gain their momentum as well.”

Available now: Cannabis Professional, the authoritative e-mail newsletter tailored specifically for professionals in the rapidly evolving cannabis industry. Subscribe now.

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Canada Post issues new offer to employees as eBay calls on feds to end strikes

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Terry Pedwell, The Canadian Press</span>


Published Wednesday, November 14, 2018 4:43PM EST


Last Updated Wednesday, November 14, 2018 5:13PM EST

OTTAWA — Canada Post has issued what it calls a "time-limited" contract offer to its employees in hopes of ending rotating strikes that have created a historic backlog of undelivered parcels.

The offer came just hours after online sales and auctioning giant eBay called on the federal government to legislate an end to the Canada Post contract dispute.

The Crown corporation’s four-year offer, provided to The Canadian Press, includes annual two-per-cent wage hikes, plus signing bonuses of up to $1,000 per employee.

The $650-million proposal also includes new job-security provisions, including for rural and suburban carriers who have complained about precarious employment, and a $10-million health-and-safety fund.

But Canada Post says it’s only affordable if it can be agreed to before the holiday shopping rush, so it has imposed a deadline of Saturday, Nov. 17 for Canadian Union of Postal Workers members to accept the deal.

The prime minister warned last week that his government would look at "all options" to bring the labour dispute to an end if there was no significant progress in Canada Post’s contract talks with the union.

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