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BUY ALERT: 2 Super TSX Stocks to Grab Today – The Motley Fool Canada

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The S&P/TSX Composite Index was up 66 points in early afternoon trading on June 18. Markets have been more treacherous for investors in June. Today, I want to look at two TSX stocks that offer nice value and a change at long-term growth. Let’s jump in.

BUY ALERT: Why this TSX stock can storm back in 2020

In early May, I’d discussed how investors could look to emulate Warren Buffett’s investing style this year. Historically, Buffett has thrown his capital behind companies that are well positioned to rebound. The COVID-19 pandemic has ravaged TSX stocks in sectors like hospitality. Fortunately, there may be better times ahead.

Great Canadian Gaming (TSX:GC) is a gaming and entertainment company with locations spread across Canada. Like other entertainment venues, casinos have been forced to shutter their doors in response to the COVID-19 outbreak. Shares of Great Canadian Gaming have dropped 33% in 2020 at the time of this writing. However, the stock is up 23% month over month.

The company released its first-quarter 2020 results on May 5. Revenue fell 10% year over year to $273.8 million. Adjusted EBITDA declined 6% to $103 million. Unfortunately for shareholders, the worst of it is yet to come in the second quarter for Great Canadian Gaming.

Shares of Great Canadian Gaming last possessed a very favourable price-to-earnings (P/E) ratio of 7.7. Moreover, the company is in a stable capital and liquidity position. This TSX stock is poised to bounce back as Canada’s economy reopens. The development of the recently acquired GTA Bundle will go a long way to boosting its profits in the 2020s. Now is a great time to add this promising growth stock for a discount.

This housing stock is still worth stashing for the long haul

Canada housing has not been spared in this economic pullback. Sales activity has taken a significant dip, but prices have remained stable in key regions. Back in late April, I’d discussed why investors should not be afraid to bet on housing stocks.

Genworth MI Canada (TSX:MIC) is a top private residential mortgage insurer in Canada. Its shares have dropped 29% in 2020 as of early afternoon trading on June 18. Meanwhile, the stock has increased 22% month over month. It is not too late to pounce on the discount in this top TSX Dividend Aristocrat.

In the first quarter, Genworth reported $3.2 billion in new insurance written from transactional insurance. This represented a 10% increase from the prior year. Genworth has successfully shifted to a remote model during this pandemic. It has been able to consistently support clients electronically. The company is in a solid position as housing looks to pick up during a widespread reopening.

Shares of this TSX stock are still up 4.9% year over year. Genworth stock last possessed a favourable P/E ratio of 6.9 and a price-to-book value of 0.8. The company last announced a quarterly dividend of $0.54 per share. This represents a strong 6.3% yield. Genworth has achieved dividend growth for 11 consecutive years.

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The Most Desirable Crude Oil On The Market – OilPrice.com

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The Most Desirable Crude Oil On The Market | OilPrice.com

Haley Zaremba

Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental features, travel pieces, local news in the…

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    China bought up so much oil during April and May’s oil price crash that now they don’t know what to do with it all. A huge volume of the purchases that Beijing made when the market was down are just now coming into port, and China simply can’t get them all into storage fast enough. And as China’s seas fill up with oil tankers, the country’s onshore storage tanks are filling up too–and they’re getting dangerously close to overflowing As China’s own Caixin News reported earlier this week, “as of Wednesday, China had used up 69% of its crude oil storage capacity with the 33.4 million tons it had stockpiled, up by 24% from the previous year, according to data from energy information provider Oilchem China. That’s only 1 percentage point away from the 70% threshold that experts view as the country’s capacity limit.”

    This week, Bloomberg told the story of just one of these ships currently crowding Chinese ports. “Leaving behind the waters of the Caribbean Sea, the 1,100-feet long oil tanker Maran Apollo is emblematic of the wider petroleum market,” the report begins. “Steaming at 11.5 knots, she’s heading toward China, where oil demand is fast recovering, hauling a cargo of two million barrels of U.S. crude. But her voyage didn’t start a few days ago. She loaded in early May, and with no buyers during the worst of the coronavirus outbreak, the supertanker stood floating in the U.S. Gulf of Mexico for almost two months, waiting for better times.”

    The fact that Maran Apollo has now departed for Rizhao, China is a promising one, indicating that refiners are finally starting to demand more crude that has been sitting unwanted for months out at sea. But it’s not just any kind of crude. In order to really understand the oil industry’s uneven recovery, you have to look a little closer. 

    “Refiners are competing for barrels in one corner of the market known as medium-heavy sour crude — barrels with a higher content in sulfur and relatively dense. It’s the kind of oil that Saudi Arabia and its allies pump. And also the type of crude that’s pumped offshore in the U.S. Gulf of Mexico — and that’s what’s in the Maran Apollo’s tanks.” Bloomberg compares different kinds of crude oil to different vintages of wine. “Urals of Russia and Arab Light from Saudi Arabia are normally two of the most widely consumed — think Cabernet Sauvignon, maybe a Merlot. But in today’s oil market, such crude is in increasingly short supply due to record output cuts by the two nations and their allies.”

    Related: Saudi Arabia Hikes Oil Prices For The Third Consecutive Month

    The production cuts from OPEC+ don’t just remove any old crude oil from the oversaturated market, they remove the most in-demand kinds of crude, and its absence has caused problems for an energy industry trying to get back to business-as-usual. “Deep OPEC+ cuts and demand recovery have tightened balances and this has been reflected in improvements in physical differentials,” Bassam Fattouh, director of the Oxford Institute for Energy Studies, was quoted by Bloomberg. “But the recovery has not been even, with medium-sour crudes faring better than light-sweet crudes.”

    The shortage of medium-sour crude, and “particularly those known as light sweet crude that have a lower sulfur content and are less dense” has also upset conventional price brackets for crude oil. Usually, these barrels are plentiful and inexpensive, but as austere production cuts have removed so much medium-sour crude supply from the market, these barrels’ prices have soared. 

    While recovering oil prices can be seen as a sign of success for OPEC+ and their production curbing strategies, they don’t necessarily indicate a healthy market for oil. “Not only is medium-heavy sour crude trading at a premium to benchmarks, but barrels for immediate delivery are commanding premiums to forward contracts, a price pattern known as backwardation that also reflects a tight physical-market,” writes Bloomberg. As the world slowly returns to normal, markets will have to absorb the often unpredictable impacts of economic intervention like stimulus packages and production cuts on top of all the other externalities of economic recession. No one said the road to recovery would be easy. 

    By Haley Zaremba for Oilprice.com

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      Quick Compare: 2020 Tesla Model 3 Vs Model Y After $3,000 Price Cut – Forbes

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      Here’s a very short, very basic comparison of the Model Y and Model 3 for newbie electric car buyers just getting their feet wet:

      *Pricier Model 3 configs offer up to 322 miles of range

      **The Model 3 with rear seats folded has “almost comparable cargo capacity [to the Model y], not as bad as those numbers from the owner’s manuals suggest,” according to Motor Trend.

      Type:

      —Model Y: CUV (crossover utility vehicle)

      —Model 3: sedan

      Production start date:

      —Model Y: January 2020

      —Model 3: mid-2017

      Price:

      2020 Tesla Model Y Dual Motor All-Wheel Drive Long Range: base price: $49,990* (cheapest version currently available / price as shown on Tesla’s website)

      2020 Tesla Model 3 Standard Range Plus base price: $37,990 (cheapest model)

      Cheaper Model Y version:

      The cheapest Model Y now available isn’t cheap. A cheaper version of the Model Y will eventually be offered, according to Tesla.

      American made:

      Both the Model 3 and Model Y are made in America in Fremont, Calif.

      How similar?

      The Model Y is based on the Model 3 and shares 75% of the parts, according to Tesla. And to the untrained eye, they can be hard to distinguish.

      How different?

      But there are some big differences like cargo space and ground clearance — the Model Y has more of both. And you sit higher in the Model Y because the Y’s seats are on risers, which makes it easier to get in and get out of the car compared to the Model 3.

      The Model Y also uses a more efficient heat pump versus the resistive heating system in the Model 3.

      And the Model Y is taller, wider, and longer than the Model 3. It’s only a matter of inches (e.g., the Y is about 7 inches taller) but it can make a difference for things like headroom.

      How popular?

      The Model 3 was the best-selling car in California — the hottest electric car market in the U.S. — in the first quarter of 2020, beating both the Honda Civic and Toyota Camry, according to the California New Car Dealers Association. Since the Model Y is just beginning to ramp up production, the jury is still out but CEO Elon Musk has said that he expects it to outsell the Model 3.

      Seating capacity:

      5 passengers for both the Model 3 and Model Y, though the Y has an option for seven passengers (see “options” below).

      Ground clearance (think: light off-roading):

      —Model Y: 6.6 inches

      —Model 3: 5.5 inches

      Basic warranty:

      4 years / 50,000 miles for both the Model 3 and Model Y.

      Major options:

      —Model Y will offer a third row of seats, allowing it to seat seven passengers ($3,000 option)

      —The Model 3 Performance offers 0-60 in 3.2 seconds for thousands of dollars less than the Model Y Performance (which is a plodding 3.5 seconds by comparison).

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      300 more sailings, BC Ferries loosens restrictions – Times Colonist

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      B.C. Ferries is loosening some restrictions and increasing capacity as summer travel within the province grows.

      Passenger numbers have risen to about 70 per cent of what they were at this time last year, said Tessa Humphries, communications manager for B.C. Ferries. In the early days of the pandemic, they were about 20 per cent of normal.

      article continues below

      Passenger capacity had been capped at 50 per cent, but that restriction is being phased out to increase service, Humphries said.

      That level was set by Transport Canada, which gave operators a choice between limiting capacity and implementing enhanced cleaning and physical- distancing measures.

      Humphries said B.C. Ferries implemented both measures at first but has now decided to phase out the capacity limit. B.C. Ferries consulted with Transport Canada on the change, she said.

      Enhanced physical-distancing and cleaning protocols, including clear plastic barriers and face- coverings, remain in place. Passengers are asked whether they’re experiencing COVID-19 symptoms prior to travel, and those in vehicles are allowed to remain inside their cars.

      More than 300 sailings per month have been added on major routes between the Island and the Lower Mainland since the start of June. The company is aiming to keep capacity about 20 per cent above demand, Humphries said.

      “We will have fewer sailings than in summer schedules of the past, but significantly more than what was available as a result of the service cuts in April,” she said.

      The company has also added an additional vessel on the route between Departure Bay and Horseshoe Bay on Fridays and Sundays, and a second vessel on the route that services the southern Gulf Islands on Thursdays through Mondays.

      “We did also hear from the communities that there was a struggle for capacity there,” Humphries said, adding that it wasn’t uncommon for sailings on Gulf Islands route to be completely booked.

      Passengers travelling by car are encouraged to book in advance or choose less busy times to travel.

      Humphries said B.C. Ferries expects it will take a couple of years before passenger numbers return to pre-pandemic levels.

      Onboard food services have resumed on some minor routes, including between Swartz Bay and the Gulf Islands, and the Passages gift shop reopened Friday on sailings between Swartz Bay and Tsawwassen. Packaged food and limited hot food resumed on three major routes between the Island and the Lower Mainland in June.

      The Lands End Café in the Swartz Bay terminal also recently reopened. Markets in the Departure Bay and Tsawwassen terminals reopened in late June.

      The drop in ferry traffic has cost B.C. Ferries millions of dollars in lost revenue.

      Humphries said the company is evaluating the financial situation daily and reopening onboard amenities will provide another revenue stream.

      “But we’re all doing all of that carefully and gradually, as well as safely reintroducing these services,” she said.

      regan-elliott@timescolonist.com

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