When this year started, I’d discussed the prospects for Air Canada in the face of the COVID-19 pandemic. This has been the worst challenge for the airline industry in decades. Still, the stock looks like a promising hold for the long term. Unfortunately, the pandemic promises to be a lingering issue. Some investors may be worried about its ability to rebound in the near term. Investors who want alternatives should look to these TSX stocks that possess great long-term growth potential.
Why investors should forget Air Canada and focus on automation
In January, I’d discussed the best stocks for millennials to target right now. Automation is one of the key trends young investors should be keen to jump on. Fortunately, ATS Automation (TSX:ATA) offers exposure to the world of factory automation. This TSX stock has climbed 46% year over year as of late-morning trading on February 11. Its shares are up 26% in 2021 so far.
Unlike Air Canada, ATS Automation and automation-linked stocks have benefited from the pandemic. The company released its third-quarter fiscal 2021 results on February 3. Revenues rose 1% year over year to $369 million. Order Bookings increased 18% to $435 million. Moreover, the Order Backlog rose 5% to $985 million.
ATS Automation boasts an immaculate balance sheet and promising growth potential. It is expensive in this hot market, but young investors can feel good about stashing this for the long term.
This TSX stock is geared up for big growth
Kinaxis (TSX:KXS) is another TSX stock I’d snag over Air Canada today. Its shares erupted in 2020, proving to be one of the most explosive stocks in the face of the pandemic. However, the stock has started slowly this year. It is down nearly 1% in 2021. Investors can expect to see its fourth-quarter and full-year 2020 results later this month.
Canada has become a leader in supply chain and operations planning software on the back of Kinaxis. The company has attracted Ford, Unilever, Toyota Motors, and other top firms with its cutting-edge technology. Kinaxis is well positioned to post strong growth on the back of this fast-growing market.
Skip Air Canada and target this automobile parts manufacturer
The global vaccine rollout has hit hurdles in 2021, but it has still presented a light at the end of the tunnel for the pandemic. Still, Air Canada and its peers will be forced to battle turbulence until we achieve some semblance of normalcy. The Canadian political class appears lost in a fog during this crisis, so we can expect little clarity on that front.
Instead of hoping for a breakthrough for airliners, investors may want to turn to the automobile sector. Magna International (TSX:MG)(NYSE:MGA) is a top TSX stock and the largest auto parts manufacturer in North America.
Its shares have climbed 46% from the prior year as of late-morning trading on February 11. Moreover, Magna has bolstered its exposure to the burgeoning electric vehicle (EV) market. In late December, it announced a joint venture with LG Electronics to construct electric car components. This follows developments in 2018, which included two joint ventures with Chinese companies to engineer and build EVs.
Here is why you should stick with Air Canada in 2021…
Before you consider Air Canada, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now… and Air Canada wasn’t one of them.
The online investing service they’ve run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC and Magna Int’l.
Why rising bond yields challenge stocks and the Fed – CNBC Television
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- Why rising bond yields challenge stocks and the Fed CNBC Television
- Fed Chair Jerome Powell says money printing doesn’t lead to inflation Kitco NEWS
- US stocks rally as Powell soothes traders’ nerves BNN
- Inflation Is Uncontainable But Not Inevitable Bloomberg
- Fed Chairman Powell Helps the Stock Market But Won’t Discuss Deficit Bloomberg
- View Full coverage on Google News
Here We Go Again: Why GameStop Stock Is Soaring Today – The Motley Fool Canada
The top indexes in the United States were down broadly in mid-morning trading on February 25. However, a handful of “meme stocks” were on the run again. In late January, the investing world was swept up in the reddit-fueled GameStop (NYSE:GME) craze. Its shares fell precipitously in early February, punishing those that bought late into the frenzy. Shares of GameStop were up nearly 50% in mid-morning trading today. What is behind this latest surge?
The top “meme stock” still has life
On Tuesday, Bloomberg News reported that GameStop’s chief financial officer Jim Bell was pushed out to make way for an executive with a vision more in line with Ryan Cohen. Cohen is an activist investor on the board and the co-founder of online pet-food retailer Chewy.com. His addition to the board sparked the big rush to GameStop stock.
The r/WallStreetBets board saw so much traffic that it went down after trading halted. GameStop was not the only “meme stock” to benefit from this social media-powered surge. We saw a handful of the same names putting together a solid mid-week spike. AMC Entertainment, which has suffered mightily in the cinema space during the pandemic, was up 10% in late-morning trading on February 25. Meanwhile, BlackBerry had failed to pick up any significant momentum.
Is there any reason to consider GameStop as a long-term investment?
Earlier this month, I’d suggested that investors should look elsewhere in the promising video game space. GameStop has been an amusing roller-coaster ride, but investing on the whims of a social media mob is usually not a recipe for success. More importantly, GameStop is in a tough position as brick-and-mortar retail looks to decline even further in the years ahead. It will need to dramatically reshape its business model to have a chance in this new economy.
Here are some stocks I like better than GameStop right now
I’d also suggested that investors may want to look at Cineplex (TSX:CGX). Canada’s top cinema operator has also struggled mightily during the pandemic. Indeed, movie theatres have barely been able to operate commercially over the past year. Still, shares of Cineplex have climbed 60% in 2021 so far. There are high hopes for a rebound in this industry as the economy reopens.
Cineplex cinemas will reopen in Ottawa and Cornwall this week. Its shareholders can look forward to a further return to regular operations in the weeks and months ahead. A flurry of box office draws that have been delayed have the potential to thrust Cineplex back to normalcy. GameStop’s business, however, does not have high hopes as currently constructed.
Copper Mountain Mining (TSX:CMMC) is a top base metals mining company in Canada. Copper and other commodities have erupted in late 2020 and early 2021. Shares of Copper Mountain Mining have climbed nearly 80% in the year-to-date period. The stock is up almost 500% from the prior year. Instead of betting on “meme stocks” like GameStop, investors can hop on the base metals bull run. This has a good shot to continue into the rest of 2021, as the global economy rebounds.
Speaking of stocks I’d buy over GameStop…
One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!
Dairy farmers advised to stop adding palm oil to feed as butter controversy heats up – CBC.ca
After news coverage of butter becoming harder to melt, possibly due to palm oil additives in cattle feed, the Dairy Farmers of Canada association is recommending that producers stop the practice for the time being.
Gordon MacBeath, a member of the national group’s board and chairman of the Dairy Farmers of P.E.I., said the group is responding to recent concerns about the hardening of some types of Canadian butter.
“It’s just a precautionary [measure] to ensure that consumers maintain confidence in dairy products across Canada,” MacBeath said in an interview with CBC Prince Edward Island’s Island Morning.
Dairy Farmers of Canada also announced on Feb. 19 that it is putting together a working group to study the issue of “fat supplementation in the dairy sector.”
The group will include producers, processors, the Consumers Association of Canada, veterinary nutritionists and animal scientists.
WATCH | Butter won’t melt? Some have theories about why that is:
“We want to err on the side of caution and we’re advising producers to just simply drop it as an ingredient in the ration until the working group has an opportunity to do their work,” said MacBeath.
The Quebec Milk Producers Association is also looking at the use of palm fat in feed, and says it will follow the recommendations of the national group.
Palm fat an approved supplement
Palm fat is not a new addition to dairy cattle diets, MacBeath noted. It has been used for about a decade. The supplement is also being used in the United States, the United Kingdom, Australia and New Zealand.
The fat is an energy supplement, MacBeath explained.
“I would compare it to yours and my diet. We need a balance of energy and protein, and the cow is no different. She needs a balance of energy and protein,” he said.
“Palm supplements are just another energy source for the cow.”
A cow requires about 35 kilograms of feed a day. If palm fat is part of that diet, within that 35 kilograms the cow would typically get 200 to 250 grams of the fat.
In the decade during which palm fat has been used as a supplement for dairy cattle feed, MacBeath said no health issues for the cow or changes to the milk have been detected. He said dairy farmers are in regular consultation with veterinary nutritionists to ensure their cows are getting a healthy diet.
Palm fat is approved as a supplement by the Canadian Food Inspection Agency.
At least one researcher is questioning whether this is even a problem that needs to be addressed.
Alejandro Marangoni, a food science professor at University of Guelph, said while components of palm oil found in milk fat can affect the melting point of butter, there’s no data to support “sensationalist” claims of a great hardening.
Many possible reasons for change in butter
There are a lot of things that can change from season to season and year to year that can make a difference to the milk products on your table, said MacBeath.
“Milk is such a natural product. From the time it leaves the cow, it’s processed very little and it ends up in the consumer [market] with very little change,” he said.
If there is a change in the butter, he said it’s not unreasonable to assume it’s because of something the cows ate. But MacBeath said the list of potential causes is long.
“To give an example, this year was very dry, so the texture of the forage and the grass the cow is eating is different than it was the previous year,” he said.
“The previous year we had Hurricane Dorian and that changed the quality of the corn.”
Dairy Farmers of Canada notes that dairy cattle feed varies not only from season to season and year to year, but also from place to place, because the type of feed available varies depending on what local farmers are growing.
“While farmers grow the majority of the crops they feed their cows, a number of common feeds like flax, canola, corn, and other plants have been used for decades in a targeted way to ensure cows are meeting their energy requirements,” says a statement posted on the group’s site.
“All milk sold in Canada is nutritious and safe to consume and is subject to Canada’s rigorous health and safety standards.”
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