We’re excited to commence our coverage of global stocks, starting with Canada. If you’d like to read more about Canada stocks, also visit Canada’s Undervalued Predictable Companies and Canada’s Top Dividend-Paying Stocks.
Canadian High Income Equity Fund (CIQ.UN)
The Canadian High Income Equity Fund is overseen by Brompton Funds Limited, a closed-end fund manager dealing with about $1.3 billion in assets. The fund has drifted 88.9 percent from its March peak price of $12.35, and currently trades at $1.37.
In three years, the fund has gained 4.23 percent in market value. The fund has a yield of 6.44 percent.
TSX:CIQ.UN data by GuruFocus.com
Canadian High Income Equity Fund consists of income trusts, REITS and dividend-paying equities. Brompton created the fund in 2011 to capitalize on the undervalued high income investment opportunities in Canada’s income trust sector, and expanding the high common equity market that Brompton expected to continue since its inception.
The fund has a monthly distribution of $0.065 per unit. Its portfolio manager is Paul Bloom of Bloom Investment Counsel.
As of Dec. 31, Canadian High Income Equity Fund’s largest represented sector was oil and gas, which is 29.4 percent of its portfolio; 22.9 percent is composed of pipes, power, utilities and infrastructure stocks and 15 percent is composed of real estate-related stocks.
Its top three holdings are Chemtrade Logistic Income Fund (CGIFF), EnerCare Inc. (ECI) and ARC Resources Ltd. (ARC).
View the rest of its summary at Canadian High Income Equity Fund.
Skylon Global Capital Yield Trust (SLP/UN)
Closed-end investment trust Skylon Global has drifted 66.8 percent from its July peak price of $24.83, and currently trades $8.24.
In three years, the company has gained 3.24 percent in market value. The fund has a yield of 7.3 percent.
TSX:SLP/UN data by GuruFocus.com
Established in 2002, Skylon goes for high-yield debt securities, with the goal of returning profits worth at least the original subscription price of the units to unitholders (skyloncapital.com).
Bill Gross’ PIMCO is a co-adviser of the trust, and CI Investments Inc. is its primary manager. Some of the top holdings in Skylon’s portfolio include 20,763 shares of Celestica Inc. (CLS), 20,344 shares of Dundee Corp. (DEN) and 11,724 shares of Research In Motion Ltd. (RIMM) as of its 2012 semi-annual report.
View details of the portfolio at Skylon Global Capital Yield Trust.
Surge Energy Inc. (NYSE:SGY)
Manitoba-based oil and gas company, Surge Energy has drifted from its one-year peak price of $11.17, by 62.8 percent. Currently it trades at $4.16.
In three years, the company has gained 30 percent in market value.
TSX:SGY data by GuruFocus.com
Market capitalized at almost $300 million, one of Surge’s recent projects is its drilling and placement of 22 gross planned wells in the Valhalla South location. Surge’s targeted exit production is 11,000 boe per day.
GuruFocus ranks Surge one star in Business Predictability, 5 in Financial Strength and 6 in Profitability and Growth. Its revenue has surged at an average rate of 13.4 percent in 10 years, and its EBITDA, 6 percent on average for the same period.
View more of its details in 10-Year Financials.
Pinecrest Energy Inc. (PRY)
Calgary-based petroleum and natural gas exploration company Pinecrest Energy is down 61.6 percent from its peak price in the last year. Currently, it trades at $1.34.
In three years, the company has gained 2.92 percent in market value.
TSXV:PRY data by GuruFocus.com
In December, Pinecrest was shoved aside from its deal to merge with Spartan Oil Corp., that would have been worth $427 million in Canadian dollars. Instead, Spartan Oil accepted being acquired by Bonterra Energy, leaving Pinecrest a non-completion fee of C$12.5 million.
“Pinecrest will continue to pursue opportunities to enhance shareholder growth through strategic acquisitions and implementation of its waterflooding program, as previously announced,” the company said in a statement. “The combination of Pinecrest's large drilling inventory, industry leading production netback, improving capital efficiencies and attenuated corporate decline rate will drive the growth profile of Pinecrest for the foreseeable future.”
One of Pinecrest’s Good Signs on GuruFocus indicates a P/B ratio close to a two-year low. Its Severe Warning sign indicates that the company is in the distress zone under the Altman Z-Score.
View more of its details on 10-Year Financials.
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