The S&P/TSX rose 40 points on March 16. Climbing oil prices powered a run for energy stocks that boosted the index into the weekend. The TSX has rebounded from the rout it suffered in late January and early February, when the index briefly fell below the 15,000 mark. Although stocks have rebounded, there are still bargains available on the TSX that opportunistic investors may want to stack as we look ahead to the spring and summer months.
Today, we are going to look at three stocks that could come for cheap right now.
Great Canadian Gaming Corp. (TSX:GC)
Great Canadian Gaming operates a wide array of gaming and entertainment facilities as well as resorts and hotels. Shares of Great Canadian Gaming have climbed 2.1% in 2018 as of close on March 16. However, the stock fell 2.4% to finish the week.
Great Canadian Gaming released its 2017 fourth-quarter and full-year results on March 6. In 2017, Great Canadian Gaming won a successful bid to own a majority stake in the GTA Gaming Bundle, which has generated over $1 billion in annual revenue in recent years. The company hopes to expand and renovate facilities going forward.
In 2017, the company saw revenues climb 8% to $614.3 million and adjusted EBITDA rise 7% to $223 million. Net earnings also increased 12% to $85.7 million. The stock is up 44% year over year, and the revenue generated from the newly acquired bundle, a contract that extends for 22 years, should propel Great Canadian Gaming profits to new heights looking ahead.
Liquor Stores N.A. Ltd. (TSX:LIQ)
Liquor Stores is an Edmonton-based liquor retailer, which will soon branch into the retail cannabis industry. Aurora Cannabis Inc. recently acquired a 19% stake in the company that will see it facilitate cannabis retail in western Canada. Liquor Stores stock dropped 6.65% on March 16, as its market cap is now hovering around the $350 million mark.
The small cap released its 2017 fourth-quarter and full-year results on March 15. In the midst of a transition, Liquor Stores achieved $29 million in inventory reductions compared to the previous year. Consolidated sales dropped 1.8% in Q4 with the foreign exchange impact of USD sales weighing on revenue. Liquor Stores announced a quarterly dividend of $0.09 per share, representing a 2.9% dividend yield.
With recreational cannabis legalization fast approaching in Canada, slated for the late summer, Liquor Stores will be in position to serve as a litmus test for how private sales will operate in Alberta compared to the public systems in Ontario and elsewhere.
BlackBerry Ltd. (TSX:BB)(NYSE:BB)
BlackBerry stock fell 1.68% on March 16. However, shares have surged 20.9% in 2018 thus far. BlackBerry signed CEO John Chen to a five-year contract extension and praised its current turnaround, which is still underway. The company has made impressive headway in its software and services and now boasts a growing footprint in the cybersecurity and autonomous vehicle industry. Both industries are projected to see double-digit compound annual growth into the next decade. BlackBerry stock, priced at $16.98 as of close on March 16, remains an attractive long-term addition.
