Weekly Recap: August 3, 2018

Recapping this week’s earnings

As publicly traded equities you may have a position in continue to report quarterly earnings, it’s always important to maintain a long-term view. If a company reports earnings that disappoint and the stock price sells off, remember why you invested in the business in the first place. If the long thesis remains, don’t sell. If the fundamentals are deteriorating, then a sell-decision can be made. I try not to focus too heavily on if a business misses/beats analyst estimates but more on the business itself and if that business continues to grow, again over the long-term.

Shopify (TSE: SHOP)

-Revenue of $245 million, up 62% from the same quarter last year.

-Adjusted net income of $0.02 per share.

-Cash and equivalents stood at $1.57 billion, and they announced plans to raise an additional $5 billion.

Spin Master (TSE: TOY)

-Revenue increased 11.8% to $296 million.

-Adjusted net income of $0.17 per share.

-The stock closed up 5.86% after Thursday’s close.

BCE Inc. (TSE: BCE)

-Revenue increased 1.7% to $5.79 billion.

-EPS of $0.86, down 3.4% from this quarter last year.

-Bell also added 112 092 wireless postpaid subscribers.

Kinaxis (TSE: KXS)

-Revenue increased 22% to $39 million.

-EPS decreased 22% to $0.16 per share.

-Cash and equivalents stand at $174 million, an increase of 5%.

Enbridge (TSE: ENB)

-Adjusted diluted EPS of $0.86.

-They signed agreements to sell $7.5 billion in non-core assets to significantly reduce debt.

-Distributable Cash Flow remains on track for $4.15 to $4.45 per share for fiscal 2018, they stated it should come in to the upper half.

Summary

For the companies that have reported earnings this week, nothing materially has changed. If you see one of these businesses sell off and it’s been on your watchlist, topping up a position could be done, given appropriate weights. Shopify has been the most volatile, as to be expected from a business that’s trading at expensive valuations, while they do post the best growth numbers. Bell, on the other hand, is the most stable of theses businesses, which provides a mix of a growing dividend and a rising share price. As I have been mentioning recently, there has been a lot of greed creeping into the markets, therefore patience is necessary. It is also to remember that it’s time in the market that’s important, not timing the market.

Disclosure

I hold a position in SHOP, BCE & KXS.

Please consult a financial advisor before making investment decisions.

This report represents my views, not actionable advice.