Below is a selection of sample reports to give investors a reference point for the type of research we provide on a monthly basis to our clientele. We separate our coverage universe into two areas; Small-Cap Growth Stocks and Income/Growth (Dividend) Stocks. Below we have included at least two initial reports, two updates, and a full monthly edition (research summary) from each area. All companies actively covered are updated regularly with PDF or Flash Update reports and current BUY/SELL/HOLD ratings are posted in the “Active Portfolios” section of our website for paid clients. We do not provide a sample of our model portfolios as the portfolios and current ratings are for our paid customers only. Investors should not assume these sample reports include our most recent rating on the stock in question and should therefore not use these reports for investment purposes, only to familiarize themselves with KeyStone’s Research Services.
Small-Cap Growth Stock Research Service
Initial Reports (BUY, SPEC BUY Ratings)
Photon Control Inc. (PHO:TSX)
A relatively recent micro-cap recommendation in December of 2014 at $0.46. The company has posted strong growth over that time and now boasts a balance sheet with over $0.27 per share in cash and zero debt. The shares have performed well over this period recently closing at the $1.65 level. It is a solid, cash flow generating business, with zero coverage from Bay Street. Frankly, with $30 million in internally generated cash – they do not need to raise any money which could dilute current shareholders. This is the type of company we like to BUY and HOLD for 1-5 years.
XPEL Inc. (XPEL:NASDAQ)
XPEL Inc. is a small-cap company that markets and sells automotive paint protection and window films that help prevent scratches, dings, and rock chips. KeyStone initially recommended XPEL in the Fall of 2017 when the stock traded at $1.42 on the TSX-Venture exchange under the symbol (DAP.U:TSX-V). At that time KeyStone was the only research firm covering the stock and today XPEL remains relatively uncovered by analysts. Since our initial recommendation the stock has graduated from the TSX-Venture exchange to the NASDAQ, has continued to post record earnings quarter after quarter and the share price has soared. Adding stocks like XPEL to your portfolio can make a real difference in your portfolio’s success over the long term.
Boyd Group Services Inc. (BYD: TSX)
The Boyd Group and its simple car repair business was recommended to KeyStone’s Premium Small-Cap Research clients in November of 2008 at $2.30. Since then, our clients have seen it shares rocket to recently close at CDN$214.80. In fact, over that period the company has created such strong cash flow it has distributed over CDN$5.40 per share in distributions (dividends) to shareholders on top of the tremendous share price gains. Driving this growth has been a well laid out growth-by-acquisition plan which has seen the Boyd Group Income Fund (BYD:TSX)/(BFGIF:US OTC), one of the longest standing stocks on KeyStone’s Focus BUY List. When we recommended the stock in 2008 at $2.30, KeyStone was the only research firm covering the stock. Today, despite the tremendous growth we remain one of only a couple with a BUY recommendation on the stock.
International Road Dynamics (IRD:TSX)
We uncovered Canadian Small-Cap, International Road Dynamics (IRD:TSX) at the start of 2017. Recommending it with a buy price of $2.36 – January 30, 2017. Market Cap: $35 million IRD was the type of cash producing, growing business that traded at only 12 times earnings. Just 2-months later, IRD received a takeover bid at $4.25. That produced an 80% return in just over 2-months. International Road Dynamics Inc. (IRD:TSX) is a highway traffic management technology company specializing in supplying products and systems to the global Intelligent Transportation Systems (ITS) industry. IRD is a North American company based in Saskatoon, Saskatchewan Canada with sales and service offices throughout the United States and overseas. Private corporations, transportation agencies and highway authorities around the world use IRD’s products and advanced systems to manage and protect their highway infrastructures.
Trulieve Cannabis (TRUL:CSE)
During the initial Cannabis rush KeyStone chose to avoid the sector. As our analysts saw multiple risk factors including, lack of profitability, company track records and a risk from legislative barriers. But after our second comprehensive Canadian Cannabis Report, released in late 2019, KeyStone recommended Trulieve Cannabis (TRUL:CSE). A seed to sale cannabis company that has dominated its market. Since our initial recommendation at $16.00 per share, Trulieve has exceeded estimates and its share price has awarded shareholders, reflecting the underlying success of the business.
Company Updates (BUY, SELL, SELL-HALF, HOLD Ratings)
Photon Control Inc. (PHO:TSX)
A relatively recent micro-cap recommendation in December of 2014 at $0.46. The company has posted strong growth over that time and now boasts a balance sheet with over $0.27 per share in cash and zero debt. The shares have performed well over this period recently closing at the $1.65 level. It is a solid, cash flow generating business, with zero coverage from Bay Street. Frankly, with $30 million in internally generated cash – they do not need to raise any money which could dilute current shareholders. This is the type of company we like to BUY and HOLD for 1-5 years.
XPEL Inc. (XPEL:NASDAQ)
XPEL Inc. markets and sells automotive paint protection and window films that help prevent scratches, dings, and rock chips. KeyStone initially recommended XPEL in the Fall of 2017 when the stock traded at $1.42 on the TSX-Venture exchange under the symbol (DAP.U:TSX-V). At that time KeyStone was the only research firm covering the stock and today XPEL remains relatively uncovered by analysts. Since our recommendation the stock has graduated to the NASDAQ, has continued to post record earnings quarter after quarter and the share price has soared. Adding stocks like XPEL to your portfolio can make a real difference in your portfolio’s success over the long term.
XPEL Inc. (XPEL:NASDAQ)
XPEL Inc. is a small-cap company that markets and sells automotive paint protection and window films that help prevent scratches, dings, and rock chips. KeyStone initially recommended XPEL in the Fall of 2017 when the stock traded at $1.42 on the TSX-Venture exchange under the symbol (DAP.U:TSX-V). At that time KeyStone was the only research firm covering the stock and today XPEL remains relatively uncovered by analysts. Since our initial recommendation the stock has graduated from the TSX-Venture exchange to the NASDAQ, has continued to post record earnings quarter after quarter and the share price has soared. Adding stocks like XPEL to your portfolio can make a real difference in your portfolio’s success over the long term.
Boyd Group Services Inc. (BYD:TSX)
The Boyd Group and its simple car repair business was recommended to KeyStone’s Premium Small-Cap Research clients in November of 2008 at $2.30. Since then, our clients have seen it shares rocket to recently close at CDN$214.80. In fact, over that period the company has created such strong cash flow it has distributed over CDN$5.40 per share in distributions (dividends) to shareholders on top of the tremendous share price gains. Driving this growth has been a well laid out growth-by-acquisition plan which has seen the Boyd Group Income Fund (BYD:TSX)/(BFGIF:US OTC), one of the longest standing stocks on KeyStone’s Focus BUY List. When we recommended the stock in 2008 at $2.30, KeyStone was the only research firm covering the stock. Today, despite the tremendous growth we remain one of only a couple with a BUY recommendation on the stock.
Sangoma Technologies Corp. (STC:TSX-V)
Sangoma is a global provider of on premise and cloud-based solutions. Our analysts are no stranger to the Sangoma, initially recommending the company in late 2005 at a price of $0.72, and increasing over 100% in just a few years, but in the midst of the 2008 financial crisis the stock was downgraded to a HOLD. As in the report that is attached, In late 2019 Sangoma was upgraded to a buy and the stock has performed very well.
Income/Growth (Dividend) Stock Research Service
Initial Reports (BUY, SPEC BUY Ratings)
Parkland Corp. (PKI:TSX)
Parkland Corp. (PKI:TSX) is Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products. The company was recommended in January of 2018 at $28.85 (with an income yield of 4.03%) as a result of its low valuation multiples, rapidly growing revenue and sustainable payout ratio. The company traded at a substantial discount to its peer group and has maintained both an attractive yield and growth profile.
Company Updates (BUY, SELL, SELL-HALF, HOLD Ratings)
Algonquin Power & Utilities (AQN:TSX)
Algonquin owns and operates a diverse portfolio of renewable power generation and natural gas distribution assets throughout North America. The company was recommended in August of 2012 at $6.76 (with an income yield of 4.58%). Since our initial recommendation Algonquin has paid over $4.00 in dividends and now trades at $21.34, providing clients with a return of over 310%. Algonquin was recommended as a result of its stable long-term growth in Funds From Operations, a valuation which was attractive relative to its peer group, and a strong pipeline of internal and external growth opportunities.
Brookfield Infrastructure Income Fund (BIP.UN:TSX)
Brookfield Infrastructure Income Fund (BIP.UN:TSX) is a diversified infrastructure company with a global portfolio of long-life assets generating stable revenues on long-term contracts. The company was recommended in March 2011 at $14.41 (with an income yield of 5.7%), has paid our clients over $17.30 in income distributions and currently trades at $64.69 – for a total gain of over 460%. We recommended the company because we saw an opportunity for them to expand their portfolio of contracted, revenue generating assets which supports the attractive income yield. The company also traded at a reasonable valuation and has shown an impressive track record of increasing their income distributions.
U.S. Growth Stock Research Service
Initial Reports (BUY, SPEC BUY Ratings)
Microsoft Corp. (MSFT:NASDAQ)
Microsoft (MSFT:NASDAQ) is one of the largest consumer and enterprise software companies in the world. Known for its Windows operating system and Office productivity suite, Microsoft has also become a major player in the cloud computing space which helped influence us to recommend the company in January 2019 at a price of $105.08. Showing strength in all of its business segments and trading at reasonable valuation multiple, Microsoft’s share price has since performed well for our clients – increasing over 100% (including dividends) in under a year.
Zynex Inc. (ZYXI:NASDAQ)
In late 2017, KeyStone’s analysts uncovered Zynex Inc., a small-cap electrotherapy medical device company then trading on the U.S. OTC market at a price of $3.00 per share. Just prior to our initial recommendation we uncovered that Zynex’s largest competitor in the electrotherapy market had ceased to operate, offering Zynex the opportunity to dominate its market. During this time the company was able to grow its revenues at a rapid pace, had recently broke into profitability, was trading at attractive valuation multiples – leading to the company uplisting from the OTC exchange to the NASDAQ. Providing our clients with tremendous gains into 2019 and beyond.
EPAM Systems Inc. (EPAM:NYSE)
EPAM is a leading global digital and product design agency that KeyStone initially recommended to clients in late 2018 at a price of $123.28. Our analysts saw an opportunity within EPAM’s software engineering expertise and the rapidly growing areas of artificial intelligence and data analytics. Along with an impressive track record of organic growth, consistent profitability, a cash rich balance sheet and reasonable valuation multiples. These key drivers along with further operational execution by management caused the share price to soar and provided clients with a return of over 170%.