The evolution of the hybrid work model continues to present significant uncertainty for the future of office properties like those owned by Dream Office REIT. However, the trend appears to be here for the long term. Meanwhile, the trust yields a high 4.4% and its distribution appears sustainable.
The stock trades at just 7.8 times the company’s free cash flow, which is about half the price of comparable competitors in its industry.
DREAM OFFICE REAL ESTATE INVESTMENT TRUST (Toronto symbol D.UN; www.dream.ca) owns 27 office properties, including two under development. The downtown Toronto market supplies 75% of rental revenue and accounts for 82% of the portfolio’s value.
The REIT consolidated its units on a 1-for-2 basis in February 2024. However, to conserve cash for debt repayments, Dream did not adjust the monthly distribution of $0.08333, effectively cutting the payment by 50%. The $1.00 annual rate nonetheless yields 4.4%.
In the second quarter of 2024, distributions accounted for 27% of the REIT’s cash flow.
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Dividend Stocks: Reducing risk should add value and continue lifting cash flow for Dream Office REIT
In the three months ended June 30, 2024, the REIT’s overall revenue increased 7.9%, to $27.3 million from $25.3 million a year earlier. That’s due to higher rents on new leases and renewals. As well, its occupancy rate at the end of the quarter was 84.3%, up from 83.9% a year earlier.
However, cash flow fell 15.1% to $14.9 million from $17.5 million due to the partial sale of its stake in Dream Industrial REIT (Toronto symbol DIR.UN), which owns industrial properties in North America and Europe. It used the proceeds to buy back units, which is why cash flow per unit rose 8.6% in the quarter, to $0.76 from $0.70.
The units now trade at a reasonable 7.8 times Dream Office’s likely 2024 cash flow of $2.88 a unit.
Teck Resources recently sold its metallurgical coal mines in Western Canada. Metallurgical coal is a key ingredient in steelmaking.
The company is using the cash to pay down debt and reward investors. More importantly, the sale leaves management to focus on its copper and zinc operations. The long-term outlook for both metals is strong, as they are crucial components of electric-powered vehicles (EVs). In addition, power utilities will need new copper transmission lines as more car owners plug their vehicles into the power grid.
The firm is also phasing out its multiple voting shares, which further strengthens its appeal with investors and could make it an attractive takeover target.
The stock trades at 24.1 times the company’s forward earnings forecast, a reasonable multiple considering its growth potential and its stellar 226.6% return over the last 5 years.
TECK RESOURCES LTD. (Toronto symbol TECK.B; www.teck.com) has now sold all its metallurgical coal business, operating as Elk Valley Resources (EVR), in two transactions. In January 2024, it sold 23% of EVR, split between buyers Japanese steelmaker Nippon Steel Corp. (20%) and South Korea’s POSCO (the remaining 3%). Teck received $1.3 billion U.S.
In July 2024, Teck sold the remaining 77% to Switzerland-based mining company Glencore plc for $7.3 billion U.S.
Following the sale, Teck now focuses on its copper and zinc mines in Canada, the U.S., Peru and Chile. Those properties include the Quebrada Blanca copper mine (60% owned) in northern Chile. The other investors are Japan’s Sumitomo Corp. (30%) and the Chilean government (10%).
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As the reserves of the main mine are running out, Teck and its partners recently started up a second phase at the site called QB2. This project should double the company’s copper production. As well, it has an initial mine life of 27 years.
In all, Teck’s share of QB2’s total construction costs will range from $8.6 billion U.S. to $8.8 billion U.S., including $500 million U.S. to $700 million U.S. in 2024.
The company’s other major operations include Highland Valley Copper (100% owned). It produces copper and molybdenum (which is used in steelmaking) at an open-pit mine near Kamloops, British Columbia.
Teck also owns 100% of the Red Dog zinc and lead mine in northwest Alaska. The mine’s reserves should last until 2031. The company is now looking at nearby areas that it could develop into a new mine.
Mining Stocks: Sharply lower earnings are not a long-term concern for Teck Resources
In the three months ended June 30, 2024, Teck’s revenue (including the coal business), rose 10.1%, to $3.87 billion from $3.52 billion a year earlier. That’s entirely due to higher copper prices and rising production from QB2.
Coal accounted for 54% of Teck’s revenue in the latest quarter, followed by copper (35%) and zinc (11%). After the sale of the coal business, copper will supply roughly 80% of its revenue, with zinc accounting for the remaining 20%.
Earnings in the quarter, before unusual items, dropped 35.2%, to $0.79 a share (or a total of $413 million) from $1.22 a share (or $643 million). The lower earnings are due to higher operating and depreciation costs at the recently opened QB2 mine, as well as higher interest expenses.
Teck Resources ended the quarter with cash of $918 million, while its long-term debt was $6.04 billion, or 16% of its market cap. The company now plans to use $2.0 billion U.S. of the $7.3 billion U.S. it received from the sale of the final 77% of its Elk Valley coal operations to pay down that debt. As a result, in July 2024, it retired $1.4 billion U.S. ($1.9 billion Canadian) of its outstanding loans.
Teck is also returning some of those proceeds to its shareholders. The company now plans to buy back a further $2.75 billion of its class B subordinate voting shares. That’s on top of an earlier plan to spend $500 million on share buybacks. That should ultimately boost the share price
As well, the company paid investors a special dividend of $0.50 a share on September 27, 2024. It will also continue to pay its regular quarterly dividend of $0.125 a share; the annual rate of $0.50 yields 0.7%.
Teck’s earnings will probably rise about 11%, from $2.57 a share in 2024 to $2.84 in 2025. The stock trades at a reasonable 24.1 times that 2025 estimate.
Investors will also benefit from Teck’s plans to phase out its dual-class share structure by May 12, 2029. At that time, all outstanding class A shares (100 votes per share) will automatically convert into class B subordinate voting shares (one vote per share) on a one-for-one basis. The class B shares will then become common shares. That enhances the stock’s appeal with investors.
Toromont Industries operates in a cyclical industry. This makes the company vulnerable to economic downturns, but it’s a leader in its market and that helps offset the cyclical risk.
Meanwhile, governments in Canada and elsewhere continue to invest in new public works projects such as roads, mass transit systems and hospitals. Those investments are fueling strong orders for the firm’s heavy construction equipment as well as demand for its maintenance and repair services.
The firm’s balance sheet remains robust and this stock continues to be a solid long-term pick for us. It’s returned an S&P-beating 108.0% over the last 5 years too.
Yet the stock trades at a reasonable 21.3 times the company’s forward earnings forecast.
TOROMONT INDUSTRIES LTD. (Toronto symbol TIH; www.toromont.com) distributes a broad range of Caterpillar and other branded industrial equipment (such as bulldozers, backhoe loaders and drills) in eastern Canada and the Eastern Seaboard of the U.S. The company also makes refrigeration systems through its CIMCO business.
The firm operates through two business segments:
The Equipment Group (91% of revenue) is the exclusive Caterpillar dealer of Caterpillar heavy equipment, such as bulldozers, backhoes and excavators, for eastern Canada. The company is also the MaK engine dealer for the Eastern Seaboard of the U.S., from Maine to Virginia.
Performance in the Equipment Group is driven by activity in several industries: road building and other infrastructure-related activities; mining; residential and commercial construction; power generation; aggregates; waste management; steel; and forestry.
CIMCO (9%) is a market leader in the design, engineering, fabrication, installation and after-sale support of refrigeration systems in industrial and recreational markets.
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Results of CIMCO are influenced by conditions in the primary market segments it serves: beverage and food processing; cold storage; food distribution; mining; and recreational ice rinks.
In total, Toromont employs over 7,000 people in more than 160 locations across Canada and the U.S.
In the second quarter of 2024, Toromont’s overall revenue rose 15.7%, to $1.36 billion from $1.18 billion a year earlier. Revenue at the Equipment Group improved 15.5% on strong demand for new and used equipment. CIMCO’s revenue also rose 18.6% as deliveries improved after recent delays. Overall earnings gained 1.9%, to $1.64 a share (or a total of $135.4 million) from $1.62 a share (or $133.3 million). That’s mainly due to higher interest income on its investments.
Growth Stocks: New acquisition should reinforce Toromont Industries’ dominant position
Toromont recently acquired Tri-City Equipment Rentals. That firm rents heavy equipment across Southwestern Ontario.
The purchase is part of Toromont’s plan to expand its rental operations. In the three months ended June 30, 2024, rentals accounted for 9% of the equipment division’s total revenue.
Toromont has not yet said how much it paid for Tri-City. However, it can easily afford to make acquisitions. As of June 30, 2024, it held cash of $1.04 billion, while its long-term debt of $647.8 million is a low 6% of its market cap.
The company’s outlook remains bright, thanks to its strong brands and dominant position in niche markets. Toromont’s parts and service business is also a significant contributor to its overall profitability, and its recurring revenue serves to stabilize results through economic downturns.
The company will probably earn $6.24 a share in 2024, and the stock trades at 21.3 times that forecast. That’s a reasonable multiple in light of rising government spending on infrastructure projects. The $1.92 dividend yields 1.4%.
With gold prices hitting new all-time highs, Barrick Gold is well-positioned to benefit from the current market conditions.
The gains likely reflect growing belief among investors that easing inflation eliminates the need for any more interest-rate increases. That should push up investor demand for gold as the appeal of interest-bearing investments and the U.S. dollar weakens. Either way, we think top-quality gold stocks, like this one, remain buys because of their prospects for higher production and cash flow. That’s regardless of gold prices or inflation.
The firm is a Power Buy and the stock trades at a reasonable 13.3 times the company’s forward earnings forecast.
BARRICK GOLD CORP. (Symbol ABX on Toronto; www.barrick.com) is the second-largest gold miner in the world after Newmont (symbol NEM on New York, and a recommendation of our Wall Street Stock Forecaster newsletter).
Barrick has announced that its feasibility study for the expansion of its Lumwana mine in Zambia is expected to be completed by the end of this year, with construction slated to commence in 2025.
The expansion is aimed at transforming the mine into a long-life, high-yielding operation, placing it among the top 25 global copper producers.
The expansion includes doubling throughput by twinning the existing process circuit and significantly increasing mining volumes. As a result, plant throughput is expected to grow from 27 million tonnes to 52 million, with annual copper production projected to double.
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Mining Stocks: Production drops but revenue rises and earnings soar at Barrick Gold
Barrick produced 948,000 ounces of gold in the quarter ended June 30, 2024. That was down 6.0% from 1.0 million ounces a year earlier as it shifted into lower-grade ore zones at some mines.
Despite the lower production, revenue rose 7.6%, to $3.16 billion from $2.83 billion. The realized gold price climbed 18.9%, to $2,344 U.S. an ounce from $1,972. Per-share earnings jumped 68.4%, to $0.32 from $0.24.
Meanwhile, the company continues to use its strong cash flow, fueled by rising gold prices, to reward investors. The annual dividend rate of $0.40 U.S. yields 2.0%. In addition to the dividend, Barrick repurchased 2.95 million shares during the second quarter under the $1 billion share buyback program it announced in February 2024.
The company now plans to focus on building new mines—or expanding its existing ones—instead of making acquisitions. In fact, it expects to boost its overall gold and copper output approximately 30% by the end of this decade.
That development plan includes the recently permitted Goldrush mine in Nevada which is ramping up its annual production to a target of over 400,000 ounces by 2028. The adjacent Fourmile project is shaping up as a top mine with potential gold production in excess of 500,000 ounces per annum over more than two decades. In the Dominican Republic, the Pueblo Viejo mine is completing an expansion project designed to increase gold production to more than 800,000 ounces annually beyond 2040.
Barrick is still open to making an acquisition should an appealing opportunity present itself. Specifically, it defines that as a mine that can produce 500,000 ounces of gold annually and be profitable at gold prices of $1,200 an ounce. Meanwhile, the company will deepen its focus on copper and gold, which are often found together geologically.
Although some of Barrick’s assets are located in less stable jurisdictions and come with a higher risk of disruption, it has a large and diversified global portfolio. That cuts risk, as does its big presence in mining-friendly Nevada.
In fact, the company has some of the industry’s lowest production costs. Barrick’s efficiency gains—along with rising output, and the likelihood of higher gold and copper prices—give it strong appeal.
A Member of Pat McKeough’s Inner Circle recently asked for his advice on Lundin Mining that operates in multiple countries to produce primarily copper but also zinc, gold and nickel.
Pat likes the strong revenue growth as the firm capitalizes on market opportunities and its strategic acquisitions. The strong cash flow and solid dividend are also positives. However, Pat cautions that the copper price can be volatile and this will affect revenues (and the share price) accordingly.
Lundin Mining Corporation (Symbol LUN on Toronto; www.lundinmining.com) is a Toronto-based producer of copper, zinc, gold, and nickel. It has operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the U.S.
In July 2023, Lundin Mining announced it had acquired 51% of SCM Minera Lumina Copper Chile. Lumina Copper owns the Caserones copper-molybdenum mine in Chile.
Lundin paid JX Metals Corporation $800 million (all figures in U.S. dollars except share price and market cap) in cash on closing. In addition, it will pay another $150 million in installments over the next six years. Meanwhile, it can acquire an additional 19% of Lumina Copper for $350 million—anytime between July 13, 2024, and July 13, 2029.
The Caserones mine helped the company produce 79,708 tonnes of copper in the most recent quarter. In addition, the firm produced 47,460 tonnes of zinc, 1,721 tonnes of nickel and 714 tonnes of molybdenum. Lundin also mined about 32,000 ounces of gold in the quarter.
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Inner Circle: Revenue and cash flow skyrocket on higher production and prices
In the quarter ended June 30, 2024, Lundin’s revenue was $1.08 billion, up 84.1% from $588.5 million a year earlier. Revenue jumped due to the acquisition of the Caserones mine, as well as higher copper prices. The company’s cash flow rose sharply, to $369.9 million, or $0.48 a share, from $110.6 million, or $0.14 a share.
With the Caserones mine, Lundin continues to position itself as a major copper producer. The addition of the mine boosts the company’s copper output by about 50%. Meanwhile, the new mine will benefit from Lundin’s proven track record of successfully operating its various mines.
Copper is widely used in global manufacturing and is a key input for everything from smartphones to houses. The price of the metal is closely linked in China’s growth. The world’s second-largest economy consumes roughly half of the world’s copper.
Demand isn’t the only factor that will fuel copper prices: Due to a lack of new mines, long-term copper shortages could result.
The stock trades at 18.3 times its forecast 2025 earnings of $0.79 a share, while the stock yields a solid 2.5%.
Recommendation in Pat’s Inner Circle: Lundin Mining Corporation is a buy.
Despite a slight dip in revenue, Warner Music Group demonstrated impressive profit growth with earnings increasing 13.7% to $141 million in the latest quarter. Growth in streaming revenue, a critical segment in today’s music industry, highlights the company’s successful adaptation to the digital landscape and positions it well for future gains as streaming continues to dominate music consumption.
What’s more, the company’s ability to improve profitability even in challenging market conditions is largely due to successful cost management and restructuring efforts.
The stock trades at 21.9 times the company’s forward earnings forecast.
WARNER MUSIC GROUP CORP. (Symbol WMG on Nasdaq; www.wmg.com) began trading on June 3, 2020, following an IPO.
Warner Music is one of the world’s leading music entertainment companies. Its record labels include Atlantic Records, Warner Records, and Elektra Records. Musicians recording on these labels include Bruno Mars, Lizzo, Ed Sheeran, Cardi B, Katy Perry, Madonna, Metallica, Neil Young and Led Zeppelin.
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The company also owns Warner Chappell Music, a music publishing company representing more than 80,000 songwriters and composers.
In the three months ended June 30, 2024, Warner Music’s revenue fell slightly, to $1.55 billion from $1.56 billion a year earlier. Recorded Music digital revenue growth was hurt by the termination of a distribution agreement with BMG; that resulted in $26 million less revenue compared to a year earlier.
Growth Stocks: Strong operating performance drives higher profits at Warner Music Group
Earnings in the latest quarter rose 13.7%, to $141.0 million, or $0.27 a share, from $124.0 million, or $0.23. The gain was driven primarily by strong operating performance, savings from the company’s March 2023 restructuring plan and savings from its subsequent Strategic Restructuring Plan.
Warner Music has demonstrated its ability to continue delivering growth in streaming. This resilience in a key revenue segment is a positive indicator for future performance. In fact, the company’s rights to a vast and diverse catalog of approximately one million musical compositions, spanning various genres provides a steady stream of revenue from licensing and royalties.
Warner Music also has a strong balance sheet: it holds cash of $607.0 million, and its $4.0 billion in long-term debt is a manageable 25% of its market cap. The stock yields 2.3%.
We continue to believe there’s room for most investors to hold aggressive stocks, which typically are more leveraged (with more debt) and volatile than conservative stocks.
Still, to cut your risk, you should limit aggressive stocks to no more than 20% of your total portfolio. We also zero in on companies that are leaders in their niche markets and have hidden assets such as this one.
Recent acquisitions to capitalize on rising demand for EV parts and agricultural equipment have driven this firm’s revenues 18.7% higher in the most recent quarter.
The company is making smart strategic moves while remaining cheap, as the stock trades at just 5.9 times the company’s earnings forecast.
LINAMAR CORP. (Toronto symbol LNR; www.linamar.com) makes a variety of automotive parts, including cylinder heads and cylinder blocks. It also makes self-propelled, scissor-type work platforms under the Skyjack brand, as well as agricultural harvesting equipment.
The company continues to adjust as carmakers shift away from gasoline-powered vehicles to EVs.
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To that end, Linamar completed several acquisitions in 2023. Those include $318.9 million for three plants, one in Alabama and two in Eastern Europe (Czechia and North Macedonia), from Dura-Shiloh. All three facilities produce battery enclosures and trays for electric vehicles (EVs).
Linamar also paid $64.0 million U.S. for the U.S.-based manufacturing operations of Mobex Fourth and 1, LLC. Those businesses make various components for gasoline-powered cars and EVs. As well, it acquired Bourgault Industries Ltd. of St. Brieux, Saskatchewan for $640 million. That firm makes a variety of agricultural products, including equipment for ploughing and seeding.
Value Stocks: Further EV-related move positions Linamar for the future
In a further response to automaker plans to increase production of electric vehicles (EVs), Linamar is building a new plant in Welland, Ontario, that will make diecast aluminum structural components for EVs. These parts weigh less and do not require the complex welding and processing associated with traditional components. The company has not yet said how much it’s spending on this plant, but it should begin operating in February 2025.
The company’s revenue in the three months ended June 30, 2024, rose 11.6%, to $2.85 billion from $2.55 billion a year earlier. That’s mainly due to recent acquisitions and new contracts. Sales of automotive equipment (69% of the total) improved 10.5%, while sales of industrial products (31%) gained 14.1%. Earnings before unusual items also rose 17.2%, to $3.06 from $2.61.
The shares currently yield a reasonable 1.6% while trading at just 5.9 times the company’s forecast earnings. That makes this firm a compelling buy as the market gradually realizes the value of its recent transactions in the EV space.
During the pandemic, Domino’s Pizza implemented savvy strategies to support its business. It’s now well-positioned to capitalize on its popular offerings to keep attracting customers.
It continues to add business in rapidly growing international markets while continuously innovating its menu offerings to attract new customers while retaining existing ones.
The stock trades at 26.2 times the company’s 2024 earnings forecast, a number we feel is justified thanks to its expanding global presence.
DOMINO’S PIZZA (New York symbol DPZ; www.dominos.com) gives you exposure to the world’s largest chain of pizza stores offering takeout and delivery. The company (symbol DPZ on New York) operates 20,930 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores.
In the three months ended June 16, 2024, the company’s sales rose 7.1%, to $1.10 billion from $1.02 billion a year earlier. Same-store sales rose 4.8% in the U.S., while they rose 2.1% internationally. Excluding one-time items, earnings per share rose 30.8%, to $4.03 from $3.08.
Thanks to its strong global brand recognition, Domino’s can raise its prices to offset higher costs.
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Growth Stocks: Digital tech should keep powering further gains at Domino’s Pizza
Domino’s also continues to invest in its own delivery and takeout systems and technology. Those include the development of a robust digital ordering system and loyalty programs. These initiatives have been contributing to traffic gains and should enhance service speed, accuracy, and efficiency. For instance, the company has installed GPS-enabled order tracking in the U.S. and is building more stores to cut down on delivery times.
All in all, the pandemic was a boon for top pizza chains like Domino’s as consumers avoided public spaces and instead opted for delivery and curbside pickup. That boosted Domino’s, which was already outpacing rivals given its commitment to tech-enabled carry-out and delivery. Meantime, those moves are still paying off.
Domino’s raised its quarterly dividend by 24.8% with the March 2024 payment, to $1.51 from $1.21. The shares now yield 1.4%.
All this bodes well for Domino’s profits—and future share price gains for investors.
Cybersecurity is the practice of defending computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks such as malware and phishing.
Notably, attacks are being launched with greater frequency and complexity, which will need to be matched by more sophisticated cyber defences.
As a result, there’s a strong opportunity for cybersecurity companies like Gen Digital to grow.
This long-term pick’s shares jumped in early May 2024 (and have kept rising) when it reported stronger results in the latest quarter and boosted its stock-buyback authorization. As well, the company has attracted further investor interest with its artificial intelligence (AI) initiatives. We think this Power Buy is poised to keep moving even higher for you.
The stock trades at just 12.2 times the company’s forward earnings forecast.
GEN DIGITAL INC.(Nasdaq symbol GEN; www.gendigital.com) changed its name from NortonLifeLock (old symbol NLOK) following its September 2022 acquisition of European cybersecurity firm Avast plc for $8.1 billion.
Gen is now the parent company for several security-related brands, including Norton, LifeLock, and Avast, in addition to Avira, AVG, and CCleaner; those last three were obtained in previous acquisitions.
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Gen Digital is dually headquartered in Tempe, Arizona, and Prague, Czech Republic, following its acquisition of Avast. Its stated purpose is to “power Digital Freedom for people everywhere.”
Overall, the company now gets about 64% of its revenue from consumer security solutions such as Norton 360 Security, Avast Security offerings, Norton Secure VPN, Avira Security and other consumer-focused security services. The remaining 36% of revenues comes mostly from identity and information protection marketed as Norton 360, alongside LifeLock, LifeLock, and other privacy offerings.
Approximately 65% of Gen Digital’s revenue is from the Americas, 24% from Europe and 11% from the Asia-Pacific region.
Growth Stocks: Earnings jump significantly as AI keeps the firm moving forward
Gen continues to attract new customers. As a result, overall revenue in its fiscal 2025 first quarter, ended June 28, 2024, rose 2.3% to $965 million from $943 million a year earlier. Earnings before one-time items rose 10.6%, to $335 million, or $0.53 a share, from $303 million, or $0.47 a share.
Meanwhile, Gen continues to spend a high 9% of its revenue on research. That’s letting it develop new products to spur its long-term growth.
For example, it recently launched a new AI-powered mobile application and web-based service (called Norton Genie) that aims to provide a way to check if texts, emails, websites and social media posts are a scam.
Genie draws from Norton databases and experience to uncover and deal with scams, phishing attacks and unsafe websites. It’s also continually updated to detect new scams and guard against emerging threats.
Gen Digital recently authorized a new share-repurchase target of $3 billion. As of June 28, 2024, it still had $2.728 billion remaining under that authorization.
For all of fiscal 2025, Gen will probably earn $2.22 a share, and the stock trades at an attractive 12.2 times that forecast.
The company last raised its quarterly dividend by 66.7% in December 2019. The annual rate of $0.50 a share yields 1.9%.
Gen’s TSI Dividend Sustainability Rating is Average.
Recommendation in Wall Street Stock Forecaster: Gen Digital Inc. is a buy.
A Member of Pat McKeough’s Inner Circle recently asked for his advice on an aluminum packaging company that caters primarily to large multinational firms.
Pat likes the firm’s improved focus on its core business after it sold off its aerospace division. He also likes its strong financial performance and its ability to capitalize on the sustainability trend.
Ball Corp.(Symbol BALL on New York; www.ball.com), makes metal packaging for the beverage, food and consumer-products industries. The company sells its products mainly to large multinational beverage, personal-care and household-products firms.
Ball also had an aerospace business (which it has now sold) that designed and manufactured a variety of products for both government and commercial clients.
Headquartered in Broomfield, Colorado, Ball has manufacturing facilities worldwide. It employs 16,000 people after the sale of its aerospace unit.
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The company has a long history of producing food containers in a variety of styles and materials. Over the years, it has reduced its glass and plastic operations to focus on being the world’s largest manufacturer of aluminum cans and aerosol containers.
Ball sells its products mainly to large multinational beverage, personal-care and household-products companies. They include The Coca-Cola Company, Anheuser-Busch InBev, Molson Coors and Unilever.
In February 2024, the company completed the sale of its aerospace business to BAE Systems (symbol BAE on New York) for $5.5 billion.
The sale of its aerospace unit should be a plus for Ball, as it lets the company focus on being a pure-play packaging business with an emphasis on aluminum packaging. The company also used the proceeds to pay down debt, and will also use the funds to buy back shares and invest in its new aluminum packaging initiatives.
Inner Circle: Recent revenue dip at Ball Corp. should be temporary
In the quarter ended June 30, 2024, revenue decreased 3.5%, to $2.96 billion from $3.07 billion a year earlier. The drop was primarily due to the pass through of lower aluminum costs. Ball contractually passes on volatile raw material price changes to customers, whether higher or lower.
Excluding one-time items, earnings rose 19.6%, to $232 million, or $0.74 per share, from $194 million, or $0.61. Earnings benefited from cost reduction measures, as well as improved operating efficiencies.
As awareness about plastic pollution spreads, demand for metal packaging, as a sustainable alternative, is growing. Aluminum cans are infinitely recyclable, which means that they can be recycled without degradation or loss of material. Many beverage and personal-care brands have already changed to using aluminum cans; this shift will continue as additional beverage categories, including still and sparkling waters, wine, coffee and other beverages, also make the move to aluminum cans.
With a growing number of its customers now switching from glass and plastic to aluminum, Ball remains well positioned to meet this growing demand. The stock yields 1.2%.
Recommendation in Pat’s Inner Circle: Ball Corp. is a hold.
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The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.
We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
Automatic Information: We receive and store certain types of information whenever you interact with us. For example, like many websites, we use "cookies," and we obtain certain types of information when your web browser accesses TSI Network.
Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.
We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
To make the visitor’s experience on our website easier, we may use per-session “cookies” (session identifiers) to track the state of the visitor session. This “cookie” is destroyed when your session with our website is over.
Cookies are alphanumeric identifiers that we transfer to your computer's hard drive through your web browser to enable our systems to recognize your browser and to provide features like "Remember Me" for our paying subscribers. Cookies are also used during the ordering process to help ensure your order is handled correctly. We do not extract any information about individual users or their computers as a part of this process.
The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, cookies allow you to take full advantage of some of TSI Network's most useful features, and may be required to access certain areas of our website.
Internet Protocol (or IP) addresses are collected for all visitors to this site. This information is used for the purposes of traffic analysis.
Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
Purchases of Merchandise: TSI Network websites may offer individuals the opportunity to purchase branded or other merchandise online. In connection with those purchases, customers may be asked to submit personal information, such as shipping addresses and credit card information, which is required to complete the transaction. TSI Network may also offer a Membership program, through which purchasers of its products may receive discounts on their online purchases. Membership registration may involve the submission of personal information to TSI Network and assignment of a user ID and password.
Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.
Promotional Offers: We may make our postal mailing list available to organizations offering products or services that might interest you. If you prefer NOT to receive these offers, please send an email with your name and address to service@tsinetwork.ca with "Do Not Rent Name" in the subject line. We do NOT make our email list available outside our organization.
Protection of TSI Network and Others: We release account and other personal information when we believe release is appropriate to comply with law; enforce the terms of the Legal notices that accompany this policy; or protect the rights, property or safety of TSI Network, our users or others. This includes exchanging information with other companies and organizations for fraud protection and credit risk reduction.
In addition to these limited disclosures of personal information, TSI Network may provide its affiliates or unaffiliated third parties with aggregate information about visitors to our sites. For example, we might disclose the median ages of visitors to our websites, or the numbers of visitors to our websites that come from different geographic areas. Such aggregate information will not include information of any individual visitors to our websites.
TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.
With Your Consent: Other than as set out above, you will receive notice when information about you might go to third parties, and you will have an opportunity to choose not to share the information.
Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
TSI Network requires persons and companies to which it discloses personal information to restrict their use of such information to the purposes for which it has been provided by TSI Network, to adequately protect the information, and not to disclose that information to others. TSI Network cannot be responsible, however, for any damages caused by the failure of unaffiliated third parties to honour their privacy obligations to TSI Network. Similarly, TSI Network is not responsible for the privacy policies and practices of other websites that are linked to our websites.
COMMENTS: TERMS OF USE
We’re always happy to receive feedback, comments and ideas from TSI Network visitors, and we encourage you to add your perspective to any issue by leaving your comments on the site.
To make sure users get the most out of the site’s comments function, we’ve provided a few guidelines:
Do not post threatening, harassing, defamatory, or libelous material.
Do not intentionally make false or misleading statements.
Do not offer to sell or buy any product or service.
Do not post material that infringes copyright.
Do not post information that you know to be confidential or sensitive or otherwise in breach of the law.
TSI Network will not accept responsibility for information posted in the comments.
Please note that we reserve the right to delete or edit all comments. As well, we may close posts to further comments at our discretion. If a user repeatedly abuses our comment policy, we may also revoke that user’s access to our comments section.
By commenting on TSI Network, you agree that you retain all ownership rights in what you post on the site, and that you will relieve us from any and all liability that may result from those postings.
Special Note for Parents
TSI Network does not sell products for purchase by children. If you are under 18, you may use TSI Network's site only with involvement of a parent or guardian
How do we protect your personal information?
TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
How do we maintain the integrity of your personal information?
TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: service@tsinetwork.ca.
How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints
If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
If you do not want to receive promotional offers, please notify TSI Network by sending an email to service@tsinetwork.ca.
How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
As discussed, you can always choose not to provide information even though it might be needed to make a purchase or to take advantage of TSI Network features.
You can add or update certain information as explained in the section "How Can I Change My Information?"
If you do not want to receive email or other mail from us, please notify TSI Network by sending an email to service@tsinetwork.ca.
The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, you will not be able to use important features of TSI Network sites if you do not use cookies.
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.
Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.
