Legendary value investor and multi-billionaire Warren Buffett employed a widely successful investing strategy . He didn’t just buy into the hyped stocks of his time but used a preconceived stock selection criterion that targeted investing in great businesses with identifiable and defendable moats and excellent management teams.
A 1999 book by Mary Buffett (Warren’s former daughter-in-law) and David Clark titled Buffettology is accredited for explaining the billionaire investor’s mathematical techniques in screening for profitable stocks to buy. A Buffettology stock screener developed to use Warren Buffett’s stock selection criteria on North American-listed companies returned several dozen tickers today, including Apple stock.
Interestingly, Canada is well represented. Seven of the Buffettology screen results are TSX -listed companies, which I have listed below.
| COMPANY | TICKER | COMPANY | TICKER |
| Alimentation Couche-Tard | (TSX:ATD.B) | PyroGenesis Canada | (TSX:PYR) |
| Canadian National Railway | (TSX:CNR) | CI Financial | (TSX:CIX) |
| Canadian Pacific Railway | (TSX:CP) | Enghouse Systems | (TSX:ENGH) |
| Calian Group | (TSX:CGY) | | |
Two of the screened companies could be great buys in August. Let’s have a look
A high-tech industrial process innovator
PyroGenesis Canada (TSX:PYR) (NASDAQ:PYR) stock remains a top-buy candidate for 2021 . The $763 million Canadian high-tech industrial firm designs and manufactures advanced plasma systems that are crucial in enabling manufacturing firms like steelmakers to move away from dirty coal-powered furnaces to clean energy globally.
The company has won key contracts in the U.S. defence industry and is advancing in the metallurgical, mining, and other industry verticals — especially in aluminum and zinc dross recovery, where its globally patented technology has significant competitive advantages. The company’s global patents create defendable moats. PyroGenesis’s technology is finding uses in new industries, including a ballooning lithium battery industry. An expanding addressable market will enable strong business growth.
PYR stock was up 229% by mid-February on a year-to-date (YTD) basis. However, shares have given up most of the gains over the past five months but still retain a 26% YTD gain. The recent weakness coincides with sequential quarterly revenue declines seen in the last two most recent reports. I think the weakness is seasonal.
Watch PYR stock on Thursday
The recent weakness in PYR presents a good buying opportunity. The company historically reported a stronger third quarter in 2019 and in 2020, followed by two sequentially weaker quarters (revenue growth last reported at 771% for Q1 2020).
PyroGenesis Canada Quarterly Revenue shows emerging seasonality. (Source: TIKR Terminal)
PyroGenesis will release its second-quarter results on Thursday, August 5. Revenue has been higher in the second quarter before setting new records by September. If we see the same trend this year, PyroGenesis’s revenue and probably its stock price could rise again in August through to early 2022.
The company has a clean balance sheet. It is a founder-led company, and its founder and CEO, Peter Pascali, owns and controls about 50% of the company’s stock on a fully diluted basis.
Thinkbigsti69 wrote: @96klite
7 Warren Buffett-Inspired Canadian Stocks to Buy in August
Legendary value investor and multi-billionaire Warren Buffett employed a widely successful investing strategy . He didn’t just buy into the hyped stocks of his time but used a preconceived stock selection criterion that targeted investing in great businesses with identifiable and defendable moats and excellent management teams.
A 1999 book by Mary Buffett (Warren’s former daughter-in-law) and David Clark titled Buffettology is accredited for explaining the billionaire investor’s mathematical techniques in screening for profitable stocks to buy. A Buffettology stock screener developed to use Warren Buffett’s stock selection criteria on North American-listed companies returned several dozen tickers today, including Apple stock.
Interestingly, Canada is well represented. Seven of the Buffettology screen results are TSX -listed companies, which I have listed below.
COMPANY
TICKER
COMPANY
TICKER
Alimentation Couche-Tard
(TSX:ATD.B)
PyroGenesis Canada
(TSX:PYR)
Canadian National Railway
(TSX:CNR)
CI Financial
(TSX:CIX)
Canadian Pacific Railway
(TSX:CP)
Enghouse Systems
(TSX:ENGH)
Calian Group
(TSX:CGY)
Two of the screened companies could be great buys in August. Let’s have a look
A high-tech industrial process innovator
PyroGenesis Canada (TSX:PYR) (NASDAQ:PYR) stock remains a top-buy candidate for 2021 . The $763 million Canadian high-tech industrial firm designs and manufactures advanced plasma systems that are crucial in enabling manufacturing firms like steelmakers to move away from dirty coal-powered furnaces to clean energy globally.
The company has won key contracts in the U.S. defence industry and is advancing in the metallurgical, mining, and other industry verticals — especially in aluminum and zinc dross recovery, where its globally patented technology has significant competitive advantages. The company’s global patents create defendable moats. PyroGenesis’s technology is finding uses in new industries, including a ballooning lithium battery industry. An expanding addressable market will enable strong business growth.
PYR stock was up 229% by mid-February on a year-to-date (YTD) basis. However, shares have given up most of the gains over the past five months but still retain a 26% YTD gain. The recent weakness coincides with sequential quarterly revenue declines seen in the last two most recent reports. I think the weakness is seasonal.