Diversification in your portfolio with a 2% divy to boot On today’s Breakouts report, there are 51 stocks on the positive breakouts list (stocks with positive price momentum), the majority of which (75 per cent) are energy stocks. Meanwhile, there are 34 securities on the negative breakouts list (stocks with negative price momentum).
Discussed today is a security that would have appeared on the positive breakouts list, however, its market capitalization is below the $200-million market capitalization screening threshold - Titanium Transportation Group Inc. (TTR-X).
The stock was initially featured in the Breakouts report in July 2018 when the share price was under $2. By April 2021, the share price had more than doubled in value, closing at a record high of $4.15 on April 13. Since then, the share price has retreated 18 per cent. As such, this micro-cap stock is best suited for consideration by investors with a high risk tolerance as the share price can be volatile.
The company is covered by three analysts and has a unanimous ‘buy’ recommendation. Target prices are concentrated with two at $6 and one at $6.25. The average 12-month target price suggests the share price has nearly 80 per cent upside potential over the next year (a total return of over 80 per cent including the 2 per cent dividend yield).
A brief outline on Titanium is provided below that may serve as a springboard for further fundamental research when conducting your own due diligence.
The company
Bolton, Ont,-based Titanium Transportation Group Inc. is a trucking company with a fleet of approximately 800 tractors (the front end of a transport truck where the driver sits) and 3,000 trailers (where cargo is transported). Titanium is the 12th largest transportation company in Canada.
The company provides services across North America and operates two core divisions: a truck transportation segment and a logistics segment. Management targets an even split, having roughly 50 per cent of its revenue from each segment.
Titanium has a diversified customer base with over 1,000 customers from a variety of industries. According to its May 2021 investor presentation, the top industries its clients operate in are manufactured goods (29 per cent), food and beverage (23 per cent), retail (12 per cent), and automotive (9 per cent).