9 Stocks with High CaPex in 2014: Investment Idea of the Day

Published:

Today, we have shortlisted 9 stocks across sectors which have incurred high capital expenditure during 2013 with strong operating cash flow and are estimated to increase their Capex during 2014, according to analysts polled by Bloomberg. Moreover, these companies have recorded significant growth in earnings during 2013 with high EBITDA margins and are estimated to register strong growth during 2014. Additionally, we note that some of the shortlisted stocks have recorded significant price gains with daily average trading volume in excess of 100,000 shares over the past three months.

Company Name

Ticker

Exchange

Market Cap
(MN)

Last Price

Average Volume
(3-Months)

Price Change
(3-Months)

EPS Growth
(2013)

EPS Growth
(2014E)

Operating Cash Flow Growth
(2013)

EBITDA Margin
(2013)

CaPex
(2013)

(Mn)

CaPex Growth
(2014E)

Katanga Mining Ltd

KAT

TSX

0.9

0.45

412,258

-1.6%

150.0%

170.0%

745.0%

25.6%

699.0

75.7%

AutoCanada Inc

ACQ

TSX

1.8

75.24

222,501

18.5%

49.7%

37.3%

80.3%

4.6%

67.1

69.7%

QIWI plc

QIWI

NASDAQ

2.0

37.69

687,018

36.8%

73.7%

32.0%

35.1%

22.8%

375.2

48.0%

Toromont Industries Ltd

TIH

TSX

2.0

26.56

153,328

1.8%

3.2%

2.1%

436.8%

14.6%

94.8

18.5%

Hornbeck Offshore Services

HOS

NYSE

1.5

42.40

695,192

4.0%

82.7%

13.2%

55.9%

46.6%

542.7

17.0%

TORC Oil & Gas Ltd

TOG

TSX

1.3

13.88

1,175,820

2.1%

77.5%

427.8%

825.4%

40.3%

162.7

7.7%

TransAlta Corp

TA

TSX

3.4

12.67

1,315,302

-3.7%

89.7%

26.1%

47.1%

38.5%

561.0

3.9%

Canfor Corp

CFP

TSX

3.2

22.84

558,019

-9.1%

794.4%

10.0%

317.6%

16.9%

237.3

3.8%

Stantec Inc

STN

TSX

3.3

69.67

147,498

9.7%

19.2%

13.9%

50.8%

14.0%

52.6

3.4%

Source: Bloomberg

Company Description:

Katanga Mining Ltd (TSX: KAT)
Katanga Mining Ltd. explores for and produces copper and cobalt. The company operates in the Democratic Republic of Congo.

AutoCanada Inc (TSX: ACQ)
AutoCanada, Inc. retails automobiles in Canada. The company owns and operates franchised automobile dealerships retailing American, European and Asian automobiles.

QIWI plc (NASDAQ: QIWI)
QIWI plc is an instant payment operator for consumers. The company enables merchants to accept cash and electronic payments from virtual wallets, and operates cash-collecting terminals and kiosks.

Toromont Industries Ltd (TSX: TIH)
Toromont Industries Ltd sells, rents, and services Caterpillar construction equipment and power systems in the provinces of Ontario, Manitoba, Newfoundland, Labrador and Nunavut, Canada. The company also manufactures and distribute refrigeration and process systems throughout North America.

Hornbeck Offshore Services Inc (NYSE: HOS)
Hornbeck Offshore Services, Inc. provides marine transportation services to the offshore oil and gas industry. The company owns and operates deepwater offshore supply vessels in the Gulf of Mexico, which support day-to-day operations of oil drilling rigs and production platforms. Hornbeck also owns and operates ocean going tugs and barges in the northeastern United States and Puerto Rico.

TORC Oil & Gas Ltd (TSX: TOG)
TORC Oil & Gas Ltd is engaged in the acquisition, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin. The company is focused on Cardium development in West Central Alberta and Banff and Big Valley prospects in Southern Alberta.

TransAlta Corp (TSX: TA)
TransAlta Corporation is a non-regulated electric generation and marketing company with its growth focused in developing coal and gas-fired generation. The company is currently focused on Australia, Canada, the United States, and Mexico.

Canfor Corp (TSX: CFP)
Canfor Corporation is an integrated forest products company that produces and supplies SPF lumber, oriented strand board, plywood, kraft pulp and kraft paper. The company also produces remanufactured lumber products, hardboard paneling and special baled fibre products. In addition, Canfor produces kraft pulp and newsprint through a joint venture partnership with Howe Sound Pulp and Paper.

Stantec Inc (TSX: STN)
Stantec Inc. is an engineering, architecture, and related professional services enterprise. The company provides a broad range of consulting, project delivery, design build, and technology capabilities to private and public sector clients, across North America and internationally.

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