Long-Term Investors: A Top Contrarian Pick to Buy in September

Businessmen teamwork brainstorming meeting.

The retail sector has been pretty beaten up the last few years as competition heats up and retailers try to insulate themselves from the switch to online shopping.

Many companies in the industry have had their share prices severely impacted, as the market looks for any weakness these businesses may face in the future.

Often times, shrewd investors can find opportunities among the sell-offs and find companies that may have been treated a little too harshly by the market.

These contrarian picks will be doing something right with strong characteristics that suggest it can survive the shifting landscape in retail shopping.

One top contrarian play that’s been flying under the radar is Sleep Country Canada Holdings Inc (TSX:ZZZ)

Sleep Country’s stock has come down roughly 35% in the last 12 months.

It’s in a prime position, as it’s one of the largest mattress retailers in Canada, with roughly 30% of the market share in Canada. The company has 265 stores and 19 distribution centres, across nine provinces.

Sleep Country is a decent contrarian pick because its business won’t be impacted as much as the market thinks. The main worry for investors of retail stocks is the risk the company faces to losing business online.

Mattresses aren’t necessarily something people will be in a rush to buy online for the simple reason that the products are very large, and most people want to try a mattress out before purchasing.

Furthermore, Sleep Country bought an online mattress retailer Endy, in 2018, and has been pushing its digital position to offer a more omni-channel approach to its customers.

The acquisition of Endy is important for the future of the business, but also shows that management is being prudent. Endy will be a big part of Sleep Country’s future, as it has already revolutionized the industry. It was founded just four years prior to its acquisition of $90 million.

The acquisition of Endy isn’t the company’s only growth plan, however.

In addition to growth through acquisition, the company has been working to revamp its existing stores to grow the company organically. As at the end of February 2019, more than 60% of its existing stores have been upgraded.

It’s also been opening a number of new stores each year. The company targets at least eight new stores a year, but has a trailing five-year average of 13 new stores each year.

The new stores have really been the key driver of growth, although same-store sales have contributed a bit too.

Since 2013 sales are up 76%, and earnings before interest, taxes, depreciation and amortization (EBITDA) was up an impressive 169%.

The increase in revenue and EBITDA can be directly attributed to the growth strategies the company has been working on.

Another positive about Sleep Country’s business is the low maintenance costs. This allows it to have much lower total capital expenditures and thereby enabling it to have much more free cash flow to return to shareholders. Currently, maintenance and capital expenditures account for less than 5% of sales.

In the last 12 months, Sleep Country has done $623 million in sales and operating EBITDA of $105.8 million, providing an operating EBITDA margin of 17%, which is in line with its three-year average.

On the $105.8 million in operating EBITDA, the company expects roughly $50 million in free cash flow available for dividends, of which approximately $27 million will be paid out in dividends, implying a payout ratio of just 54%. The dividend currently yields 3.7%, which is pretty respectable.

The net debt is roughly ~$140 million, implying a net debt to operating EBITDA of 1.33 times earnings for the last 12 months –a pretty reasonable debt level that should be manageable going forward.

If Sleep Country can continue to grow its revenue and keep its EBITDA margins intact, shareholders will be rewarded nicely. A low payout ratio and strong margins imply continued dividend increases, as long as the company can continue to grow.

The founder of Microsoft is betting $650 million on this 5G stock…

The founder of Microsoft is betting $650 million on this 5G stock…

Bill Gates has quietly picked up 5.3 million shares of one little-known 5G stock.

Besides being the cofounder of a trillion-dollar company, Gates has amassed the 2nd largest fortune in the world… so when he makes a move this big, it could be worth paying close attention.

But 5G is already starting to be rolled out across North America as we speak, which means you’ll need to act fast to get the full story.

Click here to learn more!

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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned.

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VoiceRank360 Review

Have you ever used every inch of possibilities to rank higher on Google? There are so many ways how to rank your website higher as possible. One of them is “Position Zero” also called “The Answer Box.” It will automatically prompt whenever people use Google by “Voice.” That’s right I’m talking about voice searches. Every…

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Michaels Promotion August 2019: 40% Off One Regular Priced Item Coupon

Michael's 40% Coupon PromotionCheck out the latest Michaels coupons, promo codes, and promotions here. Buckle up and get your creativity on! Michaels is having a promotion for you! Michaels also has other money-saving coupons depending on which location you shop at, so be sure to check those out too.

Please keep in mind to check the exclusions before you shop. These offers are valid online or in stores as long as you have the coupon. Michaels has the tools and components transition your ideas to life so check out what they have to offer while receiving a nice discount on your purchase. Get them while you can!

Note: Do you do spend quite a bit across several categories like travel, restaurants, entertainment, etc and want to be rewarded for it? I recommend checking out the Wells Fargo Cash Wise card, the Chase Freedom Unlimited card, or the American Express Cash Magnet card to earn a flat rate cash back on all of your purchases! That means more money back in your pocket! For more options, see our list of credit card bonuses.

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About Michael’s

Michael’s is the largest American arts and crafts specialty retailer for the hobbyist and do it yourself home decorator. You can shop and save on arts and crafts, custom framing, home decor and seasonal products online or in store!

A great thing to also know is that Michael’s offers price matching, so if you find the same item from another store with a cheaper price, they can match it!

Current Michaels Coupon Promotion

40% Off One Regular Priced Item Coupon

Michael's Promotions

Get 40% off any one regular price item

If you love arts and crafts, then this is the perfect promotion for you! Michaels is offering a coupon that gets you 40% off any regular priced item. In other words, this deal is perfect for any upcoming projects around the house or school projects for the future!

Consequently, if you are shopping online, be sure to use promo code 40SAVE81819. Above all, hurry and use this promotion today to save you some money!

  • Offer expiration: August 24, 2019
  • What you’ll get: 40% off any one regular priced item
  • Who is eligible: Michael’s Rewards Member, Free to join
  • Where it’s available: Valid in-store and online
  • How to earn it:
    1. Head to the nearest Michael’s store in your area
    2. Bring the coupon with you in-store to get the discount, See link below.
  • Coupon Terms:Limit one coupon per product. Limit one coupon of each type per day. Limited to stock on hand. Void where prohibited.
  • Offer Excludes: Clearance; doorbusters; custom framing; beverages & candy; books & magazines; gift cards; LEGO; Cricut, Silhouette; Christmas trees. Exclusions subject to change. See Team Member for details.

(Click link for coupon)

Free Teacher’s Event (Expired) 

Go to Michaels on July 19 for a free teacher’s event

For all of the teacher’s out there, this one’s for you! Michaels is hosting a Free Teacher’s Event that comes with a special make-and-take project, refreshments, and a raffle. This event is on July 19, 2019 from 2-4 PM, and during this time, teachers will also be able to score a free tote bag filled with products from Crayola, Expo, and more.

  • Promotion: Free Teacher’s Event
  • Expiration: July 19, 2019, 2-4 PM
  • Availability: Nationwide, Michael’s. (Locator)
  • How to get it: Show your faculty ID when you arrive at your nearest Michael’s.

(Visit Michaels to learn more)

Bottom Line

If you love arts and crafts then Michaels is a haven for your needs. In other words, these are offers that everyone can enjoy! You can also print and use the coupons for your in-store purchase!

Above all, be sure to take advantage of this promotion because it will expire soon, so act now or risk missing out. Consequently, if you enjoy saving money, you can purchase Discounted Gift Cards and shop through the Best Cash Back Shopping Portals. In conclusion, be sure to refer to our full list on more ways to Save Money!

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The post Michaels Promotion August 2019: 40% Off One Regular Priced Item Coupon appeared first on Hustler Money Blog.

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PSP CEC member: Redwire Times’ claim about PSP candidate unfounded and without basis

Progress Singapore Party has denied the claim by local social-political site, Redwire Times that business woman and activist, Hani Mohamed will be inducted as its candidate for the upcoming General Election.

In its article, “GE Insider: Hani Mohamed expected to Contest for “Cheng Bock’s Angels”, aka Progress Singapore Party”, Redwire Times attributed the claim of Ms Hani’s supposed induction to its sources, without mentioning if the sources are within or outside PSP.

When queried by TOC, Mr Alex Tan Tiong Hee, a member of the Central Executive Committee rubbished the report, saying that the claim is unfounded and without basis.

Mr Tan further went to castigate Redwire Times by saying, “While we support the presence of alternative media outlets, such reporting is irresponsible journalism and creates a bad image of alternative media.”

PSP which is headed by former People’s Action Party Member of Parliament, Dr Tan Cheng Bock was officially launched earlier in July and since then, the party has drawn a lot of attention from the public and speculations as to whom the party will field as candidates in the upcoming general election.

Typically, opposition parties do not reveal the names of their candidates before closing to the date of election. This is because of the fear of candidates’ background being throughly scrutinised by the establishment or intimidated before campaigning commence.

The post PSP CEC member: Redwire Times’ claim about PSP candidate unfounded and without basis appeared first on The Online Citizen.

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The Best Way to Grow Your TFSA


It’s great to see that a recent RBC poll indicated that more Canadians have a Tax-Free Savings Account (TFSA) than a Registered Retirement Savings Plan (RRSP). There’s a big difference between the two types of accounts: the former is tax-free for life and the latter is only tax-deferred.

The poll revealed that “among those with a TFSA, the most-common holding in these plans are savings accounts and cash (42%), followed by mutual funds (28%), stocks (19%), GICs/term deposits (15%), ETFs (7%), and bonds (6%).”

It’s no wonder that 43% of Canadians believe that TFSAs are good for saving money but not growing it. It’s because Canadians are largely using TFSAs for low-risk, low-return investments like savings accounts, cash, and GICs/term deposits.

Tools are as great as the way you use them. And there are much better ways to grow your money in your TFSA.

Where to Invest?

The best way to grow your TFSA

The best way to grow your TFSA reliably is to invest in top-notch dividend-growth stocks when they’re trading at good valuations.

One top-quality dividend stock is Canadian National Railway (TSX:CNR)(NYSE:CNI). If you’d bought the stock right before the market crash about 10 years ago, you would have almost six times your money.

The stock delivered about 16.3% per year and greatly outperformed the market! In the same period, the U.S. stock market only delivered 7.1% per year.

To put things in perspective, a $10,000 investment in CN stock would have turned into $57,904, including returning more than half of your investment back from dividends alone.

Canadian National Railway is essential to North America because it’s the only transcontinental railway on the continent. Its network spans Canada and Mid-America, connecting the three coasts of the Atlantic, the Pacific, and the Gulf of Mexico.

CN’s dividend is very safe. Although it only yields 1.7% today, it has increased its payout for 23 consecutive years with a 10-year dividend-growth rate of nearly 15%! Its payout ratio is still less than 35%.

Therefore, investors can expect many more years of dividend growth to come. Over the next few years, you can expect dividend growth of more than 10% per year.

Foolish takeaway

If you’re looking to grow your TFSA, you should certainly look into quality dividend stocks, including as CN stock, and buy them when they’re attractively priced.

If CN stock falls 8% or more from current levels over the next 12 months, it’ll start to be compelling. In the meantime, you can consider good-valued quality dividend stocks such as Enbridge.

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Fool contributor Kay Ng owns shares of Enbridge. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway and Enbridge. Canadian National Railway and Enbridge are recommendations of Stock Advisor Canada.

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