Today’s Blog Post: Stocks I Own Update (2023-06-02)

Hello readers! Today, we’ll be discussing some exciting updates on the stocks I currently own. In this post, we’ll be covering the financial and operating highlights of American Lithium for the year ended February 28, 2023, as well as the second quarter results and full-year guidance reaffirmation from Quanex Building Products. Lastly, we’ll review the second quarter results announced by CooperCompanies. Let’s dive in!

American Lithium Corp.’s Fiscal Year Ended Strong with Promising Milestones

American Lithium Corp. (TSX-V:LI | NASDAQ:AMLI | Frankfurt:5LA1) recently announced promising financial and operating highlights for the fiscal year that ended on February 28th, 2023. The Canadian-based company is making significant strides in the lithium industry, with key projects in Nevada and Peru, and trading on the Nasdaq exchange since January of this year.

During the quarter, the company reported a substantial increase in lithium resources at their wholly-owned TLC Lithium Project in Nevada, with measured resources up 25% and indicated resources up 129%. Additionally, American Lithium announced the positive results of a robust Preliminary Economic Assessment (PEA) for the project, with an after-tax Net Present Value (NPV8%) of 3.26 billion USD and after-tax Internal Rate of Return (IRR) of 27.5%, confirming its high potential for profitability.

Moreover, the company continues to make significant progress on their Falchani Lithium Project in Peru, currently in pre-feasibility, and looking to complete the Environmental Impact Assessment launched in 2022 with SRK. American Lithium also announced their intention to spin-out their Macusani Uranium Project in Peru into an independent public company for the benefit of shareholders of record.

According to Simon Clarke, CEO of American Lithium, “This was indeed a very active quarter delivering on several key milestones, corporately and on the ground in Nevada and Peru”. The company’s TLC project is moving into the pre-feasibility phase, and the recent mineral resource estimate has set a strong foundation for the project’s success.

Based on American Lithium’s recent milestones and growth potential, my personal recommendation would be to consider buying the company’s stock. With their promising results from the PEA and substantial increase in resources, American Lithium is poised for profitability and success in the lithium industry.

Quanex Building Products Reports Margin Expansion and Strong Balance Sheet for Q2 2023

Quanex Building Products Corporation (NYSE:NX), a leading provider of fenestration components and cabinet components in North America and Europe, has reported a strong performance in Q2 2023. The company’s gross margin has increased by over $4 million compared to the same period last year, with the NA Cabinet Components and EU Fenestration Segments seeing a margin expansion. This, in turn, has enabled the company to repay $20 million in bank debt and strengthen its balance sheet.

Additionally, Quanex’s cash provided by operating activities has shown a significant improvement, with the company achieving its synergy target for the LMI Custom Mixing Acquisition. Despite the challenges posed by the pandemic, Quanex’s return to normal seasonality is trending as expected, with demand improving across all product lines.

As an investor in Quanex Building Products, I am encouraged by the company’s strong performance in Q2 2023. The margin expansion, debt repayment, and improved cash flow are positive indicators of the company’s growth potential. I remain cautiously optimistic about the company’s prospects in the second half of 2023.

Therefore, based on the positive news and my personal analysis, I recommend buying Quanex Building Products stock. The company’s focus on expanding its margins and reducing debt, combined with its strong balance sheet, provides a solid foundation for growth in the coming months.

CooperCompanies Q2 2023 Report: Solid Results for CooperVision and CooperSurgical

CooperCompanies, a company focused on medical devices and products to improve vision and fertility issues, has announced their Q2 2023 financial results. The company has reported $877.4 million in revenue, a 6% YoY increase, primarily driven by its two major subsidiaries, CooperVision and CooperSurgical.

CooperVision reported Q2 revenues of $589.3 million, a 6% YoY increase, while CooperSurgical reported $288.1 million, a 4% YoY increase. The company’s consistent organic growth has also resulted in a 66% gross margin.

While GAAP diluted EPS decreased by $1.75 or 69% and Non-GAAP diluted EPS decreased by $0.16 or 5% compared to the same quarter last year. Even though the company’s earnings per share declined, CooperVision recorded its ninth consecutive quarter of double-digit organic revenue growth, and CooperSurgical’s fertility business reported its tenth consecutive quarter of double-digit organic revenue growth.

In my opinion, CooperCompanies has continued to prove its resilience in the market, despite the significant decline in EPS. The positive organic growth of CooperVision and CooperSurgical is a noteworthy indication of the company’s success and their leading position in the market.

The company’s financial position remains stable, with $2.5 billion in net debt at the end of the quarter, and a reduced capital expenditure of $73.6 million. CooperCompanies was able to generate a free cash flow of $50.6 million in Q2 2023. Thus, my recommendation is to hold on to this stock.

Overall, the steady growth of CooperVision and CooperSurgical, along with the overall stability of the company, makes CooperCompanies a safe investment choice.