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Today, just one company in the S&P/TSX composite index is scheduled to release its fourth quarter financial results, Ensign Energy Services Inc. (ESI-T).

There are no Canadian economic releases scheduled for today.

Briefly recapping Friday's stock market returns, U.S. markets were relatively flat, while Canada's benchmark got a lift from gold stocks.

In the U.S., the Dow Jones Industrial Average inched up 0.01 per cent, the S&P 500 index added 0.05 per cent, and the Nasdaq composite index closed higher by 0.16 per cent.

Turning to Canada, the S&P/TSX composite index rallied 72 points, or 0.46 per cent. There were 145 securities in the TSX Index that advanced, 98 securities declined in value, and six stocks closed the day unchanged.

The TSX Index is up 2.1 per cent year-to-date.

On today's TSX Breakouts report, there are 27 stocks on the positive breakouts list (stocks with positive price momentum), and 31 stocks are on the negative breakouts list (stocks with negative price momentum).

Discussed today is a relatively undiscovered income fund that appears on the positive breakouts list. It offers investors an attractive 5 per cent yield, which appears sustainable. On March 2, the Fund announced an 18 per cent hike to its monthly distribution. The Fund has experienced steady top line growth over the years. The security highlighted today is Richards Packaging Income Fund (PRI.UN-T).

A brief outline is provided below that may serve as a springboard for further fundamental research.

The fund

The Fund owns Richards Packaging, North America's third largest packaging distributor. Richards Packaging specializes in servicing small and mid-sized companies offering glass and plastic container manufacturing and distribution services. Its customer base is diverse, which includes over 14,000 food and beverage, cosmetic, pharmaceutical, and healthcare companies. Its top three end users are the cosmetic industry, representing 28 per cent of revenue, healthcare stood at 24 per cent of revenue, and specialty food was at 18 per cent. In 2016, the top 60 customers represented 70 per cent of revenue.

In the 2016 annual report, Gerry Glynn, the chief executive officer, targeted revenue growth of between 1 per cent and 3 per cent for the year ahead, which appears to be a conservative forecast. In 2016, revenue rose 15 per cent to $286.96-million from $249.43-million in 2015, and in 2015, revenue expanded over 17 per cent. The prior year, in 2014, revenue rose 7 per cent year-over-year.

Distribution policy

The Fund pays unitholders a monthly distribution of 11 cents per unit, or $1.32 cents per share yearly, equating to an annualized yield of 5.0 per cent.

On March 2, the Fund announced an 18 per cent increase raising it to 11 cents per unit from 9.35 cents per unit, reflecting management's positive outlook for 2017.

In 2016, the payout ratio was 53 per cent.

Analysts' recommendations

This small cap security, with a market capitalization of $281-million, is not formally covered by any analysts on the Street.

Chart watch

In 2016, the unit price climbed 29 per cent. However, the positive price momentum stalled in mid-2016. Since then, the unit price has been consolidating, or trading sideways, principally between $23 and $26. Year-to-date, the unit price is up 5.8 per cent, and it is currently trading at the upper end of this trading band.

Patient investors can potentially be opportunistic, waiting for the unit price to retreat to the lower end of this trading range. Just last week, for instance, on Feb. 28, the unit price closed at $23.86.

There unit price is approaching a strong resistance level around $26.50. Looking at the downside risk, there is support around $24, and failing that around $23.

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The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company's dividend policy, analysts' recommendations, and provides a brief technical analysis for a security to provide readers with more information.

If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a security appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.

Securities screened are from the S&P/TSX composite index, the S&P/TSX Small Cap index, as well as Canadian small cap stocks outside of these indexes that have a minimum market capitalization of $200-million.

A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.

TSX breakouts

Positive BreakoutsMarch 3 close
ADN-TAcadian Timber Corp $18.70
APH-TAphria Inc. $6.82
AUP-TAurinia Pharmaceuticals Inc $6.42
BLDP-TBallard Power Systems Inc $2.76
CNR-TCanadian National Railway Co $96.31
CFP-TCanfor Corp $18.51
CHW-TChesswood Group Ltd $13.29
CSU-TConstellation Software Inc $642.37
KWH.UN-TCrius Energy Trust $10.21
EFN-TElement Financial Corp $14.28
ECI-TEnerCare Inc $19.11
XTC-TExco Technologies Ltd $12.02
HGN-THalogen Software Inc $12.44
IRG-TImvescor Restaurant Group Inc. $3.52
MFI-TMaple Leaf Foods Inc $31.62
MRE-TMartinrea International Inc $9.23
MKP-TMCAN Mortgage Corp $15.09
PKI-TParkland Fuel Corp $28.20
MJN-TParmaCan Capital Corp. $3.39
PBH-TPremium Brands Holdings Corp $71.88
RPI.UN-TRichards Packaging Income Fund $26.23
ZZZ-TSleep Country Canada $32.40
TH-TTheratechnologies Inc $4.77
UNS-TUni-Select Inc $34.36
VBV-TVBI Vaccines Inc $7.16
WFT-TWest Fraser Timber Co Ltd $58.49
WSP-TWSP Global Inc $47.98
Negative Breakouts
AAV-TAdvantage Oil & Gas Ltd $7.68
ARX-TARC Resources Ltd $19.26
BIR-TBirchcliff Energy Ltd $6.88
BNE-TBonterra Energy Corp $22.87
CAM-TCanam Group Inc $6.50
DHX.B-TDHX Media Ltd $5.45
DC.A-TDundee Corp $4.75
EIF-TExchange Income Corp $37.90
FSZ-TFiera Capital Corp $12.60
HLF-THigh Liner Foods Inc $17.15
HCG-THome Capital Group Inc $26.16
IPL-TInter Pipeline Ltd $27.77
PJC.A-TJean Coutu Group $19.90
LNF-TLeon's Furniture Ltd. $17.29
MNW-TMitel Networks Corp $8.70
NBZ-TNorthern Blizzard Resources Inc $3.33
NVA-TNuVista Energy Ltd $5.64
ORL-TOrocobre Ltd. $3.09
PPY-TPainted Pony Petroleum Ltd $6.57
PEY-TPeyto Exploration & Development Corp $26.56
POT-TPotash Corp of Saskatchewan Inc $22.90
P-TPrimero Mining Corp $0.76
PUR-TPure Technologies Ltd. $4.30
SPE-TSpartan Energy Corp $2.63
TOU-TTourmaline Oil Corp $29.24
TGL-TTransGlobe Energy Corp $2.15
TET-TTrilogy Energy Corp $5.54
TDG-TTrinidad Drilling Ltd $2.46
VRX-TValeant Pharmaceuticals International Inc. $17.48
WJX-TWajax Corp $22.30
WPRT-TWestport Innovations Inc $1.28

Source: Bloomberg