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This morning, the price of gold is up, surpassing the $1,200 (U.S.) per ounce level. Meanwhile, the price of oil is also firmer.

In terms of news releases, there are no major Canadian economic reports due out today.

In the U.S., January Empire manufacturing data will be announced at 8:30 a.m. (ET).

The next U.S. Federal Reserve meeting is scheduled to take place on January 31 and February 1. Today, Fed Govenor Lael Brainard, New York Fed President Bill Dudley, and San Francisco Fed President John Williams, all have speaking engagements. On Wednesday, Fed Chair, Janet Yellen, will be delivering a speech on monetary policy at the Commonweath Club in San Francisco.

Briefly recapping Monday's performance, U.S. stock markets were closed in honour of Martin Luther King Jr. day. Turning to Canada, the S&P/TSX composite index closed down 18 points, or 0.12 per cent. There were 126 securities in the TSX Index that advanced, 117 securities declined in value, and seven stocks closed the day unchanged.

Month-to-date, the TSX Index is up 1.25 per cent.

On today's TSX Breakouts report, there are 28 stocks on the positive breakouts list (stocks with positive price momentum) and five securities on the negative breakouts list (stocks with negative price momentum).

The security highlighted today appears on the positive breakouts list and is suited for consideration by income investors – Sienna Senior Living Inc. (SIA-T). It offers investors an attractive 5.3 per cent yield combined with modest upside expectations.

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

The company

Sienna is one of Canada's largest owners and operators of seniors housing with long-term care homes and retirement homes.

Sienna operates in an industry with attractive features such as growing demand with aging demographics and high barriers to entry as long-term care homes in Ontario are licensed by the Ministry of Health and Long-Term Care. In addition, since the majority of the company's net operating income stems from long-term care, Sienna has a source of stable cash flows, which includes provincial government funding.

After the market closed on Nov. 9, the company reported better-than-expected third quarter financial results. Funds from operations (FFO) per share was 35 cents, surpassing the consensus estimate of 32 cents. Adjusted funds from operations (AFFO) per share came in at 39 cents, beating the Street's forecast of 35 cents per share. The share price rallied over 2 per cent the following trading day on high volume.

Dividend policy

The company pays its shareholders a monthly dividend of 7.5 cents per common share, or 90 cents on a yearly basis. This equates to an annualized dividend yield of 5.3 per cent. The company has maintained its dividend at this level since the beginning of 2013.

The dividend appears sustainable with the AFFO payout ratio at 56 per cent in the third quarter and at 59 per cent for the first nine months of 2016.

Valuation

The stock is trading at a price-to-funds from operations (P/FFO) multiple of 12.7 times the 2017 consensus estimate, and at a price-to-adjusted funds from operations (P/AFFO) multiple of 11.7 times the consensus 2017 estimate.

The average one-year target price is $17.88, suggesting the shares have a potential price return of 6 per cent over the next twelve months.

Target prices range from a low of $17 to a high of $18.75. Individual target prices supplied by nine firms are as follows in numerical order: two at $17, $17.25, $17.75, two at $18, two at $18.50, and $18.75.

In comparison, shares of Extendicare (EXE-T) are trading at a P/FFO multiple of 15.8 times and at a P/AFFO multiple of 14.5 times the 2017 consensus estimates. Units of Chartwell Retirement Residences (CSH.un-T) are trading at P/FFO and P/AFFO multiples of 15.3 times and 16.3 times the 2017 consensus estimates, respectively.

Analysts' recommendations

According to Bloomberg, this small cap stock, with a market capitalization of $778-million, is well covered by the Street. There are 10 analysts that cover the company. Since November, nine analysts have issued research reports, four with 'buy' recommendations, four with 'hold' recommendations, and one analyst (from EVA Dimensions) has an 'underweight' recommendation. The 10 firms providing research coverage are as follows in alphabetical order: BMO Capital Markets, Canaccord Genuity, CIBC World Markets, Dundee Capital Partners, EVA Dimensions, Laurentian Bank Securities, Raymond James, RBC Capital Markets, Scotia Capital, and TD Securities.

In November, when the share price dipped below $16, two analysts increased their recommendations. Michael Smith, the analyst at RBC Capital Markets, lifted his recommendation to an 'outperform' from a 'sector perform', and Ken Avalos, the analyst from Raymond James, bumped his recommendation to an 'outperform' from a 'market perform'.

Earnings forecasts

Slow and steady growth, that is what the Street is forecasting for Sienna. The consensus AFFO per share estimate is $1.40 in 2016, $1.44 the following year, and $1.49 in 2018. The consensus FFO per share estimates are $1.27 for 2016, $1.33 for 2017, and $1.38 for 2018.

The stock has had steady positive revisions to their forecasts. For instance, one year ago, the consensus AFFO per share estimates were $1.34 for 2016 and $1.37 for 2017, and the consensus FFO per share estimates were $1.22 for 2016 and $1.25 for 2017.

Notable insider transaction activities

Paula Jourdain Coleman, who sits on the Board of Directors, has been selling shares, trimming her position through numerous sell transactions over the past several months.

Chart watch

Year-to-date, the share price is up 3.6 per cent.

The stock price recently broke out of a downtrend that had been in place since August 2016, with the share price now above both its 50-day moving average and 200-day moving average.

The share price has initial overhead resistance around $18, and initial downside support around $16, which is near its 50-day moving average (at $16.17). Failing that, there is strong support around $15.

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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 BreakoutsJan. 16 close
ABT-TAbsolute Software Corp $6.83
ACR.UN-TAgellan Commercial REIT $10.95
ALC-TAlgoma Central Corp $13.25
APR.UN-TAutomotive Properties REIT $11.13
BDI-TBlack Diamond Group Ltd $5.02
BBD.B-TBombardier Inc $2.62
CGY-TCalian Group Ltd. $26.85
CBL-TCallidus Capital Corp $20.61
CNR-TCanadian National Railway Company $93.37
CGX-TCineplex Inc $53.00
CCA-TCogeco Communications Inc $70.72
CGO-TCogeco Inc $60.00
CJR.B-TCorus Entertainment Inc $13.42
DRG.UN-TDream Global REIT $9.58
HGN-THalogen Software Inc $10.15
IT-TIntertain Group Ltd $10.15
IVN-TIvanhoe Mines Ltd $3.37
NGQ-TNGEx Resources Inc $1.40
NWC-TNorth West Co Inc $29.10
QBR.B-TQuebecor Inc $38.71
RME-TRocky Mountain Dealerships Inc $10.46
SVY-TSavanna Energy Services Corp $2.18
SHOP-TShopify Inc. $64.00
SIA-TSienna Senior Living Inc $16.89
TKO-TTaseko Mines Ltd $1.57
TNC-TTIO Networks Corp. $2.99
TA-TTransAlta Corp $8.00
UNS-TUni-Select Inc $30.66
Negative Breakouts
CR-TCrew Energy Inc $6.37
GIL-TGildan Activewear Inc $32.49
RBA-TRitchie Bros Auctioneers Inc $42.85
SJ-TStella-Jones Inc $39.50
SXP-TSupremex Inc $4.90

Source: Bloomberg