David Burrows
President & Chief Investment Strategist at Barometer Capital Management
Member since: Jun '01 · 5298 Opinions
Rating Card
Premium content| All | 
Rating
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Win
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Big Loss
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|---|---|---|---|---|---|---|---|
| 4.58 | 220 30.01% | 188 25.65% | 108 14.73% | 108 14.73% | 109 14.87% | ||
| 1 Month | 4.41 | 7 4.19% | 57 34.13% | 64 38.32% | 32 19.16% | 7 4.19% | |
| 6 Months | 4.59 | 31 19.14% | 59 36.42% | 25 15.43% | 32 19.75% | 15 9.26% | |
| 12 Months | 4.67 | 52 33.99% | 42 27.45% | 11 7.19% | 20 13.07% | 28 18.30% | |
| 2 Years | 4.67 | 64 45.07% | 23 16.20% | 5 3.52% | 18 12.68% | 32 22.54% | |
| 5 Years | 4.54 | 66 60.55% | 7 6.42% | 3 2.75% | 6 5.50% | 27 24.77% |
Stock Opinions by David Burrows
Yes. Since April, the breadth of stocks performing well has been slowly improving. More importantly, markets around the world (not just the US stock market) are doing this. The US stock market is about the weakest of the major markets, as the USD has been weakening.
Great to see participation in a broad base of sectors. Most of the leadership is in economically sensitive sectors, which belies the idea that we might have some kind of recession. In general, there's lots of liquidity in the market. Central banks around the world, aside from the US, have been loosening. It's not a market where you want to fight the tape.
There was this moment where you thought maybe, just maybe, some spending might get cut. Of course this "big, beautiful bill" comes along and all of that goes out the window. Clear that governments are going to continue to have populist policies and the bond market's telling you it doesn't love that. But ultimately, that's stimulus in the economy, and it makes its way to the stock market.
If there are going to be more dollars out there, people have to be able to protect their purchasing power. Companies that have had an ability to raise dividends, or generate lots of cash, are able to put their prices up tomorrow if inflation is up today. And those are the ones that are winning. So his team is focused in those areas.
One of the themes that will come out of today's show is that he's looking for companies that have strong and growing cashflow. This name has gone from negative cashflow to positive. Classic company for this environment, with the ability to change prices tomorrow if costs go up today.
Fits his requirements of not having a ton of debt, having pricing power, strong market position. Technically, nice consolidation over the last year and has broken out. Now a nice pullback to a really good entry point. Large-cap growth still an important engine in this market.
He always starts with what universe are we operating in and how's it performing? Likes the market, but healthcare (pharma, biotech, healthcare providers, devices) has been about the weakest RSI sector. Was performing better than the group, but today narrowed guidance. Technically broken. Wait for healthcare technicals to improve.
When a sector's in transition, it doesn't happen all at once. You get a lot of yanking back and forth. Copper's a higher-volatility sector. Significant breakout in the price of copper. Over a period of years, we're going to see earnings and multiples double and many dividends double.
Obvious way to play copper is with a US copper company like FCX. He also owns HBM.
Uranium and nuclear companies have a long way they can go. Very early stages of big growth cycle for modular nuclear reactors and large-scale reactors. Nuclear infrastructure purchase gives lots of opportunity for growth. Leader in the group, first to break out to new highs. Big move recently, suspects it'll be a multi-bagger over next 5 years.
The secular bull market cycle that started in the US in 2013 has some legs. Now that we have global markets engaged, it may well be that global markets outperform the US over the next decade. But still room for multiple expansion.
Baby boom drove 1980-2000. Generation X will push this market move probably into the early 2030s, with cyclical interruptions. Still room to go.
Japanese are not easy to negotiate with, and it's not to say that they won't come back and try again. Not a management deficiency that the deal wasn't completed. ATD is great at integrating. If they were able to get the deal done, he'd likely be back in the stock. No catalyst in the near term for him to buy; another deal would be a catalyst. In the meantime, doing a great job operating the business.
He's just a bit cautious in general about the consumer as a group relative to the rest of the market. He owns DOL and Loblaw, but that's it.
He'd disagree. We've only just gone through a generational shift in interest rates. 2020 saw generational lows in rates, the last one being 1951. Long-term higher rate cycle is great for financials. The XLF (the financials ETF in the US) didn't make a new high from 2008-2022, and that started a new bull market.
Our Canadian banks dodged the 2008 bullet, and they're in good shape. Performing well, and he'd be in no hurry to sell.
