TJX Companies (TJX)

Well-run company that generates a lot of free cash flow. As Amazon pressures brick-and-mortar, these stores will have to move their merchandise, which is where TKX comes in, selling their excess merchandise. Also, TJX aggressively buys back stock.

The umbrella company for names like Marshalls, Winners and Home Sense. Major off-price apparel and fashion retailer in the US and internationally. Strong cash flows. Very adaptable in the way they create inventories. Dividend yield of 1.9%. (Analysts’ price target is $91.70)

An interesting one. In 2008, TJX was stellar, and this stock hung in the best after the crash. Exceptionally well-managed with a great buying team. Problem is, you don't need to own this now. Recent numbers missed. Amazon is a better buy.

(Top Pick May 18/17, Down 9.30%) Nothing has really changed. It is still a really good company. It has some protection from the Amazon worries because people like to go there and look for the bargain.

A very well-run company. Off-price retailers appear to be the most effective retailers in competing against the Amazons threat, but also the threat of overcapacity within retail. Over the last several quarters, they’ve been increasing their guidance on expenses. Expects they are paying people more, and their space is costing them more, which has caused some compression in margins relative to what people’s expectations were. You want to see a catalyst for the industry to turn.

Discount clothing retailer. He really likes this in retail, because a lot of companies are having trouble competing with Amazon. Doesn’t think they will have the same issue. This has 20 years of 20%+ of Return on Invested Capital. The stock got hit this week when they reported earnings.

(Top Pick Mar 2/17, Up 3%) Retail has been severely challenged recently. Retail has not been the best.

(A Top Pick Jan 27/16. Up 10.64%.) A very steady performer. Excellent balance sheet management. Great strategic division across the different geographies. Very, very strong operators.

One of her favourite retailers. A little pricey when it comes to valuations, but they are the one retailer that really has been able to have consistent same-store sales growth. As a brick/mortar store one thing they have done really well is coming up with an advertising campaign that makes shopping an experience. It advertises as more of a hunt, which encourages shoppers to keep coming back to the stores on a more frequent basis. This is going to do well for them coming into the holiday season.

(A Top Pick Dec 22/15. Up 8.88%.) Off-price merchandiser. The nice thing is that in a good or bad market you don’t have to worry about this. Management is as good as it gets in the industry.

The parent of Winners stores. They have a number of brands in Europe, Canada and the US. Have a really fantastic advantage in pricing. When the market goes down, people stop spending, so they mark down the price a little bit and keep the volume going. When things get better, they can raise that pricing. Dividend yield of 1.12%.

A defensive business model. They have solid growth and he likes this in this environment.

Off-price clothing retailer. Winners is their big Canadian brand. This company is really winning on the discount side. They are not competing in the premium space. Dividend yield of 1.2%.

This has been a fantastic trade. Has gone from January 23 until April 12 and has done extremely well year after year after year. This year they came out with some good earnings and it pulled through and outperformed the S&P 500. However, the trade is finished now. If you own, you could hold on until it breaks its trend line at around $46 and that would he a definite exit point.