23 Stock Top Picks and 2 ETF (Jan 18-24)
This week there were 23 Top Picks and 2 ETF in a wide range of industries: Financials, Industrials, Technology, Basic Materials, ETF, Consumer, Telecommunications and Energy.
What's driven them are very strong capital markets, trading, and investment management. Better loan growth and net interest income will carry the flag going forward. As the economy matures, banks will do well on the backs of higher interest rates.
Still a buy at these levels. 20% of its share price is its holding in Apple, 20% is in cash. Some areas were badly hit during Covid and are still underperforming. Still, the whole package remains an attractive, diversified business. High quality, excellent value, core hold.
(A Top Pick Oct 19/20, Up 70%) It was taken out. Industrial real estate is hot. Pension funds keep raising money and need access to product. He has topped up a few others in the sector.
Prem Watsa engages in market timing, unlike Warren Buffett. Fairfax is a black box as to what it owns. Challenging business. Stuck in the mud for a while. If you want too look at good capital allocators in the P&C business, look at BRK.B, which he owns.
Fantastic acquisition of IPL at a great price. Really strong portfolio in western Canada combined with global assets that are starting to reawaken from Covid. Poised to run. Good dividend that's steadily increasing. Yield is 3.67%. (Analysts’ price target is $79.06)
(A Top Pick Jan 22/19, Up 36%) There is some cyclicality in robotics in Japan, but they are one of two world leaders. He still owns it.
Earnings and price stability. Collecting garbage doesn't go away despite the economy. Trades at close to 30x earnings, which is excessive for a relatively slow grower. Sees more downside risk than upside potential.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cash position is strong despite revenues falling in 2020 compared to the large order they received in the prior year. Margins have improved. It continues to secure orders. High risk but doing many things right. Unlock Premium - Try 5i Free
Even though its PE isn't cheap, look at GOOG. It's a real grower with a phenomenal franchise, and almost impossible to unseat at the present time in its core business.
BABA or an ETF? Tough ride this year. Long-term, opportunity in this name. Look beyond the regulatory concerns, most of it's done. Chinese middle class consumer continues to grow. Internet penetration is only about 70%, so there's a long runway of growth. Be patient. A good ETF to buy into the BABA selloff is KWEB.
The Xilinx-AMD merger, which is supposed to close by year's end. Whoever owns Xilinx will make a lot of money. He recommends AMD over Xilinx, because he doesn't like arbitrage risk. Take some profits on Xilinx.
They've been around for years, but completely different from IBM. Doing a great job. The valuation is excessive, and it can last for a long time, but you have to stick to your disciplines. Loves the company, but not the stock.
Has been following this story closely. Nitrogen and potash prices are running up. A solid demand environment for Nutrien which should support their valuation. Last quarter was great. Would continue to hold it.
Taken over at 2x book value, same as AEM. Virtually a merger of equals made in heaven. AEM has lots of deposits to develop, and KL has lots of money. Gold prices will move higher, so this should move higher. Likes KL and the merger.
Long-term, great operators. Loves their migration to copper. Next quarter or two will be at risk. More downside than upside in coal. He sold, and is looking for more pure plays in copper.
Stockchase Research Editor: Michael O'Reilly We reiterate TLT as a precautionary holding, to protect in the event of another market retracement. TLT is an ETF that represents US 20 long term treasury bonds of a term of 20+ years. Yields on long term treasuries have rebounded back to 2.00% making this another good entry point.…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Good for emerging market exposure. The fund is tax efficient where the foreign stocks are directly owned so there is only one layer of withholding tax on foreign dividends. It is broad and diversified in terms of sector and geography. The fees are reasonable. Unlock Premium - Try…
A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in…
World's largest travel agency by revenue. In over 220 countries. With vaccines accelerating worldwide especially in kids, and anti-viral pills, could boost travel well beyond pre-pandemic levels as pent-up demand will create "revenge travel". Earnings next year should surpass pre-pandemic levels. Stock's come off, so this is an opportunity. No dividend. (Analysts’ price target is…
(A Top Pick May 31/21, Up 2.97%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DG has triggered its stop at $209. To remain disciplined, we recommend covering the position at this time. Combined with the previous recommendation to cover half the position, this results in a net investment gain of 9%.
Allan Tong’s Discover Picks I don’t like the telecoms as a whole, because they enjoy an oligopoly and overcharge Canadian customers, but at least BCE offers stability, predictable growth and pays a safe 5.41% dividend. Read 4 Popular Headline Stocks for our full analysis.
Aggressive mid-cap. If oil price holds around $70-80, buy it; if it drops to $50-60, it's probably a hold. He's optimistic that oil prices will hold. You probably have 6-12 months to hold this stock. In a standoff between TVE and SU, he doesn't have a strong preference, but perhaps the nod goes to TVE.…
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
(A Top Pick Aug 13/18, Down 61%) They disenfranchised the Canadian shareholders. He sold out sooner before the de listing, so did not do as badly, nor did his subscribers. He disagrees with their move.
Debt concerns? BXE took bankruptcy protection when debt became too much. There is no equity value in it any longer. Companies that have debt that matures in 2020 or 2021 will have issues. He sees no issues with BIR or TVE on this topic. The new Federal relief program for large companies may be difficult…