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.
Q1 in to April is seasonality for US stocks. The banks are showing improvement and they can still run. Resistance at $31 so if BAC breaks out, there'll be a big upside.
He thinks you are buying a fund of investments when you are buying into this. Just remember you are buying a portfolio and you should have a long term hold in mind when investing in this.
They have a great asset type, focused in the US. But we have seen no cash flow increase in a couple of years. The management team is great.
Will it break out of the trading range of $5.50-7.70? You're buying Prem Watsa when you buy this. Prem has done some brilliant things, and other things that weren't. He's not Warren Buffett, though. He's not attracted to the underlying businesses.
You must own a Brookfield stock in you invest in Canada. They raise the dividend every year. They sell expensive assets and buy better ones, including Enercare last year as well as midstream Alberta assets. That said, he prefers the parent for better growth. BIP is a great income stock though.
A robotics company. In a very cyclical business. They're skewed to the auto business within Japan and China, but lead in the motor and drive technology side. They've been beaten up in the past year, but're coming out of that down cycle now. (Analysts’ price target is $3117.65)
Tow boats use sonar to sweep ocean floors for water mines from naval warfare. A niche product which creates barriers to entry from competitors. Just approved by the U.S. Navy for some of its products. The market is finally paying attention to this.
One of the largest companies in the world, but there is a political head wind they are facing. Longer term, he believes the ad revenues will grow and this is a world leader in the space. He would look for a pull back to enter into a new holding.
They announced 50% revenue growth but then guided down to 33% revenue growth going forward. They are really a domestic play in China even though they go up and down with trade tensions between the US and China.
A great company and one of his largest holdings. He love the subscription business. The cloud business is just another natural for them. Over 50% of their sales come internationally. It trades at 30 times earnings and has grown the dividend by 10% yearly. You have to own this. Yield 1.5%
Fertilizer markets are oversupplied, so fertilizer prices remain low, though slowly recovering. NTR is expanding its retail network through small acqusitions across North America, but also Australia and South America. The latter reduces cyclicality risk in North America. (Analysts’ price target is $82.44)
The no. 1 performer on the TSX in 2018, up 85%. They have great mines in Ontario and Australia, both stable areas. They keep increasing production targets: produce 1 million ounces of gold a year by 2021. There's a place for precious metals in your portfolio when we hit the inevitable recession and return to…
He firmly believes you want to own commodity stocks when the underlying commodity prices are holding their value. Right now, Teck's underlying commodities remain under pressure. He would stay away until copper and zinc prices improve. (Analysts’ price target is $40.00)
It's a great summer play and is now weakening. For the past year it's been consolidating. It could find support, but seasonablity works against it--bonds do well until October, then get out. Why? As on October, risk-on trade takes hold. With rising US rates and risk-on trade, he's no confident that TLT will get a…
Emerging Markets ETF. Great deal of volatility but good for younger children for the long term if you want growth.
A great stock. It struggled last year as the stock price fell, but has responded well thus far in 2019. Last quarter earnings were an improvement, but the multiples are now much more affordable. It is subject to opportunity if the economy slows down.
Got a little weak. In early August, it made a new high and then came back down. It has a moving average at around $1735, which would be a base. It would probably line up with the bottoms of the last several months. If buying for new clients today, he would not take a full…
10.625% Bonds due July 15/15. One of the largest heavy discount US retailers. No sales over $10. Because of the recession, same-store sales have been fantastic and growing about 8%-10%.
There is a bit of friction between the various providers. We are seeing the introduction of new and bigger data plans with more reasonable pricing. It is one of the ones he would look at within the industry.
He says this company is trading below book value, when historically it has traded at 2 times book. He still worries about low oil prices and how it impacts next quarterly earnings. He would buy this under $2.
A mid-cap producer. They reduced their capital budget yesterday as a reflection on prices. He'd like to see them reduce their debt even more.
(A Top Pick December 18, 2017. Down 33%). He was early in his recommendation of this company, but it is doing the right things. It is extending the maturity of its debt. The company was over $3 a year ago. Production in Q2 was up compared to Q1. It will drop for Q3 because of…