This week there were 23 Top Picks and 3 ETF in a wide range of industries: Consumer, Industrials, Energy, Technology, Healthcare, Financials, ETF and Basic Materials.
As the cycle ends. The market pays for growth and Magna had a weak Q1 and lowered guidance. M&A hasn't worked out as planned. No doubt that car sales have slowed. They're in a very cyclical business and we could be at the end of the cycle. Managers are good capital allocators and will fix…
CN vs CP After a lousy 30-40 years, the rails now enjoy sustained demand, high barriers to entry and free cash flow that can pay down debt and raise dividends. He likes this industry. He owns CN.
The US airlines have fundamentally transformed themselves. They used to be carefree and footloose with funds. Over the last 4 years they have consolidated, and there are now only 4 major carriers, and have been enormously profitable. This is buying back stock hand over fist. Raised its dividend, and announced a 50% dividend increase for…
In an industrial complex, it would be comparable to a General Electric (GE-T) or something similar. Feels the whole industrial complex in that space will move higher. Not as keen on this business simply because of the emerging-market exposure it has. In different segments of their businesses, there is fairly flat to slightly negative growth.…
It's one of the cheapest TSX stocks. They made a few missteps, like order delays, but they will iron them out. They made a big UK acquisition. A good moat around it with few competitors. A very stable market for replacement buses. NFI also leads in e-buses. Trades at a low 10x PE. This will…
Global leader of valves from Montreal. Classic value play, trading just above 1 times NAV. They report in US dollars. About 11 times earnings. The founder is 97 years old. If it is ever sold he figures it could get as much as $30 a share.
(A Top Pick July 3/15. Down 17.93%.) A really interesting company and is in the early innings of its growth phase. They are really trying to do something brand-new, building interior office solutions. It is now into hospitals, schools, and now even getting into residential. Earnings tend to be fairly lumpy, so he traded out…
He tries to find companies that are good and getting better than the peer group. They’ll produce about 7000 barrels a day this year and 17,000 barrels a day next year and 25,000 barrels a day the year after that. Enormous growth. Uses technology in the Permian Basin to really grow their reserves and production.…
Canadian oil stocks are finally seeing what the market wants from them: stop production growth, pay shareholders, buy back shares and pay down debt. Hopefully this translates into higher stock prices. We've seen a massive exodus of investment from this sector. Valuations are cheap enough. (Analysts’ price target is $3.59)
It dropped because Husky dropped their bid for the company. Can MEG make it on its own or are there other potential buyers – he would not hold his breath. It will continue to de-lever and become more attractive in the marketplace. Another potential bidder may not have to be in a hurry to buy…
It is one of the best looking charts and has not deteriorated as much as some of the others. They are well managed and in a good position. What they need is to get product out of Alberta. You need the oil pricing and that is all.
It is at lower valuations like others in the space. It is about 3.5 times cash flow and announced a share buyback. 48% natural gas. If other OPEC players cut production then this one will do very well. But as a long term investor at these levels. It is very cheap.
The dividend is safe and will continue to grow. Line 3, the main pipeline from Manitoba to America, hit some delays and legal action, but that's all resolved. Line 5 is hitting resistance from the Michigan governor, but he's confident it will be resolved.
With the differential in Calgary these guys performed well due to South American assets. They don't have the same pipeline issues. The concern is where their future growth is going to come from. You can get better value in Canadian names that have been beat up.
(A Top Pick Jan 28/19, Down 8%) It hasn't sold it and he'd still hold it. It needs more time. The risk is up, not down.
AMZN vs MSFT? AMZN is a great company, but he has been out for about 12 months as they are trying to figure out their operating expenses. He will continue to watch it, but there could be some regulatory overhang yet to come -- especially for their web services. MSFT has moved to cloud services,…
Management has shown to be very effective in growing through development and acquisition. They are focused in various areas but the home base is in Ontario where there is a waiting list of about 25,000 people for long-term care beds. Dividend yield of 5.27%. (Analysts’ price target is $13.35.)
(A Top Pick Jun 21/19, Up 10%) They just reported and raised their guidance. The integration with a health insurer is going well, so investors are relieved. It's at a super-low valuation. He expects a good return. The stock is down this year because of American politics threatening this sector.
They trade at about 1 times revenue. They are trying to get a dispensary in Nevada where Tesla is putting in their factory.
They just released earnings this week and they have been turning their business around -- increasing margins and growing organically. Management owns about 18% of the shares and it trades at 5 times earnings. He thinks it could trade at twice that level. They are involved in patient home monitoring. Yield 0% (Analysts’ price target…
Although it always looks expensive it is a great niche little auto company. Very well-managed and very focused. Still a lot of earnings momentum to come.
(A Top Pick May 29/18, Up 4%) He really likes it. The company internalizes Management. They have the CPP contributed in. They own industrial properties in the heartland of the US. Renters are distribution centers. Logistics is a good theme. 94% occupancy rate.
This is a good global balanced fund with low-risk, offering diversification for Canadian portfolios.
US Long Bonds. TLT-Q is the benchmark for long bonds. He just bought some in all his portfolios. Trade the range. Buy on dips. This will be the best protection in the next global economic downtown. These bonds are always the flight to safety.
(A Top Pick Jan 10/06. Up 60%.) Has completed financing and will have 2 mines in production by the end of the summer.
Use this list wisely to identify buying opportunities.
Happy trading !!!