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.
(A Top Pick Jan 25/19, Up 4%) He was too bullish about car sales. We've hit peak car sales. Meanwhile, e-cars keep selling, so where does this leave Magna? He exited.
CP-T vs. CNR-T. CP-T was at $220 in 2014 and broke out from there last year. It consolidated for 5 years. This is a great way to participate in economic growth.
(A Top Pick Jan 25/19, Up 32%) Delivered a home run earnings report today. Great earnings. They are buying fuel-efficient planes. In 2021-22, this can earn $10/share. They've been generating profits since 2015 and hopes Delta will finally be rewarded by the media. Emerging market wealth in Asia and India means more travellers.
The uptrend from 2016 to 2018 broke late last year, then has seen a head and shoulders bottom. It's a safe bet from here--should return to old highs, but doesn't know if it will rise even higher.
They have done nothing but disappoint for the last couple of quarters. He kept it because the valuation changed and no one expects anything from this company. He is going to give it a couple more quarters.
(A Top Pick Jan 28/19, Down 37%) They are very much encouraged by the latest results. The company has started buying back shares. It is suffering from some tax loss selling. There is huge upside and very little downside. He just bought a lot more.
He has their product in his office. The stock is struggling. They lowered guidance twice this year. They have a new management team in place. They are re-vamping their sales strategy. The change of management is taking more time than expected. Watch it as they try to go to a more professional organization. Turnarounds don't…
(A Top Pick Nov 16/18, Down 33%) The highest quality Permian producer name you can own. He sold it a while ago when they decided to repatriate all their energy investing back to Canada, where values are so discounted. There is talk of a frac ban in the US, which is creating uncertainty there.
A leveraged play on crude oil prices. She owns no energy stocks, because she wants to see clarity on takeaway capacity from Alberta. BTE will follow the price of oil. CNQ and Suncor are the better oil names.
They are the number one target in Canada for M&A. There are a list of potential acquires where it makes a lot of sense. They have enormous tax pools. It is trading at a 29% free cash flow yield. They are over levered. He sees a 25% upside from here.
Oil is a difficult space, but SU is building a base around $40. Strategy: buy the strongest stock in a struggling sector, which is SU. SU has the balance sheet to pick up cheap assets.
Weakness in share price recently is related to their moving HQ into the US. Their strategy for the move is to trigger share buying in the US as they become part of a larger market index, he thinks. There is no guarantee this will happen in the US, so this is a pretty risky strategy.…
ENB vs. TC He owns ENB which he has picked before. Hold onto it for a long time and collect the dividend. It's worked through its capex issues. TC has a similar story with cash flow growth, a strong dividend yield and a multiple expansion to come. Infrastructure assets like this are hard to find.…
It is the first oil play he has ever recommended. They have no debt, 10% free cash flow yield and bought back 10% of their shares with another 10% this year. This is not a call on where oil goes from here. They are profitable down to $30 oil. He is comfortable with their 100%…
They all went through a correction in 2018 and several got cut in half. The group seems to have taken a turn. He would tend to pick Electronic Arts.
He owns it and they are starting to go a little parabolic. This is usually a sign that buying pressure will be exhausted at some point, but you might want to get some. They are hitting on all cylinders and are doing great in the cloud. Their traditional windows franchise is a cash cow. The…
Defensive REIT that pays income. Nursing and retirement homes, mostly in Ontario (where there is a bed shortage of 35,000) and BC. Strong managers and good dividend. He expects the Ontario government will solve this shortage by mid-2020 (allow more nursing homes) that will benefit Sienna and CSH.UN-T. This is very defensive. You can sleep…
He likes this space. It's toppy now, with $80 as the top, a level it rarely breaks. Just be aware of that.
(A Top Pick Oct 04/18, Down 62%) Valuation is super cheap but they owe a lot of money to the American founder. A director in the company has been buying shares, so he doubt there will be a financing as rumoured. Once they figure out their debt problem, this will move up.
They had a cyber theft – 9 Million out of there bank but insurance covered it. He likes it. It is speculative and is a roll up strategy.
He owned it for many years until interest rates started to rise. The whole group has done poorly over the last 60 days. More natural catastrophes mean insurance companies have a 'hard market' and can increase fees over that of claims.
Likes the industrial REIT space, very popular among investors now; it benefits from e-commerce. Solid managers. Properties are entirely in the US midwest, some being challenged markets. So, he doesn't see higher growth. Buy Dream Industrial or Summit REITs instead.
(A Top Pick Jan 21/19, Up 18%) You aren't going to hear a lot of talk of long dated treasuries. If you go back to 1982 and compare 30 year bonds and equity markets through to today they have done similarly except the bonds have had less volatility. The TLT-T is the best hedge for…
They are turning themselves into a mid-tier producer of gold. They have invested into exploration of another significant mine that could result in a very positive reserve assessment. They found some interesting high-grade zones in the new mine. Their long term Eagle mine is also able to expand. Yield 0%. (Analysts’ price target is $5.28)
Use this list wisely to identify buying opportunities.
Happy trading !!!