23 Stock Top Picks and 3 ETF (Jan 25-31)
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 Oct 08/20, Up 43%) Value stock left behind from rotation to tech. Supply chain issues, failed takeover. Still growing at 24%, 8x multiple. A place for investors right now. Poised for the EV trend.
CNR vs. CP The takeover was a real love triangle. He's confident CP will get approval. You want to buy them into this weakness. 9% growth rate, 17.5x 2023 earnings. Will be a better entity going forward. CNR looks very good with their new strategy to better their OR over time. Both are to be…
Bank of America expects an 8% increase in travel versus pre-covid 2019 levels. Jim Cramer feels that there is still some runway left even though the shares have run up. Social media mentions have increased 38% in the last 24 hours.
Has new managers. A well-diversified industrial. He wants to know what their China exposure is. They report Tuesday and he expects good things.
Buying a call for February? Going to miss numbers by a huge 40% due to supply chain issues. Long-term story doesn't change, but this impacts their balance sheet. Problem with buying a call is you're putting a gun to your head that it's got to work by February. He'd rather sell the put over the…
World leaders in nuclear valves. Has become more shareholder friendly, focusing on higher margins and more profitable areas. Record backlogs, so this year should be very strong. Nominated first non-family chairman ever, a positive. Significantly below tangible book value. His firm is pushing to unlock shareholder value. Support at these levels and should go higher.
Customized, prefabricated environmental office interior solutions. High net cash position. Significant upside because of their flexible business model. Surge in office reconfiguration taking place across North America. Top management. No dividend. (Analysts’ price target is $3.46)
Announced a $2 billion share buyback today which shocks him. Used to be an undisciplined oil company. He's slightly bullish on oil, but more so on natural gas.
Upside expected by analysts is $3. Should do well. It is free cashflow positive and does not yet pay a dividend. Has generated a quarter billion in free cashflow. Analysts expect 40% upside.
How could you not like MEG? Massively de-leveraging. Will be going to the balance sheet. Next year, should return a lot of capital. 24% free cashflow at $70 oil. Could buy back all stock in a year. Inevitably will get scooped up. Expects for this to do very well. A 6x multiple would be realistic…
Moving averages turned higher. Decent low in August, and now turning higher. Risk/reward looks pretty good. Dividend expected to grow. Likes CNQ a bit better. But both will throw off a nice bit of cash, for a nice rising dividend which will be valuable if we're in an environment where rates slowly go higher. Yield…
Just beat earnings and have increased production. Cheap valuation compared to peers. But it's getting more expensive heading into 2021. There's no growth here, but that goes with the entire oil patch. The real issue is will they survive. Their balance sheet is getting better, but still high for a blue-chip name. You'll be saved…
(A Top Pick Dec 04/20, Up 23%) Improving balance sheet and expects them to keep raising dividends, paying well over 6.5% now. It's a great buy for income investors. ENB offers capital appreciation going forward. Line 4 is progressing well.
Mid-sized oil producing and exploration company in Colombia. Great quality assets. Hyper-focused on profitability. Turned off the taps last year to wait for a better price environment, which is now. Buying back shares. Initiated inaugural dividend last month. Quality, growth, undervalued, slowly taking itself private. Yield is 2.6%. (Analysts’ price target is $33.53)
(A Top Pick Sep 21/20, Down 3%) Got out, then bought back in around $80. Buy in tranches of $72, 65, and 57. Negative press releases dragged on the stock. Need some distance from those. Fundamentals remain strong. Build a position here in stages.
Likes Apple. Apple is slightly less expensive on valuation than Microsoft. Their franchise is second to none. They came out with the iPhone 13, which was not particularly flashy, but the expected sales is positive. There are aging iPhones and the replacement cycle will be enormous. They have a good formula for success. Multiple has…
(A Top Pick Sep 22/20, Up 40%) It is a very well managed company. Occupancy rates are increasing. The dividend is perfectly safe. Growth is starting up again as they build new residences.
(A Top Pick Aug 09/19, Up 10%) A cannabis company in Nevada. Like Indus, they cleaned up their situation and are turning around. They bought a large dispensary in Nevada near Reno. An overhang was owing the vendor a lot of money, but that vendor has become the new CEO has fixed that debt. CXXI…
Very fine company. One of the best property and casualty companies in the world. Relatively resilient, defensive business model. Long-term, he recommends it. But for short and medium performance, we're exiting a recession, so it makes sense to put more capital into cyclicals.
Trades in USD and CAD. Implied cap rate is just under 5%. Focused on industrial space. Loves that space, tailwinds are immense. Yield is 4.0%. (Analysts’ price target is $24.08)
(A Top Pick Jan 29/19, Up 1.5%) Global Risk Parity balances the risk of growth and inflation. It balances the risks to keep you level. The peak draw down was 12% -- very manageable in the context of recent volatility.
Represents the 20+ year maturity of the USD treasuries. You get USD exposure and the long duration exposure. For a Canadian portfolio, if we get a deflationary wave, the USD and long bonds do well.
(A Top Pick Jan 30/19, Up 85%) They have the market's attention. Later this year there is the decision whether they start up an older mine that has been mothballed for a while.
Use this list wisely to identify buying opportunities.
Happy trading !!!