23 Stock Top Picks and 3 ETF (Jan 25-31)

Likes it as a business. Time is not now. Well run. Great free cashflow, great economics. Well positioned for EV. Watch and wait. Storm clouds of a recession, and this would hurt. Be patient.

(A Top Pick Jun 17/21, Up 12%) High barriers to entry and sustainable growth in rails. There's margin expansion and it trades at 20x earnings. Not a bad business to be in, since it has consolidated so much. A great opportunity to grow in the next several years.

options action It got hit early today. The stock was trading beneath the 36 level. There was a buyer of 20,000 of the July 38 calls, going for $1.35. They were getting hedged by selling the upside call. He likes seeing that; it takes away a bit of pain.

Has new managers. A well-diversified industrial. He wants to know what their China exposure is. They report Tuesday and he expects good things.

They've fallen into a tough time due to supply chain issues. They are bleeding cash. 9% of shares are shorted because the street expects them to raise equity at a terrible time which will dilute existing shares. They remain a well-run business, a successful Canadian company. They generate over $2 billion revenues. They have an…

Business has had strong financial results the past few quarters. Significantly increased gross margins. Turnaround plan is working as hoped. Very under valued company. Happy with improvements in corporate governance. Industrial valve backlog in orders. Expecting share buybacks to start soon (next year). Believes company is worth over $20 a share.

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)

Among the 10 top performers on the S&P of 2021 #9, up 123%. It's made many acquisition and returned capital to shareholders. It has a $35 breakeven price with tremendous production growth of 41%. It's cutting back on drilling and exploration which pleases Wall St.. It's likely to repeat this gain in 2022.

(A Top Pick May 28/21, Up 287%) Drilling oil wells that payback in weeks (1.5 years is average). Largest shareholder of the company. Would have made to top pick, but already have picked company last time. Company aggressively paying down debt. Trading at 2x cash flow and 35% free cash flow yield. Expecting company to…

Direct play on all time high heavy oil prices. Company committed to returning capital back to shareholders (recently bought 3.5 million shares back). Have pledged to return 100% free cash flow yield back to shareholders once debt paid back. Long reserve life with high cash flow yields, will lead to massive share price appreciation (85%…

John: Shareholder activism has come to SU, and this should help the valuation. Likes oil more than nat gas, as oil is in a structural shortage. Oil players are extremely cheap, with 30% cashflow yields, 2x operating cashflow. Perhaps not a hold for the next 5-10 years, but a good rental.

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…

Sold it, because he wanted to buy oil companies like Whitecap. A great company and dividend yield, which will grow slowly over time. Energy prices will up for 2-3 years. You can hold this only for its dividend.

Very timely. Unique is all production is in Colombia. Growth story, free cashflow machine. New leadership. Buying back shares, production growth of 17%. No debt, 4x earnings. Best in class. Yield around 4%.

Currently trading around $75 with an accepted buyout from Microsoft at $95 a share. A potential 26% arbitrage gain. The spread can be explained by the lack of a set date for when the deal would happen and the chance of it getting canceled. Social media mentions are up 333% over the last 24h.

It has sold off with the market and is down 27-28% year-to-date. As a tech company it is more infra-structure and service focused than advertising like Google and Facebook. It is already embedded in millions of companies around the world and allows migration to the cloud.

Strong dividend, but not much room for upside in the stock. Balance sheet is in question as there is a lot of debt. Not much room for M&A. Occupancy levels in senior living centers are down (Covid-19 impact).

Stockchase Research Editor: Michael O'Reilly We again reiterate CVS, a top retail pharmacy and health care insurance company, as a TOP PICK. It trades at 1.6x book value and forward earnings for next year project a PE of 10x earnings compared to peers at 14x. It pays a good dividend backed by a payout ratio…

(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…

(A Top Pick May 29/20, Up 55%) Oxygen delivery. Recurring revenue model. Very strong outlook.

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.

Taken over by Blackstone. No longer listed.

It's real estate in 28 countries. It's something different for Canadians and worth having a look.

(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.

Best ETF to get exposure to 30-year Treasury bonds. Trades 20 to 30 years fixed income. This is the one he uses. More aggressive option with 25+ year maturity remaining is ZEROZ-N. ZTL-T is also an option in Canada that can allow to hedge the currency risk. Keep in mind that if inflation wins and…

Domestic production is always better than international, especially for an emerging mid-size producer like this one. Gold should have done better in this inflationary environment, but crypto stole its thunder. Gold will continue to be a store of value with steadier growth, especially as world currencies devalue with inflation.