This week there were 23 Top Picks and 7 ETF in a wide range of industries: Technology, ETF, Financials, Healthcare, Industrials, Consumer and Energy.
The Qualcomm settlement? Not much effect on Apple, but rather Qualcomm (see his comments on that). Apple still needs a 5G solution.
How to play Mastercard and Visa in ETFs? They're heavyweights in the tech ETFs; XLK-Q (Visa is large in this) if you want liquidity. Also look at IGM-N.
In a defensive sector which is the right one to be one during market duress. But you're selling calls to create extra income. This is merely okay. Total returns have been flat lately, though ZWU has done better than the overall markets. Hold this outside the RRSP, given tax considerations. Just remember: if the market…
DEX Floating Rate ETF (XFR-T) or Vanguard Cdn. Aggregate Bond ETF (VAB-T)? If interest rates rise, which would you Buy? The aggregate bond is a little bit longer in duration with an average of 6 or 7 years and might be a little bit more sensitive to interest rate hikes so this one might be…
A simple basket of US names that have a history of increasing their dividends over the last 10 consecutive years. As US interest rates move higher, he thinks dividend growth companies will outperform those with little or no dividend growth. Year-to-date and over the past year, this has outperformed the broader S&P 500.
Expensive right, now trading at over 20X PE, and they are slow growing stocks. But, in the summer months, investors are willing to pay a little more for that stability.
Current yeild is 5.8%. Is a great ETF. Start worrying if interest rates start moving up, which he doesn't think will happen anytime soon.
He likes the concentration of the specialized real estate holdings – including hospitals, multi-residential, high rises, etc. He sees this as a bond proxy that is better than telcos and utilities.
Healthcare does better in August and into October. But it ran up since February. We have that political football. Be careful because it is an election year.
Often the worst bank one year does the best the next. BNS is 50% Canada and 50% foreign operations. (Analysts’ price target is $79.17)
A spin-off of Brookfield Asset Management. For every 170 shares of BAM-T one owned, they received one share of TSU-T. They underwrite smaller BTB insurance. They can sell-off re-insurance for a recurring fee stream in the US – a process called “fronting”. On paper it looks like they operate at a loss, but it will…
The NASDAQ has been on fire and this represents that as a proxy. It is back to recent highs, so he would wait for a break to new highs, wait two days and then buy if it holds strength. He would not buy until the new highs have been made.
Hang on to it. This should be one of the ones you buy and hold rather than monitor closely. This is one of the stronger banks in Canada. This one has the advantage of being in the more profitable areas of banking than the others.
(A Top Pick Oct 27/17, Up 6%) It is an excellent company, getting into US single family rental. The long term outlook is good but definitely interest rates impacted calculating the net asset value.
A sub-sector he likes in the U.S. are single-family homes. Institutional investors bought up distressed homes during the Recession, then rented out those homes after that period. INVH is a major player in this space and it's trading at a discount to NAV now.
They specialize in technology and life-sciences clusters. Their tenants will be repatriation cash, so ARE's partnership with these tenants will create value and rent growth. (2.9% dividend yield)
Had a tremendous run up to about $12, but got completely blindsided, and it pulled back heavily. Got stopped out around mid-$6. Thinks they are going to be okay long-term. There were some issues with insider selling at higher levels. If you own, continue to hold as it looks like it has bottomed.
It's the old Valeant. It has a future, cleaned up their act, but too much debt. Stable now, so maybe good for the long-term, certainly better than the Valeant days.
They've had a great run and are the poster child of the U.S. health insurance space. They continue to put up 15% bottom-line growth. (Analysts’ price target is $304.74)
The biotech sector is performing well. He would prefer to own the XBI-N ETF to get a basket and diversify risk.
He likes their leadership in drug therapies. They have their HEP-C and diabetes franchises. It is an easy hold for him. They are well diversified. They are number 3 in animal health products. It has a PE of 15.5 times next year’s earnings. (Analysts’ target: $70.00).
Hasn't had his name in his portfolio for the last 5 years so can't say a lot about it. Pays a high dividend yield (5.3%) but it doesn't have a lot of growth, which concerns him. Had some negative earnings surprises over the years that scare him.
A defensive name. Revenues at $52 billion per year. ROE is going higher. Dividend yield is 3.0% and P/E is 15. Strong pipeline. (Analysts’ price target is $45.09)
We had a short on it last fall. At the time, he thought the valuation was rich. They missed two straight quarters last year, but they are better shape now. He doesn't see much growth here in this sector. Also, there's lots of competition; they lost some bus contracts.
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.
Global Japanese company. Makes equipment to test environmental equipment. Growing revenues around 10% a year, and bottom line by 10-15% a year. On sale. Lots of cash. Amazingly cheap and unique. Yield is 3.1%. (Analysts’ price target is $2800.00)
He used to own this. The CEO he knew suddenly and abruptly resigned. They brought a new CEO but then there were reimbursement problems. Their balance sheet is not pristine. Centric doesn’t look like a quick fix.
A success story, expanding their acquisition over the years. It's priced as a growth stock and beyond valuations he would consider. They've done well with convenience store with strong margins. U.S. fuel margins rose higher than the street expected, too. But if you own this, perhaps move into something more conservative--take some profits.
$60.37 is his target price. You can enter it now. It will benefit from rising oil prices. It's a low-risk trade.