This week there were 23 Top Picks and 7 ETF in a wide range of industries: Technology, ETF, Financials, Healthcare, Industrials, Consumer and Energy.
Caller was asking about selling Apple stocks for something else. Bought Facebook based on outlook for advertising. As economies begin to normalize, there will be increased ad spending. Could sell Apple shares to buy Facebook. You could own Berkshire Hathaway as a proxy to owning Apple.
Second largest global payments system after Visa. Taps into a more normal economic backdrop and especially lucrative travel transactions. Long growth runway of moving from cash to digital. Annualized revenue growth should grow to 17%. Yield is 0.47%. (Analysts’ price target is $392.65)
For income in retirement account. Would prefer ZWU to HHL. If markets correct over the next few quarters, there will be more correction in HHL. Likes both and are both buys in pull backs.
(A Top Pick Dec 04/18, Up 2%) Safety play. A place to park cash. Never touches a GIC, because they're not liquid.
US companies that are constantly increasing their dividends over time. It has a lot of very familiar names in it. He thinks it will continue to perform well. It is more into the value sector.
Not an exciting sector, but this is the time of year it tends to do well, especially if the market's getting a little softer. In March, the sector outperformed the market. It is expensive at 21.5 PE, but investors are willing to pay up when they're concerned about market valuations. Yield is 2.52%.
If you are getting exposure to US energy, he expects US pipelines to be at capacity so playing it through the MLP is a good strategy. The dividend cut was in response to the pressure on energy price. He owns for the yield and not cap gains.
We've seen the bounce from March 23, but they haven't performed well since then. There's lack of visibility on the future. Until we get past Covid, it's not his favourite sector. It has structural headwinds against it. People are out of work, and we haven't had the wave of bankruptcies yet. Better places to look.
There's been talk of change of the US healthcare system for years, but Covid is making it difficult to do that right now and makes healthcare protected from attack. Strong seasonal period right now. Elective surgeries coming back. Huge opportunity for an uptick at least until August. Yield is 1.39%.
It is the most international of the Canadian banks. A catalyst to make something really good happen would be if two Canadian banks merged. There is not much room for them to grow otherwise.
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…
25% of business comes from the US, where capital market activity is quite robust. Stock price has moved, but more to come as the Canadian and US economies open up. Still trades at a reasonable multiple. Eventually dividends and share buybacks will resume. Unused loan reserves strengthen its capital base. Yield is 3.68%. (Analysts’ price…
The premier property casualty company in North America. They are not subject to low interest rates because they reset their prices every year. 10 times earnings and double digit growth for the last decade. It is on sale today. Minimal impact from CoVid19. (Analysts’ price target is $124.25)
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has gone through a corporate reorganization. The new focus on US single family houses has not shown results yet but its assets are solid and increasing in value. The stock is cheap at 12x earnings with shareholder support. Good growth potential. Unlock Premium - Try 5i Free
(A Top Pick Dec 05/18, Up 45%) It's a Blackstone-sponsored company that bought a bunch of single-family homes and rent them out. Blackstone IPO'd this and sold it in tranches over time. Now, the stock has legs and doesn't need the parent's support. They rent to tenants and are adding ancillary businesses, like pet services…
Admires the management, but he doesn't like commercial office space now, but ARE's tenants are American biotech and life science companies, which carry the costs of. A lot of value here.
He does not own this one, despite the earnings metrics looking solid and there is no net debt. They missed on a recent quarterly earning, but not a bid deal. They are trading at 7 times cash flow and 7 times EBITDA. He would like to see the ROE improve a bit. Price momentum has…
Kudos to the new executive at delevering and cleaning things up. Inexpensive valuation. Still a lot of debt. A turnaround story. 3% of your portfolio is a bit heavy. Add some diversity. Had a great move. Be cautious.
(A Top Pick Jan 17/20, Up 14%) An easy hold. Great visibility. Managed care. Commercial health insurance, plus one of the key administrators of Medicare and Medicaid. Enjoys bipartisan support. Underlying businesses are doing great.
(A Top Pick Dec 03/18, Up 47%) Celgene had made a number of mis-steps, including management applying for multiple FDA approvals. One thing he really liked about the acquisition was the price it was bought. The acquisition by BMY helped them diversify and it seems to be going well.
They have an analyst meeting on Monday. Watch that, because they reported ugly numbers earlier this week.
You want to buy it when it's on sale. A bit rich here. The diagnostics is an area of growth, but we'll have to wait and see. Hold, if you have a good entry point. Good quality company longer term. Not a buyer at this point.
They report Tuesday. Despite a successful Covid drug, the stock has done nothing because they have a slew of patents about to expire. That said, it's a fine stock with good managers and a safe dividend yield. You could to a lot worse. You would wait before the report.
They are geared toward the re-opening of the economy. Quietly they are becoming an electric vehicle infrastructure company. Electric buses have a longer life than fossil fuel buses. (Analysts’ price target is $34.00)
Tremendously undervalued. Streamlining is coming along great. Improved corporate governance with non-family CEO. More selective about projects, with no more low margins. Share price moving up.
Price target: 2,000 Yen An unknown niche Japanese company. Boasts zero debt and pays a near 4% dividend yield. Trades at a very cheap valuation. Creates fine shareholder value.
It is an interesting business. It is specialty pharmacies. They do medication for long term care facilities. They have an interesting pouch technology. They had quite a significant debt load and made a big dent in it when they sold their surgical business. They are trying to pick up new contracts. He has owned it…
(A Top Pick Dec 31/20, Down 4%) Now they are getting into more integrated businesses, more like Loblaws. The change was a bit of a surprise. Markets don't like surprises. He continues to own the stock.
(A Top Pick Mar 01/21, Up 8%) Solid stock. Not getting a lot of respect. Underperforming the TSX and the energy group. Paying down debt, buying back shares, driving down costs of production. He's not looking at energy, as it's just finishing seasonality. But if you really want to be in energy, this is one…