This week there were 23 Top Picks and 7 ETF in a wide range of industries: Technology, ETF, Financials, Healthcare, Industrials, Consumer and Energy.
(A Top Pick Oct 22/18, Up 8%) Consumers re-purchase their products and their service division is strong. However, the China trade tension gives him pause; so, he's watching the trade talks. He's also worried about the NBA controversy in China. Cautious.
The trend is up and to the right. It broke against the 200 S&P and was falling more than the S&P. Until we break $262 there are no worries. You could buy today. This is a good spot to pick it up.
The impact is going to be a big part on the pipeline component. Utility stocks have never been more expensive globally. It is fully valued. He would buy it at $12 or even close to $13 and would recommend it at those prices.
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.
A seasonal play, plus it is coming off a pretty good entry point. This has the classic long-term trend line in play, higher highs and higher lows, so it looks like a pretty reasonable place to buy. Over the weaker months of the year, which we are coming into now, staples are a better place…
Mid–stream and pipes. He thinks oil will be higher in 12 months. Pipelines capacity is constrained. Global growth continues. They have pricing power. You need oil to work.
Their real estate exposure is US: Industrial, healthcare, office and digital data centers. He prefers this one because it has a bigger share of the specialized REIT sector.
(A Top Pick April 18/16. Up 8%.) If this can get above the peak it hit in March, it is going to really accelerate. He would like this one longer-term. (See Top Picks.)
(A Top Pick Oct 05/18, Up 4%) It's come back quite nicely. All the banks have been back and forth. He likes BNS since it operates in higher growth areas. Their growth rates are 4-6%. Glad they are moving out of some Caribbean countries that were more trouble than good.
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.
Doesn't own any banks right now. Need to show loan growth. Yield curve makes it hard to make money. Dividend not at risk. No earnings growth. Some risk from over-indebted Canadian consumer. Valuations are cheap. Long-term, you can hold it for the yield. Corporate debt is one of the biggest landmines out there.
Cheap at 9 X earnings with a 2 1/2% dividend. Florida insurance is under a seperate entity, so hurricane is not a problem.
(A Top Pick Dec 05/18, Up 14%) They institutionalized single family homes in Canada. They seem to beat their peers every single quarter. They are poised to continue this kind of growth from here. It is a buy.
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.
Good operator. Sensible balance sheet. Like the "Home Depot" of healthcare. Difficult to buy on price. Well run. Always at a premium price, as it's a good company.
They were working on some drug trials which didn't work as expected. Acqusitions didnt work out either The balance sheet is weaker than before. Some of their drugs will soon lose their patent.
He started buying in December and thinks the market has beaten the stock up over the Trump Administration move to curb pharmaceutical pricing. He thinks the market is underestimating sales growth. The sector is in a secular bull market. Yield 3.1%. (Analysts’ price target is $69.16)
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 Top Pick Mar 11/19, Up 2%) It's holding. Thought we'd get a nice bounce, but it's treading water. It's more of a protection play, you don't need to jump in right away.
He's not sure why, but the chart is in a long-term downtrend since 2018. In contrast, the TSX has gone up while NFI has gone down. A year ago, he advised taking profits. Now, sell.
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 is down. They suffered the perfect storm with regulatory reform and then Alberta limited the number of pills being dispensed per day. They distribute to institutions like retirement homes. They hired a new CEO with tremendous industry experience. He thinks the company is taking the right measures to cut costs and be more efficient.…
Why did it split? He owns this one and it has done well over the long term. He would buy again and it is fairly defensive. The idea of splitting allows smaller investors to get in and that is probably the idea here. He does not think it is a problem they split.
(A Top Pick Oct 24/18, Down 4%) He'd still buy it today. Not as much torque as in other oil names, but SU is widely held and pays a safe 4% yield. It's the top energy company in Canada, both upstream and downstream. Their refining profits will improve going forward.