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 core tech/consumer product holding of his. It's taking a breather with all momentum stocks that led in 2020. The rise in bond yields, driving the current rotation, is hitting these tech names hard, though Apple not too badly. He likes Apple for its ecosystem based on a solid consumer base that continues to upgrade…
Likes Visa and Mastercard. Both driven by the same metrics. Trans-border transaction volume has declined due to less traveling. Paypal is very e-commerce driven. Has continued to buy Visa with new client money in anticipation for a pickup in leisure and business travel.
There are two elements to covered call strategies. There is the underlying stocks, and then the option premium. Volatility will continue to be high for the next couple years. Premiums will remain elevated. FIE pays back a part of your money back. There are a couple different elements to consider.
(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.
(A Top Pick May 07/20, Up 12%) Strongly outperformed the broad market starting late February. It was a pandemic trade. From late March to early June, it gave it all back. We've seen a baseline, and now it's starting to outperform again. August and September are dangerous times for the market, so this is a…
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.
(A Top Pick May 07/20, Up 8%) Healthcare sector is a bit exhausted right now, and seeing relative weakness. He's walked back from it a bit. Coming up to an election, healthcare can become a political football.
He owns many Canadian banks. Pays a higher dividend than peers and is exposed to Latin America, which offers growth. The Canadian banking sector is undervalued and offers dividend growth. Banks are well capitalized and in great shape.
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…
One of the top banks they own. It has done well and there is a reason the broader banking sector is doing well. Would not exit to take profits. As the economy reopens, they could start releasing provisions. They have excess capital and they cannot raise dividends or buy back stocks right now due to…
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)
(A Top Pick Mar 05/20, Up 17%) Likes their strategy. Use technology adeptly, so margins and valuations have gone higher. Big runway.
(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.
Like BMY, nobody wants these drug stocks now. The reopening trade is a headwind. The economy will reopen, so investors think they don't need a drink stock, no matter how well that stock is performing.
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.
Their vaccine will give them a boost in the near term, but it is not sustainable for their long term growth outlook. Their product pipeline is really hampering their growth outlook. Needs more visibility in their pipeline. It will continue to be depressed until there is movement here.
In the context of carbon tax announcements and the green push in US government Generally, yes, he'd buy this. There is a green push which will benefit NFI in the next couple of years. As for the Covid effect: People riding transit are extremely cautious and practice safety measures like distancing. Secondly, a company called…
He likes the valuation as it is the cheapest stock on planet earth. He has been active as a shareholder on the turn around plan and is quite happy about how the plan is going now. The results two weeks ago were phenomenal. They need to buy back shares or put the company back 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 Feb 07/20, Down 15%) People are travelling less and buying less gas. The additional items purchased in-store after filling up is a major component of their business. Covid turnaround play and you should see higher revenues once the virus fades away. Maybe in a year or two, the government may be more…
If oil is going to do better then this one is going to do better. The oil space in Canada is starting to heat up. You have demand coming back and some of the Canadian egress issues are no longer a factor going forward. There are a lot of positives going forward in the space.…