24 Stock Top Picks and 3 ETF (Jan 11-17)

Opinion about ZLU-T: Canada doesn't have a version of this low-vol with a currency hedge. Now is not a good time to invest in the US. ZLU has outperformed the US market long-term with less volatility.  You get less bad when markets are bad and a little more good when it's good--like it for that.

Opinion about ZLB-T: Portfolio of low-beta stocks. Consumer staples, some financials, utilities. MER is 39 bps, not exactly cheap but not overly expensive. For the investor looking for dividends plus a low ride in the equity market. Consumer staples and utilities in Canada aren't cheap right now, as people flock to safety. At some point, investors…

Opinion about IWM-N: Lagged last 2 years, now starting to see some improvement. Positives include Trump being domestic-focused, and tariffs helping the small caps. Earnings growth hasn't been strong in small caps, but could do quite well in a risk-on environment.

Opinion about TD-T: Recently lightened up on re-rating, but still likes it. Now trades at almost parity or slight discount to peers. US missteps are behind them. Incurring lots of expenses to step up anti-money-laundering compliance. How long will they be in the US penalty box? WFC was there for 7 years, and he hopes…

Opinion about BNS-T: This is the one of the group that looks really interesting to him. Its US acquisition didn't look too good right off the bad, but could end up being pretty good. Has already taken the worst hits on Latin exposure. If you were to add one Canadian bank, this would be at…

Opinion about MFC-T: Very strong franchise in Asia. Life insurance benefits from aging demographics, as well as people in developing and emerging markets purchasing life insurance for the first time. Undemanding PE. Nice dividend. 

Opinion about FIH.U-T: One of his highest-conviction investment ideas. Trades at a discount to NAV. A stock to buy for the next decade. India is the largest democracy on the planet, very young demographic, fast-growing economy. Lots of pro-growth and pro-business reforms happening. Portfolio of $3.5B worth of different investments, both public and private. Crown jewel…

Opinion about SIM-X: Once owned this. But this will be stuck in a highly competitive space.

Opinion about HSM-T: He has been investing in this for almost three years now. They received Health Canada approval for a new brain stimulation medical device last fall. They are awaiting FDA approval in the US. It magnifies the result of physio-therapy for the brain and the technology is safe. It is a billion dollar…

Opinion about BDX-N: They just reported a disappointing quarter, plunging shares 18%. Many are giving up on it, but it's a buying opportunity. For decades, this was a reliable growth stock, but in the past 5 years have been sideways. They reported beats and raises last year. They sold their life sciences division to unlock…

Opinion about DHR-N: Not much of a dividend. Challenges with global revenues. Beat revenue by 3.5%, but bottom line fell 39%. Underperforming both the sector and the S&P 500. Healthcare sector is super-undervalued, and that could change.Can trade successfully if you watch technicals closely. Rarely meets analysts' expectations. Don't get greedy; when it hits $220,…

Opinion about GCL-T: They own a series of food distribution businesses. It appears they are not making any money from them. It appears to be a scale problem.

Opinion about TJX-N: Loves it. Will do well in a recession. Consumers are loyal.

Opinion about BTO-T: Gold should at least maintain these levels due to central bank buying. Underappreciated by the market, as everyone was worried about geopolitical risk. Growth is coming on in less risky areas, including in Canada. Discount to NAV. Good operators. Yield is 2.28%. (Analysts’ price target is $6.61)

Opinion about EMN-N: (A Top Pick Jan 24/23, Down 10%) Cyclical business that hasn't performed well.Seasonality affecting share price (May-October).Expecting better performance of shares.Sign that economy is soft.

Opinion about NTR-T: World's largest crop nutrient business. Upstream production vertically integrated with downstream stores (in US, Canada, and some in South America). Commodity prices for the 3 fertilizer ingredients has bottomed, supported by steadily improving prices for major cash crops (corn, wheat, soybeans). Trades roughly at long-term average multiple. Earnings on cusp of a turning…

Opinion about MTA-X: To manage risk, he sets up his portfolios starting with the biggest, which is FNV. More diversified than OR. He also owns OSK proper.

Opinion about CHR-T: Owns shares in company. Has done well the past year. Expecting further upside going forward. Dividend is expected sometime soon. Subcontracting business from Air Canada very good for reliable revenues. Price multiple not as high as it should be. 

Opinion about TLPFY-OTC: (A Top Pick Jun 20/23, Down 12%) As a call centre it is an outsourcer of IT services. It has been coming back from October onwards. Regarding AI concerns it has the balance sheet and income to train machine algorithms.

Opinion about NVEE-Q: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. The quarter was a big miss; EPS $1.21 down from $1.61 the prior year and estimates of $1.54. Revenue $189.8M was higher than the prior year $188.6M but missed estimates of $203.4M. For 2023, guidance was $5.28 to $5.64 per share (est $5.44), Revenue…

Opinion about LXE-X: They're in northeast BC where Tourmaline is consolidating land and assets, near LXE. So, LXE will become topical. LXE has reached an inflection point after acquiring a lot of land and pushed the Montney play to the northeast. Now, they need a lot of capital to move to full development. They're talking…

Opinion about TRP-T: He owned it for a while. Had a big run-up last year but thinks it is pretty much done now with a lot of insider selling. Tends to have big swings.

Opinion about VET-T: Canadian gas is where it's at. Interesting angle with this name is that they have gas in Europe -- Ireland, Germany -- and the market's not fully reflecting these assets in the price. Well managed, good tradition of being shareholder friendly via dividends, buybacks, and managing debt well. Underappreciated. In this market, he…

Opinion about RCI.B-T: Sector has underperformed dramatically last couple of years. Immigration changes have slowed growth, more competition with Quebecor. Starting to see pressure mitigate a bit. Shaw added massive debt. Cashflow growth starting to improve, and FCF starting to increase. Paying down debt. Starting to monetize assets. Low valuation. Sports franchises are underappreciated. Yield…

Opinion about NPI-T: (A Top Pick Jun 10/24, Down 5%) She's more in favour of it now than a year ago. The chart shows that the stock's slowly starting to take off. Sees an upward trajectory from here. Projects continue to come in under budget and ahead of schedule.

Opinion about EMA-T: Big acquisition a year ago increased presence in US, and that will be its growth driver. It's fine as an income stock, with a nice yield. But see her Top Picks.

Opinion about FTS-T: Dividend choice for an 18-year-old to hold forever. Young investors don't care as much about dividend stocks, but they're really important. It's like collecting rent, instead of making money only once you sell a stock. The earlier they start, the more they reap the benefit of the compounding effect that takes place…