This week there were 24 Top Picks and 3 ETF in a wide range of industries: ETF, Financials, Technology, Healtcare, Consumer, Basic Materials, Industrials, Energy, Telecommunications and Utilities.
Here are this week’s Top Picks as selected by: David Cockfield, Fabrice Taylor, James Hodgins, Brooke Thackray, Michael Sprung, Ryan Bushell, Jaime Carrasco, Robert McWhirte, Michael Simpson and David Driscoll.
(A Top Pick Jan 11/19, Up 26%) He thinks this is still a good choice to weather the uncertainty right now. Low volatility ETFs are good when the markets are uncertain.
We can use low volatility now. Jan. 12-May 18 is seasonality. ZLB has held out better than the market lately and today. Holds utilities and REITs. It's a defensive bet. Who knows how long this volatility will last? You want to be in utilities.
Small cap stocks in the US. It has been hit the hardest. It is a great place to come out of this. Buy it lower than today.
(A Top Pick Apr 30/19, Down 22%) It is disappointing. This is the bank he thinks it is either number 1 or 2. There is no question that banks will feel some pain here.
(A Top Pick Feb 11/19, Down 26%) This can still fall further, though it has a lot. Now, it's very cheap and pays a fine yield. It's fairly safe to buy it. The banks are close to the bottom.
These insurers get hit on all sides. It has gone below his EBV -3, which is 'in the blue'. Their balance sheet is impaired according to the markets. He would not buy until it breaks above $21.82.
Populated by public and private investments in India. One stock he would tuck away for 10 years. India is the largest democracy, and corporate tax cuts have been encouraging. Fundamentals are looking great for India.
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 business if it…
Investing in healthcare is hard. He holds BDX which he sees it as the shopping mall of healthcare products. He used to own ZBH but they suffered from recalls. He would probably stick to one of the three since he believes they are the best run companies in healthcare.
(A Top Pick Jan 17/19, Up 54%) A life-sciences companies that also does consumables and mass spectrometers. They recently purchased the GE biopharma section. They have big margins coming into the company. Earnings were higher than their peer group. He has owned this since 2013 and he sees no reason to sell it. He wouldn'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.
(A Top Pick Feb 28/19, Up 19%) Relatively defensive retail name. Nimble, agile, able to respond to fashion and the economy. Amazing earnings report yesterday. Earnings above estimates. Hiked dividend. Announced a buyback. Raised guidance.
He's been in and out of this, due to occasional jurisdictional issues. A well-regarded mid-tier gold producer, though, offering low costs and high free cash flow. Nothing fundamentally wrong with this. Will future growth be organic or a purchase? Hold if you own it. Margins have big upside if gold breaks $1,700/ounce.
(A Top Pick Jan 14/19, Up 7%) Strong seasonality in January to May, but it does really poorly in May to October. It plunged in late-2018 and has recovered since late-2018, but slower than the overall market. It's merely okay now.
You can buy it with a lot of confidence. Opportunities like this come around once every decade or less. You have to pare down your buy list to companies that represent extraordinary value right now. Crops remain an essential in terms of feeding people in everyday life. They are indispensable to the farming community. He…
It's a work in progress royalty company in gold and precious metals. Only three years old, it's very active by deploying $70 million of capital. Only two of their 45 assets are actually producing with two more coming on this year. So, there'll be a rapid advance in cash flow. The dividend is small but…
They're not exposed to oil prices or currencies. They have a take-or-pay contract with Air Canada, who pay CHR whether AC uses them or not. CHR is Jazz Airlines, an AC regional offset. The dividend is sustainable, above 8%. Input costs won't change much. This stock has sold off, the baby with the bathwater. CHR…
(A Top Pick Jan 17/19, Up 68%) This is artificial intelligence that is replacing people in call centres. These are insurance and financial call centres. He expects there to still be a long runway to come. This trades in France.
(A Top Pick Jan 17/19, Down 7%) He blames the CFO for the loss. They were signing contracts that were not compliant and their guidance was off. Even though the stock is down, if they have earnings of 3.20 per share range, the stock is fully valued. If they make 4.20 next year, the stock…
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 to potential buyers,…
Energy stocks? Right now stick to the large, liquid energy stocks. There is growing concern of counter-party credit exposure within the mid-stream and pipeline space. He recommends ENB-T and TRP-T for pipelines and SU-T and CNQ-T for producers, if you want to own any energy stocks. SU-T yield is 7.2%, while CNQ-T is 8.4%. CNQ-T…
Fed bailout? He has no idea yet if VET or PXT would qualify if there was a Federal government incentive. He does not expect a bailout; rather, a lump sum of money available for financing.
The balance sheet is fine. They generate a lot of cash flow. There is headline risk because a large part of the their business is wireless and the other two have done a great job of catching up to them in wireless. It is probably a fine time to buy it, however.
(A Top Pick Feb 27/19, Up 35%) This was better than his expectations. A year ago the Founder was selling off a sizable stake in the company and the share price recovered quickly thereafter. They have a strong presence in the ESG space. A renewable power position. He would have a hard time buying more…
We had a spike down and then a considerable rally. He would look to about EBV or book value. If you own it, you are down a bit but not down that much. He would be a buyer at $36.
It's held up relatively well. They have a $19 billion plan to build in coming years. He expects 5-7% earnings growth through 2024. A safety utility play in this environment. (Analysts’ price target is $58.98)