This week there were 25 Top Picks and 4 ETF in a wide range of industries: Technology, Energy, ETF, Consumer, Financials, Telecommunications, Basic Materials, Healtcare and Industrials.
Here are this week’s Top Picks as selected by: Jeff Parent B., Tim Regan, Barry Schwartz, Bruce Murray, Darren Sissons, Cameron Hurst, Brian Madden, Dennis da Silva, Christine Poole and Hap (Robert) Sn.
This is effectively a processing company. In terms of the biggest boss on the street, it would be Intel, and this would be considered the baby in the corner. All the semis are up this year. When you get a cyclical decline in the semi space, and we are long overdue on one of those,…
Starting to see more volatility, since it is tied to the consumer and their credit. Still likes the space in the longterm. A bit expensive right now, but secular trend of digital payment will make this a good choice for long investors.
There is a secular theme where companies will continue to spend on IT development. The industry is growing between 5 and 6%, roughly twice the growth rate of the economy. They can now make another acquisition and he is watching for potential catalysts.
More than any other company, they realize the need to buyback shares. They could buyback 8% of shares based on 25% free cash flow yield. It trades at only 70% of their liquidation value, so they won't spend money on growth. Balance sheet is strong. Nothing wrong here. CPG is clealy mispriced. (Analysts’ price target…
Norwegian off-shore oil services. They have more cash than debt. There's a gradual increase in off-shore energy E&P, so this will do well. Sustainable dividend. (6.4% dividend, Analysts' price target: NOK139.87)
With the differential in Calgary these guys performed well due to South American assets. They don't have the same pipeline issues. The concern is where their future growth is going to come from. You can get better value in Canadian names that have been beat up.
Just had a 20% correction, so it's now a good time to look at it. It's down, because it's taking time to get approval for some well pads in northeast BC. He expects they will get approval. But some fast-money investors got out which blasted out this stock. It's well-run with visionary managers. Fast growth.…
Average down? He likes it now more than before as the dividend continues to grow. They've sold non-core assets to pay off debt. However, the line 3 pipeline is stuck in Minnesota courts and line 5 stalled in Michigan. Eventually, they will prevail in both. It's a good income story. He doesn't average down.
Internet ETF. Analysts do not make consensus targets for ETFs. The average PE is no different from the overall NASDAQ. The trend is healthy. It is not cheap.
Brazil. Fundamentally, this country is much more self-contained than a lot of other export oriented countries. It is an exporter but there is plenty of domestic growth as well as self-sufficiency in energy. Have a couple of huge oil finds off their shores. Finances are in very good shape.
It is not unlike a REIT but for pipelines in the US. They put it into this MLP structure. It is a basket of pipeline stocks. The revenue gets passed on to the shareholder. It is not a Canadian dividend, however, so not taxed the same way. He thinks you are in a trading range…
(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.)
(Market Call Minute) Avoid theatre operators because they are getting pushed out because people will download and watch at home.
A 3-year hold They've done well launching Disney+ and condolidating Hulu to move quickly into streaming. Movies still generate revenue but are less important now. The theme parks are also doing well. The issue is that Disney must pay licensees to stream their content and this will eat into profits. This will limit EPS growth…
They no longer want to own the hotel, they want to own the franchise and collect the royalties. In 3-5 years, they'll be 100% there. Has some of the best real estate and at a cheaper valuation than Marriott. Yield is 0.9%. (Analysts’ price target is $80.30)
Takeover of WB-T. He does not think there will be another bid. He has not finished researching whether to hold the resulting stock after the takeover closes.
He likes this. Every time he goes to the mall, these stores are full, while competitors’ stores are empty. It was probably priced aggressively when it was sold to the market, because it was an exciting growth story. Then we got into Amazon, and everybody hates retail, which is what has really hammered this company.…
(A Top Pick Feb 20/18, Down 2%) Unfortunately, he got stopped out. There's more baked into HD than meets the eye. He wants HD back in his portfolio, like FedFex.
We are all tired, old and want someone to look after us. It was $100 and then there was a sell off. Far East/China is where they are expanding. Cuba offers more opportunities. The population is aging.
Their earnings are beating. 15% growth this year. Trading at 8x PE. Well-capitalized. He likes this.
He has no direct exposure to Canadian banks because he thinks they are risky relative to potential market weakness. He prefers ZWB-T. He thinks BNS-T will under-perform because of their Latin American performance.
Really likes it. They did a very good job of buying assets at the right time. Have been able to monetize assets over a period of time and sell them off. Over a period of time you see it move sideways for a while and then it jumps.
Why does volume trade spike in the last minutes of trading? The bulk of trading volume for most stocks actually focuses on the early start of the day, so this is unusual. As this in the index, there may be some index balancing that is going on. He is uncertain overall.
vs. AT&T AT&T's 6.6% yield is safe, but the stock is dropping. He prefers Verizon with a stronger stock price though 4.2% yield.
This is doing fine. It provides for hospitals, etc. Relative to US companies, they are having pricing competition in Europe. In their most recent quarter, earnings weren’t great and sales were down because of the currency. It is important for investors to look at these European companies, as to how much exposure they have on…
Located in the Sugar zone in Ontario. They’ve drilled the top 400 m of their deposit, which has a decent grading resource at about 7-8 g a ton, and have about 4000 ounces. That means they have found about 1000 ounces per vertical metre. That is a pretty good metric for the start of a…
The chart doesn't look great. Moving averages are moving lower. Not good. Seasonality is end of the year into the new, late-November to mid-February. Revenue growth is healthy though.
She continues to hold it and likes it. They have done well this year so she would wait for a pull back to add to this position. They are good at taking costs out. They always increase their dividend and it should continue. A good core holding.
They effectively sold their airplane division. He looks for companies with good balance sheets and strong margins. He does not see this as a good margin business and would rather look for more quantifiable investments.