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.
Intel's rally today pushed rival AMD down nearly 4%, which makes it a buying opportunity. The CEO is excellent, now making better chips than rival AMD.
Owns Visa. If you look back to when it first became public, it has been a solid upward movement, bar the financial crisis. Effectively, it is the mechanism to fund purchases during Covid. Move away from cash will continue and it should be a structural grower. Prefers Visa, especially with Visa Europe that was incorporated…
#1 performing stock on the TSX over 3 decades. Generates high returns on invested capital. Consulting is a great business because it's capital light. Keeps increasing shareholder wealth over the long term. Exactly the kind of company he likes. Chart is consistently up and to the right.
(A Top Pick Dec 10/19, Down 40%) Of course, he didn't foresee oil prices going negative (in April). CPG is not in a bad position here. North of $40/barrel, they can generate decent cash flow. It's decent.
(A Top Pick Jan 08/19, Up 13%) We are starting to see a bit of a recovery in the oil price and in the demand. This is an interesting company to watch.
Some of the highest operating margins, low break even price, no debt, share buybacks, cash on balance sheet. Dialled up capex spending in December. Lean, efficient, growthy producer that's financially very sound. No dividend. (Analysts’ price target is $25.60)
Not a holding now. They paid off all their debt by selling some assets. They are at a net cash position. In the short term there is no reason to own the stock due to lack of catalyst.
Likes them. They confirmed their dividend increase. Debt to EBITDA is reduced to normal levels. They won't make a new purchase, but will ensure that existing assets return 8-10%. You should own this as a mainstay in your portfolio. However, Michigan's governor threatens to shut down ENB's line.
ETF recommendation? There are a number of them out there. The ones he uses add diversification and are used primarily as a short term trading vehicle for him. He mostly uses SOXX, IGV and FDN.
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.
(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 would stay away. It did not work out for him in 2017. 2018 was a great year for movies but the stock continued to go down. The sentiment was really weak and today they are in a more difficult situation. They still have to service their debt with all their theatres shut down.
Allan Tong’s Discover Picks Disney, on the other hand, is more diverse. Shutdowns of its theme parks and cruise line hurt their bottom line, but their streaming service keeps knocking it out of the park and will make up that shortfall. Also, the House of the Mouse will raise subscription fees in the new year.…
Luxury hotels. The stock has flatlined due to worries over the coronavirus. They are selling their hotels for management contracts. They are using the cash to buy back stocks. He sees it trading over $100. A well-run business with the family having a lot of stocks. (Analysts’ price target is $86.13)
(A Top Pick Oct 04/19, Up 27%) As a tourism stock, he can't believe it's up so much. Has fly-in, but also drive-in, resorts. Unique geographical assets that no one can duplicate. They're not building any more mountains.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company continues to do a good job matching fashion trends and controlling inventory. EPS is expected to rise 5 fold compared to this fiscal year. Unlock Premium - Try 5i Free
Dominant in its category. Will be able to do at-home delivery. Ahead of the curve. Benefiting from downfall of Pier 1 and others. Big and getting bigger. Yield is 2.27%. (Analysts’ price target is $303.05)
The cruiselines have really roared back. RCL is the biggest and has the best balance sheet among the big three cruiselines. Down the road, we'll be back on cruises and revenues will return. He likes this business and it will survive. But don't buy 30% of travel, but rather 5-15%. RCL is a quality name…
Financials are part of the recovery script. We are seeing a steeper yield curve and slightly higher rates. Value leads over growth after a recession. Q3 was solid but there was litigation that overshadowed it. Investors can look forward to this changing soon. 60% EPS growth next year. (Analysts’ price target is $66.98)
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.
Great company. Manage long-duration, real assets like infrastructure, utilities, renewable energy, real estate. Benefit from lower interest rates. Excellent buyers and operators of global assets. Permanent generator of cashflows. Projected 45B of free cashflow over the next decade. Stock's pulled back on real estate concerns, but it excels at buying distressed assets. Buy it all…
Canadian banks are under huge pressure with rates so low. Possible that rates go negative next year, and that's a tax on fixed income. One of Canada's strongest banks, along with Royal. They'll figure out a way to make money, no matter what the environment.
Telco sector has lagged from the March lows. More of a value and dividend play. Yield now is 7.8%, and is that sustainable? He owns Verizon.
(A Top Pick Jul 31/18, Up 10%) A core name, still likes it and they own it. Industrial gas company, everything from oxygen for hospital to hydrogen needed to refine oil. Made a major acquisition in the U.S in 2016, heavily weigthed to the U.S. Reports in Euros so it uses U.S dollar strength to…
(A Top Pick Jan 09/19, Down 69%) He exited. They were likely undercapitalized, so couldn't endure any hiccups, probably overoptimistic and did not issue the best guidance. There is new management. The asset remains good, though. Their project is in northern Ontario, probably run on a shoestring budget at first, then ran out of money.…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A base metals play fueled by infrastructure spending expectations. Government spending will help and the sector should also simply do well as the world economy resumes its growth. Unlock Premium - Try 5i Free
ABT vs. JNJ Similar businesses. You absolutely need exposure to healthcare. He holds JNJ for the dividend aristocrat qualities. ABT has been impressive. Testing platform has been phenomenal and will continue to ramp up. It's a great addition to portfolios at these levels. Tough choice between the two, but ABT probably has more immediate upside.
It has really been bankrupt for year, if not for continual government bailouts. Get out of this position. Think of quality US names right now.