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.
Stockchase Research Editor: Michael O'Reilly AMD is the world's second largest manufacturer of CPUs, after Intel. Recent reported earnings showed impressive growth in all key segments of computers, gaming and servers. EPS is expected to grow another 28% this year and continue those rates over the five. We would buy this will a stop-loss at…
A great company with no credit risk. It comes down to how many people around the world swipe their card. A great business. His issue is that the stock is getting more expensive, surpassing its growth. He sold it for this reason a while ago. The PE is twice the market multiple now. Likes the…
(A Top Pick Apr 09/20, Up 26%) It is not as racy as a SHOP-T. It is a large outsourcing firm. They have a great client base and are a great consolidator. They are always undervalued, caused by the organic growth being mid-single digits. The total growth is good. He is comfortable buying it here.
Has pulled back. An opportunity to buy into it. Bought an asset from Shell. The Duvernay play gives them new wind. A higher cost play but worth it at $60 oil. Paid an attractive price for the acquisition. Trade at 3.3x cashflow, and could trade up to 5x cashflow. 80-90% upside. Sold it in the…
(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.
Trading at a very low valuation. Biggest weighting for him. Likes it for the exploration front, partnership with government and valuation. Trading at 2.4x cashflow at $65. 28% free cashflow yield. Theoretically could keep production flat and pay 28% free cash. Sitting on $460M cash. What to do with the cash? Looking into new acreages.…
They sold major assets mid-last year at a decent price (though lower than they would now), so they're sitting on net cash now. Their drilling program runs until Q3 he thinks. There are better oil stocks with more upside.
Net short due to overall lagging price momentum and valuation. Good yield but heavy on the debt side and missed on earnings. Expensive at 15x EBITDA. A hedge against other long positions. Yield is quite large and will not be going away.
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.
Accelerated vaccinations means that Disney's timetable to reopen theme parks and movie businesses can open sooner.
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.
A core holding. The stock has done extremely well and is a past pick. Opportunities to expand in the U.S. is huge. Nothing is stopping this stock. It's at all-time highs now, so buy gradually. He has a $35-50 price target.
It's still worth buying home improvement stocks like this despite a big run-up. People will continue to spend on their homes, seeing it as an investment, not as an expense. In any home boom, like now, people spend on home improvement. Also, we're entering gardening season.
Last year it bottomed at $10, but they just did a giant stock offering at $91, based on predictions that will sail soon. A juggernaut. It's riding the current reopening rotation.
Risk-reward, this is super cheap. Not back to pre-covid levels or even 2008/2009 levels. GDP is growing well in the US and has good international exposure. 23% earnings growth is expected, trading at 9x 2022. This name is compelling on price to growth. (Analysts’ price target is $79.23)
In a transformation to digital by investing in wealth business acuiqistions. International exposure is being retooled too. Likes it in general since banks have tail winds like yield curve steepening, ability to buy back stocks again, etc. One of the cheaper banks. The wealth business is showing good returns. Good value and volatility measures. (Analysts’…
BAM vs. BIP.UN BIP.UN just reported strong earnings. Sale of Enwave gave them a healthy profit. BAM is also a great company to invest in, especially as it's trading at a discount to NAV. But with BAM, you get exposure to BPY, BEP, and the rest of the suite. BIP is more of an operational…
Likes banks in general. TD is on the upper end of price. Likes the good price momentum, reasonable multiple, and return of reserves. The rising yield curve is good for the banks. Mortgage rates have started to go back up again. Payout ratio is good, earnings are good. US exposure is a positive right now.…
They have an analysts' meeting Friday. Pays a 7% yield--can they maintain it? It's not worth the risk to reach for high yield in a rocky market, like now. You can lose.
(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.…
China and India demand coal It's a cyclical stock, selling coal and copper. The tightness in the coal market is due to China refusing imports from Australia, which benefits other suppliers. As for copper, Teck is building a copper mine in Chile, delayed last year because of Covid, but expected to be onstream in late-2022.…
Liked BSX better in the past than today. If there were a recession, they'd need more capital. Remains a very fine company as to products. Volumes in medical devices are not recovering as he expected. He owns ABT instead, a diversified player with a very strong balance sheet.
They have too much debt for their business model. Before at least they were more diversified but getting rid of their metro car division makes it operate in a narrow space. It is a risky bet. The C-Series put them in a massive hold.