25 Stock Top Picks and 4 ETF (Jan 4-10)
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.
They report Tuesday. Its brilliant CEO has surpassed Intel. He hopes the CEO announces an end date to the Xilinx deal.
Re-rated to too high a multiple. Both it and Visa are currently at north of 40x current earnings, too high for potential growth even if that growth is exciting.
(A Top Pick Jun 24/20, Up 32%) Impacted by Covid. Bookings are starting to ramp up. Still value at this price point.
He had left the intermediate producers behind. It is between investor bases. There is not a basis beyond a pop in the commodity price. He sticks to those that did a better job at maintaining their dividend.
(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.
(A Top Pick Jul 07/20, Up 27%) The only oil stock he owns. High quality asset base in Colombia. Manages the full cycle of production. Exploration budget has been dialled back up. Pristine balance sheet, no debt. Consistently buy back shares, thinks they're stealthily taking it private. Continues to buy it.
(A Top Pick Jun 19/20, Up 95%) Got penalized from their sale of an asset. However, now it is a debt free company and pursuing another area. Does not fit the free cashflow narrative, but it is inexpensive on cashflow. 3.3x multiple at $70 oil.
Bought more during the market panic back in 2020. Feels ENB is more of a utility type stock than an energy stock. The pipelines were in the utility index before. They make their money on volume, not the price of gas. Low risk holding. Get growth when they can build new pipelines. Great yield, just…
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.
Long-term, really likes the sector. When things are hot, the sector may lag. XLV has about 65 names. Aging demographics, growing emerging markets and middle class, increased healthcare spending. This year, healthcare ranks #8 out of 11 sectors. But if you're concerned about the long term, which he thinks you should be, XLV is a…
The meme traders miss the point of AMC's success. Rather, its CEO has kept AMC alive by selling the memers stock at inflated prices that will outlast the pandemic. He isn't interested in stocks like AMC. Rather he wants companies with strong sales and earnings.
(A Top Pick Jun 08/20, Up 37%) Had a really big run. Bought it for the reopening potential and travel. Also a broadcaster too. Disney+ has become a huge competitor to Netflix. Has come off from the highs. Cruise lines are not back yet and amusement parks are not 100% yet. One of the best…
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. Likes the company and it is hitting its stride. It is both good for growth or part of a balanced portfolio. A strong performer. Unlock Premium - Try 5i Free
She's been adding on this pullback. Sector benefited with Covid. Growth of their PRO division is actually greater than DIY for the first time in the last few quarters. Not housing starts that drives them, but housing turnover. Housing shortage encourags renovations. Building out e-commerce, and so operating margins will improve. Yield is 2.16%. (Analysts’…
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.
Another turnaround story, but not convincing like Wells Fargo is. Without a big reserve release, Citi's report last week would have disappointed. It has trouble controlling its expenses; they raised their expense forecast. Citi is up only 11% YTD.
Owns these two banks. BNS is Canadian and Latin America, where as RBC is Canada and US. Likes BNS's exposure to Latin America. Currently under covid, it is being more hurt. The stock is lagging here because of this. RBC is doing better due to Canada and US doing better. Over the long term, RBC…
12-15% discount to its NAV. Very good and long investment track record. Lots of new money to make acquisitions. Diversified portfolio. Well run. Some of the best assets in the world. Oaktree acquisition working out well.
He lightened up on the banks last quarter. When stocks stop rising on good news, he gets concerned. Canadian banks had quite a run. Lower yields were a headwind. Likes the US assets. Overcapitalized. Eventually will raise dividends, buy back shares, do acquisitions. He's adding. Valuations are at the higher range, buy you could do…
They cut the dividend recently and announced a material transaction where they spin off their streaming assets to pay down debt. Don't ever, ever buy a stock for its dividend. You need to focus on the debt and the future of the business. He is not keen on this company. The best way to own…
(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. The recent trend is probably due to the overall market and not specific to the company. Inflation fears are starting to subside over the course of the last weeks. Unlock Premium - Try 5i Free
The pharmaceutical sector has not gone anywhere for decades. Now they are starting to act like value stocks. Owns other pharma companies like J&J and Senofi. Now is a good time to put pharma stocks to your porfolio.
Worst is behind them. He wouldn't buy it. Doesn't like the roots of its governance. Peaked at $25 in 2000 and has declined since then. Has benefited Quebec, but if a company can't also generate value for shareholders, there's no reason to buy it. Private jet market is either hot or cold. Worries about the…