This week there were 26 Top Picks and 3 ETF in a wide range of industries: Technology, Energy, ETF, Healthcare, Financials, Utilities, Basic Materials, Industrials and Consumer
(A Top Pick Dec 14/18, Up 109%) Makers of screen technology out of Idaho. Their technology shortened the width of the screen, which allowed manufacturers to add more technology in the same phone body. He sold out at $207. It will give another opportunity to buy in, but there is more competition coming.
(A Top Pick Dec 14/18, Down 38%) He sold this. A cloud computing software company that sells infrastructure appliances to data storage companies. They were successful early, but competition came in and their shares have fallen.
Pays a 3% dividend and offers a good balance sheet. Be patient. It'll take time to turn around the ship. In fact, you can buy more now.
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…
Has owned this for 15 years, so he's happy with it. But every morning he asks, What is the future of this stock? Is capital employed the best way for the future? Apple has a tremendous franchise built in of at least 1.3 billion devices worldwide and 93% consumer brand loyalty. Add to that we're…
(A Top Pick Aug 25/20, Up 47.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PE continues to advance and has achieved our $16 target. To be disciplined, we are recommending covering 50% of the position and trailing up the stop to $12. This would all but guarantee an minimum return of 29%.
The best valuation opportunities are in Canada, he thinks. He would sell WPX for the tax loss and buy Parsley instead, who has better exposure to Canada.
(A Top Pick Dec 19/19, Down 52%) It continues to offer meaningful leverage for rising oil prices. They hedged off 50% of their oil exposure next year. He does not own this for this reason.
WCP buying TORC Oil Like with Suncor, we've had a relief rally in oil and cyclicals. Instead of vibrant competition in this industry, all this pressure on oil will reduce this space to a handful of names. He's looking for the highest free-cash flow producers at their lows. WCP gets stronger with this merger and…
Their balance sheet needs to be fixed, assets are scattered all over the world so operational focus is difficult. Their valuation is not compelling compared to other names. He has been a sell for years.
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
She does not think a cancellation of the XL project will impact this company. They will still grow their dividend. The news is a negative sentiment action on the stock price.
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,…
Why would both go on on the same day? The VIX (VXX-N) tracks the expectation of volatility over the next month. Volatility changes. If the market (SPY-N) is going up then typically volatility comes down. If the catalyst for a rally is thought to be short lived, then volatility can go up as well.
(A Top Pick Sep 23/19, Up 15%) He's owned this since 2015. He feels bond yields will decline. As debt increases in the world, it stalls growth and leads to lower bond yields. During economy uncertainty, Canadian holders benefit from a weakening US dollar and lower yields, a double whammy. He will add to his…
(A Top Pick Jan 24/20, Up 12%) Owns a lot of this. Two-thirds of this are mega-cap Chinese and Korean stocks, including Alibaba, Tencent and Samsung which rank among the biggest in the world by market cap. Yet, they aren't in indexes like EAFE. Eventually he thinks these big names will be migrated into the…
(A Top Pick Dec 09/19, Up 30%) Still likes this long-term, but he's now focused on U.S. weed names. He prefers other names.
He owns a basket. He owns this one for their oncology division. He has not owned it for anything COVID-related. Sometimes it is better to buy a basket of these companies.
(A Top Pick Jan 14/20, Up 8%) She continues to like it. She likes them as a group and thinks their earnings will improve this year. The situation was not as dire as the situation was when they made their reserves last year. This puts them in a god position in terms of provisioning. Canadian…
(A Top Pick Dec 04/19, Up 13%) He'd buy it again. Nice value stock. Nice yield. Trading at discount to book. Would benefit from rising interest rates, which he expects. Cheaper than all the banks.
(A Top Pick Dec 20/18, Up 30%) A mid-cap specialty insurer. It can charge higher premiums as it is in niche markets. Their investing was very successful and they had lower insurance payouts.
It is a boring utility, regulated. Dividend just under four percent. They have defensible cash flow streams. She likes the dividend growth. The payout ratio is very reasonable at 65% of cash flow. (Analysts’ price target is $57.93)
🛢 Basic Materials
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
They have probably found the richest new silver discovery in the last 20 years, in central Mexico. They own 44% of it. Given the pullback from last week, this is a great time. They don't need leverage to silver.
(A Top Pick Jan 06/20, Up 10%) Very strong global agri company that you can't find anywhere else. Paused dividend last year. Should see it increase in 2021. Headwinds have turned into tailwinds. Good diversifier in portfolios. Yield is 4-4.5%.
CP has a better operating ratio, so he owns that instead. CP also has more exposure to commodities. Both have enjoyed good numbers last quarter and both trade at a decent PE. But headwinds: a possible slowdown in the global economy, and CN has more issues in the intermodal. He's neutral about CNR. (He doesn't…
A big fan of Brookfield in general. You get a collection of utility like assets that gives you an added level of diversification. Capital allocation and management team is good too. The valuation must be looked at carefully. He is willing to pay up to 14x forward funds for operations but it is a little…
It is a good holding. It is benefiting form the serge in e commerce. They have now integrated TNT which they purchased in the past. Ecommerce is not going away. She is waiting for more of a pullback to put it into client portfolios.
(A Top Pick Dec 20/18, Down 14%) He sold at just around $13. The largest auto parts distributor in Canada. The company fired their CEO and announced a strategic review and nothing has happened since. They have done nothing to reorganize. He would not touch it.