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
Had resistance of about $15 in 04 and then in 06, the resistance was below that. It then had a break out, but the volume went lower, which is not a healthy sign. Be ready to Sell.
Formed a cup and handle. The stock went parabolic in November, it's probably quite overbought and due for a small correction. Any correction would be a buying opportunity.
(A Top Pick Apr 09/18, Up 33%) Phenomenal free cash flow. Moving into security, which is a massive area. Buying back shares, and increasing dividend by 10% a year. Likes it, but not as cheap as it was. 20x earnings. Margins are staying hefty. He focuses on valuation, and makes sure not to outstay their…
Likes it very much. Stable. It's the biggest credit card company in the world. They have increasing international presence, growing after buying Visa Europe. 60% of its business is now in debit. New technology like the Square app reflects a changing payments landscape, but Visa is doing deals with smaller groups and keeping up.
The Qualcomm settlement? Not much effect on Apple, but rather Qualcomm (see his comments on that). Apple still needs a 5G solution.
A Permian producer that has been doing a really good job of acquiring acreage, so they issued a ton of paper on to the market. They’ve grown 14% a quarter for the past couple of years. They now get to slow down on that and focus on delineating their acreage, and also going after some…
They will grow about 3 times that of a Canadian producer. He is getting a 40% growth rate, but paying an inline multiple for it. At $5 billion market cap it has not hit as many radar screens and so is a little bit cheaper. (Analysts’ target: $18.00).
World oil demand is still growing, so he's not concerned about the future of oil. That said, he'd own the lower-cost oil companies. BTE is well-run, but at the whims of the oil price. If that price is flat in coming years, look at other oil companies.
Yield of 7% which is not entirely safe. He's nervous about all Canadian oil dividends given CPG's cut today. WCP's management has been murky with its policies, so he's stayed away. To play an oil recovery, go to the majors instead like CNQ and Suncor with safer dividends. There could be a spike in oil…
They met consensus on cash flow and production. Dividend is safe with WTI going down to $40.00. Paying you 8.2% with safety. The larger question is do you want to be involved in oil? He thinks this is cheap enough. But there are easier ways to make money in the next months with less strenuous…
We have been in a gas bear market for 4 years. This space has been decimated. It is a medium oil producer in Alberta. They continue to grow but have too much debt. They should be fine when prices recover.
TRP-T vs. KEY-T. One of the most important data points is beta. He would choose TRP, because it's less correlated to the market. Has more protection on downside risk. Plus, it has higher overall performance. A couple of weeks ago, it was bottoming and relative strength was holding in really well. (Analysts’ price target is…
He is quite bearish on the broader markets, but the sentiment in the energy sector in Canada has been so negative that he thinks it is undervalued. They have no debt and has 900 prime low-cost Montney drilling locations with significant infrastructure and only about 10% of it is dry gas. CEO owns about 30%…
As a global investor he has been moving away from the US in the last few quarters. The US will be travelling a different monetary passage than other Central Banks. Also, looking at where we were 7 years ago we had a hugely undervalued US$. The US has dramatically outperformed a lot of other stock…
*Bear Call Spread* Thinks interest rates are going higher. If so, bond prices are going lower. This is the most liquid bond ETF in the US, and has very liquid options. He suggests the sale of December $126 Calls and Buying a December $133 Call. If the stock closes below $126 in December, both options…
(A Top Pick June 1 / 2017, Up 5%) EM used to be resource-oriented from South America. It’s now an Asia ex-Japan index, dominated by IT and by China, Korea, and Taiwan with names like Tencent and Alibaba. Costs only 25 basis points. EM bore the brunt of Trump’s screaming, but will bounce back when…
As a trader, he would have sold it already. For others, maybe sell half. There's been a lot ot hype as reflected in its sharp rise recently. Treat yourself and sell some of this now.
50% payout ratio. Drugs are coming off patent. You are buying for yield and low volatility. There are better names in the group but they are in the sweet spot in the market.
The Canadian banks' multiples have contracted and now look attractive. RY grew their earnings 17% last year and the stock is up only 1%. They had that weird Q4 quarter, but they saw decent loan growth. They increased their dividend 9% and grown their book value. Payout ratio is 45%. They can increase their dividend…
They have insurance and investment groups with assets into Europe as well. He likes their yield over 6%. He is interested in this again. With the recent pullback, there is now less risk.
Specialty insurance company, which was not caught up in the bad paper. Earnings estimates keep going up. ROE is in the mid teens. Combined ratio is in the 80s, which is fabulous for an insurance company. Good real estate assets.
Which utility to buy? Utilities have recently done well with a rotation to safety (like telcos). He likes Fortis, but it's trading at a 52-week high, so wait for a pullback, unless you have a 10-year horizon.
🛢 Basic Materials
Copper should rally to $3.20 with China as a tailwind (currently $2.93). For TECK.B, $33.60 is the next level to hit, then it can hit $37-39. Could be a two-month trade to early-summer. (Analysts’ price target is $38.45)
He likes silver. This company has a very high-grade silver prospect. Expects to see the stock go higher.
He's eliminated commodities from his portfolios. Commodities have been in a tough spot in recent years. NTR hasn't done much over the past 5 years as potash prices hace failed to break out upwards and sustain momentum. He is curious about where NTR goes, given the deal they announced today. If you own this, it's…
CP vs. CN It's as good as the Canadian economy. Ottawa's policies haven't been kind to our economy. CP vs. CN depends on their pricing at a given time. CN has a better network across North America, whereas CP is more Canadian. Both are good railroads.
Easy here. They closed many transactions, they beat estimates in Q4. nice yield of 4.96%. modeling 15% EPS growth for a name that trades at 11 times 2019 P/FFO. Very little to not like about this name. (Analysts’ price target is $59.32)
Trades at 16x earnings and pays a good dividend. This is a good long-term buy. There's only them and UPS in this space. They are very good operators in a tough business. They've partnered with other parties, like smaller couriers, which he likes.