26 Stock Top Picks and 3 ETF (Dec 14-20)
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 cloud stock that helps businesses modernizing their data centres by combining and consolidating server management into one package, which results in power and cheap. This has been a frustrating stock with management making endless strategy shifts. But last August, NTNX can a major investment and soon after a new CEO. The market roared, but…
They have not reinvented themselves. They have not restructured. The valuation is reasonable and the dividend is safe. 5G will not fuel future growth for them. He would pass on it.
Most payment companies are going to compress over time due to their growth rates. Digital wallets are going to be more popular going forward. He prefers V-N to get exposure. He would prefer Paypal over Square.
All the new models of phones on the market will support 5G, including Apple's, and there will be lots of phone upgrades. He hopes Apple breaks out the lifetime value of their customers this quarter, thanks to this sticky revenue stream.
(A Top Pick Sep 01/20, Up 56.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PE has resulted in the company being acquired by Pioneer Natural Resources. We are considering the position now closed at the last market closing price of $16.93. Combined with the previous recommendation to cover 50%, the total return on…
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.
It gives you leverage to WTI oil. About 25% of their production is heavy oil. Like many oil companies in 2021-22, BTE is reducing debt as we caught in 2020 with too much debt. What hinders their upside is that they've hedged a lot of their production--50% of it is capped at US$52 per barrel.…
Like Cenovus and Arc, they had a busy 2020. WCP became the largest intermediate oil producer in western Canada. They're using carbon capture at their Weyburn unit and they may apply that clean tech to other facilities, maybe to generate revenue. It trades at a premium, because it's so well-run, low-cost, solid balance sheet with…
Underperformed. A lot of people owned it for the yield, paying more than they should. Once they cut the dividend, many people exited. Might be an opportunity as an international play. Leveraged to oil price.
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
TRP vs. ENB vs. PPL Likes it. Trading below pre-Covid highs, as it's viewed as more defensive. Keystone XL announcement was initially negative, but a relief going forward. Not starved for growth. Lots of capex in development. Market will continue to rerate the stock. He prefers ENB, as its valuation is still at a modest…
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,…
Having a tilt towards tech has worked well. While we get into low inflation, these will do well. There are signs that underlying the surface of index returns, the market may not be as healthy as it might appear. A narrow group of stocks are driving the returns.
Represents the 20+ year maturity of the USD treasuries. You get USD exposure and the long duration exposure. For a Canadian portfolio, if we get a deflationary wave, the USD and long bonds do well.
Great. A core holding. Low cost, pure beta play. Bullish on EM. They've underperformed for the last 11 years, and they're set for a long period of outperformance. The issue is that it's still 40% tech, and he's moving away from tech. Look at DEM instead, as it overweights EM companies that have higher dividends…
(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.
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…
(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.
(A Top Pick Jul 03/20, Up 12%) Favourite if you want steady income, no surprises. Has lagged the broader market and riskier utilities. He likes it for the purposes it serves: sustainable dividend yield, continued growth of rate base at 5-7 per year, 48 years of consecutive dividend growth. Excellent candidate for RRSPs and for…
🛢 Basic Materials
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
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has benefitted from the merger between Potash and Agrium and there has been synergy. More cyclical than expected. However the market share, valuation, growth potential and market cap makes it the best bet in the sector. Strong earnings growth is expected and results…
CP vs. CNR Owns CNR. Numbers positive over the last little while, but the KSU acquisition may hamper them going into next year, with the stock moving sideways. Rail industry as a whole is great: limited competition, hard to duplicate, good pricing power, sweet spot of transportation. KSU acquisition will enhance CNR's business. Forest fires…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Has a very successful record of acquisitions. If they get IPL, it will be net positive. It makes sense to buy in tranches. Outlook for future gains remains solid and the company pays a good dividend. Unlock Premium - Try 5i Free
They're in a fantastic position, but maybe they can't maintain their momentum. When UPS spoke recently, their shares got crushed. He thinks they can achieve rich profit margins and growth. They have the edge of UPS, though UPS' price is better.
Distributes automotive parts and industrial paint. Suffered during pandemic. Will benefit from increased driving post-pandemic. New CEO is well respected, paid down debt. Cheap valuation. A good turnaround play. No dividend. (Analysts’ price target is $17.80)