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…
Starting to see a sector rotation into growth stories that have more solid fundamentals. Dividend is reasonably attractive, balance sheet is great. Challenge is that market seems to be boom/bust, and there's competition from Europe. Don't chase. If you hold, keep it. Oracle offers more upside.
V vs. MS Likes banking in general in the US as well as in Canada, because the economy is improving and this should improve net interest margins. She owns JPM instead of MS, as they've been very well run over time, gorgeous balance sheets, diversified, doing well in capital markets. She likes Visa as well.…
Apple's supply shortages are nothing new. Like, 11 years ago, the iPhone 4 had problems with its antenna and the stock got crushed, but that was a great buying opportunity. The stock is now worth 10 times more. You don't get many buying opportunities for Apple like now. The semis shortage is hitting all companies.…
(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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Has had a huge run with the sector. If oil goes higher, investors may not care about its debt levels. Leveraged so it will do better in a rally since risk gets reduced with higher cash flow. The stock will likely do extremely well if…
(A Top Pick Sep 09/21, Up 41.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WCP is progressing well. We now recommend trailing the stop (from $4.25) to $6.25. If triggered, this would all but guarantee a net investment return of 18%.
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.
He owns this and ENB. You need to own stocks with secure dividends and contracted revenues, namely capital projects that'll raise cash flow over time. You get a bit more of a yield premium with ENB vs. TRP, but he likes both. Solid assets.
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…
They continue to be challenged in Canada. They overbuilt growth facilities. What is more important is what they are doing with their US strategy. They have an option to own assets in the US if it becomes legal in the US. They also have a partnership for gummies. Starting to look at cannabis market has…
The catalyst is the higher volumes from more people with diabetes. Diabetes is expected to rise by 20% by 2050. Lots of room to thrive. Novo Nordisk is first out of the gate and has an oral pill. LLY is not bad either.
(A Top Pick Oct 14/20, Up 37%) She might sell if there was a drastic financial crisis or recession, but perhaps not even then. In 2008-9, it would have been the worst thing to sell the banks. She likes the banking sector. One of her core holdings in the Canadian banks. You can buy it…
(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.
Still a solid long-term hold? One of those stocks in his portfolio he doesn't look at too often. 48 straight years of dividend increases. Pretty good line of sight to mid-single dividend growth out to 5, 10, 15, 20 years. As long as dividend keeps up with inflation, stock should also keep up. Cross-currents with…
🛢 Basic Materials
She doesn't buy cyclical stocks, which TECK is. TECK depends on the price of underlying commodities, which in turn reflects overall economic growth in places like China. She'd rather buy companies with secular growth.
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 Feb 10/21, Up 27%) A movement in fertilizer prices due to nitrogen plant shut downs in Europe and there are logistics issues due to hurricane Ida. Government sanctions on Belarus has kept prices up for fertilizers. If higher price action continues, should rebalance.
CN vs. CP He sold CNR earlier this year over high valuation. Both enjoy an oligopoly. Another concern is growth for both rails. Exit when the PE gets too stretch. Both were so desperate for growth that they battled over KSU. He prefers CP, though both are well run, though both PEs are rich. He'd…
Fantastic acquisition of IPL at a great price. Really strong portfolio in western Canada combined with global assets that are starting to reawaken from Covid. Poised to run. Good dividend that's steadily increasing. Yield is 3.67%. (Analysts’ price target is $79.06)
Most sophisticated global logistics company in the world. Trading at 6x cashflow. Staffing shortage due to Covid is a short-term problem. Best global integrated supply chain as an alternative to AMZN or UPS. Yield is 1.32%. (Analysts’ price target is $304.80)
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)