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.
They may not do well in the work-at-home space. This space demands more and more bandwidth and dispersion is greater. Cisco Webex is a competitor to Microsoft Teams. The average ticket for their product is very high and board members are reticent of spending. Once we see more clarity for after the pandemic, it will…
As long as you have the ability to take market share and you're not too exposed to Covid, markets have rewarded. Haven't seen that with Visa. Cross-border shopping is down. But outstanding growth runway. Will move much higher. Core holding.
He has owned this for his clients for 15 years. It has done extremely well. They have trimmed it a number of times. You do not want one company to dominate a portfolio. A few weeks ago, it popped higher than their limitation band so he trimmed it. However, he still very much likes it.…
PE is an independent oil and gas producer in the Permian. EPS is expected to grow by 56% in the coming year and it trades at 52% of book value. There are currently 21 buy ratings on the company. It latest earnings reported $0.03 EPS versus consensus of of ($0.14). Plus it pays a reasonable…
The best valuation opportunities are in Canada, he thinks. He would sell WPX for the tax loss and buy Parsley instead, who has better exposure to Canada.
There is debt load and the primary asset is not operated in Eagleford. The differentials have also shrank to 9$ today. The debt hurts them and the market does not believe in $50 oil. He would prefer MEG.
(A Top Pick Nov 15/19, Down 33%) The stock is down 53% year to date. They were not rash in the beginning of the year. They only cut dividends by 50% compared to others who slashed them or cancelled completely. A good executer of mergers and acquisitions. There is insider buying, dividend, and good balance…
A good operator with fine internationally diversification. They cut their high dividend, but had to and won't return to that level. We live in a different world with lower oil prices and demand. VET's balance sheet is okay and this will survive. That said, he prefers Tourmaline Oil which has more cash.
There were developments where activists are pressuring banks to no longer lend to energy companies. However, energy is one way for the country to get out of the debt problem and in his opinion this is even more reason to be bullish.
There is always headline risk for pipelines. If the Keystone XL pipeline is cancelled, the stock may take a hit. However, the company is looking at growing dividends by 5-6% annually.
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…
It's a good place to start, low-cost and liquid. Long-term this is set up for a good return. But this is very broad-based, overweighting the winners of recent years. He prefers specific
He has looked at the US or niche producers in Canada. This would be the best of the Canadian producers, though. He feels they will be the dominant leader without question.
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.
Large, diversified. Fee-based business is less sensitive to shrinking net interest margin. Conservative provisions for loan losses. Payout ratio is about 56%, and will lessen next year. Attractive valuation. Earnings will grow again next year, giving you nice capital appreciation and dividend yield. Yield is 4.45%. (Analysts’ price target is $106.39)
Doesn't like the merger with POW. Sell PWF and buy Aecon? Don't because Aecon has its own issues, and the merger makes sense. PWF/POW was an old-1980s structure and needed to consolidate to raise the overall value. Problem is, there's is little growth in the company's existing businesses. Mutual funds are getting crushed by ETFs,…
(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.
Pounding the table on utilities, which will benefit big time from low interest rates. Earnings and dividend growth potential is high compared to telecoms, banks, and insurance companies. Highly recommends adding it to your portfolio.
🛢 Basic Materials
Doesn't own any base metal stocks. Chosen to stay away from very cyclical areas of the market. Recessionary environment, so tends to be oversupply for some time. An uneven recovery. You need not only China to recover, but also Europe, etc.
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.
He really likes it and just bought some more. It wants to break out. It has a great business with both retail and potash prices have bottomed. The next 12 months look better than the last 12 months. It could have a pretty good rally into the $60 range. You might want to see if…
CNR-T vs. CP-T. It has always been a coin flip. He has always chosen CNR-T. You can't go wrong with either of them and they both continue to raise their dividends. He owns more CNR-T than CP-T.
it is a good grower, with 75% of their contracts are take-or-pay inflation linked with 11 years as the average term. The 4-5% yield is positive. A source of stability and income. (Analysts’ price target is $64.92)
Part of his Fear Factor portfolio of stocks that will thrive with or without government stimulus during Covid This and UPS were hated recently, but they enable the stay-at-home economy. FedEx's investments in its shipping network are finally paying off.
(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.