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
They own the patent rights to OLEDs that they license. The new iPhone uses OLEDs. A play on organic LED lights that will completely dominate the next generation of cell phones, TVs and home lighting. OLEDs are the future of lighting. (Analysts’ price target is $133.20)
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.
Long-term view They beat on their top and bottom line, but guidance was below the street's expectations. It trades at only 17x, which is not high enough for him. Fine to hold, but buy at a lower price. If China-US don't reach a deal, CSCO remains vulnerable.
The stock is trading at 33 times earnings with a 0.6% dividend yield. It's tripled over the last 5 years. Blockchain technology might be more interesting. He wouldn't buy now and would take some profits or hold.
He sold because much of revenue comes from iPhone. Risk management concern. Issues in China. Smartphone growth slowing. Not the Apple of 5 years ago. Has done well, pulled away from the rest of the FANGs.
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).
(A Top Pick Jul 20/18, Down 58%) It remains a core holding, but it's fallen off the radar of investors. Investors aren't buying Canadian oil. Trades at 30% free cash flow yield. He expects 2x debt-to-cash flow in the second half of 2019. By then, they should heavily buyback shares.
Historically, paying 9-10% yields is nuts, but in this environment that is sustainable, including for WCP. They can still generate a free cash flow yield of 5% and so, in fact, raise their dividend. He really likes and owns a lot of WCP. U.S. funds will eventually flow back into Canadian mid-cap oil stocks when…
One of the better operators, but they missed earnings recently. It is cheap on almost all measures, but its cash flow is marginal, so it does meet his criteria. A huge yield, but an equally high payout ratio (141%). He thinks they should cut the dividend and buy back shares until the ship is righted…
It is his dividend play today. It is a cheap stock. There is a dividend of about 7%. His one year target is $3.70. He owns the stock personally. They have a low payout ratio. (Analysts’ price target is $2.13)
TC Energy vs. Enbridge. He'd own TC Energy. They'll both move the same amount. He's shy of Enbridge because their growth strategy was based on something that didn't exist, always issuing equity and hiking dividends. Doesn't like Enbridge.
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%…
It is the one decision way to get exposure to the S&500. The recent weakness in the US dollar doesn’t hurt. You will do just fine with it. We are in a market that is benefiting some sectors more than others so he would like a more targeted exposure. Financials, industrials – a basket of…
US Long Bonds. TLT-Q is the benchmark for long bonds. He just bought some in all his portfolios. Trade the range. Buy on dips. This will be the best protection in the next global economic downtown. These bonds are always the flight to safety.
The pain on this may not be over. The current tightening cycle of rising rates and a stronger US dollar will not be good for emerging markets. This if further complicated by lower oil prices, where many of these countries are oil exporters. Be careful. You could add some diversification, but it may continue to…
Likes the group. It was crazy expensive. They're like junior mines, they have a run up and then eventually it's messed up by reality. You need to justify the valuation, need about 30% earnings growth over the next 5 years. If you think they're going to be successful, then it's probably fine. So volatile, you…
Been undergoing struggles with patent expiry and competition. Massive R&D budget and it is hard to know when they will have the next block buster drug. A good blue chip name to own. JNJ might be a safer way to participate.
(A Top Pick Sep 11/18, Up 5%) Share price flat. Bank stocks in general reflecting a slower economy. Last quarter, saw nice core growth in Canadian business. Increased dividend by about 3-4%. Investing in technology and infrastructure.
All you are getting is the dividend with this name. He does not know where the growth is going to come from. This is very much a yield stock. The dividend is safe and he thinks all the good news is the valuation now.
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.
(A Top Pick Jul 16/18, Up 26%) Diversified across several regulatory fronts in the US in power generation and origination. Well financed. Well valued. He continues to hold it. Yield 3.5%.
🛢 Basic Materials
They are really reliant on commodity prices. The global economy has been slowing leading to lower commodity prices. She would not be buying here, until the underlying commodity price improves.
One of, if not the best, silver discoveries in the past decade. Worth $10. A 66% partner made a low bid but was rebuffed in the market is waiting for the next move. He expects it will be a takeover eventually.
(A Top Pick Aug 27/18, Down 5%) US dollar and trade issues have been headwinds for all commodities. Generates cash flow, more stable.
CP-T earnings have improved with revenues up in all their businesses. He holds CNR-T instead. He would not buy more at these valuations. If you are playing the oil by rail strategy, he would prefer CNR-T as it has more incremental market opportunity as it ships south into the US. He is not adding adding…
A big holding of his and he really likes it. This does very well during low interest rates. Loves the managers. They have big pipeline of projects with a big growth opportunity in India. Careful though if interest rates rise.
(A Top Pick Aug 09/19, Down 10%) They had an earnings call where they missed guidance and dropped their expectations. Asia-Pac economic slowing was to blame. However, there is only a handful of global shipping companies and this is on sale right now -- a rare opportunity.
(A Top Pick May 9/16. Up 4.81%.) This continues to do very well. Made some very good acquisitions, and are doing a pretty good job in cost savings. The price is “hanging around the highs”, so buyers are more enthusiastic, and the sellers are getting taken out. Demand continues to be strong, so this will…