26 Stock Top Picks and 3 ETF (Dec 7-13)

Opinion about MRU-T: The ultimate winner in inflation. Tough business, low margins, competitive. He owns COST. Loblaw is well run, as are MRU and EMP.A

Opinion about ROOT-T: Interesting things happening. New CEO with marketing sophistication trying to transform a business that's struggled since the IPO. Pretty good entry point. Strong brand. If you have the appetite for a small company, more speculative, good name to own.

Opinion about FCFS-N: He sold then when the US Dept. of Justice began investigating it. He bought it to get exposure to gold and emerging markets. Gold is now in focus, but he wouldn't buy a miner or revenue streams, but rather physical gold. Gold is at all-time highs, so buy in tranches.

Opinion about LB-T: Stay away. Very low valuation, which attracts some people. Doesn't have scale or diversified product offering. Harder for smaller banks to made adequate investment in technology, which limits returns. He'd rather one of the big 6, such as TD or BNS.

Opinion about CM-T: We've already recommended National Bank, so let's look at the second-cheapest bank, CIBC, with its 11.2.x PE and EPS growth over five years of 5.39%, better than RY's 5.16%. Commerce has beaten its last four quarters with room to spare, and pays a safe dividend of 4.49%. Its EPS growth is beating…

Opinion about TD-T: Will have to work through the pessimism of US blunder. The discount on that was excessive. Will continue to make good ROE and drive the business forward, regardless of whether the Canadian economy slows down in the next year or two.

Opinion about JPM-N: All the US financials have done pretty well, which is a good reflection on the potential of the economy. Her core US bank stock. Great long-term hold. For new $$, wait for a pullback; on down days, you can start to average in. Very well run, lots of excess capital. Plans to…

Opinion about GS-N: Is perfectly positioned for the tailwinds under the Trump presidency. After April's tariffs, corporate boards have been sitting and waiting, reluctant to do deals, but a strong capital market will eventually happen. Pays a good dividend and are very well-capitalized. (Analysts’ price target is $596.61)

Opinion about HLMA-LN: Chart shows nice stair steps over time. Fire safety, wastewater detection, healthcare (focused on cataract lenses). Serial acquirer, owning over 50 companies across those 3 segments. Exceptional job buying small companies at attractive valuations and growing them over time. High quality name, and gives Canadians a very different exposure from the usual…

Opinion about AL-N: (A Top Pick Nov 14/22, Up 12%) He is retiring from this. The PE is shrinking at almost the same rate as earning rise, so this means shares will go sideways.

Opinion about XYL-N: Treats, transports, and tests water (drinking and wastewater). Water is a scarce resource; 70% of the earth is water, but only about 2% is drinkable. Aging infrastructure in developed countries needs to be refurbished. Lots of industries require water. One of the few pure-play, publicly traded water companies, and so it trades…

Opinion about SWK-N: Are too many problems with the company. He was about to recommend it as a dividend stock, but realizes the dividend is not safe.

Opinion about PVG-T: (A Top Pick Dec 07/18, Up 36%) A volatile stock, but he likes the golds, holding 10-20% in a portfolio. Gold has a long runway.

Opinion about BCE-T: (A Top Pick Jun 10/24, Down 24%) This pick was before the sale of MLSE to Rogers and before the acquisition of Ziply. The yield was 10%, over the worst of fibre capex, and lower interest rates would help. She figured it had so many assets, that any of them could be…

Opinion about ENB-T: Does fluctuate a bit with the price of oil, but not as much as a producer. Attractive income name. Federal government's infrastructure plan would be positive for pipelines, albeit a few years away. Yield is close to 6%, and the dividend increases every year.

Opinion about CNQ-T: Dividend choice for an 18-year-old to hold forever. Young investors don't care as much about dividend stocks, but they're really important. It's like collecting rent, instead of making money only once you sell a stock. The earlier they start, the more they reap the benefit of the compounding effect that takes place…

Opinion about IPL-T: In the midst of a bidding war. More of a hold than a buy. Prospects for material upside are not very high. Better opportunities elsewhere. If you made profits, take some and invest in something like GEI or even TWM, if you have a higher risk tolerance.

Opinion about PPL-T: (A Top Pick Jun 10/24, Up 6%) Still her favourite pipeline, especially at these levels. Best growth trajectory, and in best strategic position to handle growth in nat gas shipping with LNG Canada. Alliance Pipeline pricing has been an overhang. This is the one to own based on dividend growth, yield, and…

Opinion about UNH-N: Really tough situation. When an insurance company falls on hard times, it's so difficult to analyze. How pervasive are the problems? Historically, quite a strong compounder. Lots of political pressure on insurance reimbursement. Steer clear for now.

Opinion about PHM-X: They offer home monitoring for patients. They are expected to lose $0.01 per share this year and next year. It is not cash flow positive. There could be better chances about 18 month out. He would wait to see if things improve.

Opinion about VGW-CN: (A Top Pick Mar 15/19, Down 24%) He still holds it in the portfolio, but had taken some out at $4 per share. He is looking to add to the cannabis sector again following the consolidation. He holds an $8.25 target. They are producing a CBD and THC beverage.

Opinion about NVO-N: He's owned this since 2015, trimming 7 times (that's just good risk management). Markets were pushed well ahead of themselves in 2024, and then we saw a big retraction. Fast money has come out of this name. Down ~60%, growing double digits, 16x forward PE (vs. LLY at 43x forward PE). LLY…

Opinion about CSCO-Q: Was upgraded today. Trades at 16x PE and a 6% free cash flow yield. Earnings should grow 5-9%. It's been flat for a while, but so was MSFT. Stocks need time to consolidate.

Opinion about MSFT-Q: (A Top Pick Jun 24/24, Up 8%) Hitting all-time record highs, with more upside. Still holds. His biggest exposure to technology.

Opinion about OLED-Q: Patent on cellphone screens, from which they collect royalties. Good business as long as the patent goes on.

Opinion about OTEX-T: Really active with M&A through pandemic. Recent sale of a business. About 30% upside to target from here. Very involved in EIM software, leader in Canada. Buy 1/3 here around $36, another ~$33, final ~$31. (Analysts’ price target is $49.00)

Opinion about SDG-Q : (A Top Pick Dec 12/18, Up 15%) Linked to the UN Sustainable Goal: educational, healthcare, food, sanitation companies. Lots of exposure to emerging markets with only 35% US exposure. This will do well along with the world ex-US.

Opinion about CHGX-Q : (A Top Pick Dec 12/18, Up 17%) An ETF that tracks the S&P minus fossil fuels and weapons. Strongly correlates the S&P with slight outperformance. You get market returns and do good.

Opinion about SHY-Q: To park USD for a year BIL is a money-market-oriented ETF. For 2-3 years, look at SHV and SHY, to get interest rate exposure. He doesn't expect the Fed to cut rates for at least 1.5 years.