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: (A Top Pick Sep 27/24, Up 6%) (Note the short timeframe.)His target was $31, and it hit that. He got about 60% of his holding offloaded at that level. His only bank with about a 1% position. Holding for the nice dividend, expecting an eventual bounce off $28 level.

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: Coming out of a really vulnerable time with money laundering. Settled case, implemented new protocols. US assets capped; but TD shifted some assets around, giving them space to grow without running afoul of the cap. New CEO is very committed to turning over a new leaf.

Opinion about JPM-N: High quality. Globalization is starting to move in a different direction, so this option provides a more domestic focus.

Opinion about GS-N: A buy at 11.8X earnings.

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: There will be a water shortage, and he expects a lot of cities city spending on upgrading, maintaining and expanding their water systems. A recent takeover should be accretive, (Analysts’ price target is $151.31)

Opinion about SWK-N: Just sold it (down 49% this year). All the catalysts have gone: housing is slowing and rates are rising. He likes the company, but this will be dead money for a while. End demand isn't there.

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: Average down? The expectation is for a dividend cut of nearly 50% starting this month. We'll see if that happens. Technically, shares are having a rough go below both the 200-day and 200-week MAs. Earnings growth is sub-standard, even negative.So, no, he wouldn't add at this stage. At some point, things could…

Opinion about ENB-T: Great income investment with its great dividend yield. Plans to expand main line and continue capex. Returning $$ to shareholders. Has become more US-based. Great story, continues to execute well, plans in place for future.

Opinion about CNQ-T: Is one of the best-managed companies in Canada. All oil stocks have pulled back, so this is an opportunity. Lots of growth potential through the Oil Sands. Pays a 5.76% dividend. (Analysts’ price target is $50.74)

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: Retiree wants income and less volatility. Canadian infrastructure name. She owns for income in client portfolios. Robust business model. Often has long-term, take-or-pay contracts; visible cashflow stream. Guided that it can grow EBITDA (cashflows) by single digits over next few years. She'd expect dividend increases to reflect that. Stock's pulled back with underlying…

Opinion about UNH-N: Major leader in the Medicare space. Recent rare miss on earnings, and he sold just before. Shares now well below 200-day MA, which is starting to trend down a little bit. Earnings growth rate now 6-7% going forward, at 14x forward PE.Very oversold, around 25 RSI. At some point, shares will bottom…

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: (A Top Pick Apr 10/24, Down 51%) Overvalued to start with, and expectations were high. Small miss on weight loss percentage led to huge drop in stock price. LLY is grabbing more market share. Worry that drugs in US will face tariffs. Buy here, do well in the long run.

Opinion about CSCO-Q: A cornerstone company in tech, but there's huge competition in tech and Cisco remain one step behind. Are better companies.

Opinion about MSFT-Q: He has been buying tech during this dip, in April particularly. We will eventually exit this volatility and find stability and confidence in the market again. Meta and Microsoft are some of his key holdings, and they affirmed their capex guidance--they are spending to make incredible investments over the next three years,…

Opinion about OLED-Q: Dead money for a couple of months? Great run, fully priced. Screens for iPhones, TVs, and laptops. With virtual reality a trend, it's getting into headsets. King of the hill on technology, no lack of demand. To add, do it in thirds at $200-205, $190, and in the $180s. (Analysts’ price target…

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.