This week there were 26 Top Picks and 3 ETF in a wide range of industries: Consumer, Financials, Industrials, Basic Materials, Telecommunications, Energy, Healthcare, Technology and ETF.
Produces about 3% free cash flow yield, which translates into $287 million worth of free cash flow over the last 12 months. Trades at 0.9 Enterprise Value to Trailing Sales, versus 6% year-over-year sales growth, so the EV to sales to sales growth is .15 which is a C+ compared to the database. Dividend yield…
They recently completed their IPO. It struggle a bit out of the gate and has treaded water ever since. It is a fashion brand that has been out for long time. He does not see the growth here. There are a lot of better places to be in retail. Where is the expansion going to…
These are pawnshops in Mexico and the US. They are more correlated to the price of gold then the GLD ETF has been. They just merged with Cash America and are expanding throughout Mexico, Latin and south America. A lot of upside in terms of geographic growth. Because of the free cash flow, they have…
The juicy dividend sticks out. He thinks it is safe, but you have to be able to stomach some volatility. Their business lines are concentrated on the Canadian consumer, vs. BNS-T, which is international. The dividend is safe but it could have a 20% correction from here. It is not a screaming buy although the…
Seasonality around October, as it is year end for them. It’s at an attractive place. It’s at the low end of its trading range so he would be a buyer here. It won’t stay here for too long.
Considering the Ameritrade zero commission controversy TD is a buying opportunity and it has been unfairly punished by this issue. He's underweight Canadian banks, so he missed their big move in September. TD is one of his favourites in this sector.
Trades at 11x PE and yields almost 3%. One of the best-run banks in the world. (Analysts’ price target is $119.96)
It has had trouble getting out of its own way in terms of where it has come from. The brand has been tarnished since 2008. It trades at about 90% of book value. It still represents a premier house in which to do M&A and he thinks 2019 will be a strong M&A environment. They…
A little British company that does protection services. It does CO2 emissions testing, fire alarms, smoke detectors, etc. Their future is really protection and safety, which is a big theme moving forward, because of government regulations, and the need to offset litigation. This is mostly with new builds, non-discretionary income. From a free cash flow…
(Top Pick Jun 4/14, Down 12.63%) Management built the largest airline leasing company in the world and now are doing it again with AL-N. It did not do much in the last year, but he still likes it. They are still a small company, but brought their contacts from the past. They partnered with a…
Less prone to cyclical fluctuations in summer. Resisting around the 20-day average. Long term is pretty much on trend. Good summer hold.
It is probably a little richly valued for him, but the trend is quite good. Industrials should do better. You will see continued demand loosely tied to housing and infrastructure.
🛢 Basic Materials
He has held it for a long time. This week it had fabulous grades. It will be into production towards the end of next year.
Has been taking some profits from BCE. Will eventually buy it back when it pulls back. It has a pretty strong upward resistance so you want to take some profits here. Could drop in the next recession.
The chart looked good and he bought it around $46.50. He would exit if the price falls to his buying price. It’s looking good for the time being and he’s happy with the recent shot up.
It is always a buy close to book value. In the low $30s it makes sense. They are buying back their stock aggressively. This will be an astute investment if we get back to $70-$100 oil. The stock has upside. They are generating a lot of free cash flow.
He likes it. It is a good management team. They went ahead with a Polypropylene facility for making highly recyclable plastics. They are spending more than a billion dollars on this project but have not given enough information on off-take agreements. The market is not giving them credit for the full utilization of this facility.…
It has been flat for the last few months. They have a lot of organic growth ahead of them. Good dividend growth. You want to own it for the long term. (Analysts’ price target is $56.18)
Good operator. Sensible balance sheet. Like the "Home Depot" of healthcare. Difficult to buy on price. Well run. Always at a premium price, as it's a good company.
This is combined entity of Patient Home Monitoring and Biomed. They develop monitor services for the home. They have cleaned up their accounts receivables and it trades at less than 6 times earnings compared to competitors at 13 times. Yield 0% (Analysts’ price target is $0.50)
These guys are focused on extraction in the cannibas space. Over 50% of the US business in this space is focused on extraction and the thinks Canada is headed in this direction. They have signed a number of supply agreements and thinks the stock trades cheap. They have a partnership that produces water-soluable technology which…
Technically it has had very touch go. It does not check his boxes. He is concerned about the pharma’s right now.
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.
It's done so well that some investors may take some profits now. He likes it. If you're buying this for 5-10 years for, say an RRSP, this is fine to buy now. Good fundamentals. They continue to reinvent themselves. As long as leadership remains the same, he thinks they can.
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)
He does not own it now, but has been in and out. Researchers put them in the category of supply chain digitizing specialists. He would look to buy it near $450. (Analysts’ price target is $62.00)
It's the first ETF that tracks the UN's sustainable development goals. Companies here align with one or more of those goals. You get broad international, including EM, exposure. The holdings aren't perfect (i.e. P&G), but it's the first attempt at an impact investing ETF.
Tracks the broad U.S. market, basically swapping out the S&P, but it's the first ETF to be socially responsible, fossil fuel- and gun-free. Caveat: It haas few assets and limited volume. Use a limit order when buying. Maybe give this a little more time to add more assets. This is good for couch potatoes who…
1-3 year bonds. Bond prices tend to go higher from Mid-May until end of Sept. The economy tends to be stable and interest rates tend to go lower during the summer.