This week there were 26 Top Picks and 4 ETF in a wide range of industries: Technology, ETF, Financials, Industrials, Consumer, Energy, Basic Materials, Healthcare and Telecommunications
Canadian mid-caps (no past picks today) He specializes in these. They are under the radar of Canada's large mutual funds and receive little analyst coverage, so they trade at a discount. (No past picks today.) He buys stocks only during momentum, as they are rising and keep rising. CGI is a leader in Canadian tech.…
Two years ago, he looked at Maxar. Ever since, they've made one mistake after another. Look elsewhere.
It's broken out of an up-channel. Managers are executing well, but it is very overbought now. Wait to $290 to enter.
(A Top Pick Oct 03/19, Up 6%) A play on construction whose seasonality is end-October to February. This is trending higher, supported by major moving averages. He's buying into what goes into building new homes, like lumber which he's done very well with. Even 12 months ago, ITB outperformed, and it has since gone straight…
He likes medical devices a lot. The ETF looks good with reasonable MER. Once the rhetoric from the presidential campaign subsides, it’ll probably have more smooth sailing.
(A Top Pick Nov 23/18, Up 15%) Skews to non-cyclical, low-vol sectors like REITs and utilities with quality balance sheets and outperform the markets during growth shock.
(A Top Pick Nov 23/18, Up 11%) Most people are underexposed to high-quality bonds, namely US Treasuries. Portfolios should hold bonds now for safety and balance.
(A Top Pick Nov 23/18, Up 4%) It contains well-funded blue chips, Buffet-esque. The portfolio overwrites some hedging strategies by buying puts and selling some calls with downside protection that will reduce risk.
As an income stock It's been sideways. He feels neutral about TD either way. For income, you can stay with TD is you possess strong risk management skills.
Likes the industrial REIT space, very popular among investors now; it benefits from e-commerce. Solid managers. Properties are entirely in the US midwest, some being challenged markets. So, he doesn't see higher growth. Buy Dream Industrial or Summit REITs instead.
Likes it a lot and recommended it a few weeks ago as yields have been bottoming and flattening out. Yields will rise long-term, he predict, which will benefit lifecos like this. GWO broke its downtrend at end-2018, rose, hit a second bottom (a double-bottom) and is now accelerating higher.
They have one of the largest fleets of alternative energy out there. Regulators are encouraging utilities to install more sun and wind. They have a nice growth trajectory. Because it is a utility, they are very sensitive to rising interest rates. You need to be concerned that money will shift over to banking in an…
This is one of the best run utilities in the US. It is not a value play but a high quality play. It is another way to add to the utilities. It is trading at over 20X earnings to is trading at a premium, however, you are buying quality. It is the best run utility…
This is an industrial company making anything to do with fluids and metering. Their 3 main businesses are fluids and metering, health and science, and fire and safety. He likes the consistency of this company. A super clean balance sheet with little debt. A lot to like. Yield = 1.3% (Analysts’ price target is $141.82)
(A Top Pick Jan 25/19, Up 32%) Delivered a home run earnings report today. Great earnings. They are buying fuel-efficient planes. In 2021-22, this can earn $10/share. They've been generating profits since 2015 and hopes Delta will finally be rewarded by the media. Emerging market wealth in Asia and India means more travellers.
(A Top Pick Nov 28/18, Up 16%) Genworth and Westinghouse have been great investments for them. They're great capital allocators. Still likes it at current prices.
Their takeover bid failed in May 2018; the Chinese weren't allowed to buy it. Last quarter, they had slightly weak numbers, but their order book has never been busier for the next 4 years, and the Liberals may spend money on infrastructure going forward. The stock has sold off, so it's worth looking at now.
There is all this growth potential in the stair lifts but a big chunk of their business is car lifts, which are a big luxury and which is in decline. He is slightly short the stock. He doesn't see a huge upside.
New openings? His research suggests they are doing extremely well. He is not sure about new openings in the West. It is just like the Tim Horton's brand in Canada. Their success is based on their cheap coffee and customer loyalty.
He owned the stock at one point. It is a cash cow. It is mostly a marketing company. The question has always been if the parent will privatize the company. They pay a good dividend but there is very little growth. Hang on if you are in it for the long term.
(A Top Pick Aug 22/18, Up 10%) They also have the bakery side of the business where they have invested a lot into the business. A lot of it depends on L-T plus exposure to CHP.UN-T. He would highly recommend it at $100. They are the dominant player in the Canadian grocery business.
Used to own it until the valuation got too high. They've done a great job spinning out the real estate into a royalty stream. But this has gone parabolic this year as its growth has slowed. Take some profits. There's limited growth, but they are benefiting from declining interest rates. This doesn't make the top…
(A Top Pick Nov 18/18, Down 8%) They made acquisitions and markets got ahead of themselves. Now things have settled down. It is a nice stable company and the dividends should increase over time. Stay with it.
A leveraged play on crude oil prices. She owns no energy stocks, because she wants to see clarity on takeaway capacity from Alberta. BTE will follow the price of oil. CNQ and Suncor are the better oil names.
Dividend safe? He owns this and thinks the dividend is secure. If WTI rises to $70 later this year, then they can reduce debt to improve the balance sheet and perhaps raise the dividend if WTI moves about $80. They are generating surplus cash flow outside of North America. They are 53% liquids and they…
🛢 Basic Materials
They missed 7 out of 8 quarters. Their balance sheet is good and cash flow is good. Their debt is not too high. It might have been a takeover target except for the Glen Core piece.
A silver mining company in Mexico. They have unbelievable yields on their mines. He is very bullish on silver prices going forward. A great take out prospect. Yield 0% (Analysts’ price target is $6.63)
(A Top Pick Dec 20/18, Down 40%) It had a good turn in January. Beaten down stocks can have a nice bounce in January.
Very disappointing. The update from the new CEO wasn't particularly exciting. Their HIV prep drugs is doing well. However with the Hepatitis C drug coming off patent, they have lost revenues. Deep value but they need to execute. They like the high yield with great premiums on the options. He would rather own another diversified…
Had a large uptick in the first half of 2019, then fell, then jumped up again in October 2019, but since then has done nothing. May to September is seasonality. Chart shows the same, consistent pattern in past years. Hold off on telcos until seasonality. Pays a 4.6% dividend.