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
(A Top Pick Jan 09/20, Down 15%) She would buy this one again. The fundamentals continue to do well even though the stock does nothing. The multiple is very cheap and there is a lot of cash flow and momentum in the business. There is a lot of good things happening in this stock.
(A Top Pick Feb 20/20, Up 132%) He stuck with it and was rewarded. He still owns it although not as big a position as he once had.
A core tech/consumer product holding of his. It's taking a breather with all momentum stocks that led in 2020. The rise in bond yields, driving the current rotation, is hitting these tech names hard, though Apple not too badly. He likes Apple for its ecosystem based on a solid consumer base that continues to upgrade…
Home Construction? These go in cycles and he thinks we are at the bottom of the current one and he is back looking. You have to think if demand increases and interest rates remain low, there will be pent up demand, especially when people return to work. Plus there is a good boom in the…
This ETF has smashed it over the past 5 years. Medical devices are a hybrid of tech and healthcare, which he really likes. Problem is that market enthusiasm and growth are priced in here already (like the FAANGs). Take profits.
(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 Mar 25/20, Down 6%) It is very similar to the story with PHYS-N that he just talked about. Bonds are what we buy when there is the potential of uncertainty. We saw unprecedented cuts in yield. You want to revisit and see how this massive equity rally has caused your portfolio to…
(A Top Pick Jun 25/19, Up 5%) It is about investing in high quality portfolios. The stocks are purchased with the overlay of a put strategy.
(A Top Pick Jan 08/20, Up 4%) Has developed a great US franchise that will continue to grow. Selling Ameritrade business to Schwab was a good move that will grow their retail business. TD is well-capitalized like all Canadian banks. Real estate is an ongoing worry in Canada, but TD has a diversified loan book…
He loves industrial REITs because of e-commerce. Their holdings are all in the US. Interest rates are low, so refinancing is cheap. Best in class. (Analysts’ price target is $19.53)
GWO vs. MFC Likes Great West because of its strong yield of about 4.76%. CMF dividend is 4.63%. Both have performed well since March 2020. Quite similar. MFC provides more foreign exposure, especially Asia. Insurers are doing well now, and benefit from steepening yield curves.
Involved in solar and wind. Prices are coming down for customers. NEE is looking at better storage, and has increased dividend at 12% clip over the last decade. It yields 1.5-2% right now.
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)
Based on analyst Larry Williams' true seasonal index Younger investors love the airlines, but Williams has a very negative outlook for them. Meanwhile, Williams forecasts--based on the last 11 years' patterns--a market rally starting right before Christmas and into early-January, except certain sectors including airlines.
(A Top Pick May 10/19, Down 12%) They're effectively a private equity firm. It's doing well considering markets now. They look to generate a 15% return on their portfolio of energy, infrastructure and power. This market is lining up perfectly for someone with cash. There'll be opportunities for debt rescue or capitalizing companies or buying…
Has a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price…
Allan Tong’s Discover Picks Savaria is a smaller-cap stock worth $890 million. Frankly, SIS stock hadn’t been doing much in recent years apart from paying a consistent dividend (currently 2.86%) and growing modestly by acquisition. Then, last week Savaria offered to buy Sweden’s Handicare for $521.1 million. Like Savaria, Handicare makes lifts in the homes…
Today, the New York Times reported that a private entity wants to buy Dunkin'. Some felt that this stock was already overextended, but he disagrees. Their track record in acquisitions is fantastic. It has survived while peers have fallen away.
A solid company with a good balance sheet and nice yield. There is a modest opportunity for upside. Since 2012 they have traded between 2.5 and 3.5 times book, with a downward basis trend. The share price is unchanged in ten years and has added no value to investors in that time. He calls these…
WN vs. L A bit like splitting hairs. Weston controls Loblaw. When you buy Weston, you get 95% Loblaw and 5% bakery. A great business. A buy and hold through the cycles. If you get a rip roaring cyclical market, it will probably lag. High single digit or low double digit return. He doesn't like…
Stands out as one of the best run of the Canadian quick serves. Great growth strategy. Execute well. Hit by pandemic, but the dividend will come back. Short-term blip in a great long-term story. Hold it if you own it. Has potential to continue to surprise.
(A Top Pick Feb 24/20, Up 3%) It is a core position. It is one of two players in Canada. Top line growth slowed intentionally. They have done phenomenally well during the pandemic. They have done a good job reducing expenses.
(A Top Pick Feb 12/20, Down 33%) A higher-beta oil play. They have excess debt that they'll pay down this year with free cash flow. They have a good free cash flow yield. He targets $1.40-1.50 based on $60 oil. At $60, this is a free cash flow machine. The business model changes drastically from…
There are better oil names. He bought and sold it recently and made some money. But it can't de-lever as quickly as its peers. Expect 5-6 years for them to pay off their debt. VET is not bad--you're leveraged to international prices, but other names will move higher, sooner and faster.
🛢 Basic Materials
They had a sound model on where the gold was and now they found more. The management team are great. They are in Northern Mexico. He thinks the permit will not be an issue. It is at a very high multiple due to their silver assets.
(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.
It is a healthcare name recently valued by investors. She likes to see a more visible pipeline in companies she buys. But this is a reasonable investment in this space.
The telecom sector is one of his favourite sectors. A lot of the other players have spent money on content but T-T has not. This one is the more expensive one because of this. Also, he'd rather watch the IPO they spun out for a while before considering the IPO.