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
Is Canada's largest IT services company. They serve government and healthcare, as well as financials and retail. Very global. Increasingly, they're licensing their own intellectual property and client engagements, which have favourable long-term margins. Resistent to the pandemic. It should grow EPS this year. The kicker is GIB is a successful buyer, doing some recent…
(A Top Pick Oct 18/19, Up 215%) Combined the old manufacturing business with the ability to assimilate information from space. Hugely important, from urban planning to defence. Cheap play on the space move.
They executed on their service business which continues to grow, and all their watch and so on is growing very nicely. 5G should help them out but not this year. He sold a little because it became a very large percentage of his portfolio. They will continue to buy back their shares. They continue to…
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…
It specializes in medical devices and equipment. He has held this over a year and a half. He likes the diversification it offers. He is not sure which of the holdings are involved in manufacturing defibrillators.
(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.
An easier way to invest in U.S. 7-10-year treasuries. Will do well during volatility in a growth shock (he predicts an L-shaped recovery) where deflation will pressure yields down and drive bond prices higher. HTB will help balance your portfolio.
(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 Oct 28/19, Down 13%) Still their bank of choice in Canada. A big mistake for Canadians is to hold too many Canadian banks. TD is underindexed on oil and gas, dividend has increased this year, franchises have grown, insurance has done well. Predicts job cuts later this year.
They collected 99.5% of rents in July, a great number. Leverage is high. They pay out 100% of their AFFO, so they won't raise their dividend. She likes this, but prefers Granite REIT.
GWO vs MFC vs SLF? In general, he thinks all insurance companies are safe here. They don't have the threat of rising loan losses, like the banks do. They trade cheaper than the banks. Capital ratios are solid. They are finding ways to deal with low interest rates. GWO has a good job. MFC is…
NEE-N vs. AQN-T. He would choose NEE-N. Part of the appeal of renewable energy is that they have one of the best R&D teams internally in the company, to ensure all projects they do come on stream as planned and to be more innovative in other green solutions including battery storage. It is the old…
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)
UAL-Q or DAL-N. The airlines are the most prominent businesses that suffered directly from COVID and it is difficult to know when it will improve. Most of these companies have raised money recently. Both score poorly on most metrics he looks at. He would prefer AC-T over these two as it is liable to get…
(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…
Puzzling. ARE wasn't effected either way by the pandemic. They had a $7.5 billion backlog, an all-time high when the stock is at a 5-year low. Puzzling why this stock hasn't taken off. Perhaps the confessions on the Bermuda airport and Toronto's Eglinton LRT project have hurt them, but will be valuable down the road.…
For seniors, there are some legal ramifications post-pandemic. If people want to stay home instead of go into a long term care facility, their mobility products for seniors will do well. He likes the sustainability and growth potential of the dividend. Yield 3.32% (Analysts’ price target is $14.91)
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.
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…
(A Top Pick Jun 17/19, Down 2%) It has done very well considering the environment. They are being hurt most in the food services business. All of the grocery chains have been doing very well during the COVID crisis.
The payout ratio is bumping on 100%. It is reasonably priced but has rolled off to get here. He would be concerned about the dividend.
One of his core holdings. They are continuing to grow their margins. It is trading at a huge discount to other alcohol companies. (Analysts’ price target is $17.00)
(A Top Pick Sep 09/19, Down 63%) When he picked this last year, he projected $60 oil and Baytex was paying down debt and buying back stock. He took the hit, selling it, and moved on. He'd rather be in pipelines or low-cost producers like Suncor or Tourmaline. Energy stocks have run a little ahead…
Look like value, going to be volatile. If oil spikes, you can make a quick buck. Very good company, but in a tough industry. If he were to own energy, he'd look at the bigger players like SU or CNQ. This would be a gamble. Better places for your money than in energy.
🛢 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.
US Healthcare? Healthcare generally under-preforms in election years. A safer pick would be GILD, for their COVID-19 research and HIV drugs.
The telecoms in Canada are sluggish now, because they have a lot of capex which limits their EPS. Telus is different because of its Healthnet service that they will roll out. Rogers is into sports. The dividends are roughly the same in this group, but where is the growth going to come from in this…