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 Apr 09/20, Up 26%) It is not as racy as a SHOP-T. It is a large outsourcing firm. They have a great client base and are a great consolidator. They are always undervalued, caused by the organic growth being mid-single digits. The total growth is good. He is comfortable buying it here.
He continues to hold but took a little money of the table because of a substantial move. It is space exploration plays. Their cap X spending will come down in the coming year. He thinks it is positioned right and is not extended. We need space data for so many uses. There is a growing…
Stockchase Research Editor: Michael O'Reilly AAPL is the largest single holding of Warren Buffet. Recently reported revenues were up 54%. It is trading at 38x earnings, compared to peers at over 62x. It pays a smallish dividend backed by a payout ratio of 25% of cashflow. We would buy this with a stop loss at…
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…
Not overly bullish on healthcare as a whole, as its growth may be less attractive. Likes medical devices, with a built-in backlog due to Covid. He owns SYK. There should be a significant pickup in procedures over the next 2 years. SYK has strong earnings growth, near a 1-year high. Also look at IHI, the…
(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.
Rate hikes are good for Canadian banks. He expects dividend growth sometime this year, especially TD which is very well-capitalized. They have billions of dollars, enough cash to buy back shares, raise the dividend a lot and/or make acquisitions, like a bank in the U.S. southeast. He also likes their deal with Ameritrade; this business…
One of his favourite investments. Assets are all in the US. Benefits from US exposure to e-commerce. Still cheap relative to NAV. Trades at a 5% discount. A great theme that you don't have to overthink. Likes management.
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…
ARE-T vs. BIP.UN-T. He is happy with both. In terms of catalysts, ARE-T looks to be the more undervalued of the two. He thinks things will get more positive for it after the pandemic. It is a smaller company and could move farther. BIP.UN-T bought cell phone towers in India and are trying to take…
World leader in home accessibility. Transformative acquisition doubled the company's size. Expecting large synergies in revenue and costs. Great way to play aging demographics, plus trend to stay at home. Unique space. Yield is 2.57%. (Analysts’ price target is $21.69)
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…
He loves Loblaw, owned by WN. Even with the bakery sale, it will still trade at a discount. Nothing wrong with WN, but he'd rather own Loblaw, which makes up about 60% of WN's value.
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.
High quality earnings at a dirt-cheap price. Second largest producer in Canada. Stock's down 45%, but sales and earnings have continued to grow. Very well managed, strong brands, 40% margins, trading at 12x earnings. Buying back shares. Regularly grows its dividend. Yield is 2.13%. (Analysts’ price target is $16.25)
Established a 6% weight at $1.28. The hope is their appraisal results from the Clearwater play is positive. Potential $440M potential de-risk value that is worth half the market cap. Most people are not aware they are pursuing this. An inefficient market where you can make profit. Trading at 3.5x next year enterprise to cash…
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.
T vs. BCE He'd go with BCE if he had to choose. Telus is more wireless based. BCE also includes media aspects. BCE is a more conservative play, with a dividend of just over 6%. Telus' dividend is just under 5%. When interest rates move down, BCE tends to do better. When interest rates move…