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
CGI vs. OTEX He's been watching Open Text and will buy it under $40. They're good at making purchases. He prefers it to CGI which is too high right now.
Too speculative and carries huge debt. It had a good run, but launching satellites is really expensive with credit spreads wider now. This is in the penalty box, though they could fix the business.
The Qualcomm settlement? Not much effect on Apple, but rather Qualcomm (see his comments on that). Apple still needs a 5G solution.
(A Top Pick June 19/12. Up 46.32%.) (BNN showed the date as April 30/12. This was actually a top pick on June 19/12. I corrected the percent from Up 46.32% to Up 42.7%. - Bill.)
It's feeding into the demographic of aging baby boomers. This includes medical devices like Abbott Labs. Also likes it because it's U.S. and diversifies from big pharma.
This is a way to manage rising volatility in the market. This invests in low volatility stocks -- mitigating risk to the downside.
Replicates the IEF ETF in the States. Government bonds do well from May to October. This is a good safe place for the summer.
This holds 50 value stocks (Starbucks, McDonalds, etc.) They sell calls to buy puts and is actively managed. It has protected its value very well.
(A Top Pick May 10/17, Up 8%) Also a top pick today. Earnings grew 10% in the past year but the share price has been flat, so the PE has gone down. Looking ahead, earnings will be higher in 10 years, so current levels are at a good price.
A great way for Canadians to get exposure in the US sector. They continue to make good acquisition in the US. It trades very close to net asset value. Yield 6%. (Analysts’ price target is $15.01)
Great West Life (GWO-T), Sun Life (SLF-T) or Manulife (MFC-T)? This depends on quality and size, but if you are thinking of just keeping it very safe, Manulife and Sun Life would be the 2 he would zoom in on.
Some of the diversified utilities are well-positioned. Their rate structure is based on a cost plus so oil prices do not affect them. As the economy grows, more power will be required.
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)
Boeing (BA-N) or Delta (DAL-N)? This just rebounded off a beautiful price low at 2X Book. The stock is cheap. Its FMV is 85% higher than the current price. He would buy this and forget Boeing.
You probably shown own anything with a Brookfield name. The team at Brookfield are such shrewd operators. This one is an interesting collection of assets. Construction, private equity, etc. Very hard to analyse. There is an incentive play on this stock. If the stock stays above $25 a share, the Brookfield asset management team collects…
STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet,…
Been stellar for him. But it's lumpy because of low-volume trading. Not super cheap, but boasts good earnings, and they are raising their dividend. It's a niche player in the seniors demographic. He is holding it for the long term.
This has its own little niche and a much smaller distribution than some of the larger names. The spirits business had struggles last year. There is nothing wrong with this one.
He owns L-T. It has done well over the long term and pays a dividend that is not a great grower. You will not lose a lot on this one. They will adjust to the higher minimum wage.
(A Top Pick Nov 2/16. Up 5%.) The story is that it was sort of capturing millennials as they were one of the 1st burger chains introducing much healthier fare. As a much smaller chain, they can actually source enough of their healthy ingredients. It was doing incredibly well, but did suffer from lower oil…
Doesn’t own dual class share companies, but this one has been an amazing growth story. Incredibly successful. If he didn’t have an issue with dual class shares, he might actually buy this. It is unbelievable to him that in an industry which is low growth, they have made some great acquisitions and they cover all…
World oil demand is still growing, so he's not concerned about the future of oil. That said, he'd own the lower-cost oil companies. BTE is well-run, but at the whims of the oil price. If that price is flat in coming years, look at other oil companies.
They met consensus on cash flow and production. Dividend is safe with WTI going down to $40.00. Paying you 8.2% with safety. The larger question is do you want to be involved in oil? He thinks this is cheap enough. But there are easier ways to make money in the next months with less strenuous…
🛢 Basic Materials
It has been a painful year for junior mining stocks. There has been an exodus of capital from the group. It is a pure play on zinc, is a low cost producer and he likes their position. There is no debt and they are building up cash. He thinks a catalyst will be the US$…
Silvercrest Metals (SIL-T) or Silvercorp Metals (SVM-T)? This one is a fairly small deposit, but with high quality people.
He likes this and has a fairly large position, but his average cost is $7. The challenge going forward as it goes higher, is that they have a very high dependence on a single product. The challenge over time is to get diversification into their portfolio. He thinks this can definitely go higher, but some…
Looking at the graph it has been in a very difficult position in the last coupe of years. They essentially cured hepatitis C. It was an expensive drug. $98,000 per patient. It has come off patent. Competitors came to produce it now. They have been on the penalty box for the past year and a…
He's long owned this. A good 7% dividend grower. The whole space is challenged by revenue growth by the wireless side. Telus has actually been expanding the data side. He likes it.