Companies are all around us, facilitating the way we live and producing products that we want. These top companies have such a huge reach that we have all at least interacted or used their services at one point or another in our lives. If not, then you surely know that someone that has!
Shopify Inc. (SHOP-T)
The e-commerce giant that offers a platform for webstores. They are one of the most popular platform and facilitates the interaction between shoppers and sellers. As e-commerce becomes more and more ubiquitous, you will be using Shopify without even knowing it.
Why is it being favoured now? Shopify has been taking away a lot of business from Amazon. That said, the run in the stock has been incredible--and incredibly expensive. There's talk that Amazon wil buy them, but he doubts they would do it now. Hats off to them as a Canadian success story. They report…
Mastercard Inc. (MA-N)
The move away from cash and into digital currency has been a boom for Mastercard. We all have at least one person, if not many, who have a Mastercard credit card.
How to play Mastercard and Visa in ETFs? They're heavyweights in the tech ETFs; XLK-Q (Visa is large in this) if you want liquidity. Also look at IGM-N.
Netflix Inc. (NFLX-Q)
Netflix is the online streaming service that most people know and use. They are starting to focus more on their in-house content which has won awards and keeps subscribers.
They've done a great job growing their business. He's always avoided it due to its valuation. He owns Disney instead; it has a much larger content library, and their acquisition of 20th Century Fox will pay off in the long run. They have a lot more experience delivering content around the world, too. NFLX is…
Visa Inc. (V-N)
If you have a credit card, chances are you have at least a Visa. Along with Mastercard, Visa is the most recognized name in the credit industry.
Look back 25 years or more. It went from $150 to $120 approximately late last year. In '08 it went from $25 to $12 in the recession. He thinks it should be in most portfolios. They would go down as much as the broad markets but it will likely outperform in the long run.
Everyone has a Facebook account know and the numbers are still growing, counting 2.4 Billion users. The company has faced some data security concerns and other scandals but this social network is not about to go away anytime soon.
The real growth story for them is Instagram and WhatsApp. There are privacy concerns but he thinks it will come on the other side of this looking even better.
Alphabet Inc. / Google (GOOG-Q)
For a lot of people, Google is the door to the internet. It has become so well-used and well-loved that it’s not uncommon to hear people say “Let me google that”.
We saw a breaking of the trend line. The risk is a lot of what is happening in Europe. It is a great, well run company, but now it has reached far too high. This is not a good time to get into it. Wait for the $1000 level.
The iPhone has been a staple in Apple’s line and has been their key product for some years. If not an iPhone, then you might have a Macbook, or you’ll know someone who has both. Apple products are everywhere and they have a loyal following.
Great products, but it'll be a giant in services. They remain an established brand. He wishes he'd bought it at $150, but it's back up to nearly $200. (Analysts’ price target is $194.50)
A majority of people learnt to use the internet on a Windows machine and they continue to be a part of our everyday life. Their office suite is standard in the workplace and most people will be familiar with Microsoft.
It hit $133, a key upside technical target. It needs to break through this recent high before he calls it a bull stock. Its fair market value is 35% below current levels. Nice company, but over valued.
Activision Blizzard (ATVI-Q)
An American video game production house. If you’ve ever played World of Warcraft, Call of Duty or Candy Crush then you’ve come into contact with Activision. They are one of the largest gaming companies.
The videogame phenomenon is astoundingly huge. Investors didn't like ATVI's last quarter's figures, but he believes in this stock. Now is a good entry point. Videogames will only grow.
It’s become more and more standard for people to call an Uber than a taxi. This revolution of ride-sharing was pioneered by Uber. They have become one of the most well-known ride-hailing platform in the world.
Uber is the well-known transportation company. It has been beaten by Lyft in the race to go public. After IPO, the company could be valued at up to $83.85 billion.
Uber’s competitor that offers ride-hailing services. If you’re Canadian, you could soon be using Lyft too as they have announced plans to explore the possibility of expanding here.
Came out at $72 and shot up to low 80s, and now at 69. Valuation looks reasonable based on sales multiples. Biggest problem for these "unicorns" is they also have losses of billions of dollars. He's skeptical, though not skeptical enough to short it. Worth watching to see how the whole story unfolds.
Square Inc (SQ-N)
The payment system is known for their ease of use and connectivity. For those who love food trucks, their credit card terminal is usually powered by Square.
One of the major producers of chips that power our computers, phones and many other technological devices.
He recently sold out of their position based on their previous earnings, which called for reduced earnings growth. The chip space is very good. If in it, stick with it.
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
He would want to buy pullbacks to the $10 area. We made a good test in May. A pullback to that level would indicate a buying opportunity.
Hong Kong Stocks
Tencent Holdings Ltd (0700-HK)
The makers of Fortnite and many other games. Riot Games is one of their subsidiaries and is known for the League of Legends game.
Traffic congestion in China is severe, making online delivery very attractive. As China gets wealthier, this business will increase. However, funds are starting to fly out of emerging markets and to come out of high technology stocks. There could be a meaningful correction in the price of this stock, so even though it will do…
Dollarama Inc. (DOL-T)
Consumers love affordable goods and Dollarama is the hallmark dollar store that comes to mind for many people. They have been very efficient at providing goods for cheap and the customers love it.
A growth company, adding stores. They've built their brand and are well-managed. However, they had a few quarters where same-store sales disappointed, so the stock got hit. But there's still room for them to grow in Canada. A decent place to put your money if you're long-term and don't need a big dividend.
Spin Master Corp (TOY-T)
If you have any kids, they must have some toys made by Spin Master. Etch A Sketch and Hatchimals are some of their most well known brands that have won awards.
Well-run and he will buy more. It's been pulled back so now is a buying opportunity. An integrated company that does entertainment and delivers toys as a package.
Restaurant Brands International (QSR-T)
Canadians love Tim Hortons and their roll up the rim has become somewhat of a tradition for many. Restaurant Brands also counts Burger King and Popeyes among their brands.
(Past Top Pick Nov.3, 2017, Down 11%) At the time, he liked its strong global growth and expected upturn at Tim Horton's. Burger King remains strong. Popeye's has turned a corner. Tim's is showing progress. He sees 17% EPS share. Trading at 19x with a reasonable growth rate. Their Q3 was a little disappointing, but…
Under Armour (UA-N)
The sportswear company has capitalized on the athleisure trend and you can’t leave your house without seeing someone wearing their clothing. The company is going through a multi-stage change and are turning around the business.
A higher growth story, but the whole group is at a valuation premium. Although the company is doing well today, if the growth model and valuations don’t come through, you are paying a lot today for what the company looks like a few years from now. That always makes her nervous in protecting capital.
The go to e-commerce site that dominates online shopping. They also offer AWS which is used by many websites and internet companies. Amazon continues to diversify and grow, and their fundamentals are strong.
Still below its highs. When it broke out it was the time to buy. He think it is a phenomenal company. The speed at which they move nobody understands. Higher on the risk spectrum.
Starbucks shaped coffee culture around the world and is one of the most recognized coffee shops. They have been loved for their personalizable coffee and grab and go meals.
Expanding into China is key. Headwinds are management turnover and competition from custom coffee shops--Starbucks is no longer special or unique. Let's see what Q2 earnings are like.
Walt Disney (DIS-N)
Children love the characters and worlds that Disney has created. With the purchase of Marvel, Disney is well-positioned for their upcoming streaming service. They also own and operate the ABC broadcast network, and various theme parks around the world.
Disney Plus will be its new streaming service. They bought Fox assets, which will help that platform. They already create content for their amusement parks and will for their streaming service. ESPN Plus has enjoyed massive subscriber growth, paving the way for Disney Plus. (Analysts’ price target is $126.55)
Nike Inc (NKE-N)
The company has become a symbol of athleticism and sports. They’ve also broken out into the fashion movement, with many models and collectors snapping up their new collections.
(A Top Pick Oct 27/16. Up 4%.) Sold this a while ago. Felt there was a lot more competition on the clothing side, and they were losing share there.
Walmart Inc (WMT-N)
Walmart has been doing well and is keeping up with Amazon in the battle for retail shoppers. The big box store is continuing to bring in strong revenues and is investing in their e-commerce platform.
(Past Top Pick, May 10, 2018, Up 5%) He liked their whole India play, though investors didn't at first. It's come off in the past year, but sees plenty of upside. Good to continue to own it and a great long-term play that will hit $100. But yes, Amazon is probably a threat to Walmart…
Dollar General Corp. (DG-N)
A well-known dollar store that gives customers a wide variety of choice without breaking the bank. Even in times of recession, these types of stores tend to do relatively well.
10.625% Bonds due July 15/15. One of the largest heavy discount US retailers. No sales over $10. Because of the recession, same-store sales have been fantastic and growing about 8%-10%.
Dunkin’ Brands Group (DNKN-Q)
America’s coffee and donut house. They are part of millions of people’s days, serving up coffee and snacks.
Nintendo Company Ltd. (7974-TYO)
Nintendo has become an integral part of childhood for many with the Wii and the Switch consoles enjoying widespread popularity. The company has strong franchises and characters that everyone would recognize and love.
(Not listed on exchanges.) Nintendo. Very interested in this name. The comeback story of the year. People thought it would be driven out of the gaming business but the Wii has been a tremendous successful platform. Hasn't done an evaluation of it but will be looking at it.
Johnson & Johnson (JNJ-N)
A giant in the healthcare and health tech space. If you’ve ever used a band-aid or other home treatments, chances are it was made by Johnson & Johnson.
Worries about if markets do sell off. It’s had a great run up. It would have to get above levels it’s at. He’d buy because it’s still trending higher, but with the caveat to be careful with the DOW and S&P if they start to sell off.
Pfizer Inc (PFE-N)
One of the world’s largest pharmaceutical companies. They produce vaccines, medicine, and other healthcare products. Just how present is Pfizer in our everyday life? If you’ve used a chapstick, then you have used a product by Pfizer.
A defensive name. Revenues at $52 billion per year. ROE is going higher. Dividend yield is 3.0% and P/E is 15. Strong pipeline. (Analysts’ price target is $45.09)
Merck & Company (MRK-N)
Another of the largest pharmaceutical companies in the world. They research and market a variety of medicine, vaccines, such as Gardasil, and other over the counter medication.
He likes their leadership in drug therapies. They have their HEP-C and diabetes franchises. It is an easy hold for him. They are well diversified. They are number 3 in animal health products. It has a PE of 15.5 times next year’s earnings. (Analysts’ target: $70.00).
An aircraft maker that we recently featured on our list of Airline Stocks List. They bought the CSeries program from Bombardier last year that should create more lightweight planes.
This is a recent acquisition. The backlog of orders for Boeing and Airbus is tremendous. He thinks China will favor Airbus over Boeing in future orders. He thinks the Bombardier acquisition gives them an advantage over Boeing across the fleet. They are also setting up a new maintenance service, which might take over work currently…
The aerospace company has been down since the 737 Max crash but they are in a duopoly and demand for transport is strong. It will not go up in the short-term but worth holding.
The crash of their 737 in Indonesia hit the stock today. Stay low and wait--see what the aviation findings are. If it turns out that their aircraft are in trouble, this stock will fall further.
One of the best positioned to take advantage of the e-commerce business and ship products to customers. It tends to go the way the economy goes. We featured FedEx on the Top Shipping Stocks to Buy in 2019
Trades at 16x earnings and pays a good dividend. This is a good long-term buy. There's only them and UPS in this space. They are very good operators in a tough business. They've partnered with other parties, like smaller couriers, which he likes.
United Parcel Services (UPS-N)
If you’ve ever received a package from an online retailers, chances are you had some interactions with UPS. They are also a leader in supply chain management solutions.
(A Top Pick Oct 27/17 Down 1%.) There is a big question mark around the future of delivery. Everybody is scared of Amazon. From a seasonal perspective, UPS doesn’t do well at this time. The seasonal trade finished on December 10th and since has pull back a little bit. From now until March it tends…