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.
If a recession hit? Anything valued on a multiple of revenue will suffer in a market downturn. It's had a massive move, trading at 654x--the valuation makes little sense. It's a momentum name. In a recession this will come off hard. However, he wishes he had bought this at $100.
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.
AmEx, Visa or Mastercard? They're all great. Visa and MC are pure-play payment processors vs. AmEx which is also the issuing bank. They play on electronic payments with people buying more and more online, but V and MC reaches a wider breadth of customers/users. AmEx still focuses on richer people. V and MC will always…
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.
(A Top Pick Aug 02/18, Up 13%)An August covered call. He sold an August call. He thought that the market was ahead of itself and he took some money off the table. The price in August was $338.50 and the option to sell at $360. It never got there. You wouldn't kept the stock. Your…
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.
Starting to see more volatility, since it is tied to the consumer and their credit. Still likes the space in the longterm. A bit expensive right now, but secular trend of digital payment will make this a good choice for long investors.
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.
They report on Wednesday. He's underweight FB. The options bets this week are bullish. Technicals look good and FB has a solid track record of breaking earnings. FB is a good long-term investment.
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”.
(A Top Pick Jun 28/18, Up 3%) There's been a lot of noise about regulating this space and company. GOOG owns such a broad sweep of quality assets, including things like self-driving cars that they haven't monetized yet. They can further monetize all their Youtube users, too. Also, they still attract massive online advertising and…
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.
A safe stock to invest in. Can they upgrade their user base to 5G, he wonders. It make take longer than expected to convert users he thinks. He would be a buyer below $200. He has been a seller above $220. A core holding.
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.
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.
(A Top Pick Jan 28/19, Down 8%) It hasn't sold it and he'd still hold it. It needs more time. The risk is up, not down.
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.
The chart is a rounded-U formation in the past 12 months. It looks a little oversold, and has broken a short-term trendline. It will probably land to $45. Wait till it consolidates. Maybe the worst is over. There isn't a real direction, so keep an eye on it.
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
This is effectively a processing company. In terms of the biggest boss on the street, it would be Intel, and this would be considered the baby in the corner. All the semis are up this year. When you get a cyclical decline in the semi space, and we are long overdue on one of those,…
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.
Has a 1.75% position. Has had a haircut. Price target of $46.07. Not cheap. Dividend yield is 4.6%. Interesting, because they have an oligopoly in internet and gaming. Tremendous leadership in the video ecosystem, they have the developers and the distribution network. And now it has Tencent Music. He'd buy into the bigger holding company.
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.
He sees it going a little higher than it is today. It has been a darling for a long time. In a recession, people tend to shop down.
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.
Largest demographic group is the 29 years old. Ready at the point of household formation. No debt. They generate a lot of cash. (Analysts’ price target is $50.33)
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.
(A Top Pick Jul 04/18, Up 21%) Consumer discretionary, but more defensive. Lower beta. Decent growth rate of 10-12%. Nice dividend of 2.9%. Sales performance improving. Focusing on guest experience. Strong dividend income and growth, plus earnings growth.
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.
Sell Amazon and Apple now? The stock has stagnated the past two years, but it makes more money. Apple keeps investing in near projects, which is a good sign. Hold onto both of them for the long haul. He owns a lot of each.
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.
It has always been too expensive for him. Maybe they have built out too many stores, but it has had a hard time continuing to justify valuations.
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.
A 3-year hold They've done well launching Disney+ and condolidating Hulu to move quickly into streaming. Movies still generate revenue but are less important now. The theme parks are also doing well. The issue is that Disney must pay licensees to stream their content and this will eat into profits. This will limit EPS growth…
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 company he admires, but bad news keeps coming out. They were very reliant on retail channels which no longer have the footfall they used to. They are under-indexed to online, which is where more and more demand for soft goods is going. Their quarters for many years have shown inventory issues. Feels they have…
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.
Making inroads against Amazon. Good earnings, recent acquisition is working. Current pullback is indicative of the market overall. Positive time of year for them. As online becomes a bigger component of sales, that will be reflected in the valuation. A defensive name, a stable investment, so it would go down less in a down market.
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.
Buy on a pullback, not now. Their pharma division is doing very well with products in the pipeline and wide margins. A strong balance sheet. Their dividend is almost 3% with a long history of increasing. A diversified, global name. This is quite defensive and good to hold in a weak economy. Lawsuits remain an…
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 quality company that pays a good dividend. Look at it now during negative sentiment due to political pressure in America over high drug prices. Be cautious near-term, but do your homework on this now.
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.
What healthcare stock to buy? In Canada, he likes Chartwell, in the U.S, Merck (MRK-N), and in Europe, Novo Nordisk.
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.
Time to take profit? She sold it way too early. They are generating great new cash flow. She is not adverse to take profits -- perhaps take out your initial investment. A lot depends on the US market in general. If it pulls back, it would be a good opportunity to buy back in.
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
Would sell UPS and buy Fedex. Fedex is better managing headwinds from Amazon. They also have more areas that Amazon won' tackle. Wouldn't invest in either due to high cost in order to compete. Their current infrastructure is not ready to compete in the e-commerce world, and will eat up their free cashflow.
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.
Involved with the disruption of buying at home rather than in the store. He prefers FedEx, likes its exposure to Europe. UPS exposure to Europe is about 16% whereas FedEx was around 5% before acquiring TNT, increasing exposure by about 12%, putting them neck and neck with UPS. Fedex and UPS have both had a…