This week there were 30 Top Picks in a wide range of industries: Consumer, Energy, Financials, Technology, Basic Materials, Healthcare, Industrials, Utilities and Telecommunications.
Here are this week’s Top Picks as selected by Elliott Fishman, Eric Nuttall, Colin Stewart, Josef Schachter, Mike S. Newton, Zachary Curry, Greg Newman, Michael Simpson, Paul Gardner C. and Robert Lauzon.
(A Top Pick November 6/17 - Down 3%) He likes the fac that you have 30 plus dollars’ worth of real estate there. Rising interest rates has effectively taken up the capitalization rate for the real estate. The retail is doing far worse than expected. Don’t own it anymore. He thinks there is more upside…
This is a flyer. Stock is oversold. It was a darling, and then it got punished on bad earnings. Hopefully, next quarter will be better, and it will recover. Yield is 0%. (Analysts’ price target is $146.76)
(A Top Pick Apr 12/18, Down 19%) He is still loyal to them and increased his position not long ago. The market is predicting better days ahead. They are still growing. They are aggressively buying back shares and opening new stores. It is very, very well run company. Debt is bumping up against levels that…
What normally happens with the smaller brewers is that they get taken out. He likes the company, but doesn’t follow it closely. A good story with good earnings growth.
They are growing into Ontario. Their recent earnings really caught on with an impressive number. It was not even a full quarter of results from the recent acquisition. They have 20 year contracts. 16 times earnings. (Analysts’ target: $51.80).
Convertible 8% 2022 Bonds - They always have owned the convertible not the equity. It is a restructuring story. They think it is better to be in the convertible because they have a good yield and it is ahead of the equity holder.
He tries to find companies that are good and getting better than the peer group. They’ll produce about 7000 barrels a day this year and 17,000 barrels a day next year and 25,000 barrels a day the year after that. Enormous growth. Uses technology in the Permian Basin to really grow their reserves and production.…
A Permian producer that has been doing a really good job of acquiring acreage, so they issued a ton of paper on to the market. They’ve grown 14% a quarter for the past couple of years. They now get to slow down on that and focus on delineating their acreage, and also going after some…
This is a Canadian energy company. They made an acquisition in the US unfortunately at the top of the cycle. He does not own highly levered oil and gas companies. There are others that are much more attractive. He prefers clean balance sheets.
Say they can meet their generous dividend if WTI goes to $40. Balance sheet is fine. Likes it, but as oil prices bounce around, its metrics started to deteriorate. It's a good name as long as they execute and oil stays up. Yield is 10.5%.
They just made an acquisition to increase their volumes. Book value is twice their stock price. They have a decent balance sheet with a decent, sustainable dividend. (Analysts’ price target is $2.88)
He's owned this in the past and likes the management. He likes the changes they are making. But with a 1% dividend, you're looking at only equity growth. Now is a good entry point, but he wants to see light at the end of the energy tunnel--which he doesn't see first. He has a $7…
The energy space was tough last year. This has been rising since September, relative to the energy space. It has performed well through the recovery. Nice dividend, growing at about 6% annually. If you took at three year period in the market it will under-perform but be more stable.
Still likes it. One concern is still Line 3 being delayed. In Michigan, government wants an earlier pipeline shutdown. The business itself is fine, but political risk could impact the stock short-term. Buy it at a 3-5% weighting, put it away, hold it for years. Nice dividend with growth.
Basically land registries in Saskatchewan. Very good business and very stable so dividend should be sustainable. Saskatchewan is one of the more rapidly growing provinces. To him it may be fully valued but it is one of the Steady Eddie stocks that you could buy and just put away. This will not be a sexy…
The exchange space may face some headwinds from a regulatory perspective. They have enormous amounts of data which people pay for. There may be fewer terminals on desks today; however, when there is tenseness in the market, they make more money. He likes it.
BAM vs. Onex They're very different companies. BAM has moved from infrastructure to being more private equity; it's larger than Onex. Onex just bought Gluskin and Sheff, branching into a new direction. You can do well owning both; buy 50/50 in them. He can't favour one over the other.
Great stock, but not the best time to buy. Makes sense to take a half position right now. Barron's says that MVP (Mastercard, Visa, and PayPal) have done better than the FANGs over the last 3 years. Visa is the best bet. Asset light. Free cash flow is quite high and gives you flexibility.
Apple vs. Amazon. Own both. Apple's a great, big, powerful company that will work out its problems. Both really well run, and moving into healthcare in a big way. Amazon has loads of runway, as does Apple. Buy a bigger chunk of Amazon, as it's performed better. Cloud computing and content business are going to…
China-US trade war is having an effect on entire tech sector. It's a bit more immune to it, but he wouldn't be stepping in front of this train. Perhaps a bit more defensive as a tech in terms of its scope.
🛢 Basic Materials
A leader in industrial cleaning products for hospitals, schools, hotels, restaurants, etc. Has had a steady record of recession resistant earnings growth. Strong balance sheet and good free cash flow generation. Currently trading close to its November lows, the lowest multiple in the last 10 years.
(A Top Pick Aug 17/18, Up 1%) Slower planting season. Ag space has been crushed. Likes the company. There is a future. Hold on and wait for their day in the sun.
(A Top Pick August 21/17, Up 20%) Hips and knees. Robotic surgery and 3D printers. His fear is that Stryker will buy Globus, and the subsidiary will overtake the parent.
They did a great job bringing on oncology products to fight cancer, but beyond oncology he's not excited about Bristol. There are better companies.
He would wait on this one -- with changes on the Board and it being a relatively new company. There are other companies in the same space guaranteeing dividend increases going forward. He would look to other utilities instead.
BCE vs. Telus vs. Verizon He owns all three plus AT&T. Verizon is still the #1 network in the U.S. and still pays a great dividend. All three will continue to do a good job. If you own them, hold them.
Getting a decent dividend. So if look at the dividend and the 2-3% share appreciation, that is giving you a decent return for the quality of name and size of business you are buying. US telco's are very different than Canadian. BCE is doing a good job and is growing.