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.
Nicknames it Hit By A Car like its chart. HBC is all about its real estate holdings; that's the reason you own this. Doesn't know if the current rally signals a buy. Can't predict this chart. Even consider selling it.
(A Top Pick Nov 16/18, Up 4%) Not liquid, but has held during the recent turbulence. He'd buy it today.
This segment will likely come out of this doing well. They will benefit from increased consumer thriftiness. He has others out there he prefers in this market segment, where growth opportunities are better.
(A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.
He got stopped out of this. It's well-run, but the casinos are closed so there's no revenue coming in. GC carries a reasonable amount of debt. Also, casinos have high operating expenses, even during this lockdown. He wants to see stability in their debt, though. In recessions, gambling performs well, though.
(A Top Pick Aug 27/20, Down 12%)Stockchase Research Editor: Michael O'Reilly We are choosing to remain disciplined and stick to our stop-loss at $35 and look for better alternatives. Now that key technical support has been breached it could try to retest lows near $25.
PE is an independent oil and gas producer in the Permian. EPS is expected to grow by 56% in the coming year and it trades at 52% of book value. There are currently 21 buy ratings on the company. It latest earnings reported $0.03 EPS versus consensus of of ($0.14). Plus it pays a reasonable…
He sold it a few days ago. The amount of financial participants in the sector right now is a fraction of what it was in the past. There is financial leverage that dissuaded him from holding. There are more compelling opportunities.
Look like value, going to be volatile. If oil spikes, you can make a quick buck. Very good company, but in a tough industry. If he were to own energy, he'd look at the bigger players like SU or CNQ. This would be a gamble. Better places for your money than in energy.
Right now, you want to focus on oil over gas, and in the small to mid cap space. He's always struggled with owning this. Highly leveraged. There are better opportunities. It's going to be a laggard. For now, you want to be in name brand companies.
It is undoubtably inexpensive at 3x cashflow. However, he no longer owns this because there are other opportunities, but there is nothing wrong with this name.
There is always headline risk for pipelines. If the Keystone XL pipeline is cancelled, the stock may take a hit. However, the company is looking at growing dividends by 5-6% annually.
She owns this Pembina and Enbridge among pipeline. ENB is more defensive since it's the largest transporter of crude oil and natural gas in North America. Over 95% of what they move is under long-term take-or-pay contracts. Their yield is under 8% at a 60% payout ratio, so safe. It maintained its guidance even during…
It is a defensive name that is not priced like a defensive business. They are the operator of the land registry office in Alberta. They have a long term contract and have very steady cash flow. About 45% of their revenue is from their services and technology business. 5.5% dividend and they generate a lot…
(A Top Pick Nov 20/18, Up 10%) The more activity, the better they do. In all the major asset classes. Volumes were down, but now you're seeing more of a pickup.
Blackstone vs. KKR Both good and both are global players. She likes the private equity space, and the way to invest here is through stocks like these. She plays this space through BAM. All have a strong global presence. Private equity will see continued secular growth with interest rates staying near zero. Large institutions are…
They collected 99.5% of rents in July, a great number. Leverage is high. They pay out 100% of their AFFO, so they won't raise their dividend. She likes this, but prefers Granite REIT.
Has done extremely well on both organic growth and on the market's re-rating. Will be beneficiaries as we move more to plastic in the post-pandemic world. Trading at a high 30s multiple, a bit extreme. Fewer opportunities and more risk in the face of Square, PayPal, and the like.
They executed on their service business which continues to grow, and all their watch and so on is growing very nicely. 5G should help them out but not this year. He sold a little because it became a very large percentage of his portfolio. They will continue to buy back their shares. They continue to…
After the last crash, its value was decimated. He saw it as a utility company, as people need to pay MSFT to upgrade. Tremendous job of growing its cloud business. He's not selling anytime soon.
🛢 Basic Materials
He has owned this for some time now. They are in cleaning, sanitizing and waste management. Bill Gates owns a big chunk of their shares. Yield 0.94% (Analysts’ price target is $187.86)
Cyclicals haven't bounced that much off the bottom. Driven by global growth, which has lagged tech. Still a good company, generating free cash, good vertical integration, paying down debt. Stick with it.
Medical devices. A lot of elective surgeries were put off but are now coming back. They acquired an ankle and wrist company. There is good international growth. There is a risk in the steep learning curve on these products. (Analysts’ price target is $213.91)
He has a model price over $111 -- a 95% upside opportunity. Yield 3.13% (Analysts’ price target is $66.94)
They own Brookfield Infrastructure. The infrastructure stock has better valuation than the renewable energy fund. Brookfield renewable also faces too much money going into the sector.
He buys utilities to generate income. Yes, they are boring, but this sector has had an incredible run in the last 12 months. This is overbought now and would take profits. Also, the yield has dropped to 3.3%, which is a negative.
The telecoms in Canada are sluggish now, because they have a lot of capex which limits their EPS. Telus is different because of its Healthnet service that they will roll out. Rogers is into sports. The dividends are roughly the same in this group, but where is the growth going to come from in this…
The dividend is safe. All telcos are good at increasing their dividend yearly. BCE pays 5.9%. She buys this below $55. A solid income stock.