Air Canada, Shell plc and 19 Stock and 1 ETF Top Picks (Jun 17-23)

Looking to capture 10% currency differential and 30% decrease in share price. Lots of profitable M&A. Return in equity around 30% with global operations. Current share price presenting good buying opportunity.

Its revenue in 2020 was down over 90% and is down now only 9%. It is oversold and back at the 2020 price but doing much better than 2020. It is also de-leveraging. There is tight capacity as well as pent-up demand for the airline industry. Buy 12, Hold 5, Sell 0. (Analysts’ price target…

Natural gas is at a 14 year high and oil is at an 8 year high while ESI is only at 3 1/2 year high. There is going to be demand for oil and gas for years to come and drillers will be beneficiaries. It is over-leveraged but has greater upside over other drillers when…

Oil price pullback is now an opportunity. Shell is a large integrated oil/gas company with a large LNG business and chain of fuel stations around the world (70 countries). Last month, they reported their highest quarterly profit since 2008 and will raise their dividend. Strong cash flow, trades at 5x projected earnings, and pays a…

Their parks, streaming and merchandise amount to a great franchise, but the streaming business is very competitive. Disney+ has done very well, but investors want more. Also, how well will their theme parks do during high inflation. Also, China's lockdowns are effecting those theme parks. Consumer discretionary is one of the worst performers now, though…

Stockchase Research Editor: Michael O'Reilly The online sales platform of EBAY is rightly valued now and is selected as a TOP PICK. Trading at 10x earnings, compared to 13x for peers and under 3x book, its strategy for streamlining operations will help improve its earnings going forward. It pays a nice dividend, backed by a…

Stockchase Research Editor: Michael O'Reilly With a good valuation and newly formed partnership, we select HMC as a TOP PICK. HMC and SONY have partnered and are expected to roll out a series of electric vehicles in the next year ready for retail by 2025. It trades at 7x earnings, compared to peers at 29x…

AMZN vs. SHOP Both have extremely long runways. In uncertain times, he'd rather recommend a megacap like AMZN, which has more defenses if we were to go into a recession, and that's a big "if". SHOP at $338 US is an absolute bargain. He has a 5% position in AMZN, one of his top 5…

Stockchase Research Editor: Michael O'Reilly The owner of such iconic brands as Red Lobster, Olive Garden and Longhorn Steakhouse. As customers return to sit down dining, earnings will look to expand quickly. Recently reported earnings beat expectations and support an impressive 32% ROE. The dividend was increased by 10%, the 3rd boost since the pandemic…

Has picked it before. They boast $225 billion revenues are expected in the US this year; they continue to build that revenue, despite the pandemic. They enjoy strong loyalty; 92% membership renewal rate. Efficient, clean stores encourage high store traffic. They sell a concentrated number of items vs. other retailers. Customers are higher-income. This offers…

He likes Canadian banks. NA has less of a national footprint compared to its peers and less of a presence in wealth management. But NA specializes in the custody business. Great management and solid dividend. He prefers the larger footprint of its peers.

Has owned this for a long time. US bank stocks have been hit. They are the largest wealth manager in the US, a stable business, and less focused on banking now. It trades at only 10x PE and pays a 3.8% dividend yield with growth. Expect more share buybacks. They will benefit from the yield…

Folks like Bill Ackman dumped their Berkshire shares, because they felt that Warren Buffett should've bought Amazon and was holding too much cash. However, 20% of their holdings is Apple. They have $100 billion in cash. This is Berkshire's moment--an opportunity to finally deploy a chunk of that cash. This is a value play. Buffet…

Stockchase Research Editor: Michael O'Reilly CMC is $4 billion market cap has been for over 100 years a manufacturer, recycler and fabricator of steel and metal products with an international foot print. It trades at 5x earnings, compared to peers at 10x. This included record high margins. Recently reported earnings beat analyst expectations by over…

Stockchase Research Editor: Michael O'Reilly WOR is a value added steel processing company with an international footprint. It makes things such as propane and oxygen tanks and other cylinders. Recently reported earnings beat expectations by over 20% and support a ROE of 28%. It trades at 6x earnings and under 1.5x book -- good relative…

A great opportunity. Don't often get a chance to buy on the cheap. Such a long runway to price target. Phenomenal moat. Extremely profitable. Still a high bar on innovation. High margins on services, about 67%. Yield is 0.69%. (Analysts’ price target is $184.42)

Another great opportunity. 6.3B monthly active users. 45% penetration. Swinging away from software to hardware. No dividend. (Analysts’ price target is $280.14)

Likes this because of the off-chance of a recession. Did reasonably well during the last couple of recessions. Client base is really sticky. His 12-month price target is $415. Yield is 1.38%. (Analysts’ price target is $388.42)

Stockchase Research Editor: Michael O'Reilly This TOP PICK produces semiconductors used in EV for power management and for powering 5G infrastructure -- both set for explosive growth going forward. Recently reported earnings beat expectations and support an impressive 40% ROE. It has rumoured to be a potential takeover by Samsung. It has increased cash reserves…

Holds Royal, Enbridge, BCE and TransCanada--top Canadian names. Pays a 4.5% dividend yield. Is down 12% over two months, so now is an opportunity. MER is only 22 basis point.