This week there were 20 Top Picks and 6 ETF in a wide range of industries: Industrials, ETF, Financials, Energy, Technology, Basic Materials, Consumer and Healthcare.
This is all about defence. Mr. Trump had the tweet on the F 35 that knocked about $15 off the stock, and this is a great chance to buy in. This is going to be a favourite of the new Defence Secretary Mattis. They have all the right programs, especially the missile programs. Expects announcements…
Brookfield Business Partners LP (BBU.UN-T)
You probably shown own anything with a Brookfield name. The team at Brookfield are such shrewd operators. This one is an interesting collection of assets. Construction, private equity, etc. Very hard to analyse. There is an incentive play on this stock. If the stock stays above $25 a share, the Brookfield asset management team collects…
He likes the aerospace and defense sector. It has great international exposure with missile and cyber defense as their top products. The valuation is at historical highs, but is not out of the ballpark. Yield 1.6%. Analysts’ price target is $237.85)
They had to reduce guidance. They are seeing a global slowdown particularly in Europe. A couple of years ago they invested in an express delivery company in Europe. They lower their operating profits target for this company. Another overhang on the stock is Amazon (AMZN-Q) that is trying to build their own delivery network. Stay…
An older ETF. It’s software, high growth, high margin business. Tremendous run this year up 25-30% YTD. Not wise after this move to be going in so specifically. If you want tech in the US you should look at ETF not so specific to software, an equally weighted tech ETF would be an interesting thing…
Mrk Vectr Vietnam E.T.F. (VNM-N)
Likes the idea, but if you are looking for massive upside, we had massive upside earlier in the year and you will only get 10-12% return over the next 12 months.
iShares MSCI SouthKorea E.T.F. (EWY-N)
Chart shows good uptrend. South Korea has a lot of good things happening to it. North Korea looks like they are backing down from their nuclear stance.
Deutsche X-trackers Harvest CSI 300 China A-Shares (ASHR-N)
Chinese stocks? These are just entering their period of seasonal strength. From about January all the way through to May-June timeframe, they tend to outperform the rest of the world. We are seeing that seasonal strength starting much earlier this year. The Shanghai Stock Exchange Composite has essentially gone parabolic, which gives him a bit…
Invesco Global Clean Energy ETF (PBD-N)
It is a 'doing more good' ETF. It has utilities, tech. You don't take risk but earn some income. It is a way to not pick individual technologies.
Desjardins RI Global Multifactor – Fossil Fuel Reserve
It is a new ETF. This is another global ETF that is socially responsible (no tobacco, alcohol, Military etc.) and fossil fuel free. We can use this as a simple way to build a 'do no evil' portfolio. It does not have big tech companies. It will be large companies.
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.
Stumbled a little with the release of Q1. There was probably a bit of miscommunication between the analyst community and management. There are 2 segments to their business, transportation and wholesale. He still likes the company and thinks they are well positioned in terms of pipelining, storage, tankage etc. Current yield is about 8.6%, which…
Enerplus Corp (ERF-T)
(Market Call Minute.) A good, solid oil and gas company with good exposure in the right areas. He would call this a soft Buy.
Pembina Pipeline Corp (PPL-T)
Same as IPL, tied in to local transportation. Has outperformed a lot of the other Alberta energy stocks. It's a utility, so dividend is quite safe. Continues to grow. Growth in oil and gas in Alberta is not dead.
Suncor Energy Inc (SU-T)
Best in class in oil. Downstream protects them when oil prices are down, and midstream offsets volatility. Great balance sheet and management. The whole sector has turned into manufacturingfrom growth, because they aren't exploring (because of lack of pipelines), but rather are reducing costs to C$25/barrel. With the WCS differential, the companies fetch C$50. Good…
The largest consulting company globally. It has morphed very nicely over the last 5 years, and has become the leading consultant towards the Internet and Cloud computing. Cloud computing is really just getting going. Companies need a lot of help in terms of analysis, and how to go about doing it and how to implement…
Alibaba Group Holding (BABA-N)
(A Top Pick Oct 17/18, Down 7%) Growth rate has risen from 30% to 50% a year, but this year it's faced its first tough season. Not doubt that trade tensions and sanctions have impacted their stock price, but the underlying value remains strong. He's happy to own this.
He's bearish tech, but this is excellent. Has performed well, pays a bit of a yield and earns a profit. Rock solid balance sheet. If you want to be in tech, buy this. You could even take some profits here.
Shopify Inc. (SHOP-T)
A great business with lots of new customers. He's a Growth at a Reasonable Price investor (GARP), so he can't justify buying it now at this price. Sure, it may hit $300 later this year, but it doesn't fit his strategy.
🛢 Basic Materials
Massive disconnect as to true value of gold. One of the most solid names you can own. Don’t be concerned with the price, because you’re buying insurance. Most conservative of the sector. It’s gold, oil, and other assets. At this price, it’s a gift. One of the few precious metals companies with a dividend. 10-20%…
Kirkland Lake Gold (KL-T)
If you think gold will break out of its sideways trading range over the past 5 years, this is a winner. He thinks this company has good leverage. Production is growing and he thinks it is cheap. He does not own it yet. Yield 0.5%. (Analysts’ price target is $37.47)
B2Gold Corp. (BTO-T)
(A Top Pick March 2/17, Down 3%) They brought in a deposit under budget which is really tough to do in west Africa. They generate an amazing amount of cash. Management has done a marvellous job of deploying cash and will continue to do so.
Teck Resources Ltd. (B) (TECK.B-T)
Looking macro, technical indicators have all improved. We've seen higher trading in China. The city economic surprise index is about as low as we have ever seen it. Technically it is about to turn. He owns some of their competitors. You'll need a good stop loss on this one. (Analysts’ price target is $38.00)
A phenomenal company. The largest cableco in the US. Very stable. It owns NBC Universal. Has a huge inventory of programming, intellectual capital and media content. He is seeing growth in cable and broadband. Broadcast isn’t growing, but cable is. One of the best managed companies in that space. Yields about 1.64%.
Walt Disney (DIS-N)
(A Top Pick Jan 30/18, Up 3%) Their turning point was making the bid for 21st Century Fox to shift away from the TV and cable business (where subscriptions were declining) and move into streaming called Disney+. They have a huge inventory of content to take on Netflix full-out though that still involves some risk.
This does branded generics, nutritionals and medical devices. Their branded generics have good exposure to emerging markets, areas that need the drugs but don’t necessarily have the money to pay for the branded version. A well diversified company run by great management. They have announced 2 acquisitions. The overhang on the stock is that if…
This post summarizes the top picks weekly. The previous week’s stock picks list is available for an additional week using the link below. Refer to Daily Top Picks available in the All Top Picks pages to browse the all-time top picks archive.
Use this list wisely to identify buying opportunities.
Happy trading !!!