FedEx, Toronto Dominion and 20 Stock Top Picks and 5 ETF (Archive From Sep 20-26)
This week there were 20 Stock Top Picks and 5 ETF in a wide range of industries: ETF, Industrials, Technology, Healthcare, Financials, Energy, Consumer and Utilities.
Here are this week’s Top Picks as selected by: Tyler Mordy, Paul Harris, John Kim, Bruce Campbell(2), Paul Gardner, Brooke Thackray, Rob McConnachie, Jason Del Vicario, Bruce Campbell (1) and Greg Newman.
This is a US REIT that holds commercial and residential mortgage companies. There are 2 companies that hold about 38% of this. One is Annaly Capital (NLY-N) and the other is American Capital Agency (AGNC-Q). Huge yield of 11.89%, only because the share price has dropped from $60-$37 a few years ago. There is some…
iShares MSCI Europe Financial (EUFN-Q)
It was the banking crisis that we haven’t seen since the 20s that created the whole European mess. Areas that had strong banking systems, Canada and Australia, got through very well. In the US, the banks started to turn and the S&P 500 followed suit. He thinks the same thing will happen in Europe.
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.
Horizons Equal Weight Canada Banks Index ETF (HEWB-T)
Which Canadian financials ETF to buy? Do you want income or equal weight? Defer capital gains? FIE-T pays a monthly income and include preferred shares, corporate bonds and banks stocks, so it's diversified. If you don't want this income and prefer exposure and a total return swap and defer the taxation, then he suggests HWEB-T.…
iShares Barclays 20+ Yr Treas Bond (TLT-Q)
Tracks US bonds, and it's volatile. This does well when equities do poorly, just like last fall, or in 2008 when it returned nearly 64%. This offsets portfolio loss.
This moves North America's goods. It really depends on the economy. Amazon is moving away from them, but the thinks they will do well.
They issued weak guidance in Q2. There's a backdrop of US-China trade tensions hurting demand. Expect at least one more quarter of negative earnings
Evertz Technologies Ltd. (ET-T)
He has never owned this. This is a well-managed company, still mainly owned by its founders. It trades within a certain range. They make equipment for the broadcast industry. Sales move in cycles within the industry. It cranks out a lot of cash flow, has a generous dividend. He is unlikely to invest in it…
Tucows Inc (TCX-Q)
Essentially the GoDaddy.com of Canada. Have been around since the early 90s back in the days when you had an Internet service provider, and the ISPs have all gone with this company. Another high compounding stock. ROE is about 29%. Trades both in Canada and US. It is liquid in the US, but not very…
Corning Inc (GLW-N)
A very flat revenue line relative to most technology companies. The reason is that most of the volatility in earnings comes via joint ventures. The joint ventures, in many cases, is 50-50, where they own less than 51%. By owning less than 51%, it comes as an equity earning, so you need to look at…
Starting moving away from US markets, where all the margin compression on price is coming from. Demand for insulin is going to come out of India and China for the next 25 years. They should be able to continue to grow the business. Margins are so high that they can always generate free cash flow,…
Zoetis Inc (ZTS-N)
Largest animal healthcare company globally. There are opportunities with their ability to increase their animal companion ability where there is an increasing amount of emerging markets moving to a higher standard of living and higher adoption of companion animals. 0.81% dividend is paltry, but over the course of time he believes this can grow substantially.…
1933 Industries Inc. (TGIF-CN)
He thinks 2019 will be a big focus in the US for them. The US farm bill will be good news for anyone involved in this market. This company is seeing year over year growth at over 19% in their THC division and they have a fairly good lead over their competitors and the margins…
TerrAscend Corp (TER-CN)
They're building up nicely in Canada and the U.S., which is unusual for a cannabis company to be on both sides of the border. They've been signing some good deals. Has a fine CEO with a good track record in pharma. (Analysts’ price target is $15.00)
Pasha Brands Ltd. (CRFT-CN)
They're taking advantage of the current oversupply, because Health Canada has a micro-cultivation license for small facilities. So Pasha has done supply deals with some of these micro-producers to supply them "craft" cannabis, like craft wine, with higher margins.
Dividend nicely covered, at 50% or more. Yield is good. Stock trading between two technical points, which are both discounts to book value. Risk is $23 to the downside, and about $28 on the upside. He prefers to buy on support, instead of in between. Nothing wrong with it, but earnings estimates are oozing downward…
Toronto Dominion (TD-T)
Why does volume trade spike in the last minutes of trading? The bulk of trading volume for most stocks actually focuses on the early start of the day, so this is unusual. As this in the index, there may be some index balancing that is going on. He is uncertain overall.
Smart REIT (SRU.UN-T)
Yes, it’s retail, but best in class. Trades at 15x earnings, which is cheap. Spectacular management. Anchors for Walmart, which is doing well against Amazons of the world. Aggressive development in Toronto. Best tenants and assets. Diversifying and creating more margin. Yield is 5.8%. (Analysts’ price target is $32.61.)
They received an unsolicited bid for the company, maybe around $30. A new plastics plants is suppoed to add to NAV, but this is cyclical. A speculative stock right now.
Baytex Energy Corp (BTE-T)
It's very cheap and profitable. The balance sheet has gotten better. This should trade at $4, though he can't see it happening. The current price is a good entry, but the oil sector needs a catalyst (i.e. pipelines) for this--and other energy stocks--to really move.
Cameco Corporation (CCO-T)
Over the next three years as Japan turns reactors back on and China continues to build them, demand will come back. Reactors tend to carry 3-5 years of inventory on site. He thinks they will re-establish themselves and demand will come back. (Analysts’ price target is $18.13)
Pembina Pipeline Corp (PPL-T)
They are doing very well. They are not running into the pipeline expansion problems that others are having. This is a utility grade, and dividends are well covered. This name will continue to do well. A solid investment.
45% of their business comes from the amusement parks, and 35% from the media, and the rest from consumers. The Fox deal was big. they own Hulu. They are one of the few who can compete with Netflix with a huge content library. Has lots of fresh cash flow with little debt. They will continue…
Ulta Salon Cosmetics and Fragrance Inc. (ULTA-Q)
Very good management. Likes the segment and its growth profile. It can have a little torque, so you might want to use trailing stops. When it comes off, it can come off pretty hard.
This is effectively a utility and benefited tremendously from the safety trade with bonds coming down from 4.5% to 1.5% 5 years ago. Stock recently dropped because of a rebalancing of portfolios. Expects we will only see higher interest rates for many years and this does not speak well for this company.
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 !!!