Most stocks are owned by institutions and the majority of the trading volume on exchanges are from large institutional traders. Although large and mid-cap stocks have many individual investors, only a few possess millions of shares or hold a majority in a company. These institutions are often pension funds, commercial banks and investment funds. Institutional ownership means that these large institutions hold ownership stakes in a company.
Oftentimes, these institutional owners exert substantial influence on management. Individual minority investors also look to institutional owners and what they are doing, as institutional owners are often more knowledgeable about the companies they invest in. Therefore, these investors can exert substantial impact on the stock price.
The number of institutional investors in a particular company are neither a good nor bad sign. However, more institutional investors will offer more stability as diffused ownership minimizes the impact of one firm selling off their stocks.
Torc Oil & Gas Ltd (TOG-T)
A well-run oil producer that has a good management team. They are generating positive cash flows. They usually underpromise and over-deliver. The dividend is considered safe. Their yield is 6 per cent.
The 1st place this is going to run into resistance is at around $7.80, so there is a lot of upside left. It should start pushing onto $9.15. It's a good stock to own right now.
Birchcliff Energy Ltd. (BIR-T)
A Canadian natural gas company. It has done well and is generating cash flow. The balance sheet is in good shape and they are paying off some debt. They also raised dividends last quarter.
Seeing strong improvement now. Since 2017, it's been in a strong downtrend, but has recently improved. He likes it. Been a good rally in the past month, and he sees further upside for this stock and natural gas in general.
Tourmaline Oil Corp (TOU-T)
A natural gas producer. The company is adding more liquids and are looking to have more cash flow. Signs point to a dividend raise or a stock buyback.
He thinks high quality producers are going to do well, but he is more bullish on oil than natural gas – TOU-T is 70% natural gas. He would look to others like Surge, Baytex or Vermilion. You want a company that can increase monthly production and monthly profits and this one has failed to demonstrate…
Atlantic Power Corp. (ATP-T)
A power generation and distribution company. The company has assets in the U.S. and Canada. As consumers rely increasingly on electricity, the business has a good niche. A lowering of interest rates will help this company’s stock price rise.
Seasonality for utilities is just about to start in June. The bottom in February is really indicative of a lot of utility companies. Chart shows a nice nascent trend. If we get above $4, this will usher in a lot of new buyers. Thinks there is pretty good upside potential on this.
🛢 Basic Materials
Turquoise Hill Resources (TRQ-T)
A mineral exploration and development company. They have one of the best copper deposits in the world. RioTinto owns about 51 per cent of the company. This company is sensitive to copper prices.
Looking fairly attractive at this level. The discovery in Mongolia has the prospect of being one of the largest copper/gold mines globally. Brought in a partner, Rio Tinto (RIO-N), which took control of the partnership, which has de-risked the project for Ivanhoe. They are in the market with a rights offering in a $7 range,…
Morguard Corporation (MRC-T)
A well-run real estate company that holds a diverse portfolio of properties across North America. They buyback stocks with their free cash flow. There is not a lot of volume but is at a good price right now.
A hard stock to buy, simply because there is very little trading in the stock. Insiders and management are owners. There is minimal trading on the stock, therefore do not put in a Market Order, put in a Limit Order, because you could have a bad surprise. Has a BV of $220, and you can…
Bank of America (BAC-N)
They are well positioned to increase dividends or buy back stocks. It is quite cheap although it’s gone sideways for the last year. They are reducing cost and changing their capital ratios.
(A Top Pick Mar 14/18, Down 11%) The banks have not performed as well over the last year as he thought they would. Since the lows of Christmas eve, they are doing very well, but he is now cooler on the banks (see market comment at beginning of show). He is not as enthusiastic about…
Wells Fargo (WFC-N)
It’s selling at a discount to other U.S. banks. They were hit with a sanction for front running customers and other corporate malfeasance. The Fed is now monitoring them so tread carefully.
(A Top Pick April 10/18 Up 4%) The regulatory issues have been resolved or are discounted by the market already. He is looking for $59 as on objective and is using $51.80 as his stop. A nice upward trend, like the market as a whole. Yield 2.9%
Their software as a service with subscriptions is doing very well. The cloud department is growing. The margins are high and it is a more defensive name in the tech sector. They are turning the company into a utility in some sense.
It hit $133, a key upside technical target. It needs to break through this recent high before he calls it a bull stock. Its fair market value is 35% below current levels. Nice company, but over valued.
A company that will benefit from 5G. The software earnings are also doing well. There are some concerns over the trade war as their hardware might be subject to tariffs.
What one tech stock to buy? MSFT or Cisco. MSFT is the poster-child of the sofrware side with fantastic management and delivers logical guidance. Cisco he likes for supplying in the big 5G deployment. Just beat earnings.
They’re in a mature market and the gross margins are not expanding. The stock showed some weakness with the new China tariffs.
He recently sold out of their position based on their previous earnings, which called for reduced earnings growth. The chip space is very good. If in it, stick with it.
A leader in the market and has more cash on the balance sheet than some countries. There are concerns over consumer privacy and slowing iPhone sales but the company is not going away.
The Qualcomm settlement? Not much effect on Apple, but rather Qualcomm (see his comments on that). Apple still needs a 5G solution.
General Electric (GE-N)
The beleaguered company had its first quarter of beating expectations. The management is doing its best to survive but the company has been evolving so rapidly that it is hard to say how it will go. This has become more and more a speculative stock.
When companies run into trouble they will come out with a laundry list of things to blame. Usually it is management. In this case the seeds of their problem go back to Jack Welch. He set up GE-N for their later fall. He made GE capital such an important part of GE-N. Recently it was…
Pfizer Inc (PFE-N)
The largest pharmaceutical company. It is holding and is more of a protective play. They have successfully acquired some companies and have promising drugs. There are only a few products coming off patents so it is a pretty safe pick.
A defensive name. Revenues at $52 billion per year. ROE is going higher. Dividend yield is 3.0% and P/E is 15. Strong pipeline. (Analysts’ price target is $45.09)
Comcast Corp (CMCSA-Q)
They have a U.S. market penetration of 45 per cent. They have low volatility and pays a good dividend. The largest broadcasting company and are somewhat protected from Netflix streaming as they provide the internet network to consumers.
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%.
Coca-Cola Company (KO-N)
A defensive play. A consumer staple name that is diversifying away from their main product and getting more into sports drinks. They also recently purchased a coffee company with a lot of growth.
One of the world’s great brand names. They are gradually losing market share as people are consuming less. They’ve moved into other beverages. With global retail under pressure, they will be pressured a bit. For the next couple of years, he would prefer to be somewhere else. 3.3% dividend yield.
A major telecommunications company in the U.S. They are selling off assets to pay off debt. A company in a tough environment that made big bets on acquisitions. Their dividend is high but the stock has been range bound.
Looks a little bit like a value trap. A competitive business. Subscriber growth is flattening out. The company keeps on adding debt every year. There is not a lot of dividend coverage. Not a fan of the sector. (Analysts’ price target is $34.35)
Verizon Communications (VZ-N)
A defensive play that will benefit from 5G. There are concerns about their debt and the sector is very competitive. They are moving up quarterly and pay a good dividend.
More of a wireless than a telco company. Growth has really slowed down in this sector, yet cell phones remain an essential business. He likes Verizon and it's a little pricey now, but good long-term. Pays a nice dividend.