David Driscoll
President & CEO at Liberty International Investment Management Inc
Member since: Oct '00 · 2302 Opinions
Rating Card
| All | 
Rating
| 
Big Win
| 
Win
| 
Neutral
| 
Loss
| 
Big Loss
|  |
|---|---|---|---|---|---|---|---|
| 4.09 | 96 29.27% | 97 29.57% | 55 16.77% | 62 18.90% | 18 5.49% | ||
| 1 Month | 4 | 7 8.05% | 29 33.33% | 29 33.33% | 21 24.14% | 1 1.15% | |
| 6 Months | 4.1 | 20 24.69% | 30 37.04% | 12 14.81% | 13 16.05% | 6 7.41% | |
| 12 Months | 4.14 | 28 35.90% | 22 28.21% | 8 10.26% | 14 17.95% | 6 7.69% | |
| 2 Years | 4.11 | 31 45.59% | 16 23.53% | 6 8.82% | 11 16.18% | 4 5.88% | |
| 5 Years | 0 | 10 71.43% | 0 0.00% | 0 0.00% | 3 21.43% | 1 7.14% |
Stock Opinions by David Driscoll
N/A
Market. There are a couple of problems right now. When people are thinking about risk, there is a lot of noise out there right now. And then there is financial engineering. Companies are not using GAAP earnings. This sent the multiples through the roof. S&P earnings are amongst they highest they have been. Companies are comparing Q1 earnings to a year ago when earnings were disastrous. There will be a jump in earnings surprises.
Unknown
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PARTIAL BUY
They are able to get better prices and deal with huge demand, but the problem is that they trade at about 50 times earnings. They generate terrific margins. He would probably step into this stock with half a position if he wanted to get in, given where markets are right now. It is a better holding that Intel.
DON'T BUY
He is not a big fan of car companies because they don't generate much free cash flow. Cap X is very high. He would prefers LFUS-Q. It makes all the fuses that go into electric vehicles.
DON'T BUY
They are waiting for approval for their vaccine against COVID in Japan. They are pretty much an oncology firm. You have to compare against other companies in the sector. This one does fine with a PE of 8.8 times and the payout ratio is quite low. The dividends and cash flow are not growing, however. They have to come out with a blockbuster product. See his top picks today for a preferable.
Pharma & Healthcare
BUY
Irrigation technology. Farmers have more money to spend and more of their sales are international now. They made a turnaround in their business. The balance sheet is in place. He thinks they have a bright future ahead of them.
machinery
BUY on WEAKNESS
East-west rail lines. Their recent acquisition failure means they don't have access to Mexico. About 27 times earnings. It is probably a little rich. Monitor it and if it takes a nose dive then it is a time to step in.
Transportation
HOLD
A new high today. A big food conglomerate. A drought and taking care of farmers is in the past. He prefers a different chocolate producer that works with farmers to give them a decent wage, and does not have governance issues. The dividend growth has not been all that high over recent years.
food processing
PAST TOP PICK
(A Top Pick Aug 25/20, Up 7%) They suffered because of a lack of elective surgeries. The backlog of two to three years is going to start to put the earnings upwards. It is actually quite cheap where it stands now. The have a good history of free cash flow generation.
Healthcare
PAST TOP PICK
(A Top Pick Aug 25/20, Up 40%) He is very happy with what it is doing. They are involved with all of the telecom 4-G/5-G chips that are taking hold as well as autonomous vehicles. It has done well simply because of a chip shortage. They will expand from North America to global sales. He would buy it now.
electrical / electronic
PAST TOP PICK
(A Top Pick Aug 25/20, Up 27%) They just merged with another healthcare company. This is a solid company that grows profits and dividend about 10% a year. He believes there is a lot of good news to come.
medical services
BUY on WEAKNESS
The big issue is interest rates. If they rise then these companies suffer. He likes it and owns it in TFSA portfolios. The price is rich so take your time building a position.
management / diversified
HOLD
You have to see how the AMZN partnership goes. They have to deal with the costs of getting up to speed with 5G. There is lots of capital expenditures. He owns other telecoms. The dividend is good and is growing.
BUY
With the opening of elective surgeries, it will start to pickup. The aging population will benefit them. They are head and shoulders above their peers.
biotechnology / pharmaceutical
BUY
They have a tailwind as we move away from fossil fuels.
chemicals
DON'T BUY
They have too high a debt level. It will probably struggle until they can pay down the debt.
Automotive
