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Stock Opinions by Robert Lauzon

COMMENT
The ending of lockdowns and increasing vaccinations (ex-Canada) around the world: It is exciting the markets: earnings estimates are climbing and thrilling consumer stocks (cruiselines, airlines seeing increased booking for the second half of 2021). This excitement is weeks away for Canadians. The reopening is a good thing and it's coming. He maintains a barbell approach in his investing: he holds growth in communications, tech and global brand companies (i.e. Nike); and he also holds cyclicals to receive dividends. It's time for a pause in the recent climb in the US 10-year yield; we're now touching a ceiling of 1.4%. This run-up has caused some inflation scare in the market and caused cyclicals (energy and financials) to rally, but has tossed the best-quality growth stocks to the side. Without global monetary stimulus, we would have had higher interest rates. Powell is speaking now, and he vows to keep rates low and perhaps allow inflation to rise a little higher to encourage fuller employment. This will help earnings. Gold and stocks have been a good hedge against inflation; over time, inflation leads to higher earnings which lift share prices.
Unknown
DON'T BUY

He used to own this for its dividend, but became unhappy with how they executed on growth plans. He doesn't see much forward growth in the next two years. They're moving some production to Taiwan Semiconductor. They lag the leaders in semis now. The stock fell to $45, but has rebounded nicely, due to activists who saw value in INTC. He prefers AMD and Nvidia, both momentum growth stocks that have pulled back in the last 3 weeks.

electrical / electronic
BUY
A favourite medical device stock; their products are established in hospitals and medical labs. A big holding of his. Though it's been lagging in the last 4 months. He likes the current stock price and sees 20% upside this year in this stock. They do M&A well but they also grow organically. Maybe the market is waiting for them to do a big purchase. TMO does well year after year, and you can buy and hold this for a long time.
electrical / electronic
BUY on WEAKNESS
A core tech/consumer product holding of his. It's taking a breather with all momentum stocks that led in 2020. The rise in bond yields, driving the current rotation, is hitting these tech names hard, though Apple not too badly. He likes Apple for its ecosystem based on a solid consumer base that continues to upgrade their phones, buy their products and use their services. Apple is no longer cheap and has been pricing in its obvious growth. Don't sell, but average down with any 5-10% pullback, and have a long-term view.
electrical / electronic
BUY on WEAKNESS
Buy for dividend, growth or both? He's owned this for years as one of his first income trusts. This can be lumpy becomes it's commodity based. They always pay a dividend, but it varies. Commodity prices move and spike. He likes it. Buy it in the low-$30s. All metal stocks have had a great run. If bond yields peter out, there'll probably be some money move back into tech and out of cyclicals and this could push the price down. But watch the price of iron ore closely. LIF usually trades between in $20-40.
Financial Services
PARTIAL SELL
The current Brookfield purchase offer The IPL board has 15 days to respond to the offer. He no longer owns this. This trades $1 more than the Brookfield offer. The key value in IPL is their heartland petrochemical growth project; he hopes IPL releases costs and profitability of this massive project which could drive the share price. Brookfield already owns almost 20% of IPL and has alluded to a higher offer price. If you hold IPL, maybe sell 20-25% in case the deal collapses or some shock happens, then wait for management has to decide on your next move.
oil pipelines
PARTIAL SELL
He's lucky to have owned this for a long time. A super e-commerce play for him. They have a monopoly in the skies as they move parcels across Canada. Business is booming. E-commerce won't change, but he expects more competition to come here. If this has become outgrown in your portfolio, take some profits. An entry point is to buy on dips.
Transportation & Environmental Services
PAST TOP PICK

(A Top Pick Jan 28/20, Up 22%) Gives him exposure to renewable infrastructure. TA has rebounded since the pandemic. TA is viewed as Alberta power, but it also co-owns subsidiary Transalta Renewables (wind and solar power generation). You get the rest of TA for free, really, if you strip out T-Renewables. The price of electricity has really come back recently which has boosted shares. This is undervalued and he still likes it.

electrical / electronic
PAST TOP PICK
(A Top Pick Jan 28/20, Up 23%) Water scarcity is an pressing issue and the water grid around the world needs upgrading. That's why he bought this. Texas, given the recent freeze, probably will offer business to XYL to repair/upgrade their water infrastructure.
environmental
PAST TOP PICK

(A Top Pick Jan 28/20, Up 12%) They host Google cloud, Amazon cloud and AT&T. Busy is booming. It's a growth vehicle, but growth stocks are currently out of favour. The price has pulled back, so it's a buying opportunity. He still likes it.

REAL ESTATE
BUY on WEAKNESS

3-5-year outlook He sees it doubling in maybe 5 years. It's a megacap tech stock growing at 15% yearly; it continues to buyback shares and raise its dividend. it's entrenching into corporations and small businesses alike. It's a cornerstone tech stock like MFST. Buy on pullbacks to come. A solid buy.

computer software / processing
BUY
The go-to copper name. Institutional investors do. Mining stocks will go sideways in the short-term after their recent rally, but will rally again later this year.
non-base metal mining
PARTIAL SELL

ING and Euro banks have run up, so switch to other banks around the world? For stability, switch to the Canadian banks exposed to the US (TD and BMO) which have lagged but are now catching up The US economy will have a few good quarters, because they're ahead in vaccinations. Even BNS is okay, given exposure to Latin America. The Canadian banks pay a solid dividend and boast strong balance sheets The Canadian banks pay nice dividends and offer quality balance sheets.

investment companies / funds
HOLD
In the next 6 months as rates edge higher, Costo may get lost in the shuffle and go sideways. COST is a consumer staple with high growth expectations, a great company. You'll make money 3-5 years out, but earnings have to catch up to the stock price after COST rallied last year at a high valuation. COST is a market leader and he likes it. Stick with it if you're long term, but a trader may want to move out of this and enter, say, a Canadian bank.
department stores
BUY on WEAKNESS
One of his favourite Canadian names for renewables. It's pulled back because renewables are taking a breather after soaring earlier his year, driven by Pres. Biden pro-green energy stance; U.S. investors jumped on the bandwagon. Harsh winter weather in Texas shows that renewables can be effected and around the same time BEP issued more shares, hence the share pressure. He strongly believes in green power, expecting corporations and governments to invest in green power for years to come. Buy on this pullback.
Utilities
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