GoodReid Investment Counsel
Reveal Expert RatingLatest Top Picks
This morning the news said that distribution has been halted in the US, so the stock is declining today. Like Pfzier, JNJ is seeing a one-time bump because of their vaccine. JNJ is struggling in their consumer business as consumers move to generic drugs, not branded. Also, litigation remains a cloud, referring to asbestos in its Baby Powder. There are other opportunities in healthcare, like Anthem, the insurer, or retailer CVS, or Abbvie trading at a reasonable PE and offers good growth.
This morning the news said that distribution has been halted in the US, so the stock is declining today. Like Pfzier, JNJ is seeing a one-time bump because of their vaccine. JNJ is struggling in their consumer business as consumers move to generic drugs, not branded. Also, litigation remains a cloud, referring to asbestos in its Baby Powder. There are other opportunities in healthcare, like Anthem, the insurer, or retailer CVS, or Abbvie trading at a reasonable PE and offers good growth.
It's a safe, solid choice, likely the best-run bank in the world under a superb CEO. There's still money to be made in the banks. JPM reports tomorrow. He wants to hear about their loan growth and net interest margins during this steeper yield curve. They've excelled in capital markets as SPACs continue to hum and he expects this to continue. They have many years of cost-cutting. BAC has slightly more upside, though.
It's a safe, solid choice, likely the best-run bank in the world under a superb CEO. There's still money to be made in the banks. JPM reports tomorrow. He wants to hear about their loan growth and net interest margins during this steeper yield curve. They've excelled in capital markets as SPACs continue to hum and he expects this to continue. They have many years of cost-cutting. BAC has slightly more upside, though.
(A Top Pick May 12/20, Up 24%) He's sticking with it. There's more upside to come. Their biggest product was Humera, a massive drug. A few years ago, they bought Allergan and their Botox drug, which reduced company dependence on Humera for company revenues. ABBV has some new drugs in the pipeline that are reaching $1 billion in sales, so this further spreads the risk away from Humera. It trades at a cheap 9x PE and pays a 5% dividend. Warning: in 2023, Humera goes off patent and that will mean a challenge for ABBV to replace that revenue stream (Humera makes up 32% of all revenues, though it used to be 65% before Botox).
(A Top Pick May 12/20, Up 24%) He's sticking with it. There's more upside to come. Their biggest product was Humera, a massive drug. A few years ago, they bought Allergan and their Botox drug, which reduced company dependence on Humera for company revenues. ABBV has some new drugs in the pipeline that are reaching $1 billion in sales, so this further spreads the risk away from Humera. It trades at a cheap 9x PE and pays a 5% dividend. Warning: in 2023, Humera goes off patent and that will mean a challenge for ABBV to replace that revenue stream (Humera makes up 32% of all revenues, though it used to be 65% before Botox).
They've built a fabulous brand, but this is a cult stock which doesn't support the stock fundamentals. Is it worth 95x enteprise value when GM is at 6x. There's danger in this high-beta stock. The stock price fluctuates a lot based on emotion.
They've built a fabulous brand, but this is a cult stock which doesn't support the stock fundamentals. Is it worth 95x enteprise value when GM is at 6x. There's danger in this high-beta stock. The stock price fluctuates a lot based on emotion.
Ford vs. GM This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.
Ford vs. GM This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.
This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.
This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.
