Gordon Reid
Member since: Oct '07
President at
GoodReid Investment Counsel
GoodReid Investment Counsel
2496 Opinions
Latest Top Picks
(A Top Pick Feb 06/19, Up 30%) They've become much more efficient in managing their stores, yet the number of stores remains the same. Operating profit has jumped 11% to 16%. Net profit doubled. Last year's initiatives dampened earnings a bit, but will pay off in 2021.
(A Top Pick Feb 06/19, Up 31%) They beat on revenues and earnings today, but not good enough for the street. Don't get caught up on one day's reaction (FB is selling off after hours). True, costs rose, but they're doing that to combat fake posts, something the street urges them to do, yet the street is punishing them. That's incredible and nonsensical. FB remains a huge holding of his and he's happy to hang on.
(A Top Pick Feb 06/19, Up 47%) Small caps are in the sweet spot. This is a home-builder stock, driven by strong US consumers, low interest rates and low unemployment.
Also a past pick. US housing starts hit a 15-year high, a huge tailwind. (Analysts’ price target is $233.67)
They continue to innovate with technology. They reported today good same-store sales. Like a REIT, it's a predictable money machine. (Analysts’ price target is $226.54)
Signal
Opinion
Expert
Chart
COMMENT
COMMENT
January 29, 2020
The coronavirus hasn't been declared a pandemic yet. Markets have a history of overreacting to pandemics, but after past viruses have been declared a pandemic, markets tend to recover losses and move into the positive. We'll see if this happens this time. Don't react out of fear. He's ready to snatch up stocks that are oversold.
Show full opinionHide full opinion
The coronavirus hasn't been declared a pandemic yet. Markets have a history of overreacting to pandemics, but after past viruses have been declared a pandemic, markets tend to recover losses and move into the positive. We'll see if this happens this time. Don't react out of fear. He's ready to snatch up stocks that are oversold.
HOLD
HOLD
January 29, 2020
It's seen a perfect storm from internal and external factors: the US-China trade war, a costly cyberattack overseas, and Amazon competition. But there is enormous potential as overnight delivery grows and drone delivery and e-cars reduce labour costs. He sees a $12 EPS trough this year. On the upside, he sees $17-18 EPS on a 15x multiple as FedEx improves. FedEx is a force led by a tough CEO.
It's seen a perfect storm from internal and external factors: the US-China trade war, a costly cyberattack overseas, and Amazon competition. But there is enormous potential as overnight delivery grows and drone delivery and e-cars reduce labour costs. He sees a $12 EPS trough this year. On the upside, he sees $17-18 EPS on a 15x multiple as FedEx improves. FedEx is a force led by a tough CEO.
Transportation
PAST TOP PICK
PAST TOP PICK
January 29, 2020
(A Top Pick Feb 06/19, Up 30%) They've become much more efficient in managing their stores, yet the number of stores remains the same. Operating profit has jumped 11% to 16%. Net profit doubled. Last year's initiatives dampened earnings a bit, but will pay off in 2021.
Show full opinionHide full opinion(A Top Pick Feb 06/19, Up 30%) They've become much more efficient in managing their stores, yet the number of stores remains the same. Operating profit has jumped 11% to 16%. Net profit doubled. Last year's initiatives dampened earnings a bit, but will pay off in 2021.
specialty stores
PAST TOP PICK
PAST TOP PICK
January 29, 2020
(A Top Pick Feb 06/19, Up 31%) They beat on revenues and earnings today, but not good enough for the street. Don't get caught up on one day's reaction (FB is selling off after hours). True, costs rose, but they're doing that to combat fake posts, something the street urges them to do, yet the street is punishing them. That's incredible and nonsensical. FB remains a huge holding of his and he's happy to hang on.
Show full opinionHide full opinion(A Top Pick Feb 06/19, Up 31%) They beat on revenues and earnings today, but not good enough for the street. Don't get caught up on one day's reaction (FB is selling off after hours). True, costs rose, but they're doing that to combat fake posts, something the street urges them to do, yet the street is punishing them. That's incredible and nonsensical. FB remains a huge holding of his and he's happy to hang on.
PAST TOP PICK
PAST TOP PICK
January 29, 2020
(A Top Pick Feb 06/19, Up 47%) Small caps are in the sweet spot. This is a home-builder stock, driven by strong US consumers, low interest rates and low unemployment.
Show full opinionHide full opinion(A Top Pick Feb 06/19, Up 47%) Small caps are in the sweet spot. This is a home-builder stock, driven by strong US consumers, low interest rates and low unemployment.
REAL ESTATE
DON'T BUY
DON'T BUY
January 29, 2020
He did very well with it for 10 years. Sure, the chart is amazing, but the stock's fundamentals don't match a fair multiple. Today, Visa trades at a 60% premium, though Visa continues to execute very well. He saw too much risk vs. reward.
Show full opinionHide full opinionHe did very well with it for 10 years. Sure, the chart is amazing, but the stock's fundamentals don't match a fair multiple. Today, Visa trades at a 60% premium, though Visa continues to execute very well. He saw too much risk vs. reward.
other services
SELL
SELL
January 29, 2020
The stock, but also the PE has taken off after doing nothing for years. Good observation of the PE as well as stock price. PG are getting rid of their shaving business, which is a debacle with a huge write-down. Exit this, because what you expected to happen to this stock has already happened.
Show full opinionHide full opinionThe stock, but also the PE has taken off after doing nothing for years. Good observation of the PE as well as stock price. PG are getting rid of their shaving business, which is a debacle with a huge write-down. Exit this, because what you expected to happen to this stock has already happened.
misc consumer products
BUY
BUY
January 29, 2020
They have a lot of runway ahead with pricing power. In North America, 53% of equipment is rented; Japan and Europe that's 80%. URI is still cheap. He targets $21/share this year.
Show full opinionHide full opinionThey have a lot of runway ahead with pricing power. In North America, 53% of equipment is rented; Japan and Europe that's 80%. URI is still cheap. He targets $21/share this year.
Financial Services
COMMENT
COMMENT
January 29, 2020
BAC vs. JPM Driving US banks is a strong economy and flat yield curve. Unlike last year, bank movement now will be on a valuation basis. JPM trades at a 50% premium to book value, and BAC at book value, but Citibank (which he owns) trades at 70% book value and is narrowing that gap. Citi is his choice.
BAC vs. JPM Driving US banks is a strong economy and flat yield curve. Unlike last year, bank movement now will be on a valuation basis. JPM trades at a 50% premium to book value, and BAC at book value, but Citibank (which he owns) trades at 70% book value and is narrowing that gap. Citi is his choice.
banks
COMMENT
COMMENT
January 29, 2020
SYK vs. Anthem He likes both. Stryker trades at 23x PE. He owns Anthem, which hit on earnings, but the market was skittish on their expense line. It's a great healthcare company
biotechnology/pharmaceutical
BUY
BUY
January 29, 2020
A fine company that'll be very important to the 5G roll-out. Definitely hold onto this.
Show full opinionHide full opinionA fine company that'll be very important to the 5G roll-out. Definitely hold onto this.
Telecommunications
BUY WEAKNESS
BUY WEAKNESS
January 29, 2020
They have a half-trillion dollars in assets. They just went from a partnership to a C-corp. It's lumpy, so buy in weakness.
Show full opinionHide full opinionThey have a half-trillion dollars in assets. They just went from a partnership to a C-corp. It's lumpy, so buy in weakness.
investment companies/funds
DON'T BUY
DON'T BUY
January 29, 2020
It's performed by cutting costs, not by growth. The reason is that as they develop new drugs, they go off-patent and lose billions. It's a cost story, simply. You're spinning your wheels here.
Show full opinionHide full opinionIt's performed by cutting costs, not by growth. The reason is that as they develop new drugs, they go off-patent and lose billions. It's a cost story, simply. You're spinning your wheels here.
biotechnology/pharmaceutical
TOP PICK
TOP PICK
January 29, 2020
Also a past pick. US housing starts hit a 15-year high, a huge tailwind. (Analysts’ price target is $233.67)
Show full opinionHide full opinionAlso a past pick. US housing starts hit a 15-year high, a huge tailwind. (Analysts’ price target is $233.67)
specialty stores
TOP PICK
TOP PICK
January 29, 2020
They continue to innovate with technology. They reported today good same-store sales. Like a REIT, it's a predictable money machine. (Analysts’ price target is $226.54)
Show full opinionHide full opinionThey continue to innovate with technology. They reported today good same-store sales. Like a REIT, it's a predictable money machine. (Analysts’ price target is $226.54)
food services
Comments
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