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Stock Opinions by Rick Stuchberry

COMMENT
We're in a consolidation period after panic forced selling that was too hard. This rebound is moving stock to more realistic pricing models. We got to release the economy at some point. To get back to normal, Canada needs to start focusing on that. Don't be emotional about investing. There was panic in the third week in March, down 1,000 points a day. Each cycle has these emotions and swings. Part of the problem is we don't have enough information to forecast the economy and stocks. In 1918-1928, the start of which was marked by the Spanish Flu. Look at this period for perspective--the outcome doesn't have to be Depression. At least 50 million people died of Spanish Flu. The world is NOT coming to an end. In this period, the Down went from 70 to 380 points. Electricity became common in this period, which freed up people to have leisure time. Today, tech is doing the same thing, also boosting productivity. After the Spanish Flu, the markets and economy took off worldwide. This will happen once we get past this current pandemic.
Unknown
DON'T BUY
It's no longer investment grade, but a trading stock. Too much has fallen apart, like the jet division being sold to Europe. There are so many balls in the air, like a new untested management team.
transportation equip & components
BUY
Great company, super managers. He's studying it right now. You can buy it. This performs well over all kinds of market cycles.
management / diversified
WAIT
The theme parks and cruiselines will be effected for some time. But they also have a huge library of films and shows to stream. It's a good company and will eventually recover. Be patient and don't rush in. The wider economy still needs to recover.
entertainment services
PARTIAL BUY
Dividend safe? He did sell some earlier this year, but it's still a core position. The low interest rates kill their balance sheet. But the good news is that they have potential for growth in Asia as Asia returns to speed. The dividend is safe. It's a tricky balancing act. Generally, don't over-lever anything now. We have to get through this period before the sun shines--and the sun will shine again. You can buy this, but don't overweight any stock.
insurance
HOLD
The commodity side has been, so his small holding hasn't performed for him. Chinese demand needs to return. India needs to demand, too. Look at tech stocks instead, look at the future. That said, this and other commodity stocks will bounce back, because stock prices are so cheap. Hold, even though it will feel brutal.
Mining
PAST TOP PICK
(A Top Pick May 06/19, Down 23%) Still likes it. A cloud stock. He'd be buying it now. Great balance sheet. Demand is solid and still there. New economy stocks will survive and thrive, benefitting from people staying home on their computers. Internet meetings could become the New Normal. People are using their computers more than ever in ways they didn't expect it, and some companies will benefit long term.
Technology
PAST TOP PICK
(A Top Pick May 06/19, Down 59%) They stumbled with a new distribution system in North America and their supply lines from China were totally disrupted. The balance sheet remains strong, so they will survive, but how long will it take for them to recover? When will stores reopen? He's holding on.
0
PAST TOP PICK
(A Top Pick May 06/19, Down 75%) Oil was a poor sector choice. He was hoping this would be a trade, expecting oil prices to rise. Great balance sheet and managers, but oil price have just plunged. ERF will survive. He owns very little of ERF now. ERF has done what they could in this pandemic.
oil / gas
COMMENT
A great company, one of Canada's best oil companies with a super balance sheet. But CNQ couldn't do anything during the recent oil war. What could they do? They can't control the price of oil. This will be a consolidator over time. Smaller energy companies won't make it through. Oil is a tough sector with a murky future. Will oil return to $50 or $60? Oil companies have to wait for the oil price to rise.
oil / gas
COMMENT
Why has the Canadian dollar held up so well? He's surprised it has hung in, given the hit that oil has taken. A reason is that Canada has a hidden tech industry and that's kept the economy and CAD afloat. Tech is the future of the Canadian economy.
Unknown
COMMENT
Gold sector outlook in 3-6 months. He doesn't own gold, just a bit in his RRSP. The best charts on the TSX are gold. He was disappointed when gold sold off during the initial panic sell last month. Now, gold is in a perfect place with cheap lending rates and good demand for gold. The mines can re-open even during social distancing. But he considers gold stocks a trade, not an investment. It's an opportunity now to trade. Gold is in seasonal strength now through the summer.
Unknown
TOP PICK
New economy focus. Square lets you pay using a phone. Fintech will be explosive in the next few years. Cash is considered dirty now, another tailwind. This grows at 40% a year. Good balance sheet. Solid and in the right space: tech. (Analysts’ price target is $62.80)
0
TOP PICK
Have 100 million customers. Uber Eats is doing well, though ride-shares are in a hiatus. He's making small positions in this because it could go sideways for a while. Take advantage of pullbacks. (Analysts’ price target is $42.00)
Technology
TOP PICK

This didn't come down much during the pandemic. Has good growth and diversification. Has its own payment system. Actually, this sold off last year during the trade war, but has held in this year like a rock. They are solid. Has good growth ahead. (Analysts’ price target is $56.67)

0
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