Opinions by Stan Wong | StockChase
1584
Stan Wong

Director & Portfolio Manager

ON STOCKCHASE SINCE Jun 2009

Private Wealth Management, ScotiaMcleod
675 Cochrane DriveSuite 115Markham, ONL3R 0B8
T: 905-752-1996 F: 905-752-1995 stan.wong@scotiamcleod.com
www.stanwong.com


Opinions by Stan Wong


Signal Opinion Expert Chart
       

2017-10-12

N/A
A Comment -- General Comments From an Expert 

Market.Investor sentiment has turned very positive, driven by the fact of increasing breadth in the global economic expansion, and expectations of sustained corporate earnings growth. We have a Goldilocks backdrop of improving global economic growth and modest inflation, which should allow all central banks to increase interest rates on a more gradual pace, rather than too quickly. Technically, we are overbought at this level, when you look at the RSI. A pause may be in order or some sort of consolidation. Volatility can flare up a little, whether it be from further fighting between the US and North Korea, or geopolitical strife in Washington. Given that we are moving into a very, very strong part of the season and seeing optimism surrounding potential tax reform, buying on dips and taking advantage of any consolidation makes a lot of sense. You want to be in the cyclicals. Financials are close to 30%, technology around 20%, and 22% for consumer discretionary. Those are the plays that will tend to move better in an economically sensitive environment. Has no exposure to utilities, real estate or telecom, although does have a little in consumer staples. He favours the high-quality companies. With interest rates moving higher, you want companies that are a little bit less leveraged. You don’t want to be at 30% cash in this environment. He likes both the international and EM markets, whether it be Europe, Asia or EM.

Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $0.020
Owned: _N/A

Must be logged in to use chart

2017-10-12

PAST TOP PICK
American Express (AXP-N)

(A Top Pick Aug 26/16. Up 44%.) Still likes this. It just hit new highs yesterday. Trading at about 15X forward earnings with a 10% growth rate, giving it a 1.5X PEG ratio. 1.5% dividend yield will grow at about 10% a year. They are aiming to lower their profits and rates to entice more merchants to accept its cards, by 2019. Thinks it will continue to do very well, particularly with interest rates moving higher and a possible tax reform.

investment companies/funds
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $91.610
Owned: Yes

Must be logged in to use chart

2017-10-12

TOP PICK
Alibaba Group Holding (BABA-N)

World’s largest online mobile commerce company, measured by gross merchandise value. Given that they operate in China, is a big factor why he likes this. China has 560 million Internet users, spending 20 hours a week online, by far the largest internet market globally, double the size of the US market. They are well positioned to boost revenues related to particular content, entertainment and Cloud computing, which is about 5%-6% of their revenues. Cheaper than Amazon (AMZN-Q), trading at 31X earnings on a forward basis. Has a long-term growth rate of 25%, which is not an expensive measure when looking at a company like this. (Analysts’ price target is $200.)

Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $180.530
Owned: Yes

Must be logged in to use chart

2017-10-12

TOP PICK
CitiGroup (C-N)

Given that we are going to have tighter monetary policies and a potential tax return and a lighter regulatory environment, a name like this will benefit. You can expect a very substantial shareholder capital return going forward. In June they announced a plan to repurchase $15.6 billion of shares back. Have doubled their dividend from $.16 to $.32 on a quarterly basis. This is very global which differentiates them from the other banks. Over 40% of revenues come from emerging markets. Trading at 4.97X Price to Book, which is a big discount to other names. Dividend yield of 1.7% will probably continue to move higher. (Analysts’ price target is $75.)

insurance
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $72.370
Owned: Yes

Must be logged in to use chart

2017-10-12

HOLD
Cineplex Inc (CGX-T)

He likes the insurance companies in the US. This recently did a spinoff of their smaller financial division. It has recently spiked over the last couple of months. Trading at 11X earnings with a decent growth rate. Insurance companies, particularly in the US, are going to move along with what is going to happen with interest rates. He likes insurance companies, but wouldn’t ignore large US banks. Dividend yield of 3%.

other services
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $38.560
Owned: Yes

Must be logged in to use chart

2017-10-12

COMMENT
Walt Disney (DIS-N)

Besides movies, this has theme parks, cable networks, consumer products, etc. Has owned this, made some money, but decided to cut loose at this time. Trading at about 10.3X Enterprise Value over EBITDA, which is in line with historical metrics over the last 10 years. 1.6% dividend yield, which they are going to grow modestly over the next few years. They’ve cautioned about 2017 weakness, due to higher costs associated with sports and tough film comps. That is going to ease in 2018. Also, Star Wars is coming out in December. Some of the near-term positives are a strong movie slate, theme parks, including Shanghai. However, the ESPN cord shaving is in mind, which will continue to push the stock down. $90 could represent a better re-entry point.

entertainment services
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $96.930
Owned: No

Must be logged in to use chart

2017-10-12

WATCH
Goldman Sachs (GS-N)

A name that bodes very well in terms of their offering. Trading at about 1.23 X Price to Book, not a bad valuation relative to the rest of the street. Stock has been flattening a little more recently. A name that would be on his radar.

investment companies/funds
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $239.800
Owned: No

Must be logged in to use chart

2017-10-12

HOLD
Home Depot (HD-N)

We are still in relatively mid-stages of a US housing recovery. Canada may be in the 8th or 9th inning, but the US is in the 5th or 6th inning. Trading at 20X Forward Earnings with a 13%-15% growth rate. Not a very expensive valuation. Dividend yield of about 2%+. Have returned $46 billion to shareholders through dividends and share buybacks, over the last 5 years, which represents 25% of their market cap.

specialty stores
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $164.590
Owned: Yes

Must be logged in to use chart

2017-10-12

DON'T BUY
Kraft Heinz Company (KHC-Q)

In the consumer staples space. There is going to be difficulty in terms of how it does relative to the more cyclical areas. Has performed poorly over the last while. P/E ratio is 20X Forward Earnings with about a 7%-8% growth rate. PEG ratio is about 2.6. That is at the high end of its 10-year historical record. He only owns Costco (COST-Q).

food processing
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $78.150
Owned: No

Must be logged in to use chart

2017-10-12

COMMENT
Coca-Cola Company (KO-N)

Not a sector he favours at this time. However, this has been decent, relative to the other names in the space. Trading at about 23.5X Earnings with a 6%-7% growth rate, making it a bit expensive. It gives a 4X PEG ratio, which is the high end of its range. It’s forward PE of 23.5 is at the high end of its 10-year range.

food processing
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $46.110
Owned: No

Must be logged in to use chart

2017-10-12

COMMENT
Loblaw Companies Ltd (L-T)

There is an impact for a stronger Cdn$ being able to purchase from the US, however, most grocers have currency hedging arrangements to offset currency fluctuations. The amount of purchases from US are much lower than you would imagine. It could be as low as 10% or lower. The stock is trading at about 10X Enterprise Value over EBITDA, which is in line with historical norms. Pays a 1.5% dividend yield. There are mounting costs as well as mounting competition. Food deflation hasn’t really helped. Minimum wage hikes are estimated to be about $90 million in additional costs per year. Healthcare reform is lowering drug generic drug prices, therefore pushing down margins. Too many headwinds face this company.

food stores
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $68.720
Owned: Unknown

Must be logged in to use chart

2017-10-12

COMMENT
Metlife (MET-N)

He likes the insurance companies in the US. This recently did a spinoff of their smaller financial division. It has recently spiked over the last couple of months. Trading at 11X earnings with a decent growth rate. Insurance companies, particularly in the US, are going to move along with what is going to happen with interest rates. He likes insurance companies, but wouldn’t ignore large US banks. Dividend yield of 3%.

insurance
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $52.730
Owned: Yes

Must be logged in to use chart

2017-10-12

WAIT
Magna Int'l. (A) (MG-T)

Cheap. Bought his holdings when it was closer to 7X forward earnings, but it is now closer to 8.5 X. A very cyclical industry. Be prepared to own it during an expansionary period, and Sell before an economic downturn happens. There are some questions as to what will happen with changes to NAFTA, but so far it has held up well. Just announced they had joined a conglomerate with BMW and Intel to develop a fully autonomous driving system by 2021. Because they have such a wide portfolio of products and services, automakers are going to consolidate purchases and go with a name like this, rather than the 2nd or 3rd largest type of company. Not sure he would buy at this valuation, but maybe let it calm down a little. 2% dividend yield.

Automotive
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $67.810
Owned: Yes

Must be logged in to use chart

2017-10-12

PAST TOP PICK
Morgan Stanley (MS-N)

(A Top Pick Aug 26/16. Up 59%.) Still likes this, although he Sold a little to rationalize the number of financial service name he had in the portfolio. Trading at 1.3X Price to Book, which is not too bad relative to the peer group. 2% dividend yield. With asset prices going higher and interest rates moving higher, this should help companies like this. They are relying less on trading revenues, which should get them past regulatory changes that may be coming.

investment companies/funds
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $48.590
Owned: No

Must be logged in to use chart

2017-10-12

TOP PICK
Norwegian Cruise Line Holdings (NCLH-Q)

The world’s third-largest cruise company by berth, in terms of number of total beds. Operates about 25 ships across 3 different brands. They plan to introduce 7 more ships through 2025, meaning they are going to increase capacity much faster than Royal or Carnival. Has a lot of runway when it comes to China, Europe, etc. because they are not as well exposed there. They have freestyle cruising which allows the older demographics to bring families on board. (Analysts’ price target is $65.)

Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $58.860
Owned: Yes

Must be logged in to use chart
Showing 1 to 15 of 1,584 entries
<< < 1 2 3 4 5 > >>

No Comments.


You must be logged in to comment.

Successfully Saved Company