GlobeInvest Capital Management
Latest Top Picks
Canadian bank outlook The Canadian banks offer decent value though have lagged the overall market. The banks have provisioned in Q2 and Q3, and this level has likely peaked, so these levels should decline ahead. Look out for the next quarterly report, because the banks heavily warned about mortgages and commercial loans and many of these will start to roll off. The banks offer good dividend yields that she expects to hold. The banks entered the pandemic with strong capital and continued to strengthen it. She also own RY. Like this and TD. She'd buy both presently.
Canadian bank outlook The Canadian banks offer decent value though have lagged the overall market. The banks have provisioned in Q2 and Q3, and this level has likely peaked, so these levels should decline ahead. Look out for the next quarterly report, because the banks heavily warned about mortgages and commercial loans and many of these will start to roll off. The banks offer good dividend yields that she expects to hold. The banks entered the pandemic with strong capital and continued to strengthen it. She also own RY. Like this and TD. She'd buy both presently.
Regulations in the U.S. may affect distribution They recently bought health insurer Aetna. A cheap stock trading at 9x forward earnings. Not sure why the price has come off in the past month, maybe a rotation into momentum. The PBM business (https://en.wikipedia.org/wiki/Pharmacy_benefit_management) always has an overhang with the US government wanting to lower prices. These worries are absorbed into the CVS stock price. Also, CVS has had to pay more for PPE and labour wages, but these costs should abate in time. The current price reflects all these overhangs.
Regulations in the U.S. may affect distribution They recently bought health insurer Aetna. A cheap stock trading at 9x forward earnings. Not sure why the price has come off in the past month, maybe a rotation into momentum. The PBM business (https://en.wikipedia.org/wiki/Pharmacy_benefit_management) always has an overhang with the US government wanting to lower prices. These worries are absorbed into the CVS stock price. Also, CVS has had to pay more for PPE and labour wages, but these costs should abate in time. The current price reflects all these overhangs.
She owns Visa in the digital payments instead, because they have the lowest-cost platform here. PYPL trades at a higher valuation. They really pulled back in the recent tech sell-off. This space offers long-term growth, so you need to own it.
(A Top Pick Sep 12/19, Up 5%) Global consumer staples and defensive. Has long owned this. They're growing their personal care division, which offers high margins, and accounts for 40% of revenues. Dove, Lux and Tresemme are some of their brands. 60% of their revenues are free emerging markets, which she expects to grow long term. Near term, developed markets will remain strong because of pantry loading and customers gravitate to well-known brands. UL were able to leap from 2 to 60 factories making hand sanitizer. A consistent dividend grower.
(A Top Pick Sep 12/19, Up 5%) Global consumer staples and defensive. Has long owned this. They're growing their personal care division, which offers high margins, and accounts for 40% of revenues. Dove, Lux and Tresemme are some of their brands. 60% of their revenues are free emerging markets, which she expects to grow long term. Near term, developed markets will remain strong because of pantry loading and customers gravitate to well-known brands. UL were able to leap from 2 to 60 factories making hand sanitizer. A consistent dividend grower.
Like Unilever, is a global consumer, defensive name. MDLZ offers world-famous brands in snacks that have done well in this pandemic.
She owns JP Morgan in US banks. They just announced a new CEO. They need to spend more on risk monitoring, which is strange so late in the day. This will drag on the recovery on their bottom line, because this spend will weigh on their expenses. Banks on both sides of the border are attractive. She prefers JPM because their managers are strong; they're the cream of the crop among US banks. JPM was very conservative in their provisions in the last few quarters. Will bounce back.
She owns JP Morgan in US banks. They just announced a new CEO. They need to spend more on risk monitoring, which is strange so late in the day. This will drag on the recovery on their bottom line, because this spend will weigh on their expenses. Banks on both sides of the border are attractive. She prefers JPM because their managers are strong; they're the cream of the crop among US banks. JPM was very conservative in their provisions in the last few quarters. Will bounce back.
