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Stock Opinions by Lorne Steinberg

COMMENT
We've been through world wars and depression. Further, after these downturns, markets rally strongly. This is the time to buy. He looks for companies with a record of free cash flow generation and earnings.
Unknown
DON'T BUY
A great time to buy high-yield bonds, paying over 7%. But Canadians shouldn't buy HYG, because the USD is strong and if it falls, it will hurt you. Instead, buy a bond ETF that's currency-hedged.
E.T.F.'s
HOLD
No, it's not a European version of GE. Rather, PHG has done well, but their sleep apnea machine has gone into recall and attracted lawsuits. This is weighing on the stock, though long-term this is a good investment. Still happy to own it. But who knows how this or any lawsuit will end, and the overhang will continue over this stock.
misc consumer products
BUY
Later this year they will complete the sale of a business and the company could (probably) buy back 10% of shares with that cash. Be patient. Trades at only 3-4x earnings. So a buyback will be a big boost to shares. Early on their reports disappointed but lately has been alright. This flies under the radar.
Pharma & Healthcare
BUY
A US regulatory review could stop TD's takeover of a US company TD is in Elizabeth Warren's focus, but doesn't think it's weighing too much on shares. He's a big believer in Canadian banks, which have come down a bit, though not as badly as global banks. TD remains a core holding.
banks
BUY
All REITs have come down as interest rates rise. CAP REIT is the largest apartment REIT in Canada and has been incredibly well-run for decades. It offers decent growth because rents are rising. Likes it. Sees growth in share price and dividend. Long term this is a compelling hold.
investment companies / funds
BUY
They get a tiny piece of each transaction. Global presence with great growth potential in Asia. There are recessionary fears, but now is a chance to buy a world-class business as shares have come down. When the economy roars back, so will Visa shares.
other services
HOLD
Is trading very cheaply, because the market is discounting China's tech stocks. If you already own this, hold and leave it alone. Shares could see upside. China's government may loosen the leash and this could lead to an upside surprise. He's content to hold a small position, but it is a riskier stock.
0
COMMENT
Investment-grade corporate bonds vs. a bond ETF For the corporate bonds, a retail investor wouldn't be buying them at the same price an investment firm. If you get a reasonable yield, go ahead. Owning an ETF gives you diversification though; an ETF avoids the risk of holding an individual bond, should anything happen to that bond and its value falls. He prefers a bond ETF.
Unknown
PAST TOP PICK
(A Top Pick Jul 28/21, Down 6%) Is the fastest-growing spirits/drinks company now with revenue growth nearing 10%. It carries a huge portfolio of premium brands which are immune to a recession. DEO is a core holding. A world-class business.
food processing
PAST TOP PICK
(A Top Pick Jul 28/21, Up 10%) A Japanese beer company. Trades at 10x PE and pays a 3% dividend. Managers are modern-thinking--are aggressively buying back shares. Great market share.
Consumer Products
PAST TOP PICK
(A Top Pick Jul 28/21, Up 5%) A huge retailer in the US midwest, selling outdoor goods like tools and lawn furniture. Growing and expanding well. Solid margins. Not exactly recession-proof, but should do well in a downturn. Also, they have few competitors.
merchandising / lodging
WATCH
It's under pressure and this stock is under review for him. They have created shareholder value in the past. If you own this, do not sell.
management / diversified
COMMENT
Why are markets down before a Fed meeting when it's commonly known when the US Fed's hikes are baked into the market? There's a lot of day-trading around Fed meetings. Also, it depends on what the Fed's wording will be, since that can have huge impact. Yes, it's baked into the market, too. This volatility is nothing we haven't seen in past cycles.
Unknown
BUY
Buy US banks? He's very bullish on the money-centered banks. Global banks are all down, so now is a good buying opportunity. They're down because the are exposed to investment banking. There is less M&A and few IPOs coming, so these revenues are certainly down. Secondly, the yield curve is flat to inverted, so net interest margins are squeezed. However, this is a short-term cyclical problem that will self-correct. These banks pay good dividends and offer good free cash flow at low PE's. What are you waiting for?
investment companies / funds
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