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Stock Opinions by Greg Newman

COMMENT

The US markets are fully valued, though there are pockets to pick away at. You can buy growth stocks when they dip. However, year-end S&P estimates aren't much more than current levels. The real action remains in the TSX and outside the US which are pretty cheap. He's commodities-based--metals, meterials, and banks all look good. These are still exciting times. If markets sell off on China or lower bond yields, then these are buying opportunities. In the TSX, industrials and commodities (oil and gas) are very cheap and look good. Financials are okay. The CAD is a reflationary trade and has backed off; but maybe late in the year the CAD will come back and encourage foreign investment in Canadian stocks for the first time in a long time. Big tech like Apple and Microsoft report and you have to own them, though Apple is pretty rich. You still need to buy Amazon based on price-to-growth. It's summer, so there are correction fears, but there was one sell-off day last week, followed by four days of rallies. A correction? No. He doesn't see one. Maybe the market won't go up a whole lot, but it won't fall apart.

Unknown
BUY
I a good entry point now, despite the 38x PE. The stock is kinda underowned, with some saying QSR locations are saturated in Canada. WSR has done well in the last quarter. EPS growth is 22% and pays a 3.3% dividend yield. Likes it.
food services
BUY on WEAKNESS
Has recommended this for a long time. It's trading at a more reasonable PE now. You collected a good dividend. It's not cheap now, but in no man's land. Maybe don't buy it today, but have it under your radar. Buy under $19.
electrical utilities
BUY on WEAKNESS
His top pick in the past. He's owned this for a long time and never sold. It's a great story. It'll probably double in the next five years. A must-buy for Canadian investors. But it's fickle--its valuation can move around. Don't buy it now. Wait for a pullback to $1,500-1,600. He expects this to go a lot higher.
0
DON'T BUY
It's very expensive in PE terms. It's a risky stock and acting poorly nowadays. [Note: audio problems]
Technology
BUY

CN vs. CP Easy. Go with CN. Latest news is a letter saying that the merger with KSU is not in the public interest. If the merger happens, it will be accretive long-term. If not, CN remains attractive, trading at 18x 2023 earnings while growing at 11%. At times, he's a CP guy, but here he'd pick CNR. [Note: some audio problems]

Transportation
BUY
Still likes it. Pays a good dividend. He still sees value in the energy sector as a whole, as oil and natural gas prices will hold. [Note: audio problems]
oil / gas
BUY
He owns its peers. He likes the natural gas space. TOU stands out. The U.S. is increasing its exports. Events like last winter's storm drives demand. TOU will do good for investors in the next few years. [Note: audio problems]
oil / gas
PAST TOP PICK
(A Top Pick Aug 17/20, Up 1%) He bought this to play defence and collect its nice dividend. They're still growing earnings at 13%, faster than peers. The whole group is nervous, that they have to spend more on spectrum. But this is a good 5G play over time. It's still a buy.
publishing / printing
PAST TOP PICK

(A Top Pick Aug 17/20, Up 62%) It remains a compelling name. He models 14% EPS growth. Their underlying subsidiaries are performing well, including Great-west Life which is doing acqutisiions. Also are doing private equity plays like Wealthsimple. Pays a nice dividend.

mngmnt / diversified
PAST TOP PICK
(A Top Pick Aug 17/20, Up 23%) Pays a nice, growing dividend. He still believes in it. They make good acquisitions in counter-cyclical times.
Energy Infrastructure, Industrials & Utilities
DON'T BUY

He prefers BMO among Canadian banks, which all have a good future. He doubts LB will grow like the other banks. Loan growth business is a worry. He doesn't see many catalysts for LB. If you hold this, at least you collect their dividend.

banks
BUY

A must-own. Their infrastructure, renewable power and BBU stocks and divisions are all great and you can own any of them. Their private equity division is on fire and is the real kicker in owning BAM. It'll grow and can own it long term. Of course, buying on dips like 5% is good.

management / diversified
BUY

The market worries all these telcos are overpaying on spectrum. He predicts the Rogers-Shaw deal will happen. The telcos will benefit from 5G and should be held in a TFSA as you collect the good dividends.

telephone utilities
BUY
Of the majors, SU is the best. It trades cheaply and has a strong production profile. He can't find fault with it. It continues to execute well and pays a decent dividend.
integrated oils
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