Jason Del Vicario
Member since: Jul '16
Portfolio Manager at
HollisWealth
HollisWealth
412 Opinions
Latest Top Picks
(A Top Pick May 02/19, Down 12%) They are the UK version of MLS for real estate listings. They dominate the property search business there at 75%. Gross margins are 90% and net margins of 70%. They have been increasing average rent per user. Have no debt, carry cash and pay a nice dividend. The virus has reduced agent costs by 75% in the past quarter, but once this virus passes he expects things will return to relative normal. Down 40% from their highs. Amazin metrics. A screaming buy. He will add to his holdings when this pullbacks.
(A Top Pick May 02/19, Up 16%) A huge fan. Amazing management. They continue to buy software companies. They see a large runway for growth ahead and want to buy more. 3.5% is their free cash flow yield. Watch their upcoming AGM.
(A Top Pick May 02/19, Down 25%) He got stopped out. It was a value play. It was cheap at $15. He doesn't know how retailer investors will respond to this current uncertainty. The mutual fund business was facing headwinds before the pandemic. He won't buy back his shares.
Firing on all cylinders. He bought this at $115. They're deploying capital from their stable Windows business into the cloud. You can buy this and forget it. Predictable. Stable. (Analysts’ price target is $197.42)
They are the Japanese version of Open Table. Their app does price comparisons. They boast high margins, high ROE and no debt. Plus, they always innovate, bringing new apps to market that attract users. Example: a bus tour app that you can use in Japan to navigate. Once an app attracts alot of traffic, they monetize that app by charging the user. It's a small company that trades in Japan. Now, they are focusing on take-out services for restaurants during this pandemic--flexible. They will continue to do well. (Analysts’ price target is $23.20)
Signal
Opinion
Expert
Chart
COMMENT
COMMENT
May 5, 2020
Spread your bets in high-quality asset classes, a departure from his concentrated portfolio approach in these times. As debt to GDP ratios get close to 90%, growth starts to slow. He's holding government debt though. As central banks expand balance sheets, this will debase their currencies--the last time was the 1970s. So, favour hard assets like gold and real estate, and less so financial assets. Gold is in a sweet spot, performing well in deflationary and inflationary times too. Also likes silver. He owns Kirkland Lake, for instance. 15% of his portfolio is in gold, 10% bullion + 5% Kirkland Lake. IAU IS good gold ETF. Not all ETFs are created the same, though.
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Spread your bets in high-quality asset classes, a departure from his concentrated portfolio approach in these times. As debt to GDP ratios get close to 90%, growth starts to slow. He's holding government debt though. As central banks expand balance sheets, this will debase their currencies--the last time was the 1970s. So, favour hard assets like gold and real estate, and less so financial assets. Gold is in a sweet spot, performing well in deflationary and inflationary times too. Also likes silver. He owns Kirkland Lake, for instance. 15% of his portfolio is in gold, 10% bullion + 5% Kirkland Lake. IAU IS good gold ETF. Not all ETFs are created the same, though.
DON'T BUY
DON'T BUY
May 5, 2020
It's speculative, depending on this UK deal. All cinemas are closed now. Maybe they can open later, but at partial capacity. Look elsewhere.
Show full opinionHide full opinionIt's speculative, depending on this UK deal. All cinemas are closed now. Maybe they can open later, but at partial capacity. Look elsewhere.
other services
DON'T BUY
DON'T BUY
May 5, 2020
A tricky one. He's torn. It checks most of his boxes, but not one: they hold a lot of debt. Their growth has been spectacular, but fueled by debt. He doesn't know the debt repayment details offhand. He prefers a stock with less debt. That said, the garbage business will be stable during this pandemic.
Show full opinionHide full opinionA tricky one. He's torn. It checks most of his boxes, but not one: they hold a lot of debt. Their growth has been spectacular, but fueled by debt. He doesn't know the debt repayment details offhand. He prefers a stock with less debt. That said, the garbage business will be stable during this pandemic.
Transportation & Environmental Services
DON'T BUY
DON'T BUY
May 5, 2020
Prem Watsa has been under fire lately. Their underlying insurance business will struggle under low interest rates to generate profits and income. Watsa's investments in the past decade have been dubious.
Show full opinionHide full opinionPrem Watsa has been under fire lately. Their underlying insurance business will struggle under low interest rates to generate profits and income. Watsa's investments in the past decade have been dubious.
insurance
DON'T BUY
DON'T BUY
May 5, 2020
They have a moat, a durable advantage with a high-switching cost moat. This means that it would be a big hassle for a company to leave Salesforce and learn/train a new CRM elsewhere, even if that CRM is say 50% cheaper. He follows SF, but is expensive now. He also doesn't like their rising share count. CRM is merely okay, but pricey.
Show full opinionHide full opinionThey have a moat, a durable advantage with a high-switching cost moat. This means that it would be a big hassle for a company to leave Salesforce and learn/train a new CRM elsewhere, even if that CRM is say 50% cheaper. He follows SF, but is expensive now. He also doesn't like their rising share count. CRM is merely okay, but pricey.
computer software/processing
DON'T BUY
DON'T BUY
May 5, 2020
He got stopped out of this. It's well-run, but the casinos are closed so there's no revenue coming in. GC carries a reasonable amount of debt. Also, casinos have high operating expenses, even during this lockdown. He wants to see stability in their debt, though. In recessions, gambling performs well, though.
Show full opinionHide full opinionHe got stopped out of this. It's well-run, but the casinos are closed so there's no revenue coming in. GC carries a reasonable amount of debt. Also, casinos have high operating expenses, even during this lockdown. He wants to see stability in their debt, though. In recessions, gambling performs well, though.
entertainment services
BUY WEAKNESS
BUY WEAKNESS
May 5, 2020
It was a past top pick in January. He got stopped out of this. He still likes it. They are converting from a trust into a corporation, which should attract more investors. They lease out their land for shale exploration and lease water rights. Are also doing solar installations. Have very low operating expenses. They can weather this pandemic, but there could be further weakness in oil. You can nibble away at this at around 14x earnings. Nice dividend. He's buying back in on a dip in the $400s.
Show full opinionHide full opinionIt was a past top pick in January. He got stopped out of this. He still likes it. They are converting from a trust into a corporation, which should attract more investors. They lease out their land for shale exploration and lease water rights. Are also doing solar installations. Have very low operating expenses. They can weather this pandemic, but there could be further weakness in oil. You can nibble away at this at around 14x earnings. Nice dividend. He's buying back in on a dip in the $400s.
BUY WEAKNESS
BUY WEAKNESS
May 5, 2020
He follows it. Has never owned this. They have a wide moat, dominating live internet searches. Q1 results are benign (and Google has weathered this storm), but the next two quarters may be disappointing because advertising will decline. If you own this, hold on. If not, but when Q2 and Q3 results come out; Google stocks should decline then.
Show full opinionHide full opinionHe follows it. Has never owned this. They have a wide moat, dominating live internet searches. Q1 results are benign (and Google has weathered this storm), but the next two quarters may be disappointing because advertising will decline. If you own this, hold on. If not, but when Q2 and Q3 results come out; Google stocks should decline then.
Business Services
PAST TOP PICK
PAST TOP PICK
May 5, 2020
(A Top Pick May 02/19, Down 12%) They are the UK version of MLS for real estate listings. They dominate the property search business there at 75%. Gross margins are 90% and net margins of 70%. They have been increasing average rent per user. Have no debt, carry cash and pay a nice dividend. The virus has reduced agent costs by 75% in the past quarter, but once this virus passes he expects things will return to relative normal. Down 40% from their highs. Amazin metrics. A screaming buy. He will add to his holdings when this pullbacks.
Show full opinionHide full opinion(A Top Pick May 02/19, Down 12%) They are the UK version of MLS for real estate listings. They dominate the property search business there at 75%. Gross margins are 90% and net margins of 70%. They have been increasing average rent per user. Have no debt, carry cash and pay a nice dividend. The virus has reduced agent costs by 75% in the past quarter, but once this virus passes he expects things will return to relative normal. Down 40% from their highs. Amazin metrics. A screaming buy. He will add to his holdings when this pullbacks.
PAST TOP PICK
PAST TOP PICK
May 5, 2020
(A Top Pick May 02/19, Up 16%) A huge fan. Amazing management. They continue to buy software companies. They see a large runway for growth ahead and want to buy more. 3.5% is their free cash flow yield. Watch their upcoming AGM.
Show full opinionHide full opinion(A Top Pick May 02/19, Up 16%) A huge fan. Amazing management. They continue to buy software companies. They see a large runway for growth ahead and want to buy more. 3.5% is their free cash flow yield. Watch their upcoming AGM.
computer software/processing
PAST TOP PICK
PAST TOP PICK
May 5, 2020
(A Top Pick May 02/19, Down 25%) He got stopped out. It was a value play. It was cheap at $15. He doesn't know how retailer investors will respond to this current uncertainty. The mutual fund business was facing headwinds before the pandemic. He won't buy back his shares.
Show full opinionHide full opinion(A Top Pick May 02/19, Down 25%) He got stopped out. It was a value play. It was cheap at $15. He doesn't know how retailer investors will respond to this current uncertainty. The mutual fund business was facing headwinds before the pandemic. He won't buy back his shares.
investment companies/funds
BUY
BUY
May 5, 2020
Their investments in Muskrat Falls He likes this because a portion of their business is regulated--that's a predictable cash flow they can then reinvest, like all utilities. They pay a growing dividend, excellent for income investors. Doesn't know about the Falls, though.
Show full opinionHide full opinionTheir investments in Muskrat Falls He likes this because a portion of their business is regulated--that's a predictable cash flow they can then reinvest, like all utilities. They pay a growing dividend, excellent for income investors. Doesn't know about the Falls, though.
electrical utilities
DON'T BUY
DON'T BUY
May 5, 2020
Doesn't follow it. Their high debt concerns him and there's a drop in shopping demand to their stores. Dollarama and ATD'B also carry debt, but are allowed to stay open and enjoy consumer sales. Compare these two to CTC.
specialty stores
COMMENT
COMMENT
May 5, 2020
They don't fit his investing criteria. LSPD's topline has been shooting up, but they aren't yet profitable. They're like Shopify. He looks for companies that generate return on capital for three years in a row--this shows consistency and profitability. That said, LSPD could do quite well. Caveat: watch your allocation of LSPD in your portfolio with stocks like this--they can soar or plunge more than most other stocks and impact your portfolio. So, if you buy this, buy an appropriate amount.
They don't fit his investing criteria. LSPD's topline has been shooting up, but they aren't yet profitable. They're like Shopify. He looks for companies that generate return on capital for three years in a row--this shows consistency and profitability. That said, LSPD could do quite well. Caveat: watch your allocation of LSPD in your portfolio with stocks like this--they can soar or plunge more than most other stocks and impact your portfolio. So, if you buy this, buy an appropriate amount.
COMMENT
COMMENT
May 5, 2020
What will a growth stock be in the New Normal? What metrics to look at? He could talk hours about this. We will get back to normal at some point, like driving, taking kids to school, vacations, etc. He looks for high margins, high returns on capital, low debt; excellent capital allocators (generating excess cash and buyback shares, paying down debt) for 5-10 years, etc. How does the pandemic effect a company's outlook, like CSU-T or Royal Bank--is their business model broken? He doesn't think so. Anyone who says they know for sure what'll happen in the future is lying. No one knows for sure. But he expects in a few years from now, this pandemic will look like a blip just like other crises we've seen in past decades.
Show full opinionHide full opinionWhat will a growth stock be in the New Normal? What metrics to look at? He could talk hours about this. We will get back to normal at some point, like driving, taking kids to school, vacations, etc. He looks for high margins, high returns on capital, low debt; excellent capital allocators (generating excess cash and buyback shares, paying down debt) for 5-10 years, etc. How does the pandemic effect a company's outlook, like CSU-T or Royal Bank--is their business model broken? He doesn't think so. Anyone who says they know for sure what'll happen in the future is lying. No one knows for sure. But he expects in a few years from now, this pandemic will look like a blip just like other crises we've seen in past decades.
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