Opinions by John Petrides | StockChase
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John Petrides

Managing Dir. & Portfolio Manager

ON STOCKCHASE SINCE Nov 2016

Point View Wealth Management


Opinions by John Petrides


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2017-10-24

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

Market. From a PE multiple the stock market is at its highest since we have seen since from the last 5, 10, 15, and even 20-year periods. Relative to where interest rates are, where inflation is, where bond yields are, where else are you going to go? We are definitely in a healthier situation than in 2006 from the banks standpoint, and we don’t have a housing bubble, so the underlying macro environment looks pretty good. Historically, relative to interest rates and inflation, stock still look to be attractive.

John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $0.020
Owned: _N/A

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2017-10-24

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

How to be positioned if US tax reform goes through or not? The chatter is getting louder. Maybe they don’t pass the entire reform they want, but there are some easy things they can do. It is no secret that between technology and health care, there are trillions of dollars in cash sitting offshore, that if repatriated to the US would get hit with a 35% corporate tax rate. If there is some reform, that is low hanging fruit where cash can be returned to shareholders in the US in a very easy way. That would help tech and healthcare. The other big issue is, what is going to be the corporate tax rate. Coming into the year, stocks rallied hard on the prospects of a lower corporate tax rate. Some investors and analysts are baking in a 15% corporate tax rate, while others said 20%-25%. Doesn’t think there is going to be a massive market selloff if it doesn’t happen. Either way, you should have a diversified portfolio with some bonds in your portfolio. If there is some unforeseen event, you need that to protect your downside.

John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $0.020
Owned: _N/A

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2017-10-24

BUY on WEAKNESS
Amazon.com (AMZN-Q)

Has been wrong on this for about the last 10 years. As a value investor, it is hard for him to buy into a stock like this. He doesn’t chase growth. This stock barely makes any money, and yet it continues to go up from a valuation standpoint. He would rather wait for a better entry point.

specialty stores
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $975.900
Owned: No

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2017-10-24

COMMENT
Bank of America (BAC-N)

Financials are one of his favourite sectors. Feels the wind is at the back of the banks. They are showing the healthiest balance sheets in 60 years. Interest rates are creeping higher, and the whole economy is doing quite well. Although this is up a lot over the past 12 months, it is still trading at a discount to where tangible BV will be 3 or 4 years from now. Really good value here.

banks
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $27.680
Owned: Unknown

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2017-10-24

COMMENT
Baker-Hughes (BHGE-N)

You have to be careful. They issued a one-time special dividend to shareholders, so the $47 share price drop to $33 is artificial. When the deal first happened post the special dividend, the cost basis was something like $33-$35, so you might not be down as much as you think. He really likes this company here. The reports coming from Caterpillar/McDonald’s is that China is growing quite strong, which is going to help the demand side of the oil equation, and the combined entity of GE/Baker Hughes is now the 2nd largest in terms of revenue from the oil services business. For the long-term, this is a very compelling a holding.

oil/gas field services
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $30.690
Owned: Unknown

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2017-10-24

HOLD
Global X Robotics & AI ETF (BOTZ-Q)

Continue adding to a technical stock portfolio, or buy this ETF? This is a very specific play on robotics, a niche within tech in and of itself. It depends on what percentage of your portfolio is technology stocks, and what size would you make BOTZ. There are 2 investment themes that have been tremendous home runs over the past 12 months. One is investors pricing in what is going to happen to robotics and how that is going to be disruptive to the labour economy, and the other one is artificial intelligence (AI). If you own a position in this ETF, he would continue to hold, but he would be careful about chasing this investment here.

E.T.F.'s
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $23.650
Owned: Unknown

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2017-10-24

COMMENT
CitiGroup (C-N)

He would lump this in with Bank of America (BAC-N). The difference between the 2 is that this one has a more global presence. The balance sheet is really strong right now. They are returning cash to shareholders, and everything is moving in the right direction.

insurance
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $74.240
Owned: Unknown

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2017-10-24

TOP PICK
ConocoPhillips (COP-N)

2016 was the year management would like to forget. They were caught with their pants down when oil prices collapsed in Jan/Feb 2016, to the point where they had to cut their dividend. They went back to the drawing board. Had an analyst’s day at the end of 2016, where they said they were going to sell $5-$8 billion of assets in 2017. They sold over $13 billion of assets already, and have used that to repair the balance sheet. They’re buying back stock. Thinks they are positioning the company in a position of strength in an environment in the energy sector, which is going to continue to be volatile. Dividend yield of 2.1%. (Analysts’ price target is $53.)

integrated oils
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $50.990
Owned: Yes

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2017-10-24

DON'T BUY
Campbell Soup Company (CPB-N)

Takeover target? If this rumour had juice to it, this stock would be up higher, but an interesting idea. If there is one sector investors are complacent on, it is consumer staples. In these companies, investors are hiding in the balance sheet looking to milk the dividends because they can’t find any yield in bonds. The fact that those big stocks have low volatility and the ability to grow their dividend, is very attractive. He would avoid this stock.

food processing
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $46.130
Owned: Unknown

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2017-10-24

HOLD
CenturyLink Inc (CTL-N)

He likes the dividend on this. It is merging with Level 3 Communications (LVLT-N). The combined entity is going to have a tremendous amount of free cash flow. Level 3 has billions of dollars of net operating losses, so are not going to pay taxes for a very long time, which is going to really support the dividend for a long time. Until the deal closes, the fundamentals of the business they are in is deteriorating. This is selling off in unison with others that are under siege in the telecom industry. What they need is for the deal to close and for management to show investors what that combined entity and what the cash flow is going to be once they are together. He would suggest owners stay patient. Dividend yield of 11.5% will be sustainable under the new entity.

Utilities
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $18.740
Owned: Unknown

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2017-10-24

PAST TOP PICK
Amdocs (DOX-Q)

(A Top Pick Feb 9/17. Up 13%.) One of his favourite companies, because their business is so sticky and they generate a tremendous amount of cash flow. Supplies all the billing and back-office support for telecom and cable companies. Switching costs are very high. They have no debt and generate a tremendous amount of cash flow. Grows their dividend at a nice clip every year.

Telecommunications
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $65.850
Owned: Yes

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2017-10-24

COMMENT
DowDuPont Inc. (DWDP-N)

One of the largest mergers in the chemical industry, which can result in a large amount of cost cutting and synergies. They’ve outlined about $3 billion in synergies. In about 18 months they are going to break off into 3 different divisions, chemicals, agriculture as well as a 3rd component. There is potential here for a tremendous success.

chemicals
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $71.860
Owned: Unknown

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2017-10-24

BUY on WEAKNESS
Facebook (FB-Q)

If they can get advertising through video right, then the stock can go higher, and they can get room for growth. It is hard to bet against a visionary like Zuckerberg. The company and the stock can grow higher, but what is the right valuation to pay for it? At 30X earnings right now, it could be a bit too rich.

John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $171.800
Owned: Unknown

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2017-10-24

BUY
General Electric (GE-N)

This could follow a similar pattern of Walmart, the worst performing stock on the Dow, but has been a home run since. Has a new CEO in place, who is doing what most CEOs are doing, trying to clean up the mess they inherited, selling off non-core businesses and trying to repair the balance sheet. Thinks this is going to be significantly higher in value 3 or 4 years from what it is today. Dividend yield of 4.4%, which he is comfortable with.

electrical/electronic
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $21.890
Owned: Unknown

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2017-10-24

TOP PICK
GlaxoSmithKline PLC (GSK-N)

Healthcare was the worst performing sector in the S&P 500 in 2016, but has been a strong performer this year, and this company has not followed suit. He likes that they have 3 very distinct businesses. One in HIV, one in vaccine, plus a consumer products business. The market is undervaluing all 3 businesses. If you were to break the company up into 3 separate distinct businesses, that would unlock significant shareholder value. Dividend yield of 5%. (Analysts’ price target is $45.)

biotechnology/pharmaceutical
John Petrides

Managing Dir. & Portfolio Manager, Point View Wealth Management

Price: $40.480
Owned: Yes

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