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Curated by Michael O'Reilly since 2020
1550+ opinions with 4.81 rating (one of the best performing expert)

Stock Opinions by Sarat Sethi, Managing Partner, Douglas C. Lane & Assoc.

Chevron Texaco
He owned it when people hated it. There's not enough supply, so even if there's a recession these oil companies will do well. Has a solid balance sheet. Defensive.
integrated oils
Next week, FAANG reports. Even if they report positively, will the market believe it, because their PE's are above the S&P's. That said, he likes MSFT for its recurring revenues from enterprise cloud, a high-margin business.
computer software / processing
American Express
It's a well-run business. Management is already absorbing a potential economic slowdown in its growth projection; they know it's happening. They said that consumers are out and about (and spending). Trades at only 13x earnings. Earnings will accelerate and they have a diversified consumer base.
investment companies / funds
Mastercard Inc.
Same tailwind as Visa: spending is up. Likes it.
other services
Trades at 9x earnings. Has a great pipeline of drugs. Pays a great dividend.
biotechnology / pharmaceutical
Their report will be interesting: they'll talk about supply. The last two years they couldn't meet demand and now where is it given borrowing costs and higher rates? It trades at 6x earnings. Demand needs to improve.
The S&P may not break 4,200, but parts of it like financials and energy are up today because rates are going up. He feels that the Fed will keep raising rates.
Chevron Texaco
Just reported solid Q2 earnings and the price target rose Energy demand will still be strong (even though crude oil prices have been declining). Majors like Chevron make a lot of money even if oil is at $60. He likes it and has not been trimming his shares. In fact, he would add to it. You have staying power in Chevron especially with their strong balance sheet.
integrated oils
He just bought this utility as a defensive play. Trades at 15x earnings while utilities is at 21x. EIX is growing earnings 7-9% and pays a 4% dividend yield. Steady earnings and they can grow at double digits.
Stanley Works, The
Just sold it (down 49% this year). All the catalysts have gone: housing is slowing and rates are rising. He likes the company, but this will be dead money for a while. End demand isn't there.
misc industrial products
He bought this, even though it's down over 20% from its 52-week high. Trades at 9x earnings and pays a 5% dividend yield. It's a play on the hybrid work model. Demand is increasing. Used to trade at 16x, so it's now cheap. Has strong earnings power.
Walt Disney Co.
DIS reports next week. The theme parks and movies will be strong. Streaming will be interesting. (We didn't get good numbers out of competitor Peacock.) DIS is cheap on a cash flow basis. Worth picking up. A great franchise.
entertainment services
Earnings are coming down because they can't produce enough cars, but demand is strong. So, he'll hold onto this. Trades at only a single-digit PE.
Delta Air Lines Inc
Airlines are getting hit now by higher fuel costs, but this is a reopening stock and it trades at only a single-digit multiple. Endure the next few weeks of bumpiness as the Fed raises rate and hold cheaper-value cyclicals because they will outperform. He would add to it. The CEO said recently he can't meet customer demand.
They're in the penalty box. During lockdowns, people were doing a lot of e-commerce, but will be going out. Also, PayPal spent a lot of money to add customers but that didn't pay off. The CEO has his work cut out for him. If they miss a third quarter in a row, then they're in trouble. This is a show-me story. That said, he is adding to this core position because valuations are so low.
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