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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 Rob Sechan, Managing Partner, New Edge Capital

COMMENT
tech The reckoning in growth/tech stocks is not over, because valuations are still high. Growth trades at a 65% premium to value stocks, down from 100% in 2021. The 10-year average is 35%. Growth's outperformance over value from 2019-2021 was only half-driven by better earnings, the other half my expanding multiples and driven by the Fed's easy policy and low rates. We're in an oversold bounce now, but not at a real bottom....yet.
Unknown

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BUY
He bought Cadence last week. It's a defensive play on the semi value chain. They provide chip design software and consulting services aimed at enhancing production efficiency. This area is more insulated to slowing capex. Companies are seeking more efficient, next-generation chips. Yes, Cadence is more expensive than others, but it's highly defensive given high free cash flow.
Technology
SELL
Price matters. He sold P&G on valuation slowing topline growth and weaker free cash flow. Most of their sales are overseas and the stronger USD will impact profits. Some consumers are shifting to lower-priced items, too.
misc consumer products
DON'T BUY
Free cash flow is weakening, and there's not a willingness by management to prioritize their spending. This is a show-me story.
0
COMMENT
energy Energy is cheap vs. the market. The companies aren't doing big capex. Yes, they've had a great run, but it will remain his second-favourite sector, behind healthcare heading into 2023. Energy is still under-owned and is a fine hedge to geopolitics and inflation.
Unknown
STRONG BUY
His favourite stock in his favourite sector. It is up 18% YTD.
Pharma & Healthcare
COMMENT
We've seen the lows for the year, but he expects volatility ahead. More data needs to come out. But employment is very important to the Fed.
Unknown
WEAK BUY
He keeps buying it, just a few weeks ago, but other stocks he bought have outperformed Apple. He hopes he isn't wrong. Apple trades at 27x 2023 earnings and 15% premium to its long-term average, 50% to its peers. He hides in Apple because of its earnings quality.
electrical / electronic
BUY
Today, an analyst overweight call with a target of $76 They re-affirmed their guidance to grow 20% over 5 years, and have huge free cash flow while margins are 36%. It's in a really important industry, cybersecurity, and is relatively cheap though none in this space is cheap.
Technology
COMMENT
Tech estimates have gone up this year and are too high. Valuations are at 26x, a huge premium to the mark, and growth outlooks are too aggressive. There will continue to be a divergence between quality and low quality tech.
Unknown
BUY
Tech estimates have gone up this year and are too high. Valuations are at 26x, a huge premium to the mark, and growth outlooks are too aggressive. There will continue to be a divergence between quality and low quality tech.
electrical / electronic
COMMENT
It's been painful to own and is on the chopping block because its core businesses are shrinking as it makes huge investments in business that are unlikely to make money soon. Also, free cash flow generation fell 55% YOy in Q2. It's like a classic value trap now. The free cash flow yield is 4%, but 8% in the past 12 months. He loves the product, but Meta is now a show-me stock, and it hasn't shown him.
0
SELL
He sold Diageo recently, because it scored poorly in valuation and dividend (decelerating). Consumers may buy fewer of their brands because of hot inflation. He owned this for a long time, but it was time to move on.
food processing
SELL
He should've sold this earlier. There's been deteroriating cash generation which will continue because keeps spending in order to for their technology to catch up with peers. They went from cash positive to negative, so the valuation isn't cheap anymore.
electrical / electronic
BUY
He sold Intel but it sticking with KLAC for its healthy cash flow and lower capex.
electrical / electronic
Showing 1 to 15 of 56 entries