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Stock Opinions by Ross Healy

N/A
Market. There are two camps when it comes to market opinion. The first camp feels that the market might be a bit high and a correction may happen but otherwise it is upwards from here as the economy opens up. The other camp believes that a savage bear market lies ahead of us as valuations are so high. Once a bear market gets under way it would be hard to stop. He feels that a lot of investors have lost tack of how expensive the S&P actually is in price to book terms. Consider that the S&P is just 15% away from the same peak in price to book terms that it reached in 2000. After a 5000 level, he would be surprised if it can rise. He thinks the FED cannot afford another market sell off.
Unknown
BUY
Crude Target. The cure for low energy prices is low energy prices. Oil had low prices. There is now a shortage of oil. It has broken out of a long term downtrend. He sees the possibility of triple digit prices. Draw down has pushed oil prices down.
Unknown
RISKY BUY
It is a stock that is very cheap. With high energy prices, that has lifted all of these companies. It was as low as 10% of its book value. His fair market value has been going literally straight up. He would stay with it. He recommended it as a speculative buy a while ago as it made sense. He would prefer to buy a junior oil ETF rather than bet on one junior oil company.
oil / gas
BUY
Silver. It is a very cheap stock. There have been concerns about their African acquisition, but they feel it was a smart move. The important thing going forward is to get a hold of good quality reserves in the ground, so it was in fact a smart move. They also got a mine on the Ivory Coast which has good, high quality reserves. Long term it was a smart move for the stock. (Analysts’ price target is $9.84)
precious metals
BUY
It is in his model portfolio. Sooner or later he has been expecting some government infrastructure spending. The stock is not all that expensive. It has a nice balance sheet and has a decent yield. It is the type of thing you tuck away.
contractors
BUY

Silver. It is also an industrial metal so an improvement in the economy should put up the price of silver. The relationship to gold is still on the low side of their relationship to gold over the very long term. He would prefer FVI-T (Fortuna) because it is so much cheaper. (Analysts’ price target is $7.60)

precious metals
PAST TOP PICK
(A Top Pick Jul 17/20, Up 34%) There is no reason to sell it. The shares remain cheap and offer an excellent yield. They offer good upside potential.
insurance
PAST TOP PICK
(A Top Pick Jul 17/20, Up 27%) It was cheap and was a nice yield play. It has paid off quite nicely. He suspects there is further to go in pipelines in general. They have a nice balance sheet.
pipelines
PAST TOP PICK
(A Top Pick Jul 17/20, Down 25%) He likes it because it is purely Canadian. It is cheap and currently has traded down to its book value. It has a superb balance sheet. He wonders why one of the larger ones does not take them out.
precious metals
COMMENT
Are we in a new commodity super cycle? It is safe to say that the stock can get to $40 easily. After that you are flying into an area where the stock has not been for a while. The market has a memory. We are possibly in a super cycle but possibly it is just that the Fed realizes just how thin the ice is out there. The Fed has a really lousy balance sheet. This will hold back the natural growth that could occur.
Mining
WAIT
When he looks at the NASDAQ-100, he finds they are at almost 50% premiums to fair market values. As long as we have bull market conditions this should continue. If we have a nasty bear market then their could be a fall like in 2008, after which it recovered.
computer software / processing
DON'T BUY
There may be a huge pent up demand for air travel, but the business traveller will be slow to come back. AC-T shares are a long way from being cheap. He thinks there is a lot of balance sheet re-building to do. (Analysts’ price target is $29.00)
Transportation
TOP PICK
It has a superb balance sheet. They don’t have a lot of garbage on their balance sheet. They succeeded in expanding their high quality gold reserves. What's not to like. They are at book value. (Analysts’ price target is $14.82)
precious metals
TOP PICK
Their founder may be coming back again. The shares have fallen to 3.5 times adjusted book value. It has tended to mark the low for fallen growth stocks over history. You can buy it and it is speculative, but the shares are very, very cheap. If the stock cannot hold at the $205.00 price range, then it will be signalling much deeper. (Analysts’ price target is $294.57)
0
TOP PICK

It offers surging upside potential. It has a decent yield and is only paying out 20% of present earnings. He thinks junior oil is going higher. This company has easy potential to a high of $18. (Analysts’ price target is $13.69)

oil / gas
N/A
Market. Market. The S&P has made a technical break out that could lift it another 25%, regardless of supporting values. We need to wait a couple of days for confirmation. When you combine all the stimulus that has already been put in, and Biden coming into office, where is all the money going to go. He does detect a sense of un-reality. He lived through the 1972 bubble and the .com bubble. The market will keep going up until it stops. The bond market is breaking out over 1% and although not sounding serious, imagine if it moved to 2%? It would have a profound impact on the markets. He feels value stocks could have a way to run.
Unknown
SELL
He recently put it on a sell list at an extreme peak of a 10 year channel. It has been rolling over and he would wait for a MUCH better time to buy this stock. There is a slim possibility of it rallying back up to the channel and breaking out but this is a slim possibility. The FANG stocks have not been breaking out to new highs recently as the market has been. He sees a shift in the leadership.
Business Services
DON'T BUY
It has an interesting problem. It has the solution to COVID-19 and they have orders for billions of doses but the stock has not done anything. The earnings forecast for the company are going sideways. Analysts probably think the demand for COVID vaccines will decline sharply when COVID is over and then there will be all these plants that are idle. So looking longer term, they see the earnings as flat.
biotechnology / pharmaceutical
WATCH
The valuation now is at its ten year high. You would need earnings to become stronger. It has had its move for now.
management / diversified
BUY
Gold Stocks. They are cheap in general, especially the more junior ones. 10 years ago you saw strength and a move, then another move in the gold stocks in the middle of the decade, but in both cases they had big setbacks. This time around the stocks are acting very, very cautious. He feels this is a value group that has yet to participate in the market and that they will.
Unknown
HOLD

DSG-T vs. OTEX-T which to sell to raise cash? DSG-T, if you own it, you would have done very well, but the fair market value is 78% lower than where it is at now. There is a lot of momentum behind it but not a lot of value. OTEX-T is trading right at its fair market value and has not been above that in ten years. He would sell either one if you want a source of cash.

computer software / processing
HOLD

DSG-T vs. OTEX-T which to sell to raise cash? DSG-T, if you own it, you would have done very well, but the fair market value is 78% lower than where it is at now. There is a lot of momentum behind it but not a lot of value. OTEX-T is trading right at its fair market value and has not been above that in ten years. He would sell either one if you want a source of cash.

computer software / processing
BUY
He feels its fair market value is more than 100% above its current price. This is a reasonable target given what has happened in the sector over the last 10 years. See his comments on gold stocks today.
precious metals
DON'T BUY
It has had a beautiful run. The issue is that it has run up to a level of two times book value. It has been higher and has fair market value to pull it higher. He sees $102 will be a fair resistance point. It is now not cheap.
Automotive
PAST TOP PICK
(A Top Pick Jan 07/20, Down 17%) COVID-19 crushed this. It was trading at book value a year ago. He still likes it even though it has been painful. He is sticking with it.
integrated oils
PAST TOP PICK
(A Top Pick Jan 07/20, Up 27%) He would buy it again. It is quite cheap relative to its own long term range. He thinks it will go right back up to its former high.
precious metals
PAST TOP PICK
(A Top Pick Jan 07/20, Down 6%) COVID-19 had as much to do with the decline as anything, he suspects. The earnings projections from a year ago have hardly budged, so the intrinsic value has held up nicely. If interest rates moved higher in the next year, the banks and other financials will get help in their profitability.
insurance
SELL
On a ten year basis, the stock is very, very cheap and about at its fair market value. The problem is that it might get delisted. Some investors will sell and it would be under pressure. He actually sees a sell signal on the stock. Very often these things work out on a reasonable basis.
0
SELL ON STRENGTH
It has retraced back up to its ten year high. The market has a memory. If the markets keep going, however, it might go up another 20-25%.
Transportation
STRONG BUY
He really has to like it. It got pummelled in the COVID melt-down and since then it has been working in a rough sideways direction, but it is way below its normal valuations standards while the earnings forecasts have bounced back powerfully. It will also help if interest rates go up. He thinks this stock is cheap.
insurance
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