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Stock Opinions by Brendan Caldwell

COMMENT
Sometimes tax-loss selling offers bargains this time of year, but not always. Normally, you get a Santa Claus Rally then the January Effect, but markets have been so strong and run up for the past 1.5 years, so maybe there is tax-loss selling now. But but the bigger worry is interest rates. Central banks seem to be raising them after keeping them so low. We've seen asset inflation and now inflation in the real economy, so rates could rise, which will pressure asset prices. Governments have been pumping so much money into the system that no real inflation like in the 1970s has happened. But this could change in 2022.
Unknown
COMMENT
EV stock to buy? He owns no EV stocks, including Tesla. It's a tough sector from a PE perspective--valuations are too high. One could say these are not EV stocks at all, but rather a way of transforming one's life. There will be big opportunities in this space, but during Covid, people have changed how to get from point A to B. Three of his four adult children don't drive and the younger generation will see driving differently from his generation.
Unknown
COMMENT
Used to own it. In 2022, industries like this will likely get ahead of the market. Tech stocks will fare poorly in the face of rising rates vs. stocks and industries like SJ.
misc industrial products
COMMENT
Selling gas station and oil sands assets to pay debt He's been fairly big in the energy sector, but not CVE. It's good they're paying down debt as rates are low. There will be continued demand for fossil fuels. There's a supply shortage and alternative sources haven't filled energy demand yet. He's bullish energy.
oil / gas
BUY
It's one of those few tech stocks with earnings and cash. It's a conservative way to play whatever comes next.
computer software / processing
WEAK BUY
He's been wrong about gold for a while. He expected gold to do better; money hasn't shifted to gold in anticipation of inflation. Instead, money has moved into cryptos. Gold remains a storer of value though. Still uncertain what will be the dominant currency for governments. ABX is a conservative way to play gold. He likes the gold sector.
precious metals
BUY
He likes this sector a lot. These stocks have done nothing for a year, been a while. Demand for power will continue to rise and renewables won't go away. He doesn't own AQN, but this sector. AQN pays a dividend, and the future of this sector looks good.
electrical utilities
DON'T BUY
Sell Visa to buy Berkshire? Why do that? Interesting to see what Visa does in the meta economy to come. Real-economy demand will be strong. Likes Visa and its peers. When Berkshire's heads Buffett and Munger pass away, the BRK premium will shrink.
insurance
BUY
He likes renewables; demand for energy will continue. Renewables have treaded water for at least a year, but he expects more energy demand next year and these companies will be renegotiating contracts with clients. 2022 should be good for them.
Utilities
COMMENT
Car stocks? If you believe that EV's are the wave of the future, maybe take a look at the traditional car companies. He owns no car stock or parts makers like Martinrea or Linamar. The wider supply chain squeeze may make people think no cars are being sold, and car lots are offering so few cars now. But the demand is there. There are waiting lists even for basic cars. There could be a rush in car sales and a bump in revenues.
Unknown
BUY
There's been a big turnaround in the banks. Housing remains strong. Nothing bad has happened at CIBC for a while, and he's been in business with them for a long time. Canada's banks have the potential to do well in 2002, because of rising interest rates (the lending rate rises). Also, the banks didn't really tap into their big reserves during Covid, so that money is trickling back into their reports. Plus dividends are climbing.
banks
WATCH
It's no longer a social media platform. He's wrapping his head around the metaverse--virtual reality and real estate and other applications? It has the potential for the way people will interact with each other. People will spend a lot of time in front a screen (already are). You own FB stock because you believe in the transformation into the metaverse, which is starting only now and will lead to a generational transformation, one hopes.
0
WEAK BUY
Why is this undervalued given its positive metrics? The answer is MFC's exposure to China, one of the worst-performing asset classes this year, which is surprising given the lack of Covid cases. Lifecos historically are a very good way to play rising interest rates. That could be another factor to like MFC.
insurance
PAST TOP PICK
(A Top Pick Sep 28/20, Up 6%) It saw a K-shaped recovery, but the basic stocks have lagged this year, after getting a boost early in the pandemic in 2020. Nobody is hoarding soap anymore. DG continues to expand, faster than before, and maybe into Mexico. There's a delayed reaction to these shares and should do well in 2022. DG can pass on prices during inflation.
0
PAST TOP PICK
(A Top Pick Sep 28/20, Up 63%) It continues to do well. It's an insurer, but passed on the actual costs to their health suppliers, as they collect the premiums and maintain fixed costs. This business model has been working well. Is it ethical? One could argue it is, but it's worked for UHN.
medical services
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