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Stock Opinions by Bruce Campbell (1)

COMMENT
Still pockets of value? Not in large cap technology. But in a lot of the cyclicals, financials, and energy. In the runup to the election, there's a bit of a rotation away from the super high flyers. We're coming up to Canadian bank earnings in a couple of weeks. Decent chance they'll be better than last quarter, and so we'll see optimism. Stocks are trading at 10x earnings. Capital markets should have had a great quarter.
Unknown
COMMENT
Are you looking at "return to work" stocks? Yes, and the banks are in that group. For REITs, stay in retail instead of office. Not sure he wants to go out and buy Air Canada just yet.
Unknown
HOLD
With a 10-year time horizon, any of the banks are good investments. Low multiples, good dividends. Loan losses will be higher for a couple of quarters for sure. Dividends aren't being cut. You should have some banks in your portfolio. He owns it.
banks
HOLD

Prefers Enbridge, as the growth is higher and the dividend has become almost 7%. PPL is a safe place to be if we get a bit of a pullback. If you own it, keep holding.

pipelines
HOLD
Good company, yield is safe. Likes strategy going forward. He owns the preferred shares instead. Safe stock. Perfect for your TFSA as a senior. Yield is 7.4%.
electrical utilities
HOLD
In the grand scheme of things, a good yield with a decent strategy. Keep holding, though he prefers growthier names with corresponding dividend growth. Appealing because it's more renewable than the rest. Bit more quarter to quarter earnings risk, but no so that the dividend is in danger.
Utilities
BUY
He was zero energy for about 3 years. He now owns only Suncor. Impacted by price, but they're integrated. They make money in almost every situation. Free cash flow will be much higher in subsequent years with higher oil. Cut the dividend to be prudent. Good dividend yield. Probably a $30 stock a year from now.
integrated oils
HOLD

EMA vs. FTS Emera reported pretty good numbers. Both have foreign exposure. Both have growth to them and over 4% yield. Operating risk, but not political risk per se. Both are fine holds.

mngmnt / diversified
HOLD

FTS vs. EMA Emera reported pretty good numbers. Both have foreign exposure. Both have growth to them and over 4% yield. Operating risk, but not political risk per se. Both are fine holds.

electrical utilities
COMMENT

BAM has other deals in the works too, aside from this tender offer. Tendering your shares is safer, but if your time horizon is long enough and you can take a bit of risk, you can hang onto your shares. Obviously, BAM thinks there's some value there.

REAL ESTATE
PAST TOP PICK
(A Top Pick Jul 12/19, Up 0%) Still owns it. Most growth among the pipelines. Good recent quarter, and reiterated dividend and earnings growth. A good entry point today, down $1.50 from $45.
oil / gas pipelines
PAST TOP PICK
(A Top Pick Jul 12/19, Down 10%) Good earnings, but hurt by the perception and reality of low interest rates. Trading less than 10x earnings. A bit contrarian, but still a good entry point around $20.
insurance
PAST TOP PICK
(A Top Pick Jul 12/19, Up 11%) Still likes it. Trend to cashless society is getting more entrenched. Impacted by lower economic activity, but rebounded nicely. Trades more like a tech stock than a consumer stock.
other services
HOLD
Fine as a holding. But the majors are cheap enough, and they'll move first. Slightly higher losses coming to CWB because of the oil patch. It's a hold. Wouldn't worry about the dividend too much, but he'd prefer one of the majors at this stage.
banks
HOLD
Views the golds as a trade, not a 10-year hold. This one is doing well. Their margins are expanding. So still some upside movement, but we're running out of momentum. If you hold it, hang on.
precious metals
HOLD
Shouldn't be more than 10% in gold, given the volatility. As long as it's an appropriate percentage of your portfolio, you'll be fine.
Golds
COMMENT
Buy an ETF for gold exposure? The Canadian gold ETF is 20% Barrick and 20% Newmont, so you get 5 seniors and the rest are juniors. That's a fine strategy. You could also look for those that haven't moved yet. Argonaut Gold for example, up 9% today, is worth a look back at $2.50 or 2.60.
Unknown
BUY on WEAKNESS
Up 9% today, it's worth a look back at $2.50 or 2.60.
Mining
BUY
It's now cheap, trading at a discount to NAV. Sees it eventually getting back to $35, but maybe not in the next 6 months. Should catch a bid with the rest of the financials. This is the one time investing in Power Corp would make some sense on a catch-up basis.
mngmnt / diversified
COMMENT
Invest in a financial conglomerate or in a pure play like a bank or lifeco? For the one that's left in Canada, Power Corp, it hasn't worked. He'd prefer Manulife to Great West Life for growth. And he'd prefer banks for growth. This is the one time investing in Power Corp would make some sense on a catch-up basis.
Unknown
PARTIAL SELL
There are good stocks and good companies. Still not making money, trading at 40x sales. Beneficiary of the pandemic and stay at home trend. But don't think it's going to keep going. Dangerous. The first time there's a miss, there will be a big miss in the stock. If you've held it for a while, he'd take profits.
0
DON'T BUY
Spinning out the eyecare side. Better to go to the US with bigger, safer stocks or one of the ETFs.
Healthcare
BUY

If he was going to buy a silver producer, this would be it. The best of the Canadian producers. His preference is Wheaton Precious Metals as a royalty play.

management / diversified
COMMENT
It's the cheapest REIT right now. Cut the dividend, as they should have. Half retail, half office/industrial. He sold, to avoid office risk. You can own it for the yield, as the stock goes sideways. If you want growth, go elsewhere.
property mngmnt / investment
HOLD
It's after another acquisition in Australia, and if they do, the stock will hit $47-48, and then he'd trim. Hold it for now, as it's doing great.
food stores
BUY on WEAKNESS
Part of their growth is by acquisition, funded by equity issues. Stock treads water for a while, as new owners get comfortable. In next 6-12 months, they should do another acquisition with higher dividends and earnings, and the stock will go into the low $20s. Be a holder, and even a buyer on weakness.
electrical utilities
TOP PICK
Always looked expensive, but now is a rare opportunity. The food services side was impacted by the pandemic. Competitors are struggling, so acquisitions are coming that should boost the growth. Raised dividend. Yield is 1.98%. (Analysts’ price target is $39.11)
food processing
TOP PICK
Popeye's is still trending plus 20% Y/Y. Burger King is a small positive. Tim's is still minus double digits, but this should grow. A year ago, it was $105, and you don't get this chance too often. Yield is 3.78%. (Analysts’ price target is $83.38)
food services
TOP PICK
One of the largest device companies in the world. There's a lot of pent-up demand coming for surgeries. It was $120, and now it's around $100. Should see $120 again. Yield is 2.29%. (Analysts’ price target is $110.50)
biotechnology / pharmaceutical
COMMENT
Market Outlook He thinks everyone is of the belief the market will not be another 20% gain next year. Only twice since WWII, when the market had a gain of 20% in a year has the following year been down. In fact, it has averaged a 9% gain. He would be happy with a 4-5% return this year, plus returns on dividends. 2021 could be another story, following the US elections and other geopolitical events. The US attack in Baghdad on a high ranking Iranian official has resulted in oil and gold rallying. The US Administration has warned US citizens to leave the region to avoid repercussions. We will have to wait and see how things play out. Phase II of a Chinese deal is required for President Trump to be able to influence a market rally. He feels multiples on earnings were stretched in 2019 and there is still some value out there, but it is causing him to become nervous about tightening following the US Presidential election in 2020. This could be led by a market sell off going into the election.
Unknown
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