David Burrows
Member since: Jun '01
President & Chief Investment Strategist at
Barometer Capital Management
Barometer Capital Management
4621 Opinions
Latest Top Picks
(A Top Pick Aug 06/19, Down 17%) He stop-lossed at the end of 2019 when Disney started to underperform. He sees significant challenges here given its cruises and theme parks.
(A Top Pick Aug 06/19, Up 49%) They produce chips for storage and telecoms, so it's a cloud stock. A great performer. He owns a lot of semis stocks. He'd buy MRVL today, but there's near-term stress in tech, but semis are the strongest spot in tech.
(A Top Pick Aug 06/19, Up 33%) The gold trade has a lot of legs. AEM is well-loved in the U.S. AEM has done a great job of growing by investing effectively. It continues to be a buy for him, just last week.
The transport sector is starting to gain steam (see the IYT ETF), the rails have been the strength, and CP is the cream of the crop in rails. They've increased their dividend in a middle of a global pandemic, and have increased their guidance (i.e. YOY earnings growth). They improved their operating ratio this quarter. Volumes will pick up which will increase their margins. They transport mostly east-west resources, and we're at the bottom of the resource cycle. Offers good dividend growth, too. (Analysts’ price target is $389.49)
Long been a favourite pick. They've grown their dividend growing 25%/year over the last 5 years. Are growing same-store sales 2x the rate of GDP. Consumers have some cash to spend near-term, thanks to stimulus. Also, people can't travel, but are doing home improvements. Some weakness in selling to professional contractors, but home consumers have made up for that likely at a higher margin. (Analysts’ price target is $257.25)
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Opinion
Expert
Chart
COMMENT
COMMENT
July 27, 2020
He's been bullish since late-March due to so much stimulus in the system, but in the last 3 weeks the markets has been narrowing with tech and healthcare facing headwinds now. 10 days ago we saw a strong reversal intra-day. He's become cautious, taking profits in tech names and holds short positions. He sees a rotation into transport stocks and medical devices. Expect bumpiness in the next few weeks. Earnings this week are important to watch to see how the market reacts to those reports and to guidance. Markets consistently rally on good vaccine or stimulus news, including today.
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He's been bullish since late-March due to so much stimulus in the system, but in the last 3 weeks the markets has been narrowing with tech and healthcare facing headwinds now. 10 days ago we saw a strong reversal intra-day. He's become cautious, taking profits in tech names and holds short positions. He sees a rotation into transport stocks and medical devices. Expect bumpiness in the next few weeks. Earnings this week are important to watch to see how the market reacts to those reports and to guidance. Markets consistently rally on good vaccine or stimulus news, including today.
BUY
BUY
July 27, 2020
Gold outlook He likes gold now, though he's not a gold bug. He holds 15-20% gold, split between gold and silver miners. Silver is actually outperforming tech. Gold and silver are catching up to metals now, and have a long way to go given continued stimulus. He's long gold. Gold will be the most important theme in the market.
Show full opinionHide full opinionGold outlook He likes gold now, though he's not a gold bug. He holds 15-20% gold, split between gold and silver miners. Silver is actually outperforming tech. Gold and silver are catching up to metals now, and have a long way to go given continued stimulus. He's long gold. Gold will be the most important theme in the market.
E.T.F.'s
COMMENT
COMMENT
July 27, 2020
It's made great strides to compete with Amazon with next-day delivery. He'd still prefer Amazon, but Walmart will continue to do well. Discount retailers will. Amazon could pull back in this earnings period.
department stores
DON'T BUY
DON'T BUY
July 27, 2020
The semis have led the rally. There's short-term risk, and Intel has been struggling lately. He'd prefer AMD and Taiwan Semi. 5G is just starting and has a lot of growth for years to come.
The semis have led the rally. There's short-term risk, and Intel has been struggling lately. He'd prefer AMD and Taiwan Semi. 5G is just starting and has a lot of growth for years to come.
electrical/electronic
BUY
BUY
July 27, 2020
Walmart? It's made great strides to compete with Amazon with next-day delivery. He'd still prefer Amazon, but Walmart will continue to do well. Discount retailers will. Amazon could pull back in this earnings period.
specialty stores
WEAK BUY
WEAK BUY
July 27, 2020
Tech and high-dividend payers are the most crowded parts of the market. Since the late-March bottom, any high-dividend payers has undeperformed. Utilities are really underperforming (but pay a yield) as are the banks. Where to go from here? This is a generational low in yields, which will, in coming years, will work their way higher. So pick your spots now: banks, like BAC and TD. There's near-term risk if COVID news doesn't get better which will increase insolvencies. He doesn't love the banks now, but he would pick TD.
Tech and high-dividend payers are the most crowded parts of the market. Since the late-March bottom, any high-dividend payers has undeperformed. Utilities are really underperforming (but pay a yield) as are the banks. Where to go from here? This is a generational low in yields, which will, in coming years, will work their way higher. So pick your spots now: banks, like BAC and TD. There's near-term risk if COVID news doesn't get better which will increase insolvencies. He doesn't love the banks now, but he would pick TD.
banks
BUY
BUY
July 27, 2020
Biotech has been strong, so steer away from this and go to pharma. Abbot is on the verge of breaking out after basing. There's potential with their vaccine. Pays around 1.5% dividend. He doesn't expect politicians to pressure pharma stocks during this pandemic.
Show full opinionHide full opinionBiotech has been strong, so steer away from this and go to pharma. Abbot is on the verge of breaking out after basing. There's potential with their vaccine. Pays around 1.5% dividend. He doesn't expect politicians to pressure pharma stocks during this pandemic.
biotechnology/pharmaceutical
BUY
BUY
July 27, 2020
Is the US cold war with China effecting the semi space (i.e. moving semi factories from China to US and Taiwan)? Trade relations continue to chill, yes. He'd own Lam or Taiwan Semi. The latter has seen huge lift in recent days. Lam broke out last week above previous highs and pulled back slightly, so it's a good time to add, and consistently beat estimates.
Show full opinionHide full opinionIs the US cold war with China effecting the semi space (i.e. moving semi factories from China to US and Taiwan)? Trade relations continue to chill, yes. He'd own Lam or Taiwan Semi. The latter has seen huge lift in recent days. Lam broke out last week above previous highs and pulled back slightly, so it's a good time to add, and consistently beat estimates.
Technology
BUY
BUY
July 27, 2020
Is the US cold war with China effecting the semi space (i.e. moving semi factories from China to US and Taiwan)? Trade relations continue to chill, yes. He'd own Lam or Taiwan Semi. The latter has seen huge lift in recent days. Lam broke out last week above previous highs and pulled back slightly, so it's a good time to add, and consistently beat estimates.
Show full opinionHide full opinionIs the US cold war with China effecting the semi space (i.e. moving semi factories from China to US and Taiwan)? Trade relations continue to chill, yes. He'd own Lam or Taiwan Semi. The latter has seen huge lift in recent days. Lam broke out last week above previous highs and pulled back slightly, so it's a good time to add, and consistently beat estimates.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
July 27, 2020
(A Top Pick Aug 06/19, Down 17%) He stop-lossed at the end of 2019 when Disney started to underperform. He sees significant challenges here given its cruises and theme parks.
Show full opinionHide full opinion(A Top Pick Aug 06/19, Down 17%) He stop-lossed at the end of 2019 when Disney started to underperform. He sees significant challenges here given its cruises and theme parks.
entertainment services
PAST TOP PICK
PAST TOP PICK
July 27, 2020
(A Top Pick Aug 06/19, Up 49%) They produce chips for storage and telecoms, so it's a cloud stock. A great performer. He owns a lot of semis stocks. He'd buy MRVL today, but there's near-term stress in tech, but semis are the strongest spot in tech.
Show full opinionHide full opinion(A Top Pick Aug 06/19, Up 49%) They produce chips for storage and telecoms, so it's a cloud stock. A great performer. He owns a lot of semis stocks. He'd buy MRVL today, but there's near-term stress in tech, but semis are the strongest spot in tech.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
July 27, 2020
(A Top Pick Aug 06/19, Up 33%) The gold trade has a lot of legs. AEM is well-loved in the U.S. AEM has done a great job of growing by investing effectively. It continues to be a buy for him, just last week.
Show full opinionHide full opinion(A Top Pick Aug 06/19, Up 33%) The gold trade has a lot of legs. AEM is well-loved in the U.S. AEM has done a great job of growing by investing effectively. It continues to be a buy for him, just last week.
precious metals
BUY
BUY
July 27, 2020
GDXJ gives him blanket exposure in gold. He owns a lot of gold stocks, including Newmont, Barrick and Kirkland Lake. You can get exposure to juniors through Dundee Precious Metals (he owns). All are interesting. GDXJ is not a bad way to get gold exposure.
GDXJ gives him blanket exposure in gold. He owns a lot of gold stocks, including Newmont, Barrick and Kirkland Lake. You can get exposure to juniors through Dundee Precious Metals (he owns). All are interesting. GDXJ is not a bad way to get gold exposure.
E.T.F.'s
DON'T BUY
DON'T BUY
July 27, 2020
If the market performs well and a stock you own isn't, be careful. Some investors buy broken stocks hoping it'll get fixed--he doesn't like this strategy, so don't buy Boeing. In fact, he's shorting Boeing. It was a wonderful company now facing challenges; the longer the challenges go on, the weaker the outlook. Not a fan.
Show full opinionHide full opinionIf the market performs well and a stock you own isn't, be careful. Some investors buy broken stocks hoping it'll get fixed--he doesn't like this strategy, so don't buy Boeing. In fact, he's shorting Boeing. It was a wonderful company now facing challenges; the longer the challenges go on, the weaker the outlook. Not a fan.
Transportation
BUY
BUY
July 27, 2020
FB has many levers to pull. Their platform is only partially monetized. Small/medium-sized businesses have been adding services in droves; FB could become a commerce website is significant. Their platforms all have massive user bases. The stock isn't technically stretched now. Sure, there are worries over regulation, but regulation would take years to happen. Now at $232 is a great entry point. A pullback is possible, too.
Show full opinionHide full opinionFB has many levers to pull. Their platform is only partially monetized. Small/medium-sized businesses have been adding services in droves; FB could become a commerce website is significant. Their platforms all have massive user bases. The stock isn't technically stretched now. Sure, there are worries over regulation, but regulation would take years to happen. Now at $232 is a great entry point. A pullback is possible, too.
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