TOP PICK
Emerging markets ETF. China, India and Brazil are tomorrow's economic powerhouses. Every portfolio should have some emerging markets. Emerging markets region is the only area that will post positive GDP this year. China is expected to lead the way in 2010 with an 8.5 GDP and Brazil and India are not too far behind. He is looking for an opportunity to Buy.
TOP PICK
Largest semiconductor manufacturer globally. Likes technology. This company will have a couple of catalysts including Microsoft's (MSFT-Q) Windows7 and a PC upgrade coming. Also looking for an increase in IT spending. He is watching the 50-day and 200-day moving averages to get into this.
TOP PICK
Went into the financial crisis of 07 and 08 as one of the leaders and have emerged as the leader in the financial services space. Probably the most respected name in the investment banking business. Trading at 10X forward earnings, which is a bargain. 2nd quarter below way everyone's estimates. Estimates for the next quarter and for the full year are going up very quickly. Very shrewd management.
PAST TOP PICK
(A Top Pick June 19/09. Up 16.52%.) Sold 5.2 million iPhone's in the last quarter. Estimates for the next quarter are going sky high. Buy on weakness, possibly $150.
PAST TOP PICK
(A Top Pick June 19/09. Up 8.17%.) Agriculture ETF. Longer term, demand will continue to increase for agricultural businesses. Likes this one long-term.
PAST TOP PICK
(A Top Pick June 19/09. Down 24.87%.) Natural gas ETF. Was stopped out of this at $7 so was down 9.8%. From a contrarian standpoint, natural gas still looks quite interesting because of the 18 to 1 ratio to oil. If you are going to trade this, use tight stops.
SELL
Entering into the financial crisis of 07-08 they were considered the leader in financial services. Coming out they were no longer the leader. Have a few issues in the credit area. Diversified into the consumer space quite a bit, which is still reeling. There have been downward revisions in quarterly estimates. Could look for a buy opportunity later on. Better opportunities elsewhere. (See Top Picks.)
DON'T BUY
There are better names available. Seems to be a mixed bag of revisions upwards and downwards on earnings growth.
DON'T BUY
Likes the agriculture space. This one has some downward earnings revisions in the last little while. Would prefer Migao (MGO-T) or Ag Growth (AFN-T).
COMMENT
Likes the generic drug space, especially with the new US administration. There are a lot of moves up in estimates, both quarterly and annual. He also likes Mylan (MYL-Q), which has a little bit more growth and probably cheaper on a PE level.
BUY
Coal stocks are doing extremely well right now. Have lots of great assets in Alberta. Very strong earnings over the next little while. Small-cap mining company so very volatile.
BUY
High-yield bonds is a place you want to be when coming out of a recession into a bit of a recovery. Has had quite a bit of a run. Spreads between these and treasuries are now tightening a little. Could still be room to go. Pays around 10% yield.
DON'T BUY
Demand for potash is waning but long-term is not going to disappear forever. Expects this will be an issue for the next quarter or 2. There are many other names in the agricultural space such as Market Vectors Agribusiness ETF (MOO-N).
COMMENT
Versus Seabridge Golds (SEA-T) or Barrick (ABX-T). Likes the gold space but prefers it through the producers in iUnits Gold S&P/TSX ETF (XGD-T). Barrick still has some hedging so this one might be a little better. He prefers owning the group or commodity rather than individual names.
COMMENT
Because of supply/demand fundamentals, he thinks oil is a little high right now. Long-term, oil is a great place to be. This company beat estimates and earnings revisions have been moving up. He would prefer a name like Canadian Natural Resources (CNQ-T) which has better growth and is better value.