Today, Barry Schwartz commented about whether GS-N, BBBY-Q, ENR-N, PSX-N, RSI-T, TN.UN-T, DOL-T, BAC-N, MFC-T, CF-T, CM-T, TECK.B-T, GOOG-Q, MG-T, IMN-T, CNQ-T, JNJ-N, ADN-T, WFC-N, DIS-N, AGU-T, WJX-T, AAPL-Q, WMT-N, CCO-T are stocks to buy or sell.
Got fed up with the potential for their return going forward, which he thinks is going to be restricted because low interest rates are here for years and years to come. You can’t go too far wrong with this because valuation is cheap. Dividend is completely safe. ROE is coming back. Feels there are better opportunities in the financial space.
Stock is down because, although it is growing, it is slowing. Everybody hates when they hear slowing growth. It is not going to grow its earnings 50% any more; it is back to a normal 5%-10% earnings growth. What he likes about this one and the whole US banking sector is that the housing market is improving, US consumer is improving, banks are flush with cash and they are now allowed to buy back shares. Prefers the safety of a Wells Fargo (WFC-N) or a J.P. Morgan (JPM-N) but he would have no problem adding this one as a 2nd or 3rd U.S. Bank.
A serial share repurchaser. Not just in batteries anymore but have lots of other products including razors, suntan lotion, feminine products. Disposable type products which he loves. Much cheaper valuation than its peers. Just instituted a dividend. Buying back a lot of shares. Earnings are going to grow 10%-15% this year and he can see this happening for the next 3 years because of the free cash flow they are generating and the new innovative products they are coming out with.
Stock came off last year because the market was concerned about its risk with Amazon, however it is buying back shares. Bought $1 billion worth of shares in 2013. Reducing its share count hand over fist. Clean balance sheet with $5 net in cash. Opening more stores and there is room to grow outside of the US and Canada. It will benefit from the resurgence in the US housing market.
People hate this company because of how much they pay out in compensation but, the bottom line is that they are trading below book value. They are generating so much free cash flow Warren Buffett just gave his seal of approval. Company plans to buy back 80 million shares, which is over 15% of its market cap.
Healthcare. Overall, this is a space you have to be in. He has trimmed back his healthcare allocation because valuations have gone too high and he is waiting for a pullback.