Latest Stock Buy or Sell? Make More Informed Decisions!
Today, John O'Connell, CFA commented about whether SC-T, WY-N, TD-T, CCO-T, REI.UN-T, PGF-T, ALA-T, NSC-N, T-T, MRE-T, LECO-Q, DCI-N, BTE-T, ATH-T, KEY-T, MRG.UN-T, ORCL-N, AGF.B-T, ECA-T, WPM-T, TOU-T, RRX-T, BNK-T, HR.UN-T, IPL-T, GOOG-Q, INTC-Q, CSCO-Q are stocks to buy or sell.
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His 3 picks today are all technology related. He is seeing earnings and revenue growth over time and a global move towards more mobile telephony technology. This one makes a lot of backbone for that. Trading at a pretty reasonable multiple of around 13-14 times earnings and yielding 2.86%. Growing its dividend.
His 3 picks today are all technology related. He is seeing earnings and revenue growth over time and a global move towards more mobile telephony technology. This company is trading at around 12X earnings with a 3.96 % yield. Spends $14 billion a year in research and development. Expecting they will come out with an innovative solution in new chips.
His 3 picks today are all technology related. He is seeing earnings and revenue growth over time and a global move towards more mobile telephone technology. This company is the largest search engine provider and one of the largest global advertisers. One of the most innovative companies in the world. Have $60 billion of cash on their balance sheet. Own the largest operating system, Android, for all mobile technology. They own You Tube and may start televising NFL football for a subscription service.
Likes this. Has recently gone through a corporate organization and has moved from being a limited partnership to a corporation. Had becoming difficult to finance growth projects because it was becoming so large. As a corporation, foreign investors, particularly in the US, will be allowed to own it. This will be a great catalyst. Has done a great job and has grown very, very rapidly for many, many years. Good dividend, which has been growing. 4.7% distribution is quite safe.
REITs in general have been sold off quite a bit recently. This company has gone through a re-organization where the management team had their management contract bought out by the Corporation. Felt that the price paid was exceptionally high for the length of time that it existed. Stock is in the penalty box. Good yield and they have good properties and good assets. $24 in the next year would be reasonable but you have 2 headwinds. 1.) If the economy continues to improve, rates are going to continue to creep higher. 2.) Management is going to have to do a really good job of convincing people and regaining their confidence and trust.
All the Junior oil and gas companies have been struggling. This stock is getting a bit of a boost right now because crude oil prices are up and differentials have tightened. On smaller cap companies, you really have to pick your places and he is not certain that this one is a name you need to own. Growth profile is not all that exceptional. Would prefer something like Raging River (RRX-T) or Tourmaline Oil (TOU-T).
Investing in gold/silver producing stocks has been a very, very challenging environment. Thinks that a lot of investors have just given up. Have been horrible performers because they have not been able to manage their costs and it has been very difficult to grow production. They are also often operating in politically unstable countries. Royalty plays, like this one, have been the best performing of the poorly performing lot. Generally takes a long time for a stock to recycle its way through with a lot of resistance on the way up. Because of rising interest rates and an anticipated stronger global economy, gold and silver will continue to be problematic investments.
They will be cutting their dividend soon or else they will continue to make the same mistake they have made for 3 years of continuing to pay out more money than they are able to. If you want to maintain exposure to natural gas, he would buy Tourmaline (TOU-T). If you want an oil producer, you could buy Suncor (SU-T), which seems to have their act together. Or you could buy Canadian Natural Resources (CNQ-T).
How important is the retail investor to the market? His sense is that the retail investor has become less and less of a meaningful player in markets in general. Feels they are fed up and haven’t been served very well by the financial industry. Now they have choices of thousands and thousands of ETFs and don’t know which one to buy. Thinks the high-frequency traders are masking how much volume actually really ever existed. It’s a major problem that the capital market and stock exchanges should address but exchanges have become big businesses and their primary motivation is to have trading and trading volume and they don’t really care about investors.
(A Top Pick September 10/12. Up 0.84%.) Has been struggling as all technology companies have been struggling with a slow global economy. Businesses do not have a lot of confidence in investing in technology and this company has to develop to stay competitive. Doing a good job and have a strong balance sheet. Increased their dividend. Still a Buy.
(A Top Pick September 10/12. Down 20.3%.) A smaller REIT, so is quite illiquid and can get knocked around more than average. Generally speaking, when investments starts to fall, people get discouraged and don’t understand so they tend to sell. Yielding about 6.7%. Has a great track record. Buying property in the US, which he thinks is a great place to be. Rents are strong and improving.
Markets. Fairly valued and certainly not cheap. We are 3 quarters into a full cycle here. Markets are pretty optimistic. Analysts’ forecasts have been consistently rising. Forward PE multiple is about 15 times for the S&P 500, which is about a historical average. A lot of appreciation in the market in the last year has actually been PE multiple expansion, not earnings expansion. Looking at earnings in the last quarter, on a year-over-year basis and taking out financials, earnings were actually down for the quarter. He exited a lot of his investments earlier and is doing a little bit of trimming. Finding it very hard to replace the investments that he sells. When he looks at likely valuation of companies he would like to own and put an average PE multiple on them, he is getting sub par returns. His equity fund is holding 45% cash.