Today, Michael Bowman and Keith Richards commented about whether QCOM-Q, BIP.UN-T, EBAY-Q, CVS-N, MSFT-Q, JCP-N, BAC-N, MG-T, CHR-T, TESCO-LSE, RSI-T, GD-N, CPG-T, AD-T, XCS-T, ZUB-T, AIG-N, PD-T, Y-T, STN-T, PSX-N, NCR-N, F-N, GIB.A-T, HSE-T, BBD.B-T, SIRI-Q, TA-T, SOCL-Q, UTX-N, COS-T, FTT-T, BA-T, L-T, PD-T, CARZ-Q, PPL-T, MG-T, GM-N, K-T, TD-T, ATRL-T, PIE-Q, ZUB-T, SU-T, XHB-N, WEF-T, HAL-N, CNR-T, ZPR-T, RCD-N, YXM-T, FLM-N are stocks to buy or sell.
Last quarter’s earnings were extremely disappointing however, same-store sales were higher than the competition along with EBITDA. The whole sector has some really serious problems. With their acquisition of Shoppers, the enterprise value is now only 31% food. If you look at the sum of the parts, the stock is worth a lot more than $42.
Markets. We are in a new secular bull market. There is always room for a correction but that is a few months away (10-20% correction). There may be one in later 2014 or early 2015. A second year presidential year tends to be a little softer. In 2009 there was a trough and he finds they happen every 5 years, so that brings us to 2014. Then markets have room to run after that. Any correction will be a very good buying opportunity. He is a big believer in rotation. Some of the old leaders are just beginning to roll over. He is trying to buy into emerging leaders.