Today, Brooke Thackray and Mike S. Newton, CIM FCSI commented about whether ROP-N, CCL.B-T, IAC-Q, F-N, XTR-T, SKX-N, BIP.UN-T, TSLA-Q, SBUX-Q, CNR-T, AAPL-Q, TD-T, CPG-T, GSK-N, VRX-T, ZEB-T, UTX-N, XLK-N, FTS-T, CCO-T, POT-T, DH-T, BTE-T, WEED-T, G-T, IMAX-N, XLP-N, HUN-T, CASH, ACQ-T, TD-T, WMT-N, BYD-T, MRE-T are stocks to buy or sell.
The long-term uranium story is good. Recently there has been a consolidation in the stock price. Technically the stock is in a channel, and currently we are in the top end of it. Being at the top of the channel doesn’t mean that this is going to go back down to the $15 level. We are getting close to the seasonal standpoint where this stock does do well. It tends to pick up a little bit in November. He is looking for it to move above $20 and move higher.
Has performed poorly so far. It was badly beaten up because they over promised at the beginning of the year, and didn’t live up to that promise, but are now showing signs of shaping up. They are going to boost their overall buyback to $12 billion in shares. It tends to do well at this time of the year.
Canadian Banks have been badly beaten up because a) everybody expects the house prices to collapse, b) oil prices are going to have an impact at some point and c) US hedge funds are Short Selling banks. Recently there have been some positive performances for the banks. We are now in the seasonal period for banks and they are showing outperformance signs. He is expecting that to continue on.
Markets. In the last 8 weeks, portfolio managers have really had to earn their keep. It has been really confusing, a lot of noise, a lot of leadership changing in the market. It felt like things were going to go the wrong way. The complexity of all these different macro economic factors, things that most investors have to pay attention to that you never did in your life before. Everybody is a Fed expert. The whole community has been egregiously wrong on what is happening with rates. What he has found to work in his approach is to just focus on incredibly good companies.
Trimmed his position by a 3rd on April 28 and trimmed again on August 25. Finally got stopped out and had no idea it would drop another 55%. (Stops do work.) The 1st 2 positions were 150% gains and the last position was about 100% gain. There is a very fiery presidential election going on, so there is certain unjust characteristic to the whole Pharma space with pricing, etc. Leveraged growth through acquisition is another issue that is playing. The topic of drug pricing is going to be forefront in conversations for at least a couple of months. This might be dead money for a while.
Not a name he would want to own. They have more price sensitive areas of the market, so they don’t really have the ability to set prices as well as they would like. Also, has a very light R&D budget, which is something you don’t want from a pharma company. Right now they are in a joint venture with Pfizer (PFE-N) on an HIV company, and the earnings and cash flow from that are not expected for another couple of years. You might consider iShares US Healthcare ETF (IYH-N) instead.