A global coatings company for houses, airplanes, cars and industrial applications. Their earnings numbers were guided down recently as they are divesting. They are also seeing continued weakness in Europe. She is sticking with it at present until earnings are announced. If you are going to buy wait for the earnings announcement.
(Top Pick Nov 25/16, Up 7.01%) Nice reoccurring revenue stream. Their last acquisition was in 2012 and they have improved the already attractive margins of that one. They are now ready for another acquisition for expansion. They say they just have not seen the right deal yet. They don’t pay a dividend. They would rather buy back their stock or grow their business. They have done well in terms of share price appreciation.
(Top Pick Nov 25/16, Down 4.82%) Food deflation is the headwind. They are different than traditional food grocers because they have Shoppers Drug Mart. They now have about a 30% share in food retail as well as in drug retail. They still have a lot of room to improve their margins. This is an attractive entry point to buy this one.
Markets. Markets have been treading water since August. Third quarter earnings season is starting. It should be an infection point for the S&P 500. The strong US dollar has been a headwind, as well as energy. Consensus is negative year over year, but she feels we may get positive year over year earnings growth. You can argue for the higher PEs now based on the low interest rates. Interest sensitive sectors have pulled back, but a rise of 25 basis points in the US will be more of a rounding error. There are some nice entry points in these sectors.