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(A Top Pick Nov 9/15. Up 16.44%.) If rates just stay where they are, this bank makes $1.3 billion in revenue. Not an expensive stock, trading at less than BV. Also, it is not trading on a huge PE basis. They have a great retail franchise, a great investment banking business and a great asset management business. They’ve really spent time to get their cost structure down.
(A Top Pick Nov 9/15. Up 25.2%.) There are 2 parts to this business. They manage gated communities and apartment buildings in the US. The other business is a brand business where they own things like California Closets, College Pro painters, etc. A nice simple story. Most of its revenues come from the US.
This is a great company. Trading at 23X earnings. Their acquisition of Spectra Energy was very smart. Thinks they were uncomfortable with the situation in Canada and preferred to be operating in the US. Today, Northern Gateway was rejected by the government, but they did approve Line 3 with conditions. Expects that they feel their growth will come from someplace else, not Canada. He continues to like this stock.
A great story. Trading at 16X earnings and has a great dividend yield. They’ve spent a lot of money on the capital expenditures side moving fibre to the home. Thinks there is good upside. Data is doubling every 12 to 18 months, and he sees that as a great opportunity. Owning media and telecom seemed to work well together.
Not when you think of tech stocks anymore. Trading at 12X earnings. Great dividend yield of 3.4%. The router business has been a much more difficult time for them, and he thinks they are going to grow slowly. They have some good growth coming over the next couple of years. Made a few small acquisitions which is really going to help them out in the future.
A great company. One of the unique things is that they have accumulated brands all over the place, and then went aggressively into emerging markets. Many brands were not making money, and they sold those off. They still have to do a little more. They realize they were not making much money in emerging markets, so they need to reassess what products are going to be doing well, and how much to spend to market them. Thinks they are at that stage now. Expects in the next little while you will see margin improvement, especially on the emerging-market products.
This has gone through some difficult times of late. Their CEO left and they got a new one. The whole premise was that they were a store as opposed to a bank, which created a very sales oriented culture. They are now past that, and it is a great bank. This is a cheap stock. The steepening of the yield curve really helps them. If you can buy this at a good price, you should do well over the long-term.
One of the things he thinks is very important is that although it is a credit card, they take no credit risks. It’s basically a toll booth. They are very global and continue to grow their company internationally. A great story and thinks it will continue to do well. There is a huge part of the world that does not use credit cards, so there is great growth on the emerging-market side.
A very unique company. Trading at 6X earnings with a 2.5% dividend yield. They have 2 very important drugs. One is an HIV drug, which is very, very good and is growing nicely. What has caused the stock to be down about 20% on the year, is their Hep C drug. The drug is so good that it is actually curing a lot of people. Although there is still growth on the Hep C side, the market is implying that they are not going to make money. That is wrong as they will continue to make money, but at a much slower rate. He feels the market is giving them zero credit for their pipeline of drugs. Also, feels the market is not giving them credit for the HIV drug which continues to do very, very well. They have lots of cash, so can actually make an acquisition. Dividend yield of 2.51%. (Analysts’ price target is $95.16.)
This has been a very expensive company for many years, and doesn’t pay a big dividend, only 1.42%. Trading at around 20X earnings. It has a great brand and a great technology, and they have a great online business. The stock has done poorly because of 1) inventory issues and 2) because of some marketing issues. Buying a global brand that is growing internationally at these levels is good. (Analysts’ price target is $63.52.)
A stock that ran up from literally nothing to almost $90. They bought a lot of auto dealerships. Dealerships make lots of money, because they sell a lot of other products as well. The company did 14 acquisitions in one year, but never integrated them properly, so the stock collapsed. New management has come in and are integrating them properly, and only doing 2-3 acquisitions a year. Trading at 12X earnings. Dividend yield of 1.97%. (Analysts’ price target is $24.25.)
Most of their business is in generics. Recently made a big acquisition which they are working through, which is one of the reasons it has come off. At these levels, this is a great time to buy.