Today, Brian Acker, CA and Douglas Kee commented about whether RCI.B-T, TD-T, NPI-T, CCO-T, LIF-T, AEM-T, BAM.A-T, POW-T, PEY-T, ARX-T, DH-T, RECP-T, ARE-T, MFC-T, L-T, AQN-T, RY-T, ENB-T, CVE-T, MG-T, CPG-T, MSI-T, SLF-T, TECK.B-T, BNS-T, MFI-T, NFI-T, CHR-T, HBC-T, XOM-N, AIG-N, C-N, MG-T, BRK.B-N, ABX-T, BAC-N, CCA-T, IBM-N, ORCL-N, BMY-N, KHC-Q, AMZN-Q, CU-T, HBM-T, BBD.B-T, GILD-Q, AAPL-Q, GE-N, POT-T, VII-T, CASH, BIR-T, CJR.B-T, MFC-T, SJ-T, CXR-T are stocks to buy or sell.
US banks have not done anything for three years or more. 2009 was a low, but long term they have been trading sideways. Since election night a lot of these stocks have literally come alive. His model price is $66.61, or an 8.5% upside, but he would ignore that. The dividend has been severely repressed. He sees them substantially increasing them. (Analysts’ Target: $63.07).
Market. His clients are a lot happier now than they were a year ago. Going into 2017, he is cautioning his clients. 2016 was a great year but expects returns are probably going to be in the single digit area. His long-term strategy is to get returns of 6%-8% for clients, and this is a year that he thinks he can do it. The market right now is at about 17X forward earnings. The top of the range is 18X and the bottom is 15X. If there is a scare of inflation in 2017, the multiples are probably going to come down. Earnings may still go up, but what they are going to pay for it, they is going to go down. His portfolios have likely reached a maximum in economic sensitivity. That is the more cyclical parts of the market such as energy, commodity materials and industrial stocks. They are about as high as he would go now. This market started its uptick in 2009, so it is getting a bit aged, and he thinks we are somewhere in the 8th inning.
This is the biggest winner of all the stocks out there. This is the first question he has ever had on this stock in 17 years. Don’t hold your breath on stock splits. The CEO does not believe in them.