Today, Matt Kacur commented about whether LNR-T, ESI-T, CVX-N, FTS-T, TOG-T, DGC-T, IPL-T, CRH-T, HBC-T, TEVA-N, DIS-N, MBT-T, VZ-N, T-N, THO-T, SU-T, MTY-T, BWA-N, ABX-T, DOL-T, BEP.UN-T, BIR-T, NFI-T, BB-T, AQN-T, ATD.B-T, GILD-Q are stocks to buy or sell.
Gold is very difficult in that the underlying commodity goes up and down, and is very difficult to predict the direction. However, it looks like gold has found a comfortable level, and doesn’t feel like it is going to go down from here. If anything, he feels it will go higher. This company is at an all-time low on ROC. Because of the nature of the cycle they are going to start to turn that around. Due to their leverage on their balance sheet, it is going to actually work in their favour. He could see this, optimistically, in the high $30.
(A Top Pick Nov 22/16. Up 0.16%.) This is for the long-term, and it has only been a few weeks since his recommendation. A lot more Canadians should take a look at this. When you walk through a food court, almost half of the brands are part of this company. They generate a tremendous return on capital very consistently, and are expanding worldwide. It is still a small-cap company.
One of these really good companies that you would love to own, but it is kind of getting a little expensive. He is having trouble justifying the price, even with an aggressive forecast. ROC has been improving. It was about 8% for 10 years in a row, and has climbed steadily, and is now up to 14%. He would prefer to get this one on a pullback.
His data is telling him that this is a tremendous company. ROC for years and years has been 12% or higher. In the last few years, it has been in the 20% range. However, it has not done so great in the last year or so. He would say that this is an opportunity. There are probably some issues in the pipeline that you would want to work through and understand a little better, and that is not his forte.
He doesn’t do his shopping online and he still sees people going to the malls. His data also tells him that. Many of the companies he checks can be brick and mortar, and many of them are still doing very well. This company’s acquisition of Saks Fifth Avenue blew his mind. It hasn’t quite paid off yet. ROC is kind of low, but thinks the management team is pretty aggressive, and can turn it around.
He has liked this company for a while. It had a really long period of building up the company with no cash flow, no cash flow, no cash flow. Then, a couple of years ago, all of a sudden it started accumulating a decent ROC. It is just starting to go cash flow positive, in general that is a great time to be an investor, because a lot of the risk has been taken out.