Latest Stock Buy or Sell? Make More Informed Decisions!

Looking back 9 years, this is at a high. Using earnings estimates, he has a model price of $42.67, a 65% upside. The stock usually comes back to $16.70 before it has another run.

It looks like the downside is not over. Could it get back to $96? It could, because the model price is actually falling. If you own it, look for $96 which is where he would buy more. It could test resistance again at $132.65.

He likes this. Would love to see it get back to $52.48. His model price is $78.72, a 33% upside. A great growth company and they know what they are doing.

The good news is that the materials space has been down a lot in the last 3 months. This company has been going sideways. He takes that as on-balance strength in the name. His model price is $8.87, a 21% increase. If we get everything going positively, big earnings and everybody back into the mining sector, probably the most you are going to get to is $9.16. If we go into a big Bear market, it goes down to $3.70. He would Hold this here, but is looking at the $9 top.

This continues is a great growth story. His model price of $135.82 is under the current stock price by 11.5%. He would like to see a correction. These are wonderful names to pick up on a correction.

The iPhone 8 is going to be a major upgrade cycle. A lot of people are holding off for this upgrade, as opposed to the iPhone 7. The stock had a nice pullback and they are going to report earnings in 2 weeks, but what really matters is their guidance going forward in September. It closed at $145.06, and he has a model price of $184.61, a 27% upside. Dividend yield of 1.7%. (Analysts’ price target is $164.)

2 weeks ago, this bank increased its dividend by 100%, and thinks they could double it again within the next year. Look for more dividend increases down the road. He has just had a valuation high for this company. Assets divided by shareholders’ equity is only 8X. Compare that to the Royal Bank which is 16X. They could actually double the assets on their balance sheet with their current capital. His model price is $66.84, representing no real upside, but big potential for dividend increases. Dividend yield of 1%. (Analysts’ price target is $68.)

His model price is $73.24, representing an upside of 30%. In a rising interest rate environment, this is a sector that you can hide in. Dividend yield of 2.9% (Analysts’ price target is $60.)

Canadian Economy. He is constructive on the Canadian economy for about the 1^st time in 5 years. Has always been very overweight the US. Normally he is running around 35% of the whole portfolio as US equities, and the Canadian component is about 15%-20%. Feels Canada has been lagging the rest of the global market, and our performance this year has been abysmal. He can see where there is going to be room for growth in the Canadian economy and the Canadian markets. A criticism he has of the Canadian ETF industry is that they are all pretty much cut from the same loaf, they’ll have 30%-35% financials, 20% energy, 10% material and 10% telecom. What they should be doing is to come up with something that leaves the side of the banks and energy that we are all familiar with, and come up with an ETF that has some large caps, but mid-cap’s as well, that can take a look at the broader sectors of the Canadian economy.

High yield Bond funds? Normally he doesn’t recommend these because you are dealing with junk bonds, and his clients tend to be older. If interested, he would take a look at iShares US High-Yield Bond Index (XHY-T) and BMO HighYield Corp Bond US Hedge to US (ZHY-T). The performance on both is virtually identical. You could also look at First Trust Senior Loan (FSL-T), short-term commercial paper in the US. He would much rather have a Covered Call on a Canadian bank paying the same thing and get the tax advantage.

Covered Calls - Do you ever buy these back to resell them? Yes. Sometimes you get a situation, such as the financial crisis, where Canadian banks were holding up quite well until the end, and then collapsed. Royal (RY-T) went from $52 down to about $26. In that case he bought back the Calls he sold, rolling down and selling a fresh batch of Calls and trying to conservatively save 50% of the money, and then stops selling the calls and lets them rise back up. If the Calls get down to around $.25-$.50, he buys them back and Sells the next series.

Very well diversified with a mixed bag of healthcare, retail, commercial, residential. He wouldn’t be uncomfortable buying this. The fees are very low.

This is not bad, in terms of the structure. The only thing is that fees are higher than some of the others. However not a bad one to play because it does give you diversification which he likes.

Increasing US exposure in the TSX ETF? There are a couple he would look at. BMO Dow Jones Indus. Avg. Hedge (ZWA-T), which is a covered call on the Dow stocks, as well as BMO US High Dividend Covered Call (ZWH-T) which is based on the higher dividend paying S&P. He likes both of these. They are more expensive because they are Covered Calls, but is quite impressed with the value added. He has a lot of these.

Increasing US exposure in the TSX ETF? There are a couple he would look at. BMO Dow Jones Indus. Avg. Hedge (ZWA-T), which is a covered call on the Dow stocks, as well as BMO US High Dividend Covered Call (ZWH-T) which is based on the higher dividend paying S&P. He likes both of these. They are more expensive because they are Covered Calls but is quite impressed with the value added. He has a lot of these.