Today, Fabrice Taylor and Ross Healy commented about whether FTS-T, MFC-T, HCG-T, CNR-T, TD-T, MCD-N, BA-N, BCE-T, AMZN-Q, CSX-Q, HON-N, SHOP-T, MFC-T, CBI-N, BAC-N, MU-Q, MG-T, TECK.B-T, KKR-N, ATD.B-T, ENB-T, XPO-N, DOL-T, JNJ-N, SIM-X, TECK.B-T, TOG-T, DHX.B-T, USCO-X, POT-T, INP-X, LTV-X, GUD-T, FRII-T, CCO-T, RUS-T, HSM-T, NLC-X, NFI-T, CLIQ-T, CHH-T, MRS-X, DIV-T, CXR-T, GCL-T, BUS-X, AC-T, DVR-CN are stocks to buy or sell.
You are going to hear a lot about Bitcoin and blockchain, particularly blockchain, which has a ton of deals coming to market with lots of promotion. What is interesting about this company is that they have been in this space for years. Blockchain is decentralized storage, making hacking data extremely difficult. Yesterday, they signed a deal with a company that specializes in blockchain programming and technology. He likes this one. The stock seems to be very cheap.
Kind of a rollup story. These stories always work well at first and then almost always fall apart, because it is hard to acquire businesses. They did a bunch of acquisitions, which worked out great until inevitably the wheels fell off. The question is, what are they going to do with this dog’s breakfast of assets. They are in the media space, and those assets tend to have long life, so they might get lucky, but he would be cautious.
He likes oil. At some point money is going to leave technology and come into unloved sectors. This one is relatively safe. The management and board are focusing on free cash flow and increasing the dividend, which is decent now but could get bigger. Dividend yield of 3.9%. (Analysts’ price target is $8.50.)
This is for speculative money. They make a “push to talk” in-car wireless cellular device. They are the only company globally that is making this. Their revenues are growing very quickly. What is interesting is that AT&T and Verizon want into this business, and this company is trying very hard to become a preferred vendor. If they make it, this stock is going to go a lot higher. This is risky. He likes the CEO, and thinks he can pull it off.
Market.The values aren’t really here for a long-sustained market ride. He would give the market 2%-3% more to go before it runs out of gas. However, it is grinding on, so what are people doing? There is an element saying they are going to buy ETF’s. Then there are other people asking where are the really good values? Banks and financials really stand out as being the cheapest group. The auto stocks have been really ground down in the last year or so, and statistically if their earnings hold where they are, they are actually a reasonable value. He is running about 30% cash.
The last time he recommended this was about 2 years ago when the stock took a real dive. Subsequent to that, the company got back up to its usual high valuation. It is now starting to roll over. It really doesn’t have much in the way of upside potential. Wait for another set back, or buy in slowly for the next 6 months where you might catch a nice low. Dividend yield of 4.7%.
Thinks this will be going down, because management has lost credibility. They don’t seem to have a very good grip on what they are doing.