Latest Stock Buy or Sell? Make More Informed Decisions!

Market. Bitcoin futures. The initial expectations were that you would see bears start to raid it and sell it aggressively. In fact it seemed to go the other way. When you look at the volume of a futures contract, we don’t know the amount of open interest. It may be the same people trading them back and forth and back and forth. He would wait to see the liquidity and the depth of the market before stepping into it. Larry prefers Gold to Bitcoin as Bitcoin has no intrinsic value.

He thinks there is a good chance Trump will break NAFTA.

It contains some of the best quality companies in the US. BMO write puts 15-20% below the market price. They generate additional income from the puts. Every month if the markets don’t fall to those prices, then they harvest the income on those puts. BMO does not want to own the stocks so if necessary they buy the option and re-write the put. He expects 6-7% from it. If it is not working out the way you hoped, pricewise, then you have to ask if you can take the asset and put it somewhere else. This ETF won’t grow in price.

The dividend paying stocks average about 4% in dividends. The premium above that is coming from the covered call strategy and there is no return of capital in that model. There are capital distributions from mergers and acquisitions only. There is a high correlation to financials in Canada. It is kind of like the weighting of the TSX.

Bitcoin Options. The underlying volatility is massive. The puts and call premiums are going to be huge. He does not believe there is an underlying derivatives market. It is not a mature market.

It is not unlike a REIT but for pipelines in the US. They put it into this MLP structure. It is a basket of pipeline stocks. The revenue gets passed on to the shareholder. It is not a Canadian dividend, however, so not taxed the same way. He thinks you are in a trading range environment now. He has been buying on weakness.

Gold. He is a value investor and has been nibbling away on gold. Don’t make it all of your portfolio. See his educational segment.

Buying back shares will be part of what to do with all that money. He does not think that repatriating cash will cause a CEO to pay his employees more. He does not think that repatriating capital will have the impact on the US economy that the government thinks it will.

They will do what the underlying commodity does. It is a bit of an opportunity here. It is starting to get a lot more interesting here. It could fall another 10-15% if gold keeps going down. He is nibbling way here, however.

Educational Segment. Bitcoin vs. Gold. Bitcoin was seen as possibly a gold disrupter. The biggest cost of investing is the volatility in order to take the position. Is Bitcoin appropriate? He thinks it is a bubble that will break because it is worth nothing. If you want to add it to your portfolio you have to understand if it will help you or hurt you. Gold does not do the same thing as equities do. It gives you a diversifying effect. If you adjust it for risk and then compare to Bitcoin, there is a daily volatility to Bitcoin of 10% and so it is hard to add this to your portfolio and improve your chances of an increase to its return. If you can stomach the ups and down, then maybe Bitcoin is appropriate for you. He thinks Bitcoin is close to zero in value and it is just a bubble. Block chain is a different story and has no relation to an investment in Bitcoin. Don’t trade futures in Bitcoin because of the leverage. Leave it to the professionals.

Market. There is a lot of speculation on Bitcoin, Crypto currency and Marijuana, where valuations make no sense and this is a sign of a top. Lots of money is going into ETFs with companies that may have no earnings. Once a manager gets too big they become the index and so cannot beat it. There are a lot of smaller managers that can easily beat the market over the long term. He is holding more cash in his funds than normal bit he is seeing a lot opportunities as money moves into ETFs and out of mid and small cap stocks.

It is a very expensive stock. These things are priced for perfection. They missed some estimates by a few pennies recently and the stock dropped $30 and then rocketed right back up the same day. He thinks the multiple is quite expensive. You need to wait for an overcorrection.

They are just breaking even but cash flow positive. They not only sell motion systems but also lease them. You have to look at gross sales as well as rental income. They have a version in the reclining movie theatre seats now. He expects some big orders from AMC-N.

The growth should continue but he questions the amount of churn that they don’t disclose – businesses that start up and don’t survive. The market is starting to question these issues from the volatility.

A great company. He sold it last year because it was getting a little expensive. There is reasonable organic growth but it is mostly acquisition growth. There are more acquisitions to be done in that space yet.

It has come down recently mainly because all of the north American broadcasting stocks got pummeled with all the cord cutting. However they did have advertizing revenue growth and also subscriber growth because of the adding of the DIS-N channels. He thinks the stock won’t go anywhere but you collect your dividend. They have to focus on paying down debt and invest wisely so they own more of their content. The Shaw family is hanging on also.