Today, Jason Mann commented about whether CTC.A-T, MG-T, CMG-N, MST.UN-T, ESN-T, ECN-T, SHOP-T, TOY-T, LIF-T, BCE-T, OSB-T, PTG-T, THO-T, ATVI-Q, BB-T, LNR-T, CVE-T, PXT-T, AGI-T, NFLX-Q, CGX-T, TCW-T, CVS-N, CAS-T, IFP-T are stocks to buy or sell.
(A Top Pick Nov 3/17, Up 54%) They have all done really well. This one is the 4th largest lumber player. The valuations now are not as cheap as when he bought them but the price momentum is still there. There is always a chance that someone takes them out. They have 60% production in the US so all tariffs would do is drive the price higher.
He likes it. It is a long in three of his funds. It has good valuation. There is one particularly large seller and that has held back the price. He would like to see it stronger, but all of its peers are picking up good momentum. 16 times PE and a really solid balance sheet. It should get a pop when the last of the selling clears up.
He is not convinced that online streaming is why it is down. It is more likely that there is fear of a dividend cut coming. Hold off until after any cut happens. Their cinema business is under pressure. It was always viewed as a steady dividend payer but it is over 100% payout ratio now. They have a slowing growth business and will have to cut the dividend. If you saw a dividend cut that would probably be the day to buy it.
Market. The Trump trade lives on. It was the hoped for tax changes and deregulation that didn’t happen in 2017. Small caps, industrials, materials have benefited since September. He thinks we are entering the euphoria stage. There are opportunities but it is hard to argue the market is not expensive. Cannabis and Crypto sectors are indicative of the bubble Euphoria condition. Cannabis stocks have run ahead of themselves. The combined market cap compared to forward earnings result in huge multiples. There will be winners almost certainly – but only a handful. We don’t know how this will play out. He has been short energy for two years. Price momentum has been terrible for some time. But it is looking better from a price momentum point of view. This would be the best relative sector right now.