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Latest Stock Buy or Sell?

Today, David Burrows commented about whether IR-N, ADBE-Q, BAC-N, SCHW-N, IRTC-O, SIVB-O, VET-T, CCL.B-T, KKR-N, CPX-T, MG-T, MIC-N, ATD.B-T, BABA-N, IPL-T are stocks to buy or sell.

COMMENT

Market. He continues to be positive on the market. The pullback is really heathy and reminds people there are risks. Over 78% of companies beat earnings estimates in the last quarter. January was the largest upward revisions month since 2002. The P/E ratio is at very reasonable levels. He is most optimistic on US markets, and modestly on European markets, and less so on the Canadian market.

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COMMENT

S&P 500 Comment. There has never been a bull market that has ended on the first shot, he says. You can expect higher volatility but nothing significant into later in the year. Tech, financials, industrials and consumer discretionary have been leading the market since early-2016. As there has been a recent recovery, these same sectors have again been leading. This bull-run is not over he believes.

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COMMENT

Pipelines Comment. Between 2009-2014 he was a big energy infrastructure proponent, because of fracking and the growth in overall production and the ability to increase tolls. As pricing power is less for producers now, the ability for this sector to command growing multiples is at risk.

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COMMENT

Blockchain Comment. He sees blockchain as a technology that allows owners’ assets to be tracked. It takes out a middleman in tracking ownership. It is at the early stages and it is difficult to identify the opportunities. There is a lot of risk at this point. They only have a relatively small investment in this area. Unless you invest in a basket of securities, it is too difficult to pick individual companies right now. Evolve Blochchain ETF (LINK-T) is an ETF in this sector.

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COMMENT

Technical Stop Comment. He runs indicators that track market breadth. In late January these indicators turned defensive. He runs stops using point-and-figure charts. When the charts swing to lower highs and lower lows that is when he gets out. The sharp correction in February began, he put index hedge positions in place for about 50% of their holdings. He took off the hedges on February 9. He is quite bullish now.

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COMMENT

Alibaba versus Amazon Comment. The risk to Alibaba (BABA-N) is that it is operating in China and he sees this as risky. He owns more Amazon (AMZN-N) than Alibaba and has more faith with Amazon. KWEB-N is an ETF offering a basket of Chinese online companies.

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COMMENT

Canadian Banks Comment. He has some exposure to Canadian banks, but would prefer to own US banks. He would consider Royal Bank (RY-T) as it has significant capital exposure and a large wealth management business in Canada. He also likes National Bank (NA-T).

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