Today, David Driscoll and Michael Simpson, CFA commented about whether ATL-BIT, TIH-T, PAYX-Q, UL-N, IBM-N, BAM.A-T, TM-N, DSY-FP, LFUS-Q, BDX-N, NWC-T, ISC-T, CVS-N, BABA-N, GIL-T, IPL-T, IAG-T, CVS-N, LNR-T, BGI.UN-T, WBA-Q, GMED-N, FSZ-T, CPG-T, EIF-T, TCN-T, PLZ.UN-T, DR-T, AX.UN-T, NA-T, AMAT-Q, IMO-T, ENF-T, PLC-T, BPY.UN-T, SRU.UN-T, MFC-T, AD-T, OSB-T, AMAT-Q, SHOP-T, TD-T, ALA-T, DB-N, CGNX-Q are stocks to buy or sell.
Down 30% in 2018. They've been cost-cutting, selling assets and fired the CEO. Also, US banks are enjoying interest rate hikes, but not Europe's banks because interest rates aren't moving. DB doesn't have a model for good capital allocation and its underwriting is not great. Net interest income growth was -15% last year. Poor earnings in last quarter. You're speculating on this as a turnaround play. Risky. Other banks are safer.
Andrew Left (Citron) shorted it at $130. When will their earnings come out? Maybe 2020. So, you'll have to stomach volatility and be patient. It doesn't help that the short-seller is attacking them again, though he likes Shopify's defence. Still holds this, though he has sold some. He could dollar-cost average down the road.
How are you dealing with higher market volatility? He tries to understand the companies they invest in and try to determine fair market value. So when the market volatility negatively impacts good companies, they will step in and buy. They currently have between 5-7% cash available at any time, which is higher than the 1-2% level when market volatility is lower. They play defensively by favouring dividend paying stocks that show growth in their dividends.
How will REIT distributions be impacted by higher interest rates? It depends on the health of the sector. A hotel REIT in a growing economy can see earnings continue to grow and not be impacted as much by higher interest rates. It also depends on the health of the balance sheet. How much debt is on a floating rate? Generally speaking, rising short term interest rates are an indicator of an improving economy. He does not think the rise in interest rates will be much higher and companies with good balance sheets and good cash flows will be able to fund distributions.
They do robotics and logistics, like ensuring quality control on assembly lines. They're starting to get contracts from airports. Hit $72, but now in the $50s per share. Q4 is always tough for them. Take a half a position and watch it. They have over 1,000 outstanding patents.