Today, Michael Simpson, CFA and David Driscoll 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.
The market is currently negative on energy infrastructure and Enbridge is being impacted by how the parent is going to finance future projects. There is also some fear that the great assets passed down from the parent may one day be taken back in. In the US some negative tax rulings on Master LLPs may cause changes.
When he looks at today's valuations, he sees that earnings have to rise for two years to return to equilibrium. The market will correct or goes sidewaks for a while. With more volatility all around, step back and look at your stock price targets; and if a stock doesn't reach that target, then move on and buy something else. This is the perfect opportunity to take advantage of cheap prices. Important: Have cash to deploy during those 10-20% dips. He holds 20% cash. Investing is about how much you avoid on the downside more than how much you make on the upside. Don't chase yield. Few stock markets are up for 2018. He likes companies that generate free cash flow that's growing.
There is an aviation and manufacturing division within this company. As a conglomerate it usually trades at a discount. There was a short selling investor who had issues with some of their acquisitions in the past. Some lower margin leasing activity in the aviation division may also be creating some uncertainty with investors.
A primarily light oil producer with assets in Utah. Since 2014 the shares have declined as oil prices have fallen. They issued a lot of equity during their acquisition phase. Debt to cash flow could be lower at almost 2 times, especially since crude oil prices might be near its short term peak. If oil prices hold or go higher, the stock could improve.
He recommended it around 18 months ago, and it has doubled in price. Drawbacks before: had no international presence and not enough salespeople, but that has turned around, as reflected in the price jump. Earnings growing 10-15% annually. No debt, but pay no dividend. Buy half a position and watch, but don't buy heavily because it may
drop badly during a correction.
This company operates cemetery and funeral homes in Canada and in Michigan. He did own this, but recent valuation caused them to sell. He sees it as a stable business with real estate in valuable markets.