Latest Stock Buy or Sell? Make More Informed Decisions!

Market. [The guest was not able to appear at the beginning of the show so Catherine Murray spoke about an interview she would conduct following Market Call. The show started after this comment with the first caller.]

(A Top Pick March 29/17, Down 27%) He still owns it. It is a turnaround story that is taking longer than he would have liked. They are transitioning their business away from print. Their financial results have really turned. They are extremely undervalued. The market has not picked up on this turnaround. He looks for good things this year.

(A Top Pick March 29/17, Up 33%) They license health care products from outside of Canada. They have been very good at providing consistent return on equity as well as earnings growth. This year will be an interesting time. They are sitting on almost $20 Million as a war chest and adding to it every quarter. They are searching for opportunities and will be diligent in deploying it. They are an under the radar company.

(A Top Pick March 29/17, Up 30%) They have been very, very consistent over 10 years. Some think collision repair will become a thing of the past with self driving cars, but he disagrees.

They are out of favour but are a core holding of his. They are the second largest convenience store operator in the world. They missed the mark with their recent results and it was solely gas margins in the States. He would rather have oil prices going down, but this stock is cheap. (Analysts’ target: $74.08).

The best retail stock in Canada. They don’t cease to amaze him. They will grow substantially this year. They are tremendous operators. He is excited by them having a 100 store franchise in Central America. They can buy a controlling interest in 2019. (Analysts’ target: $164.67).

Until we have some earnings visibility it is still speculative. The stock seems to be broken, technically. He would like to see more strength before investing. We are seeing more strength in the Marijuana and crypto currency sectors and if people are willing to bet on these, then they should be more willing to bet on more conservative stocks. It may be a good sign. These sectors went down first before the broader market went down and so maybe the broader market will come up more now.

He owns a number of pipelines but has been reducing exposure to dividend stocks. As interest rates rise, competition for investor dollars takes money away from dividend stocks. It is okay to hold for a very long period of time but the next two to three years may see the dividend eaten up by the stock falling.

The stocks came off rapidly on a short report last year. It seems to be caught now in the Facebook downdraft. This is a buying opportunity but be cautious. You would want to be prepared to hold this for a long time. It is more appropriate for growth investors.

He owns it personally. The return on equity meets his criteria. It is relatively inexpensive. They have been growing by acquisitions. They have a steady business and then juice it by acquiring companies with the cash flow. It was a Top Pick of his previously. It is a reasonable level to initiate or to add to a position.

They meet his criteria in terms of consistent high returns on equity. This would be a smaller company. It should not be a large percentage of a portfolio. A good little company to own.

He is watching it. His hesitation is where we are in the business cycle. Auto cycles tend to be very cyclical. We are late cycle. Don't get into it now.

It would be a good company to own and it is the first time in three years when he has said to buy an oil producer. Oil recently broke out.

He sold after the most recent quarterly earnings report. Their earnings seem to be stalled. There are complaints about the company from customers. When you buy a house, then if there is a hot water heater contract, then you, the buyer, are tied to it. He is not comfortable owning it any more. It has a nice dividend yield, though.

It is old tech. Some of these companies have taken out 2000 highs and ADBE-Q has continued to move higher. He would not trim it if it is no more than 5% and would let it run.