DON'T BUY

Not keen on it. What made them terrific before may not continue: quality food and good value, then people got sick. He's unconvinced they can regain that public goodwill.

COMMENT

He's looking for opportune sell-offs. U.S. tax reform and more restrained American household debt are encouraging, but the Fed is raising rates under a new chairman. Other factors: the U.S. yield curve is flattening and global trade tensions. He's optimistic long-term, cautious short-term. American has become an under-the-radar oil superpower through innovative fracking to the point of exporting oil and natural gas. Hold dry powder (cash) for opportunities.

BUY

Likes it. Banks enjoy U.S. tax reform; also, U.S. more companies will need loans as the economy improves. De-regulation is another tailwind. BAC will return equity to shareholders.

DON'T BUY

What made them terrific before may not continue. Too many woes with restructuring and new management. It's an unfortunate situation. He's not a fan of braod conglomerates, because he can buy individual pieces instead.

BUY

Well-run company that generates a lot of free cash flow. As Amazon pressures brick-and-mortar, these stores will have to move their merchandise, which is where TKX comes in, selling their excess merchandise. Also, TJX aggressively buys back stock.

WATCH

He'd like to like IBM now. Corporate America will be spending more on IT, but IBM's challenge is with Microsoft and Google fighting them over the Cloud. They missed earnings today. Watch this, but don't aggressively buy now.

COMMENT

Home improvement is a great space with strong competition and decent margins. You can't go wrong with HD. They're generating cash flow and buying back stocks. But he prefers Lowe's.

COMMENT

Strong media, studio and theatre businesses, not to mention expansion to China with a theme park. But the challenge is cord-cutting in cable. They are strategizing though, like competing with Netflix next year. It will need a lot of capital and some time to transition though.

COMMENT

They're innovative, but Instagram can quickly match their innovationst and they can understand the user better than Snap, because of the data that Facecook (its parent) has.

COMMENT

The U.S. banks are attractive, though he prefers others to Citi. Citi is more international with operations in Mexico for example, so they don't benefit as much from U.S. tax reform.

BUY

A terrific business. Huge amounts of dollars are moving from print to online and Google (and Facebook) are largely receiving them. Usage is growing and reach is enormous. Things will continue to go well. Strong cash flow and balance sheet. Through Waymo, Google is a leader in self-driving cars, too. They're spending on R&D so they could spin off more opportunities in the future.

BUY

Sells and operates equipment to semi-conductor companies. A great business. The world is moving in their direction as more value comes from semi-conductors which are appearing in more and more products like cars. This is all a tailwind.

Unspecified

Car industry: An extremely interesting time now, given the transition to self-driving cars, electric ones and ride-sharing. Google's Waymo is offering a self-driving, ride-sharing test program in Arizona. Later, they plan to offer a for-pay service. As the cost of these new forms of transportation decline, more people will use it. Also, self-driving cars will reduce auto deaths which are rising in the age of texting drivers. Adapation will be gradual and likely be introduced from city to city. Factors, including the high cost of the technology inside these cars, will likely increase fleet sales vs. individual car sales.

COMMENT

An interesting company. A retail pharmacy but now also a pharmacy benefit manager and in the process of acquiring a health insurer. So, they're trying to go along the whole chain. What could happen is that the insurance side directs people to CVS' mini-clinics to perform simpler medical work that a doctor would do, such as giving injections. This could drive down U.S. medical costs (and the U.S. has issues to face here), but also drive traffic to CVS stores. As for Amazon entering this space, we'll see what the impact is.

DON'T BUY

They did a great job bringing on oncology products to fight cancer, but beyond oncology he's not excited about Bristol. There are better companies.