Latest Stock Buy or Sell? Make More Informed Decisions!

Market. This market is US centric with earnings up 20% year over year. Now the bond market yields are looking good. Interest rates going up is a good sign for the economy – get used to it. There is nothing to fear about rising interest rates. We have been in a financial “repression” for the past 10 years. The cost of money is going up, which is healthy. The shorter end of the curve is also moving up -- 2.8% for the five year bond. A fair value for the S&P500 is 3450 in his opinion, based on strong earnings. Canada has good value too, but you have to hold your nose – it could become cheaper. He is very bullish on the US dollar and bearish on the CAD dollar.

Safe Canadian stock recommendations? He thinks it is hard to be safe in Canada as rising interest rates are hurting many dividends. Over the past 10 years people moved into telcos, utilities and pipelines to be paid to wait. Now these companies are overvalued and rising interest rates make it challenging for their fundamentals. He can’t give recommendations for Canada right now. The passing of the US Tax Act has made things more competitive there.

Canadian Interest Rates. The US has been leading the world after recapitalizing from the financial crisis. Although we didn’t have a similar collapse in Canada, the Bank of Canada is still being too easy on lending. Last year when rates did increase, the impact on the Canadian economy was negative. A lower Canadian dollar will help the economy, so don’t expect big interest rate increases here soon until we start to see 3% GDP growth annually.

All these late stage cyclical stocks should be moving, but they are not. It has a model price of $81, compared to current closing near $32. There is some speculation that the Chinese market may slow briefly, but only to ramp back up by 2020-2022 with leadership reviews. If you own it, hold it.

This stock is going to $32. His model price is $36.66. People previously bought it for yield and now the stock is over-valued. As interest rates increase, it has to fall in value. Anything to do with pipelines is radioactive.

It has had a nice pullback here and he would buy more at $56.50. His model value is just above $66 right now.

He would consider telcos to be interest rate sensitive. He was hoping Rogers would go back to $53.60 to become a buyer. Right now it is over-valued by about 15%. Recent earnings helped pop the stock up, but expects he will get a chance to buy it lower. Yield 3.2%.

This is going through a hard time right now. He has a model price of $54.90, but thinks the stock will continue to move lower. It will eventually get straightened out and he will look to buy it at lower levels. The yield is almost 5%. He would add length near $40.

He would love to be a buyer near $85. The model is calling for 17% upside at current price levels. Current management instability may help push it down to his target buy level.

Cigarette sales are declining causing stock prices to decline. He has a model price of $77, with 40% upside potential. If it moved lower he would be interested. He would buy here and more near $54. Yield is 5%.

He would consider to hold this. His model price is $19, so it is 50% above full value. Maybe the fundamentals catch up on the stock it may retrace.

He would be tempted to buy if it had a move above $16.77. They have stumbled and earnings are projecting a model price of $9.39 – about 37% over-valued. It may take a while for the fundamentals to improve. Stay tuned. It is very cheap, but he needs to see a move higher before he gets excited. (Analysts’ price target is $20 )

His model price is $661. He would see $850 as a screaming buy. It had good earnings yet the stock went down. There may be concern of data collecting and privacy. He has owned it for years and would buy more on a pull back.

It is hard to buy ahead of earnings. The trend has been good earnings leading to a weak price. He loves the company since $15 and it continues to do everything well. He would buy more at $90, but would wait for earnings first.

There has been a rally in the stock recently buy now increase in model value – currently at $45.88 (implying it is fair valued now). He would wait for a pull back.