DON'T BUY

He has a model price of $45.65 – 70% above current levels. This never trades where the fundamental value of the company is. It is near the upper range of historical value. He would look elsewhere.

TOP PICK

A recent pull back makes this previous pick even better. He has a model price of $32.60. He was disappointed the dividend was not increased. Rising interest rates will aid this stock. Yield 1.6%. (Analysts’ price target is $34.80 )

TOP PICK

The semi-conductors have been hot, hot, hot. His model price is $72.27 – 40% upside. They will report earnings soon. He thinks they will transition into a mobile space easily. Yield 2.3%. (Analysts’ price target is $54.97 )

TOP PICK

He has owned this for years. His model price is $48.96. He believes in blockchain technology and this company will profit from it. Chinese competitors have a security issue disadvantage compared to this one. From all perspectives he thinks this is a great investment. Yield 3.0%. (Analysts’ price target is $48.42 )

PAST TOP PICK

(A Top Pick July 11/17 Up 15%) He still likes it although it struggles. His model price is coming down as people worry about future earnings. A new iPhone X is $1800 in Canada. He would not be a seller yet.

PAST TOP PICK

(A Top Pick July 11/17 Up 4%) He still loves the big US financials, especially those too big to fail. They are doing all the right things including stock buy backs. He thinks they should be increasing their dividend. As interest rates go up they will increase margins.

PAST TOP PICK

(A Top Pick July 11/17 Down 2%) All the insurers are being helped by rising interest rates, yet the stock price has not increased. He is disappointed by the performance, but will continue to stick with it. He has a model price about 30% higher. Yield 3.5%.

COMMENT

Earnings season and the 10-year U.S. yield cracks 3%: The earnings were all that was advertised at 17%, though we're seeing 22% YOY increases so far. It's no secret that interest rates are rising, but how far? It's a psychological issue if investors think this bull run is over or not. There's a misconception among investors that things end, but they don't. There are weak and strong periods. How you manage the bad times defines you as an investor. It's easy to be an investor through the easy times. We value the upside more than the down, but the downside is the money-making side. He started in 2016-17 being strict with his asset mix including bonds and geographies, trimming his tech stocks last spring.

BUY

Well-run. In its sweet spot in the last few years because of strong housing starts and low interest rates. They've expanded their direct-to-tradespeople business. They've grown their net margins by 50% in the past few years. Now is a good entry point. Better-run than Lowe's.

BUY

It's done well since fall 2016 when he bought it. It'll continue to do well. There's a misconception--the U.S. and Canadian banks don't need a positive yield curve to make money, though it helps. All they need are interest rates Iin general to go up. So, he sees a lot of runway for the banks, which won't rely on the yield curve to steepen.

HOLD

A disappointment, having fallen on a number of missteps including negative trial results and management issues. With biotechs, the odds of getting a drug out of trials into production is small. So, it's best to have a stable of drugs and some of them will go through. Doesn't know if this is at a bottom here, but it should do well long-term. Carries an attractive below-10x earnings multiple.

DON'T BUY

He's been negative on this for a long time. It's a poorly run company with little credility left. Their cash flow is a mess. All their divisions are struggling. They've exited divisions that had some positive runway and went into areas that were struggling. It will continue to fall. The company may break up down the road.

DON'T BUY

Fantastic company. He owned it until summer 2016 based on "price exhaustion" where a company does everything you want it to, but it's grown so big that it now has risk attributes. Multiple is very high now. It risks a serious pullback.

DON'T BUY

They sold their wireline business a few years ago and bought out the minority interest of Vodafone, putting all their eggs in one basket which did not pay off. Margins on wireless aren't as rich anymore. Telecoms don't do well during rising interest rates. Look elsewhere.

PAST TOP PICK

(A Past Top Pick on May 2, 2017, Down 26%) They've always been sensitive to rubber prices, so their margins are being squeezed. He's watching this closely. They report April 30 and look for any signs of recovery. It's on a short leash.