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He's short FB even before the data scandal and he's worried about that short. He shorted, because he was worried about valuations. He thinks the Cambridge scandal will impact FB's growth, not so much by users opting out, but the cost of hiring more employees to police Facebook and privacy. He sees the bullish argument. They have a huge cash hoarde and 2 billion active users. Also, its valuation has sunk to 20x forward earnings. If you're a buyer, wait until the price drops a bit.
He's long MFC. He likes the story and is pleased by today's earnings report. The core earnings see decent growth and earnings. They are great beneficiaries of interest rates rising. They have better international diversification than other
Canadian lifecos, which enjoy attractive vauations overall.
Valuations were too high, so he avoided it for a while, but now the stock has checked back to a reasonable valuation. They grow by acquisition which they've done very well. Their weakness is that it's a low-margin business, and the rising price of gas will impact their earnings. That said, he still sees growth ahead and likes the current valuation.
Uranium prices have struggled since the Japan earthquake. Another overhang is the CRA issue. Hang onto this. It's had a nice move off the bottom. Cameco is short of uranium this year, so they have to buy uranium this year. Global buyers have bought enough uranium, so we've hit a bottom in uranium prices. He expects a bounce...as well as volatility.
Uraniam prices have struggled since the Japan earthquakes. Another overhang for Cameco is their CRA issue. Hang onto this. It's had a nice move off the bottom. Cameco is short of uranium this year, so they have to buy uranium this year. But buyers have bought enough uranium, so there's an excess on the market. We've hit a bottom in uranium prices, so he expects a bounce...as well as volatility.
It's a Chinese play on Amazon, Alphabet and eBay rolled into in one operating within a huge market. How can you not like that? Problem with Chinese companies is that the accounting is opaque. He's not comfortable with BABA's financial reporting, so he'd stay away. He's rather play their American counterparts.
Acquisitions grow this company. Problem is, to continue growing at this pace, they must accelerate acquisitions, and it's getting harder for them to buy companies at the right valuations. Constellation itself has a high valuation which scares him off. That said, management is good at delivering growth.
(A Past Top Pick on Oct. 6, 2017, Up 8%) Energy stocks are starting to rise and he likes. He's bullish on oil. Their debt is a little high and cash is a little weak. They're hiring outside consultants to resurrect the company which could happen. He likes the drillers and this is a straight-up play with US exposure.
(A Past Top Pick on Oct. 6, 2017, Down 20%) Merged with DigitalGlobe, thus marrying hard satellites with software and data. There's great demand from industries like agriculture and defence to provide satellite imagery. The street is disappointed that they continue to spend instead of paying down debt, which pressures the stock. A great long-term story. Only 1.2x book value.
