Today, Robert McWhirter and Jon Vialoux commented about whether ZWA-T, QQQ-Q, IHF-N, PG-N, BIP.UN-T, MG-T, BMY-N, RRX-T, ZUB-T, NTR-T, RIO-N, AQN-T, BB-T, GOOS-T, XYL-N, BIR-T, DOL-T, WCN-T, TFII-T, CNQ-T, HEXO-T, PNG-X, STC-T, NXJ-T, ALY-X, EIF-T, LTV-X, QTRH-T, BEW-X, OEE-X, NMX-T, OTEX-T, BTL-X, BTL-X, BXE-T, NFI-T, L-T, ROI-X, PHO-T are stocks to buy or sell.
Reporting earlier this month with YOY sales up 40%. Free cash flow grew 300% to $1.4 billion. RBC noted that on a $70 WTI, CNQ will generate $70 billion cash flow in 2019. They could buy back stock. Its cash flow will outpace the
sector's. Expect 25-45% upside with rising oil prices. (Analysts' price target $54.37)
Market Outlook. This is historically the part of the year when you want to become more defensive. Typically, that means going to bonds. This year we are in a rising interest rate environment so maybe you don’t want to be there as inflation still keeps coming up. If the Fed keeps on raising rates Poloz will have to follow in suit. 2.2% increase in mortgage expenses for Canadians just year-to-date. Gas up 14%. Inflation needs to be stabilized.
The seasonal strength for energy names is from the end of January to the start of May. The demand for energy product has been stellar. There is a trend of lower lows but that has been broken now. Everything looks good for this except for the fact that the seasonal strength is over, and the easy money has been made already. There is another period of strength in July. You might want to pause.
Parts of the market where you want to flock to during the summer. One of those defensive summer names. High yield. May to August is the period of strength. Not a home run stock but provides a volatility hedge. If rates go much higher, it could have problems. Classic shoulder-head-shoulder from a technical perspective.
(Disclosure: he works as a paid consultant here.) They're working on a product involving AI (machine-learning capabilities). They switched to the Thomson Reuters database, so they now have exposure to 190,000 Thomson Reuters terminals. Blackstone has paid $20 billion to acquire the division from TR that ALY will be interfacing with. With this product, TR increases its access to small and mid-cap companies. Big opportunity here. Canada is seen as a hotbed for AI, particularly Toronto and Montreal.