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What three companies to invest in for a first-time investor for a year? Don't put money in the market for a year. That's gambling. You need a 3-5, preferably 8-10 years. Buy solid, long-term growth companies like Facebook or a healthcare company or even Amazon. You need more than three names to properly diversify, at least 10.
It's the biggest conundrum on Bay St. It was once a darling, but now? The collapse in oil and anti-oil sentiment has pushed this stock down. Pays a 6.5% dvidend and should grow. But its debt is nearly as large as its market cap. Can ENB survive in a world that's so anti-pipeline? Foreign investors are walking away from Canadian energy.
A classic consumer growth stock that's struggling now. Today, Facebook and Google are better companies which have the same PE. PG has used all its levers, including buying back stock. Its debt equity ratio has risen. He doesn't own this sector which is out of favour globally. PG is also hurt by the shift in U.S. retail.
The merger has created a giant in North American fertilizer. The stock has moved up because oil and corn have; corn is ethanol which competes with gasoline, and potash (Nutrien) fertilizes corn. NTR pays a decent dividend, but doesn't offer much revenue growth and he doesn't see demand around the world rising--corn prices are down. Farming
isn't as profitable as it used to. Hold if you own it, but don't run out and buy this. There's an oversupply of potash.
(August 1, 2017, Up 45%) The auto cycle is still going strong as car production rises. Magna has done very, very well. E-cars haven't wiped out gas cars The entire car sector is cheap. Magna is trading at only 9x forward earnings. A very well-run company with strong earnings growth. They have exposure to the powertrain which is not going away anytime soon.
American healthcare stocks have been struggling, why? The tailwinds are good: we're all getting older so there's demand. The issue is that governments are more involved in healthcare payments, and governments are struggling for money and squeezing costs. We're shifting from chemistry-based to genetic-engineered products. The payment system in the U.S. is convulated--we had Obamacare and now they're repealing it. U.S. health care costs are 15% of GDP much higher than other developed countries. All these stocks are cheap at 12-13x earnings. Good profit margins. If you own them broadly, then fine. It's a tough business now.
The risk is they own a bunchof U.S. real estate tied to medical practices and there were changes in the competitive landscape in some states. They bought a company recently that spiked the stock. He's met and likes the management. But they carry a lot of debt. He believes they'll sail through it, but the debt is risky. Pays almost a 9% dividend,
Cheap at 7x earnings. Well-managed and aggressive. They recently bought MacDon Industries, which increases their agricultural exposure. He sees 30-50% upside in the coming year if all goes well. LNR recently came off because of poor earnings, but the MacDon purchase meant starting a new business which hits your earnings. (Analysts' price target: $84.38)
