Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Gordon Reid and Paul Harris, CFA commented about whether FSV-T, DLTR-Q, CVS-N, MS-N, BAC-N, BX-N, CVS-N, GS-N, ACQ-T, MSFT-Q, CGX-T, SU-T, TD-T, INTC-Q, MFC-T, BNS-T, BABA-N, HON-N, BKNG-Q, ANTM-N, GILD-Q, FDX-N, JNJ-N, INTC-Q, MSFT-Q, K-N, PACW-Q, DOOR-N, CVS-N, TSLA-Q, C-N, V-N, BA-N are stocks to buy or sell.
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Global growth looks good and synchronized. However, two things will limit its pace: the US Fed raises rates and reducing of the U.S. balance sheet. There's also a debt that will hang over the US for the long-term. Inflation will generally be in check--this provides an opportunity for stocks. We're not seeing extreme valuations. Margins will be flat, though earnings remain strong. Overall, not a bad scenario for the stock market. Also, the U.S. yield curve is flat and historically that means the economy can grow only so quickly--it'll be limited. He doesn't see a recession coming. The Fed has to be careful not to raise rates too quickly. Overall, the U.S. is doing incredibly well, growing faster than the rest of the world.
90% of its revenue comes from China, a monopoly, which is a big plus. This company is growing rapidly and they want to expand internationally which is harder. They also want to grow their Cloud business. Thei Alipay is a popular payment system used across China. This could add value to Alibaba. There's good growth potential here. But it's not a cheap stock and expect volatility.
It's focused in Latin America, a good growth profile for BNS, but there's risk and volatility in these countries. The banking systems in those countries are less mature and have weaker governance. BNS has done a good job trimming costs and made several big asset purchases like MD Management. It's a good company.
They have a great, rapidly growing franchise in Asia and a good one in Canada, but their John Hancock operation has been difficult for them, dragging on their ROE. They need to exit--or do something with--Hancock, which is the root of
their problems. If they do, their stock will go up. They should sell Hancock and reinvest in Asia. The rest of their operations are doing gangbusters.
He's long owned this. It's a good company and well-run. Has one of the best retail franchises in Canada while in American they continue to grow. Good dividend yield. Great earnings this quarter and likely this year. Expect better earnings from their U.S. operations. Looking ahead for 5-10 years, technology will drive down costs for them and will at some point reduce the number of branches.
Is it worth dollar cost averaging? If you really like a stock like BNS, it's not a bad method. It's better than waiting till the year-end to buy a lot of shares (compared to DCA'ing smaller amounts throughout the year). Also, it's cheap to trade stocks now. But make sure you've done your homework on a stock. A mutual fund or index is really effective for DCA.
It's one of the best integrated oil ompanies. Great balance sheet. Always improving their cost structure. Not an expensive stock. He used to own it. Well-run. Great company. As for oil, it's stuck between $60-80, and oil dynamics are really hard to predict, especially with shale oil coming on as the price falls. In Canada, we have a huge differential because we can't get oil out without more pipelines.
He sold it too early. Pays a 6% dividend at 23x earnings. They diversified their businesses which are maturing and paying off now. But he worries about audiences changing their viewing habits, meaning watching from home or downloading for free, especially by young people. He'd rather buy this at 15x earnings. Also, not every year do you get blockbuster movies.
Has long owned it and still likes it. The new leadership has reinvigorated the company, like a dynamic start-up. The Cloud business has huge potential as more people use it. Huge growth coming. MSFT can offer services in the Cloud. It's not a cheap stock now, but fairly valued.
He sold his holdings. Previous management was unfocussed with its many purchases to grow the business, about 14 in one year, then they failed to integrate the back offices. New management came in promising to diversify their brands internationally and reduce their purchases. Management failed to exit a relationship with a company founder well. They bought a dealership in the U.S. which didn't make sense with no synergies. Management has become unfocussed again.
Goldman Sachs is an incredible franchise, not expensive as it trades at slightly above book value and a low PE. GS stayed with fixed income whereas other investment banks cut back aggressively, because this area drained capital and reduced ROE. GS is one of the top investment banks.
Booking.com has become the core of the growth of this company. Their main target area is Europe. They have 1.5 million signed up lodgings and book a million bookings a day. (Analysts’ target: $2504.70).