Today, Gordon Reid and Brian Acker, CA commented about whether CSCO-Q, INTC-Q, BAC-N, OTEX-T, CU-T, ATD.B-T, AC-T, MG-T, MCD-N, MU-Q, CVX-N, MET-N, C-N, AAPL-Q, DOL-T, LUN-T, ENB-T, ARX-T, ALA-T, IPL-T, ENDP-Q, WJA-T, V-N, TEN-N, BIIB-Q, DY-N, BECN-Q, PG-N, NFLX-Q, URI-N, MSFT-Q, BAC-N, F-N, WBA-Q, MS-N, HON-N, TPC-N, FDX-N, SBUX-Q, DIS-N, MCD-N are stocks to buy or sell.
(Past Top Pick, August 17, 2017, Up 22%) They literally lay the fibre for 1-Gig technology for telecom giants like AT&T and Comcast, so if one of those companies cuts back then it effects Dycom. A lumpy stream of revenue growth, but will run 15% in the long run. They're a major company in this industry.
A large bio-pharma. They enjoyed a recent jump in the stock price had to do with seeing promising results from a phase 2 trial drug treating Alzheimer's. If this drug ultimately passes, it would be an multi-billion-dollar opportunity. Free cash flow is a high 7%. They'll likely make an acqusition with all this cash to deepend their portfolio. (Analysts' price target: $365.00)
Overview. He thinks the fair value of the S&P 500 is about 3800, which is 30% higher than today’s level. He thinks fundamentals are great, especially in the US, which is where most of his focus is. He thinks US government policy (and the associated parts of the Twitterverse) is holding the market down. The S&P hit a high in early February, went through a long consolidation, and has risen back to almost the level it held at its high. He thinks S&P will easily reach that this summer. Beyond that, though, the S&P is running out of time. China is slowing down, world growth is slowing down, and commodities stocks in Canada ex oil are not doing well. Many are down 50%, which also suggests weakness in global growth. He expects a recession in the next year or 18 months. In the recent past, the FAANG stocks have pushed the S&P higher. Netflix stumbled but it looks as though Amazon, Google and Facebook are hitting new highs. The financials are acting well. For S&P to rise 30%, the lead will have to come from the financials not the FAANGs.
The stock has been going down. It is approaching a critical level according to Model Price theory: EBB-1 level is $17.80. His Model Price is $26.64, which is almost a 50% upside. However, if the stock drops below EBB-1, it could drop to EBB-2, which is $15. He would take a half-position at this level, but if it goes lower, he would sell and buy closer to $14.82. The market is concerned about recent news, such as the unionizing of its staff. However, a positive catalyst in the news could boost the stock an easy 25%. Making money on this stock might require trading around the levels rather than buying and holding.
He calls this an interest-sensitive stock. The dividend of $1.68 is not covered by earnings. Earnings estimates for this year and next are $1.46 and $1.41. Interest-sensitives have had a bounce recently, perhaps because people sense a slowdown coming. He is bearish on the group. He would buy this stock at about $19.60.
This is another interest-sensitive stock that is at risk from rising interest rates. It is overvalued by 10% compared to his model. The company is doing a whole lot of financial engineering. He would like to see the balance sheet after all the shenanigans are finished. He think that ultimately the stock will go to about $35.
It's fallen this year. It should do well on the back of robust demand for U.S. housing, and roofs don't last forever and need replacing. He continues to own it. BECN had a rough first quarter due to poor Q1 weather. They're the second-largest roofer in the U.S. Hang with it.