Today, David Baskin commented about whether CSU-T, FIH.U-T, SJ-T, ENF-T, ATD.B-T, TFII-T, DIS-N, INTC-Q, META-Q, CCL.B-T, ATRL-T, V-N, IMO-T, CAR.UN-T, MRC-T, VIU-T, BNS-T, MG-T, SAP-T, T-N, GOOS-T, HLF-T, RSI-T, GS-N are stocks to buy or sell.
He was amused by its last earnings. They already have two billion users, so they won't grow by leaps anymore. Be real--investors were disappointed by their weak user growth? Rather, what share of online advertising do they hold? With Google, Facebook dominates here. Their ad revenue stream is deep and long. Advertisers continue to go to the internet, which is Facebook and Google. Advertising, not user growth, is the metric to look at. The plunge on Facebook after earnings last month was way overdone.
They've bought a lot of little companies that specialize in "vertical applications" which fulfill a single purpose and do it well. They then divided them into six divisions they manage. They could aquire far more, so they have a big possibility of growth. The street didn't like their last quarter, but investors should look at the long-term: can they use their capital wisely to make these acqusitions? Yes. Based on the past, they are smart acquirers with 31% ROE on these purchases. Smart managers. (0.5% dividend, Analysts' price target: $1,073.58)
He's bullish. Their last quarter was pretty good. All plastic companies have faced rising costs (oil). This will grow only by acquisition which they're good at doing. Likes its management and strategy.