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DON'T BUY
DON'T BUY
November 13, 2018
Reported last week. Their volume shipments have been trending down, yet they're increasing prices. They are transitioning to a software-service company. Also, they won't disclose future unit shipment volumes, which the market doesn't like--people want more transparency. Apple has a lot of cash though. They haven't innovated in a big way in recent years, just relaunches. A financially sound company though. Wait for it to stabilize.
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Apple (AAPL-Q)
November 13, 2018
Reported last week. Their volume shipments have been trending down, yet they're increasing prices. They are transitioning to a software-service company. Also, they won't disclose future unit shipment volumes, which the market doesn't like--people want more transparency. Apple has a lot of cash though. They haven't innovated in a big way in recent years, just relaunches. A financially sound company though. Wait for it to stabilize.
PAST TOP PICK
PAST TOP PICK
November 13, 2018
(A Top Pick Nov 10/17, Up 4%) Stock price has been flat and has made basically only the yield. They're diversifying their revenues (Rec Room, e-gaming) away from the box office which accounts for 70%. When the movie slate is strong, people do come and spend money at the concession counter. Younger people still go to theatres, even to the VIP cinemas. Movies have been strong, and people are spending once they get in there.
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Cineplex Inc (CGX-T)
November 13, 2018
(A Top Pick Nov 10/17, Up 4%) Stock price has been flat and has made basically only the yield. They're diversifying their revenues (Rec Room, e-gaming) away from the box office which accounts for 70%. When the movie slate is strong, people do come and spend money at the concession counter. Younger people still go to theatres, even to the VIP cinemas. Movies have been strong, and people are spending once they get in there.
PAST TOP PICK
PAST TOP PICK
November 13, 2018
(A Top Pick Nov 10/17, Up 20%) Long owned this and still likes it. They do half-IT outsourcing and half IT-consulting. The former is long-term with a stable revenue stream. Diversified around Europe and Canada. Good organic growth. She'd buy it around $80 during this pullback. They don't pay a dividend, but they buy back stock. They're introducing more intellectual property in their software which is higher margin.
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CGI Group (A) (GIB.A-T)
November 13, 2018
(A Top Pick Nov 10/17, Up 20%) Long owned this and still likes it. They do half-IT outsourcing and half IT-consulting. The former is long-term with a stable revenue stream. Diversified around Europe and Canada. Good organic growth. She'd buy it around $80 during this pullback. They don't pay a dividend, but they buy back stock. They're introducing more intellectual property in their software which is higher margin.
PAST TOP PICK
PAST TOP PICK
November 13, 2018
(A Top Pick Nov 10/17, Up 8%) They make candies and chocolates. They have 40% in emerging markets where there will be growth, unlike developed markets which will be flat. In recent years they are reducing costs and widening margins. They've done this, so they are now improving their topline. You want more defensive names in this stage of the cycle and MDLZ is a good choice, long-term.
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(A Top Pick Nov 10/17, Up 8%) They make candies and chocolates. They have 40% in emerging markets where there will be growth, unlike developed markets which will be flat. In recent years they are reducing costs and widening margins. They've done this, so they are now improving their topline. You want more defensive names in this stage of the cycle and MDLZ is a good choice, long-term.
BUY WEAKNESS
BUY WEAKNESS
November 13, 2018
It got ahead of itself above $80 so she wasn't surprised it pulled back. You can buy it on weakness. She likes the water sector and this is a pure-water play. 20% of revenues are in emerging markets which are still building water infrastructure. XYL has local operations there and growing demand in the U.S. She likes this long-term, because water is a scare resource.
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Xylem Inc. (XYL-N)
November 13, 2018
It got ahead of itself above $80 so she wasn't surprised it pulled back. You can buy it on weakness. She likes the water sector and this is a pure-water play. 20% of revenues are in emerging markets which are still building water infrastructure. XYL has local operations there and growing demand in the U.S. She likes this long-term, because water is a scare resource.
WATCH
WATCH
November 13, 2018
They had a few weak quarters based on weak same-store growth. They haven't had much competition in Canada, so it's traded at a premium vs. U.S. peers. It's been punished badly for missing recent reports. She's watching it. DOL is increasing price points beyond $1. A recent short report countered that DOL will become like any other retailer. Valuation is looking more attraction, but they could face competition from Miniso.
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Dollarama Inc. (DOL-T)
November 13, 2018
They had a few weak quarters based on weak same-store growth. They haven't had much competition in Canada, so it's traded at a premium vs. U.S. peers. It's been punished badly for missing recent reports. She's watching it. DOL is increasing price points beyond $1. A recent short report countered that DOL will become like any other retailer. Valuation is looking more attraction, but they could face competition from Miniso.
COMMENT
COMMENT
November 13, 2018
Trades at a huge multiple, though they are experiencing good growth and the brand is strong. Never bought this, but she'll pay attention when they report tomorrow.
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Trades at a huge multiple, though they are experiencing good growth and the brand is strong. Never bought this, but she'll pay attention when they report tomorrow.