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COMMENT
Market Outlook Everything in the economy looks pretty good, there is just uncertainty about trade wars. Auto sales growth seems to slowing, despite lower leasing rates. A peak appears to have happened in the space, but it is not enough to cause a down turn in the market. They are waiting in the wings looking for short term opportunities to buy good long term companies.
WAIT
He would not be a buyer. It has had troubles, with Warren Buffet having to step in. Consumer tastes have changed and they have been slow to adapt. The company has taken on a large amount of debt for the acquisition. There have not been enough catalysts to get him back on board so he will continue to wait.
food processing
DON'T BUY
He does not think this is a good investment. The privacy issues and data breaches on several occasions appear to be a flaw in their business model. Their monthly and daily users have increased for some time and he thinks it will hard to maintain that growth much longer. The privacy concerns could drag on for a long time. He would stay on the sidelines.
Technology
HOLD
He owns Amazon instead. Walmart has all the baggage of being an old-school retailer. Shifting to an internet model is a good thing and bringing in one day shipping is helpful, but the competition is fierce.
department stores
PARTIAL BUY
Analyst price is lower than market? He does own it and other in the brand. This is the overall holding company with all asset revenues flowing up to it. He does like management. Why it is trading above analyst forecast prices, he is not sure. He recommends looking longer term and invest a little overtime to participate in short term weakness.
management
diversified
HOLD
A great company and he is not surprised by yesterday's weakness. The company is in a very good space and is well run. Management has got the balance sheet in great balance. There is room to acquire and they have begun to move into the US. He expects the recent price action is short term profit taking.
other services
HOLD
A core holding for him. In the short term it is being impacted along with the rest of the energy space. A great hold for the next 5-10 years. They have continued to grow the dividend and are looking to expand into the US. Guidance is strong for the balance of the year, which he views as positive. They have assets that can not be replaced at cheaper value. A good hold.
oil
gas
WAIT
It appears to be under some short term pressure with some negative press on in house operations. Some Mexico business may be pressured under concerns of tariffs from the US. They had two wealth management acquisitions that will take time to digest. A good long term hold, but wait for things to improve.
banks
PAST TOP PICK
(A Top Pick Jun 05/18, Down 7%) Slowing iPhone sales and there are concerns over consumer privacy with their products, but way safer than Facebook. He likes their cash holding and the dividend they pay. The membership service business is growing as well. He would buy on weakness.
electrical
electronic
COMMENT
Spin offs? The agra-chemicals business that will be spun off is not a holding he would buy into. There is uncertainty over genetic modification in the agricultural space, but he bought this in the past for the chemical side of the business. Dupont will target the chemical side and is expected to pay a 5% dividend yield.
chemicals
DON'T BUY
Income holding? Personally, anything that yields more than 8% can lead to dividend cuts regardless of management promises to not do so. The assets in Europe can generally support the required income stream. He would look outside the energy space for income streams or at pipeline companies that are backed by long term contracts. Yield 9.7%
oil
gas
HOLD
Is $50 an important level? The news yesterday by the US state denying them approval was over blown, he thinks. Shipping by rail is not a safer alternative. This is a good income play, not really a share appreciation play. He does not it expect a move above $50 would signal a rocket up to $70. The dividend is safe. A slow and steady name.
oil
gas pipelines
