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COMMENT
A great company. You've done well if you have owned this for a long time. The combination with Raytheon will raise competition issues. Will this be a meaningful merger; how will it benefit UTX as an industrial company? They should be two separate entities. The merger will reduce organic growth opportunities for UTX. Depending on who the market deems the acquirer, one of these will sell off.
mngmnt
diversified
BUY
They recently did a 500-million Swiss franc buyback that will propel the stock higher. Organic growth is driven by opening new stores, which drives sales. Recovering growth. Also, their Russell Stover brand is recovering in the U.S. World consumption remains strong with growth in markets like China. LISP has more cash than debt in a strong balance sheet. This is a good defensive growth stock in volatile times.
food stores
BUY
The US just said that all Chinese tech must be just subject to U.S. orders. Whether or not that's true, it's a negotiation tactic. BABA is down a fair bit from its peak. The Chinese government has expressed anti-trust sentiment towards BABA. Still a good company and gives you exposure to e-commerce in the Chinese market despite a rich valuation.
0
DON'T BUY
It's now-smaller company. A good, well-positioned bank, but his concern with the Dutch market are 30-year mortages they offer. So, it's tought for a bank to make money if it takes 30 years to roll-over a mortgage. Near-term this will be fine, because interest rates will be flat. However, there are better European opportunities.
investment companies
funds
COMMENT
BUY
Buy class A or B? RDS will collapse both classes into one and move out of Europe. The A shares are subject to Dutch tax, and the B shares to UK tax. That's why they're priced differently. You can buy either class. They have a strong balance sheet and are global leaders in natural gas. Long-term, they are positioning away from carbon/fossil fuels and into renewables for the future.
integrated oils
BUY
The auto sector is heavily discounted and now in a lot of trouble. There's a transition coming with e-cars. LNR has a good track record in performance and dividend growth has historically been good. The CEO recently bought a lot of stock. At some point, there'll be a recovery in autos, so long-term you'll be okay. Buy now and do well long-term.
transportation equip & components
DON'T BUY
Investors buy luxury stocks at the bottom of a recession, because the rich part of a population hold up much better in a recession. Now is not a good time to enter luxury stocks. There's nothing wrong with Tiffany per se, but now is not the time and TIF is slightly exposed to China, which is another risk.
specialty stores
BUY
They carry some debt. Pays a 6.6% dividend. It's underperformed in the past year, because they made a big US acquisition, and the FDA punished and targeted this sector until its bosses changed a few months ago. Ex-dividend, BTI generates $1.5 billion free cash flow, which will pay down debt aggressively. Has a good history of dividend growth. This may not climb immediately, but you can collected the dividend until then. He likes it.
tobacco
DON'T BUY
If you bought this a few years, you have done very well. But US growth has flatlined, which is a big challenge. Abroad, as in the UK and Canada, there is heavy coffee competition from other chains. China drinks tea, so penetration into that territory is limited. He missed buying this, but won't buy it now--it's too rich.
food services
DON'T BUY
This is a big question mark. It comes down to whether Trump will be re-elected or not--and the China-US trade war endures. Cisco will benefit if Trump contains China--and Huawei, a competitor of Cisco's. It can go either way. He wouldn't invest either way because there's too much politics involved.
electrical
electronic
