BUY ON WEAKNESS

non-FANG suggestion? He likes the payment processing space -- ADP, Paychex, Visa, or Mastercard. He would like to buy on a dip.

BUY ON WEAKNESS

non-FANG suggestion? He likes the payment processing space -- ADP, Paychex, Visa, or Mastercard. He would like to buy on a dip.

BUY ON WEAKNESS

non-FANG suggestion? He likes the payment processing space -- ADP, Paychex, Visa, or Mastercard. He would like to buy on a dip.

BUY ON WEAKNESS

non-FANG suggestion? He likes the payment processing space -- ADP, Paychex, Visa, or Mastercard. He would like to buy on a dip.

RISKY
Electric cars? In Europe, within high density areas, you will see more electric cars. The distance ability does not allow electric cars to reach outside of major cities. Eventually, they will reach outside large urban areas, but big investment in generation capacity and electric distribution will be required. For Tesla, he is reluctant to buy into a new startup company, which he considers them to still be. Valuation is also very expensive and he does not trust their CEO. He would buy puts and sell calls -- trade this as a volatility play.
COMMENT

KB is a Korean bank. There do a lot of trading with China, so the valuations have come down as a result of the China-US trade war. This is a good time to buy anything Korean, he thinks. He prefers Shinhan, who has just bought INGs insurance business and they have been buying back shares.

COMMENT

KB is a Korean bank. There do a lot of trading with China, so the valuations have come down as a result of the China-US trade war. This is a good time to buy anything Korean, he thinks. He prefers Shinhan, who has just bought INGs insurance business and they have been buying back shares.

HOLD
The challenge of this one is what entry level do you pick? He owns it and continues to like it. It owns skin care and pharma interests, that represent 10% of the company value that may be sold off one day. He thinks this is a solid global consumer holding.
TOP PICK
It had a recent dip in share values, so it is a good entry level. They have bought back 5% of its shares. The business is re-accelerating and outsourcing will continue to fuel their business model. Yield 2.24% (Analysts’ price target is $10.95)
TOP PICK
If you look at the aggregate liabilities of the talcum powder legal issue, the market has over-estimated the impact on the company, he believes. The litigation could be on-going for years to come and the time value of money works in their favour. Yield 2.69% (Analysts’ price target is $150.28)
TOP PICK
They bought British Gas in 2018 and have improved the balance sheet materially by paying down debt. Profitability has doubled since 2017. He would expect to see more upside to come. The dividend has not been cut since WWII. Yield 6.56% (Analysts’ price target is $78.80)
COMMENT
Market Outlook The Fed comment today was more dovish than he thought. We need to see consistent and persistent inflation before we raise rates, he thought was the message. Equity markets should go higher, unless trade tariffs impact things on the 15th. The US is expected to delay implementing tariffs against China. The rust belt is weakening the US and President Trump knows this, so tariffs will not likely stay in place long, he thinks. Trade war fears impact China more than the US and it creates headwinds for Europe. Next year, the market will be driven by earnings that could continue to improve if interest rates remain contained, which would lower earnings multiples and could propel the market higher.
BUY
He thinks their recent Q4 earnings miss is a buying opportunity. Excluding restructuring, earnings were actually higher. It has a strong balance sheet and higher capital requirements are a minor issue. You could buy it here and enjoy a nice dividend. Yield 4%.
COMMENT
US bank sector? The market is still pretty cheap, especially for US banks. It is a good long term hold. A cyclical uptick in the economy would add something on the investment bank side. The sector is a good hold for the next 10 years.
RISKY
He is one of the few to think this could be a speculative buy. They have two viable global business lines (trains and jets). Their margins are beginning to improve. It is being sold off right now for tax loss reasons. He sees them being cash flow positive next year which could create a windfall.