Latest Expert Opinions

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TOP PICK
TOP PICK
July 30, 2020

Stockchase Editor: Michael O'Reilly When Warren Buffet is a buyer, the market takes notice. He just purchased another $1.2 billion worth of shares at an average of around $24 over the past week. For arguably the strongest major US bank, BAC pays a good dividend that will certainly be sustainable, given only a 24% payout ratio. Analysts see over 15% upside in the share price. Knowing how the Oracle of Omaha invests, he might be targeting a return to even more lofty targets, near $36 -- the level it traded pre-pandemic. We also like the technical up trend of higher lows and would hold this unless it takes out key support around $22.50. Yield 2.85% (Analysts’ price target is $28.57)

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Stockchase Editor: Michael O'Reilly When Warren Buffet is a buyer, the market takes notice. He just purchased another $1.2 billion worth of shares at an average of around $24 over the past week. For arguably the strongest major US bank, BAC pays a good dividend that will certainly be sustainable, given only a 24% payout ratio. Analysts see over 15% upside in the share price. Knowing how the Oracle of Omaha invests, he might be targeting a return to even more lofty targets, near $36 -- the level it traded pre-pandemic. We also like the technical up trend of higher lows and would hold this unless it takes out key support around $22.50. Yield 2.85% (Analysts’ price target is $28.57)

TOP PICK
TOP PICK
July 30, 2020
Stockchase Editor: Michael O'Reilly With the general stock markets almost returning to pre-pandemic highs, analysts feel stocks are price near "perfection". This means that the market is at risk to sizable pullbacks if earnings and future growth prospects stumble. For income investors, HIU offers a way to confidently hold income producing assets, even in the face of significant market retracement. HIU is an inverse ETF of the S&P500 index that trades in Canadian dollars. Holding an asset that rises in value as the market erodes, creates a cash war chest that can be used to purchased undervalued assets later on. The added kicker is that the Canadian dollar will likely fall with the market, which will further add to the value of the ETF. A very defensive holding. Yield 0%
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Stockchase Editor: Michael O'Reilly With the general stock markets almost returning to pre-pandemic highs, analysts feel stocks are price near "perfection". This means that the market is at risk to sizable pullbacks if earnings and future growth prospects stumble. For income investors, HIU offers a way to confidently hold income producing assets, even in the face of significant market retracement. HIU is an inverse ETF of the S&P500 index that trades in Canadian dollars. Holding an asset that rises in value as the market erodes, creates a cash war chest that can be used to purchased undervalued assets later on. The added kicker is that the Canadian dollar will likely fall with the market, which will further add to the value of the ETF. A very defensive holding. Yield 0%
BUY WEAKNESS
BUY WEAKNESS
July 30, 2020
Stockchase Editor: Michael O'Reilly Looking for yield can be challenging, but K is a company that is proving its worth during the pandemic. An obvious household name, it often gets over looked, but it is proving to be a survivor. The company just upgraded its annual sales and profit guidance for the year as organic net sales are up 9% on the quarter. EPS beat analyst expectations by 32%. We like the dividend and feel it is secure. We would look to enter on a pullback near $67 and use $62 as a stop loss. Yield 3.21%
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Kellog (K-N)
July 30, 2020
Stockchase Editor: Michael O'Reilly Looking for yield can be challenging, but K is a company that is proving its worth during the pandemic. An obvious household name, it often gets over looked, but it is proving to be a survivor. The company just upgraded its annual sales and profit guidance for the year as organic net sales are up 9% on the quarter. EPS beat analyst expectations by 32%. We like the dividend and feel it is secure. We would look to enter on a pullback near $67 and use $62 as a stop loss. Yield 3.21%
TOP PICK
TOP PICK
July 30, 2020
Stockchase Editor: Michael O'Reilly GPC has increased its dividend for 63 consecutive years -- a real Dividend star. The company focuses on aftermarket and replacement car parts -- a rising trend given that new car sales are stagnating. Technically, the stock is riding an up trend with higher lows being made regularly. We would use $82 as a stop loss point and see an upside towards $115. We like the dividend and see it being stable. Yield 3.45%
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Stockchase Editor: Michael O'Reilly GPC has increased its dividend for 63 consecutive years -- a real Dividend star. The company focuses on aftermarket and replacement car parts -- a rising trend given that new car sales are stagnating. Technically, the stock is riding an up trend with higher lows being made regularly. We would use $82 as a stop loss point and see an upside towards $115. We like the dividend and see it being stable. Yield 3.45%
WAIT
WAIT
July 30, 2020
This is an alpha vehicle. You buy it, hold it and trade it, then you sell it. Either short it, or hold it and expect a recovery. A lot of the potential for a US housing recovery at current interest rates is priced in. This is very volatile. Don't buy it when it's in the eighth month of a recovery cycle.
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Norbord Inc. (OSB-N)
July 30, 2020
This is an alpha vehicle. You buy it, hold it and trade it, then you sell it. Either short it, or hold it and expect a recovery. A lot of the potential for a US housing recovery at current interest rates is priced in. This is very volatile. Don't buy it when it's in the eighth month of a recovery cycle.
COMMENT
COMMENT
July 30, 2020
A CLO is an off-balance sheet vehicle. In 2008, they were problematic. BAC has exposure, and so they could pay off or they could become toxic. One reason to sell banks coming up to a recession and buy on recovery.
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A CLO is an off-balance sheet vehicle. In 2008, they were problematic. BAC has exposure, and so they could pay off or they could become toxic. One reason to sell banks coming up to a recession and buy on recovery.
BUY
BUY
July 30, 2020
Great Canadian company. Impressive long-term chart. Long-term holders have been well rewarded. Balance sheet is a little leveraged. A liability with the US CCRA is due. Good scale, growth profile, and dividend. Will probably move forward after Covid. Good risk-adjusted return to buy and hold.
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Open Text (OTEX-T)
July 30, 2020
Great Canadian company. Impressive long-term chart. Long-term holders have been well rewarded. Balance sheet is a little leveraged. A liability with the US CCRA is due. Good scale, growth profile, and dividend. Will probably move forward after Covid. Good risk-adjusted return to buy and hold.