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TOP PICK
Stockchase Research Editor: Michael O'Reilly As the market valuations continue to be priced at perfection this is a defensive Top Pick. This low MER ETF tracks US 7-10 year Treasuries -- a safe haven during market down turns. What makes this interesting as well, from an Canadian investor's perspective, is that it is priced in Canadian dollars. This will add another kicker in a market down turn as we expect a flight to the US dollar safety at some point. We would buy this with a $60 stop-loss. Yield 0%
E.T.F.'s

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TOP PICK
Stockchase Research Editor: Michael O'Reilly MRK is one of the largest pharma companies in the world. It trades at a 13 PE compared to 22 PE for the S&P500. The pandemic has slowed some elective procedures, and that has slowed sales in the latest quarter by about 9%. However, management still opted to raise its 2020 guidance showing confidence that things should improve for the balance of the year. The company also has three drugs moving through various COVID-19 vaccine test trials. It pays a good yield, backed by a 58% payout ratio. We would buy this with an upper target towards $96 as the first objective and use $77 as a stop-loss. Yield 2.95% (Analysts’ price target is $95.94)
biotechnology / pharmaceutical

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TOP PICK
Stockchase Research Editor: Michael O'Reilly In the search for a pandemic vaccine, JNJ is a potential winner. Leveraging off their proven technology with their Ebola, HIV and other vaccines, the company continues to develop a COVID-19 vaccine that presently shows strong immunity response in 99% of trials. It is also the only option that is testing a single-dose vaccine. Revenues have dipped 10% in the latest quarterly earnings, but that can be attributed to a slow down in elective procedures. It pays a good dividend backed by a 67% payout ratio. We would trade this with a stop-loss at $132. Yield 2.75% (Analysts’ price target is $165.06)
biotechnology / pharmaceutical
COMMENT
Near-zero interest rates are definitely boosting real estate sales in apartments and houses. Borrowing is so cheap. A private buyer now would be making a bet in certain stable sectors during this pandemic: industrial warehouses, apartments in affordable parts of North America, and single-family rental homes (people can work anymore now). These are all stable and strong. However, retail, office and student houses have questionable stability and are at risk in this Covid environment.
Unknown
HOLD
A hold. A value name in apartments in Canada and the U.S. He's impressed with how stable their Toronto portfolio is, holding occupancy quite well. MGR is in the US sunbelt and Chicago. MRG is higher-leveraged. He's seeking REITs that are defensive. He doesn't see as much growth here vs. the REITs he already owns. The reason is that MRG is in some weaker U.S. markets.
REAL ESTATE
HOLD
Likes their managers and strategy. They dominate across the Maritimes and have expanded into Ontario, BC, and have a small presence in Calgary. They outperform some apartment REITs, because they lack exposure in urban centres (urban, multi-family REITs have lagged). Killam should stability and growth in the coming year. Problem is that foreign students and movies are not renting in urban areas, and apartments face competition from condo supplies.
property mngmnt / investment
BUY on WEAKNESS
He's bullish on apartments long-term, given supply and demand in many markets. But short-term there's an impact. IIP has a growing presence in Montreal and he likes their overall portfolio, but assets around McGill and Concordia have taken a hit because foreign students can't enter Canada. A blue chip trading cheaply. If you're a longer-term investor, now is the time to invest in this asset class.
property mngmnt / investment