Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Peter Hodson and Stockchase Discover commented about whether ITP.TO, CSH.UN.TO, ACI, WMK, PINS, NVDA, PLTR, COST, AMZN, BNS.TO, WCP.TO, BEI.UN.TO, CJT.TO, VMD.TO, DWS.V, CAE.TO, LSPD.TO, KXS.TO, MG.TO, GSY.TO, STC.TO, GOOS.TO, KEY.TO are stocks to buy or sell.
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BUY
He missed this one totally. He shot up fast during the pandemic. They won new contracts and were driven by the e-shopping surge this year. Their debt is falling and earnings are rising which they're reporting better than expected. CJT is a unique company in Canada. It's old off lately as investors rotate and look past the pandemic. CJT has good years ahead of it.
Transportation & Environmental Services
DON'T BUY
They collect 96% of their rents and cash flow is decent. But in REITs, you have fair market adjustments in your properties; they had breakdowns in Edmonton, Calgary and less so in Regina. BEI has a lot of exposure to the energy patch, though their actual numbers are okay, because these write-downs are not cash (unless they sell a building at a loss). The worst is probably over, but he can't predict what will happen in the oil sector.
property mngmntinvestment
COMMENT
What would happen if Ottawa's Liberals get rid of the capital gains exemption? Wow, you hit a hot spot! Ottawa will be looking for tax revenues down the road (to pay for these Covid supports) and the safest, least political way will be charging people who've already made money. He doesn't expect Ottawa to do this short-term now during a pandemic, because it would trigger a lot of market selling and chaos. Also, this measure wouldn't bring in a lot of revenue, because an investor can just hold their stocks and wait for a new federal government to change the rules. Unfortunately, it's likely on its way.
DON'T BUY
6-month outlook? It's hanging in there, but they have issues in capital and investor aversion against all oil stocks. WCP didn't manage this year's downturn as well as it should. He's less enthralled with it now than before. WCP needs more than six months and more like 18-24 months to see a real rise in the stock. WCP is okay.
Oil and Gas (Integrated Oils)
BUY
He likes it. It's been underperforming. Typically, the underperformer one year, outperforms the next though not every year. BNS does a lot of business in Latin America, which is a decent opportunity, but has struggled during Covid. This could be a buying opportunity, though. Be patient. The valuation and dividend are attractive. Earnings and loan losses are not bad. Eventually, this will revert to the mean and outperform the other banks in the next two years.
banks
BUY
15 years ago, Amazon took the long game by investing long-term, and now that is paying off handsomely. The only worry is that the US government is taking aim at them due to their huge size--this could restrain the company. Regardless, the cash flow will remain huge and Amazon will keep growing.
specialty stores
TOP PICK
It recently went public in a direct listing. They do data analytics [in the area of intelligence and counter-terrorism] and are signing large contracts. They have strong customers and boasts high margins, because they don't customize software for each customer (which raises costs). The stock has done very well and is popping today. In five years, the stock should be much higher. (Analysts’ price target is $13.86)
Peter HodsonOwned
Technology
TOP PICK
They build the best computer chips used in high-speed processing as the world becomes more automated (gaming, self-driving cars, AR). Their high-performance chips are simply better than their peers. They spend more on R&D. It's still run by its founder. They have $4 billion in net cash and earnings growth is starting to do very well. They always owned the gaming space, but are starting to dominate data centres.
Peter HodsonOwned
computer softwareprocessing
TOP PICK
It's not social media, but it's really a pre-shopping site that helps consumers decide what stuff to buy. Advertisers love this. They just exploded their ad revenue. User growth is off the charts. PINS is becoming profitable unlike many social media companies.
Peter HodsonOwned
Technology
BUY
Allan Tong’s Discover Picks Weiss it trades at a PE of 11x and pays a 2.58% dividend which is safe, given the 28.18% payout ratio. On Nov. 2, WMK reported a Q3 YOY sales increase of 14.4% and a Q3 comparable stores sales move of 14.8%. Over a five-year span, Weis boasts 4.26% average profit growth and a 16.15% total return. E-commerce sales, which is essential to any business today, is up 240%. Intriguingly, WMK has gotten cheaper lately. Its trailing PE has slid from 16.76x over the summer to nearly 11x now. As of Nov. 16, Weis is trading $12 below its 52-week high of $59.39 as well as its 50- and 200-day moving averages. Read 4 Reliable Covid Stocks and Recovery Stocks for our full analysis.
Stockchase DiscoverOwned
food stores
BUY
Allan Tong’s Discover Picks Albertsons has been reducing its debt as it pays a 2.67% dividend. Another tailwind are the 1,726 pharmacies that operate within those supermarkets and will adminster the Covid vaccine. This should help drive traffic. However, Albertsons' PE has risen from 6.61x in late-August to the current 9.49x. Currently, ACI trades five dollars below its price target of $20.47 as there are four strong buys,10 buys and four holds. Looks like there's still room to run. Read 4 Reliable Covid Stocks and Recovery Stocks for our full analysis.
Stockchase DiscoverOwned
other mines
BUY
Allan Tong’s Discover Picks Chartwell jumped 13% on the Pfizer vaccine news and 3% on the Moderna. Since Nov. 9, the stock has been bubbling between $11-12. There's a little more room to run to its $12.32 price target. Rising Covid cases will challenge these LTC stocks, but more positive vaccine news will propel it further. Analyst and shareholder, Christine Poole, is reasonably correct in predicting CSH.UN will return to pre-Covid levels above $14 in 12 months or more. At least you're paid 5.14% to wait. Read 4 Reliable Covid Stocks and Recovery Stocks for our full analysis.
Stockchase DiscoverOwned
property mngmntinvestment
BUY
Allan Tong’s Discover Picks ITP stock 3.82% dividend yield based on a 51.75% payout ratio. Cash flow is strong. The PE has ticked up from 10.11x in late-March to the current 13.9x, but is far below the 20.68 of September 2019. It reported a winning report last week and hit fresh 52-week highs. Intertape offered guidance for Q4 of 10% growth, and six analysts give it a buy signal, including two upgrades after that report. The average price target is $23.50 which is nearly 10% higher than the current trading price. Read 4 Reliable Covid Stocks and Recovery Stocks for our full analysis.
Stockchase DiscoverOwned
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He didn't like it for a while, but now more than before. The telehealth space is getting crowded and they've had issues with CMS code. It's a good American company, though doesn't receive much attention here. VMS is merely okay. He prefers other names like Knight Therapeutics. It's a decent, second-tier company.