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PAST TOP PICK
(A Top Pick May 13/20, Up 66%) She likes the elevator space. The service side is very profitable. Their increasing their presence in China. After 25-30 years, elevators need to be refurbished, and we'll be seeing that in the UK especially. As offices and malls reopen, those elevators will need servicing.
machinery
PARTIAL BUY
She likes renewables which investors should own. They've pulled back recently more than its peers, because it trades at a premium. It has global operations and does solar, wind and hydro energy. Higher interests pressure these stocks, though she doesn't expect rates to spike sharply, so these will be fine long-term. BEP buys undervalued assets, then sells them at maturity. You can start a position now at current share prices.
Utilities
BUY
Share declines are due to its bid for Kansas City Southern. Rating agencies have downgraded CP because CP will take on debt to buy KCS. However, CN has offered a higher bid that KCS prefers. CP's valuation is now more attractive than its American peers. Whether CP wins KCS are not, CP will benefit from the reopening.
Transportation
BUY ON WEAKNESS
Pays nearly 7%, and owns it for income. They increase their dividend annually. Line 5 Michigan is in the news--see how that plays out. It would be difficult to shut down that pipeline which is vital for Michigan, Ontario and Quebec. ENB has had a nice rally along with crude oil, so wait for a dip.
oil
gas pipelines
BUY ON WEAKNESS
JPM vs. Wells Fargo Has owned this for years and is her preferred US bank. Wait for a dip to add shares. She owned Wells Fargo years ago until problems with their sales practices arose. That's now behind them, but WF lost momentum and they need to prove to investors that they can gain market share.
Financial Services
DON'T BUY
She owned Wells Fargo years ago until problems with their sales practices arose. That's now behind them, but WF lost momentum and they need to prove to investors that they can gain market share.
banks
TOP PICK
A diversified US healthcare company in diagnostics, branded pharmaceuticals, nutrition and medical devices. It produces a lot of Covid-testing kits, which has boosted their bottom line. They can maintain double-digit earnings growth based on growth in medical devices. For instance, a diagnostic kit for diabetes (don't need to prick finger) is popular. About 40% of products are sold in emerging markets. They increase their dividend annually, for the past 49 years. Pays a 1.5% dividend. This has pulled back, so buy now. (Analysts’ price target is $133.26)
biotechnology
pharmaceutical
TOP PICK
A growth stock with 101 boutiques, but only 33 in the USA, so there's huge potential to expand there which they're doing at a moderate pace of 6-8 stores annually. 96% of sales are exclusive in-house labels which appeals to many generations. E-commerce sales jumped during Covid. Great growth. (Analysts’ price target is $37.50)
specialty stores
TOP PICK
She recently bought this. She likes the animal healthcare industry, half/half in pets and livestock. They hold the leading market share in animal healthcare with over 300 product lines. They've been around for 65 years with a deep sales force. Covid increased pet ownership, including more Millennials who spend more on pets. Livestock is seeing good growth in China and Brazil. China is rebuilding their herd after swine flu, and ZTS develops medicines here. With animal health, generics are less an issue than human health. Well-positioned with a good balance sheet. (Analysts’ price target is $198.82)
Consumer Products
COMMENT
Lumber stocks Lumber is highly cyclical, so don't hold them but rather eventually sell them as lumber prices turn and supply catches up with demand. Lumber is now in a weird space because prices are rising, yet there's still demand. You can still hold them for a little longer, but really watch the price turn and inventory increases.
COMMENT
It's pulled back because of worries of regulatory moves by the Chinese government against megacap tech names there. BABA has restructure their business and financial arms. The valuation reflects this uncertainty. She owns no Chinese internet names, though the valuations are lower than American peers.
PARTIAL BUY
They had a strong quarter, but the rate of growth may be slow going forward. They see strong demand in DIY home renos, though, as the home market strengthens. Also, US households got stimulus cheques in March, and probably spent some of that on their homes. Traffic is returning to their stores as the company invests in e-commerce; 55% of e-buyers come into stores to pick up and buy more stuff. Are well-positioned. Housing prices should remain firm, another tailwind, and many US homes are older than 35 and need work. With Covid ending, young people will move into their own homes and will do some repairs. The valuation is good.
specialty stores
