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COMMENT
US Tech. Owners and believers of the FAANG stocks. The notion of winner takes all in tech is something he believes in. Revenue and profit growth of big tech is from stealing market shares from competitors and other sectors. These companies have enormous wealth and tech capabilities. They are dominating the world in a way we have never seen. Disruptors may arise from Asia or other companies we have not heard of. However, we should not bet again big tech.
COMMENT
You will get shares in the newly merged Discover-Warner company. The tax treatment is still unknown for Canadian holders of AT&T. For American investors, it is tax free. As a result of the transaction, the AT&T dividend is probably going to be cut in half. There is an argument that it will stop being a yield stock and become a hybrid. The stock is down as a result.
Telecommunications
WAIT
Many are swamped with supply chain blockages. They have positioned themselves well for the electric car business. It is a supplier to every major NA and European car manufacturer. It is well placed. That being said, the stock has gone up a lot. Not sure it is a great buying place. Wait for the frenzy of reopening to abate before buying.
Automotive
BUY
One of the great companies in the world. Unbelievable ability to grow earnings and revenues in spite of being big. Because it has kept the growth rate up, it is not terribly expensive at these prices. Reasonably priced for growth. 28% ROE. 30x PE, it looks expensive but the other metrics makes it reasonable. Still buying for new clients. Would like to see a dividend.
Technology
DON'T BUY
It is trading at around 34x earnings. It hasn't done much in the last year. It is where it was last year, maybe 10% up. Compared to the rest of the market, it hasn't moved. Big pharma was out of favour a couple years ago. This has now come back into favour. It is fully valued now. Has had a wonderful run. A little expensive.
biotechnology
pharmaceutical
PAST TOP PICK
(A Top Pick Jul 28/20, Up 35%) A juggernaut. Analysts have systematically underestimated how much money it will make from the carried interest of their managed partnerships. Brookfield estimated the value of its stock at 23% more than current market value in their last letter to investors. Biggest Canadian stock holding.
management
diversified
BUY
A great company with irreplaceable assets. Has been successful in transitioning of the global payment system. It has fingers on a huge stream of daily payments. When the economy will reopen, the stock should benefit from earnings and revenues. Not a cheap stock at about 50x earnings and is not growing at a pace that fully justifies it. Dividend is small. The asset is irreplaceable and cannot be duplicated. A big moat.
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