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TOP PICK
Stockchase Research Editor: Michael O'Reilly WOOF operates over 1400 pet care centers and 137 veterinary hospitals in the US. They recently reported revenue grew over $1.4 billion-up over 18% and easily beating market expectations. Revenue is now up over 30% from pre-pandemic levels. Recurring revenue (through subscription food delivery, insurance, and care memberships) was up 60%. With strong earnings expectations again for next year, the PEG ratio is estimated under 1.0 and it is currently trading at under 2.3x book value. We would buy this with a stop loss at $18.50, looking to achieve $28 -- upside potential over 27%. Yield 0% (Analysts’ price target is $27.89)
specialty stores

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TOP PICK

Stockchase Research Editor: Michael O'Reilly BBWI is the offshoot of the previously named L Brands, which separated from the Victoria's Secret line. Its first earnings report showed revenue up 43% from a year ago and 14% above pre-pandemic levels. Company guidance for revenue was upgraded to indicate near 10% annual growth expectations for the next 3-5 years with an eye to expand margins further. It trades at 10x earnings compared to peers at 23x and has a great cash reserve position. We would buy this with a stop loss at $48.50, looking to achieve $81.50 -- upside potential over 18%. Yield 0% (Analysts’ price target is $81.28)

Consumer Products

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TOP PICK
Stockchase Research Editor: Michael O'Reilly NGT is a Canadian based gold producer with a reasonable dividend backed by a payout ratio of under 50% of cash flow. It trades at 16x earnings and at under 2x book value. We would buy this with a stop loss at $65, looking to achieve $93 -- upside potential over 27%. Yield 3.84% (Analysts’ price target is $93.00)
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PAST TOP PICK
(A Top Pick Mar 30/21, Up 23.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TMO has achieved its objective at $560. To be disciplined, we recommend covering half the position at this time and trailing up the stop (from $390) to $510. If triggered, this would all but guarantee an investment return over 17%.
electrical / electronic
COMMENT
Covid will linger for a while until we return to normal. To figure out where we are in the world is a lot more complex, but we are in much better situation than a year ago. If we stay on this course, the numbers were be better, but expect volatility as banks around the world must inevitably slow down quant. easing, though the banks must be careful, because economies are fragile. We'll be in this situation well into 2022. Supply chain disruptions are more disruptive than an overheated stock market. He expects more normalized growth in 2022. Governments have been taking on more debt during Covid, and they will weigh on those nations' growth. Meanwhile, consumers are spending less (as seen in lower credit card balances) though they are getting more credit cards. Inflation will certainly exist going forward.
Unknown
COMMENT

Usage has gone down, maybe because people are returning to the office and students are on vacation. Also, there's more competition now, not just Microsoft and Google. Zoom and its technology are here to stay, but the valuation needs to come down. As we normalize work and people return to offices, then businesses may use other platforms, or the small offices may use the free Zoom service. Zoom is more branded than its peers, so that is a competitive advantage. However, students will return to classes and won't be taking classes online.

Technology
DON'T BUY
People own this for the dividend, and pre-Covid this company was innovative with preferred seating and cafes, and programming opera and sports. But this is a difficult environment now; he doesn't see people returning to cinemas given social distancing. Also, the studios are releasing films on streaming. True, a lot of blockbusters will be released, but those films will also be released at home, too.
other services