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COMMENT
Markets. Up seven consecutive months. September is historically a seasonally down month. Delta and other variants, looming Fed tapering. Not surprising to see a bit of a pullback. S&P is already down 1.5% this month, and hard to tell if it'll go down 3-5%. His cash levels are higher, above 10%, to take advantage of any potential weakness. We've already seen weakness, and perhaps there's more to come.
COMMENT
Not hiding in defensive stocks? He prefers cyclical over defensive. Delta, inflation, or supply chain constraints may delay recovery, but not derail it. Vaccinations are progressing, and it will take another few months to get to herd immunity of 75%. Looking out 12-18-24 months, you want to be in financials, industrials, and energy.
COMMENT
Basket of 25 US tech stocks, equal weight, with a covered call. Yield is about 10%, but going forward it may be closer to 7%. Be aware that much of the yield is a ROC. It's not a straight dividend. He watches the ZWT ETF, market weighted, 65 holdings, more diversified, lower distribution, but it's outperformed TXF this year.
E.T.F.'s
COMMENT
The TXF ETF is a basket of 25 US tech stocks, equal weight, with a covered call. Yield is about 10%, but going forward it may be closer to 7%. Be aware that much of the yield is a ROC. It's not a straight dividend. He watches ZWT, market weighted, 65 holdings, more diversified, lower distribution, but it's outperformed TXF this year.
E.T.F.'s
COMMENT
Covered call ETFs. When market's are strong and the underlying securities are doing well, you will get a higher distribution, but you'll give up something in total returns. He really likes the covered call strategy if you feel that underlying index is going to be flat, so you get the principal appreciation, covered call option, and the dividend. They don't protect you tremendously in a down market. He likes ZWU, a basket of telecoms and pipelines, where you get the high yield plus the covered call option premiums.
DON'T BUY
Chart is not doing well. Falling below 200-day MA, and rolling over, which is not positive. 5x price-to-sales valuation is in line with higher-growth names. No profits until 2023. Trouble finding drivers. Long-term have to watch out for competitor autonomous driving and uneven regulations across jurisdictions.
Technology
HOLD
Rough ride. Acquisitions, growing pains, disappointing results. Future of these names continues to make sense. Be patient. Chart looks as though it's basing. Higher growth name, so hurt by threat of rising rates. A disruptor, long-term growth, we'll see ups and downs. Put your stop losses in place.
Healthcare
RISKY
Always concerned about the valuation. Pandemic helped it. Easing of the pandemic might hurt. PE of over 275x. Growth rate is strong at over 50%. Rising interest rates negatively impact high-growth companies. Price to sales is 34x, very expensive. Exposed to smaller merchants and bumps in the economy. High beta and volatility. A trade.
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WEAK BUY
T vs. BCE Likes telecoms in general, giving a mix of some growth with very good dividend yields. Yield looks secure, with about a 5% growth rate. Yield about 4.4%. He prefers BCE, with a yield of 5.44% and its consistent cashflow and growth. Media, sports teams, and different networks are helpful to BCE's growth.
telephone utilities
BUY
BCE vs. T Likes telecoms in general, giving a mix of some growth with very good dividend yields. Telus yield looks secure, with about a 5% growth rate. Yield about 4.4%. He prefers BCE, with a yield of 5.44% and its consistent cashflow and growth. Media, sports teams, and different networks are helpful to BCE's growth.
telephone utilities
PAST TOP PICK
(A Top Pick Oct 21/20, Up 80%) Undisputed heavyweight champion in online search market. Strong revenue and cashflow going forward. Continuing to strengthen product lineup. YouTube and cloud will help top and bottom lines. Shareholder-friendly buybacks. Reasonable at 29x forward earnings with 20% growth rate. Likes leadership names without a lot of viable competitors.
Technology
