DON'T BUY
They do not take any credit risk. They are a transaction company, and with the move away from cash, MA will benefit. However, the valuation compared to their historic multiple is high. They used to trade at a market multiple. Now, it is at 2x the market multiple. It has been rerated. However, thinks it is stretched and any economic dislocation can see a big correction.
DON'T BUY
In the news for their vaccine. It's pretty much all their business right now. Total revenue was $60M, but their market cap is $170B. The question is, are their legs with the vaccine franchise. They have lots of drugs in their pipeline, but there is a lot of risk.
DON'T BUY
Years ago, it was the darling of the chip space. They have fallen on hard times. They still do $75B in business but they cannot get traction from a growth standpoint. Greatest attribute is the cheap valuation around 12x earnings. More a value trap. It could turn itself around. There are other better opportunities.
BUY
Capital market business is on fire in the US. There is tremendous amounts of liquidity. Goldman has been successful in this business. Chosen to go with other opportunities with banking, loan spreads, but still likes this.
BUY
Likes it. An aerospace company in defence. The aerospace part has not been doing well, but it is starting to get legs. The combined operation is still undervalued. They spin off a lot of cash. Should support growth in their capital allocation policy leading to higher dividends and stock buybacks.
BUY
Can buy now. A fairly recent entry to his portfolio. Always a mystery from a financial standpoint. Becoming more traditional in their accounting and how they allocate capital. New CEO that is investing heavily in distributions and fulfillment centres. More same day delivery is coming. Cloud business is the best in the world too. Getting involved with content and bought MGM now. A company that is growing quickly.
BUY
A public vehicle in the quasi-private business. Takes advantage of opportunities in the marketplace, hold them until they mature, and then sells them. They continue churning money. Incredibly successful at it. Can continue to hold the company. They pay out a percentage of their profit bases. Switched from a LP to a regular listed company. Continues to pay fairly large distributions.
DON'T BUY
A broad company with many types of drugs. Laws in the US stipulates that after spending millions of dollar for franchises, the drug will go off patent in time. Pharmaceuticals have been doing this for a long time.
DON'T BUY
Broadly, pharmaceuticals and healthcare space is not providing a ton of opportunity. Trading at reasonable valuations with 3 divisions. Consumer business is in trouble because more people are going towards generics. Pharma business hasn't seen much tailwind from covid vaccines.
COMMENT
He's been saying that the seasonal period starting today will be a rocky one. It was as stocks sank today. Also, bearish sentiment hasn't peaked since the Dotcom period. Also stocks pull back, you may need to buy into that decline. September/October seasonality is consistent. This year, supply chain constraints, the Delta effect and other worries are factors.
COMMENT
They report Monday. Excellent managers. He wants them to talk about supply shortages and home demand. Lennar is important to retail, banking and the hybrid work from home economy.
COMMENT
It reports Tuesday. It has been hit with a ton of negative commentary. Will they say anything to give us a reason to buy? We'll see.
BUY
It reports Tuesday. It's become the bellwhether of tech stocks. The stock has been on fire, because business is booming; their products are essential to e-commerce. He loves their suite of products.
BUY ON WEAKNESS
It reports Tuesday. Their last quarter was good. If shares got hammered Monday and Tuesday, maybe you can buy this lower on Wednesday.
BUY ON WEAKNESS
It reports Thursday. He doesn't expect good things. True, the stock has been rallying up in a straight line, but the clueless always expect an upside surprise, then sell it when numbers are merely in-line. A great company. He expects the clueless to sell it.