Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Larry Berman CFA, CMT, CTA and Andrew Moffs commented about whether VESTA-BMV, BEI.UN-T, HOM.UN-T, SGR.UN-T, EQIX-Q, PLD-N, TNT.UN-T, COLD-N, D.UN-T, IRES-IR, HOM.UN-T, TCN-T, TCN-T, HR.UN-T, SRU.UN-T, DIR.UN-T, AX.UN-T, WIR.UN-T, AP.UN-T, MRC-T, HSD-T, DPST-N, FTN-T, XEQT-T, ZPAY-T, WWOW-Q, VFV-T are stocks to buy or sell.
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COMMENT
Educational Segment. Inflation on the shorter term horizon is going up but the longer term number is relatively low. However, longer term expectations are now rising. If prices become unanchored, people will go buy today instead of in the future. There has been no meaningful change in terms of inflation in 5 years. This is why the Feds think it is transitory. If inflation goes up, PFIX could offer a hedge to inflation, as well as IVOL.
COMMENT
PARTIAL BUY
Likes the banks for trading. As the yield curve steepens, there are trades to be made. If you are the leveraged type, it could be fine for short trading. Often, investors are not able to get out and it tends to become long term holds. Need to be disciplined to trade over days and weeks. There is natural erosion and the net asset erosion is work if it is more leveraged.
E.T.F.'s
COMMENT
Energy prices. The energy price melt up is probably transitory. There has been underinvestment in replenishing due to the greening of the world. The demand side is not curtailed as fast as the green side wants to see. The demand for energy is still relatively high. Depletion will come into play. Since we have not reinvested in the past, there could be meaningful upside pressure on prices.
COMMENT
Stagflation. There are many trends are pointing to stagflation. Productivity and population are the two key factors. Productivity may go up thanks to technology even though the work force may shrink slightly. There are many signs of stagflation coming. Bond yields are breaking out, and with the yield curve's behaviour, we are seeing that the bond market will push back. Equity risk premium will rise and we will get some compression in PE.
N/A
Market. There are sector dynamics going into office space. Post-pandemic you would expect numbers to increase but he is trying to estimate what percentage of workers will stay working from home. The office sector is one to continue to avoid as we are too far from the bottom. Office vacancies are the highest since the '90s. XRE-T collapsed at the start of COVID but has not got back to where it was pre-pandemic. It has a mix of winners, post-pandemic, retail, and office. These later sectors SHOULD suffer post-pandemic. You should not look at one ETF overall.
WEAK BUY
It is a large corporation rather than a REIT. The corporation has always traded at a big discount to an underlying value. It does not pay a distribution and has a valuation discount. It owns both office and retail. Both are sectors that have been hurt during the pandemic. It is hard to think about a catalyst that will close the gap of discount to value. For those that are patient and willing, it is something to look at.
property mngmnt
investment
DON'T BUY
It has many positive attributes: Strong management, great business model and a niche business model. Their tenant usage is a smaller model. They are well positioned. They can't fight the tide. It is a difficult operating market. There are high vacancies there and they have to be competitive in signing new leases. He would not own it today.
investment companies
funds
DON'T BUY
It was a diversified REIT in the US and Canada and then there was board transition an activist shareholder has taken control to sell off the assets and reinvest the capital into other publicly traded REITs. He questions this business strategy. Choose the REITs they invested in for yourselves.
property mngmnt
investment
