BUY ON WEAKNESS
She added on the recent pullback. Growing nicely. Patents on animal healthcare drugs are much longer than those for humans. Pet companion segment continues to grow. Younger demographics spend more on their pets.
WATCH
Company cut outlook due to shortages of components. Has never executed well. On her watch list, but wants to see more from them before adding it to her portfolio.
COMMENT
MS vs. V Likes banking in general in the US as well as in Canada, because the economy is improving and this should improve net interest margins. She owns JPM instead of MS, as they've been very well run over time, gorgeous balance sheets, diversified, doing well in capital markets. She likes Visa as well. It will benefit as payment volumes ramp up with more travel domestically and internationally. Since the pandemic, people are using their plastic cards more. Right now, between MS and V, she prefers Visa, as it's lagged the market and its long-term growth profile is more attractive.
BUY
V vs. MS Likes banking in general in the US as well as in Canada, because the economy is improving and this should improve net interest margins. She owns JPM instead of MS, as they've been very well run over time, gorgeous balance sheets, diversified, doing well in capital markets. She likes Visa as well. It will benefit as payment volumes ramp up with more travel domestically and internationally. Since the pandemic, people are using their plastic cards more. Right now, between MS and V, she prefers Visa, as it's lagged the market and its long-term growth profile is more attractive.
HOLD
Likes banking in general in the US as well as in Canada, because the economy is improving and this should improve net interest margins. Has been very well run over time, gorgeous balance sheets, diversified, doing well in capital markets.
WATCH
Whole industry is being impacted by the chip shortages. She hasn't been in this space in a while. As all vehicles become electric, there will be demand, and she wants the companies that will be well positioned. MG would probably be her preference, but she's just watching right now. Excitement earlier this year has died down.
DON'T BUY
Not a lot of strong growth, pretty mature market. Did well during the pandemic, as more people were at home. Need to find companies positioned geographically in a higher growth region. She owns MDLZ instead.
BUY
In the global snacking category, with about 40% of earnings coming from EM. Earnings may be somewhat lumpy, as they reflect what's going on in the economy, but there's stronger growth there than, say, a Kellogg in its mature market.
DON'T BUY
Doesn't own any of the OEMs. Will eventually catch up to a Tesla. At this point, you have to get the timing of the transition right, and it's not going to happen as quickly as people think. She's doing research to find the companies that supply various platforms for the OEMs.
COMMENT
Banks vs. utilities. Why do you have to choose? You can own some of both. She likes them both for income. Attractive yield, with some share price appreciation. If you want more growth, go with the banks. Their earnings will grow over time, and at a faster pace than the utility companies. Though banks will somewhat reflect the economy, they're well diversified. Utilities are much more defensive, so you won't get the earnings growth of the banks. You should have a bit of both.
TOP PICK
Diversified. Generics to EMs, medical devices, diagnostics, nutritionals. Covid tests. Outlook cut in June, as demand for rapid tests dropped. Now we're seeing increases in rapid tests. Good growth in med devices and diabetic monitoring. More in the pipeline. Attractive value. Increases dividend every year. She'd buy it here. Yield is 1.53%. (Analysts’ price target is $129.74)
TOP PICK
Dental products, with a broad range. Spun off from Danaher, allowing them to focus on improvements. Quite global, with only 48% of revenues coming from North America. Leading player in implants, a growing segment. Good growth in both developed and developing markets. Likes the valuation and its industry position. No dividend. (Analysts’ price target is $50.57)
TOP PICK
Leading global player in industrial gases. Used in healthcare, food and beverage, and electronics, all of which are quite resilient. Growth of 10%, no matter the economic cycle. Well positioned moving forward in green infrastructure. Long-term contracts. Yield is 1.42%. (Analysts’ price target is $338.97)
COMMENT
Consumer product sector. Her preference is for consumer products companies that have more exposure to EM, where demand over the long term should be stronger with product categories that are growing at a higher rate.
COMMENT
Today's inflation numbers may signal a peak or near-peak. Maybe. Also, historically over 30 years, oil prices peak now--mid-October. Also, corrugated cardboard (boxes) are signalling peak sales, and this product is a signal for inflation. Don't panic; be patient. The seeds of deflation are being planted.