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TOP PICK
A major with great price momentum and still cheap valuation. Like many of the energy companies, it is trading at 6x EBITDA. 13x earnings. Hitting a number of metrics. Their latest deal is accretive for them immediately. A safer way to play a continuation in the energy bull market. Relatively early days he thinks. (Analysts’ price target is $63.02)
oil / gas
TOP PICK
A special, arbitrage situation. Uranium is one of the greenest sources of energy. It has been dead money for while since 2011. European, Japanese and Chinese governments are pushing back into uranium energy. Probably has a long way to go. Buy below or at NAV. Trade with a hold bias.
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TOP PICK
Thematically likes copper. Should continue to do well. Has been sideways in the last 6 months following a run up. Demand is still strong. Relatively low supply. Cheap. BC based with Australian mines. 3.4x free cashflow, 3.5 EBITDA, 7.5x to earnings. High return on equity. Good balance sheet. (Analysts’ price target is $5.10)
Mining
PAST TOP PICK
(A Top Pick Nov 13/20, Up 54%) Pleased with the return on it. Scores middle of the pack. No longer as cheap as when they bought it.
electrical / electronic
PAST TOP PICK
(A Top Pick Nov 13/20, Up 33%) Has started buying back shares and paying dividends. Financials should do well as the yield curve steepens. Valuation is not as compelling as before. Middle of the pack. Has moved to US banks and non-financial banks in Canada.
insurance
PAST TOP PICK
(A Top Pick Nov 13/20, Up 166%) Would buy again. Like many energy companies, it is no more expensive than where they were a year ago. Energy prices and natural gas in particular has moved up. The improved cashflow is now used to right balance sheets, pay dividends and other shareholder friendly moves. Great price momentum with 5x EBITDA which is still reasonable.
oil / gas
COMMENT
The market was looking for an excuse to sell off. There has also been an underlying shift from growth to value happening. Hedge funds with over exposure to growth are now hurting and are now de-risking. The new variant is a cause of concern, but also we will need to live with them now. A healthy sell off to get off some fluff.
Unknown