Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Michael Sprung and The Panic-Proof Portfolio (Stockchase Research) commented about whether TMO-N, UBS-N, MSFT-Q, QCOM-Q, NRZ-N, ARE-T, ATD.B-T, BNS-T, AFN-T, TOU-T, AD.UN-T, BEP.UN-T, MRE-T, NTR-T, TD-T, NFI-T, HBM-T, ARX-T, CP-T, CSU-T, CTC.A-T, LNR-T, SLF-T, MFC-T, SHOP-T, STN-T, CNR-T are stocks to buy or sell.
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DON'T BUY
Raw material and labour costs will rise for all auto-parts makers, which will pressure their margins. That said, it's a very good business to be in. He prefers Magna and Linamar. MRE has always been cheaper in PE to their peers, but it's not his first choice in auto-parts. All these companies will adapt to the EV market. See also his comments on LNR.
metal fabricators
BUY
The dividend is sustainable. Things are going much better than before; post-Covid there will be some upside to payout. Their balance sheet is in better shape than last year. He's owned this through thick and thin over the years. The PE remains reasonable, though ideally should be around 25x. They will be allowed to reopen their fitness operations. Their cosmetic surgery business is doing well. Payouts can rise in coming years. He remains positive about Alaris.
Trust, Savings and Loan
TOP PICK
There's more infrastructure spending coming. They're the top candidate to build rapid transit to Trudeau Airport. They won a water project in BC. They got a contract from Bruce Nuclear. They scored a big contract in Washington DC near I-95. Aecon is reasonably priced. (Analysts’ price target is $22.19)
contractors
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TOP PICK
Stockchase Research Editor: Michael O'Reilly Following its recent acquisition, this $4.9b REIT is again reiterated as a TOP PICK. This will place the company in an even more diversified portfolio that will be well positioned to weather various interest rate trends. It trades at a 8x earnings, compared to peers at 11x and is valued just under book value. Last earnings beat analyst expectations by 25% and the company is managing a ROE over 13%. It pays a sizable dividend, backed by a payout ratio under 75% of cash flow. We continue to recommend a tight stop at $10.00, looking to achieve $12.75 -- upside potential of 18%. Yield 9.65% (Analysts’ price target is $12.72)
Financial Services
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TOP PICK
Stockchase Research Editor: Michael O'Reilly With a market cap over $190b, we again reiterate this proven leader in semiconductors as a TOP PICK. As supply chain issues reduce, success of its largest customer (AAPL) will also improve, driving demand and revenue higher. Past earnings beat market analyst expectations by 23% and is managing profit margins over 26%. It pays a small (but growing) dividend backed by a payout ratio under 35% of cashflow. It trades at 22x earnings compared to peers at 58x. We also like it has been buying back stock while still growing cash reserves. We continue to recommend a stop-loss at $135, looking to achieve $210 -- upside potential of 18%. Yield 1.63% (Analysts’ price target is $208.99)
Telecommunications
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate MSFT, a $2.25 trillion market cap behemoth as a TOP PICK. Recently reported EPS beat analyst expectations and managed a 45% ROE. It trades at 33x earnings, compared to peers over 60x. It pays a smallish (but growing) dividend, backed by a payout ratio under 30% of cash flow. We like that it continues to grow cash reserves while buying back shares and paying down debt. We recommend trailing up the stop (from $265) to $290, looking to achieve $372 -- upside potential over 21%. Yield 0.8% (Analysts’ price target is $371.68)
computer software
processing
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PAST TOP PICK
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PAST TOP PICK
(A Top Pick Mar 30/21, Up 28.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TMO is progressing well. We now recommend trailing up the stop (from $510) to $550. If triggered this would all but guarantee an investment return of 22%, when combined with our previous recommendation to cover half the position.
electrical
electronic
DON'T BUY
Allan Tong’s Discover Picks One can say that Spotify has bottomed and can only climb higher. Gains on Monday morning as I write this suggest this, but what won’t change for the foreseeable future is Spotify’s unprofitability. EPS stands at $-0.71 while EPS growth lags the industry. It trades at an astonishing -273x PE and carries a -1.31% profit margin. Forget cash flow and dividends. ROI and ROE are -3.42% and -5.42%. Spotify’s track record in earnings in the past four quarters is a spotty two beats and two misses. So, what’s there to like about this stock? Read Battle of the 2 Streaming Stocks: Netflix vs. Spotify for our full analysis.
Technology
BUY
Allan Tong’s Discover Picks As of Monday’s rebound, NFLX trades at 37.66x PE. At the end of 2020, that was 87.36x. The profit margins stands at 16.37% and ROE at 36.13%, among the highest in the software and programming space. So, a 20% plunge?
For starters, remember that the world was in lockdown in 2020 and early 2021 until most of the population got vaccinated. That explains the 3.98 million bump in subs in early 2021. Also, one can argue that the street itself is to blame for having unrealistic expectations. Read Battle of the 2 Streaming Stocks: Netflix vs. Spotify for our full analysis.
Technology
