DON'T BUY
Not sure why it's up 5% today. She doesn't own the airline sector, because it's very cyclical. Many airlines file for bankruptcy sometime in their lives. There are a lot of fixed costs beyond airlines' control. They have little pricing power in plane tickets. Airlines are a trade at best.
Transportation
DON'T BUY
Very cyclical, so you must watch lumber prices, which move dramatically. She avoids cyclicals, which are a trade at best. It's very tough to forecast commodity prices.
west coast forestry
DON'T BUY
Owners of this stock see an Elon Musk aura, but the fundamentals scare her away. There'll be more competitition in EVs in coming years. She prefers owning shares of EV suppliers, instead.
0
BUY
5-year outlook She is adding at these levels. A strong, profitable company. Their cloud business is growing 45% a year with lots of future growth. Their Office products benefited from work-from-home. Management has transitioned very well to a monthly subscription model, so this recurring income stream is attractive. The LinkedIn deal paid off. They just bought Activision Blizzard, under federal review, but would be accretive, and the deal positions MSFT down the road for the metaverse if that becomes a reality.
computer software / processing
BUY
She likes Canadian banks. PEs have climbed from last year, but still reasonable. Royal and TD are her top banks. Likes RY for their diversity and scale. Both banks yield around 3.5% and will continue to raise them as earnings grow.
banks
BUY
A good bank and good play on the US economy, but she prefers JPM though JPM shares have lagged BAC, but JPM will catch up. You want to be exposed to US banks because interest rates are rising. JPM has been investing more in their business, and the street didn't like that, but it makes strategic sense. All banks are diversified in capital markets activity, lending and wealth management.
banks
DON'T BUY
It's going through a multi-year transition into software. She still can't see where their revenues focus will be and suspects they will need to make acquisitions to grow. Can't see an entry point.
electrical / electronic