BUY
A big recovery in travel is already happening. AC enjoys a duopoly with Westjet and will manage well against the discount airlines. When cross-border travel returns in the next few years, AC will do very well. Airlines were loved by investors before Covid and he expects that to return.
Transportation
WATCH
A leader in creative digital marketing. Subscription-based products lead to predictable cash flows and 15% revenue growth. High gross margins around 80% in software, too. It trades at 32x earnings, far better than the former 50x a year ago. He owns Google and Meta instead, but Adobe's PE is getting attractive.
computer software / processing
BUY
They've succeeded the last decade by fining less-competitive markets in memory and storage for semis, so it's less volatile than tech. Meanwhile, they're adding a software strategy by buying slow-growth infrastructure companies, which overlaps their existing customer base in networking and infrastructure, so this reduces their sales costs. They just bought VMware which will be accretive. Great stock, though he has taken some profits recently. Tech is still attractive.
0
BUY
Oil is the best performing sector now as demand remains strong. Will probably do well with this stock or Exxon as long as oil stays strong. DVN had to sell off its Russian division. It boils down to whether you're in this space or now. DVN trades at an attractive 23% free cash flow yield.
oil / gas
BUY
Autos are very cyclical and impacted by inflation, so stocks have been weak lately given inflation, the chip shortage and Russia. He expects supplies to improve later this year and there's a pent-up demand for green cars. He expects healthy car sales coming.
Automotive
BUY
Demand for their e-cars is strong even before they hit the street. He is optimistic about the car business given pent-up demand. Chop shortages will ease or end later this year.
Automotive
BUY
They're spinning off their consumer products division, so GSK has historically traded at a discount with slower growth than other drugmakers. New management has turned around the pharmaceuticals side and make good consumer products. Aging populations in the west is a tailwind.
biotechnology / pharmaceutical