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COMMENT
Over the the last few years valuations have been a risk but not now since prices have come off. Depending on price movements over the next while the S&P could have the sharpest sell-off since 1962. Over the last 140 years there have been 20 bear markets and the average length has been 289 days. This would take the S&P from Jan.3/22 to Oct.19/22, the 35th anniversary of Black Monday in 1987 so there could be a bottom in October of this year. Property and casualty Insurance could be a good sector to invest in. Also companies that can appreciate over time and are not too volatile.
Unspecified
Unspecified
Can't predict where gold goes from here but at least it hasn't really gone down. Equinox will have a more active second half - there was a shortfall in first half production. Two other major gold companies had massive cost overruns which has affected thee price of Equinox. However their budgets were set before inflationary pressures. Equinox set its budget after inflation became an issue so it is standing by its numbers. It is a prove-it-to-me story.
Mining
BUY
Over the last week the oil and gas sector in Canada has dropped by a huge 16% while the U.S. and S&P are down 17% due to indiscriminate selling. Pembina hasn't moved much since early 2020 but its operations and cash flow are doing better Pembina and the smaller mid-streams are less vulnerable to inflation.
pipelines
BUY
It is a great company but has sold off. It is splitting off the asset management side, separating it from the proprietary investment business. A pure play asset management business will be easier to analyze. The asset management business will pay out 90% of profit, making it a good income stock while the proprietary side is going for an annual 15% ROE.
management
diversified
Unspecified
Its revenue is 100 million which is not large. Still waiting for it to really commercialize. It raised a lot of money at much higher prices so it has good reserves of cash. The fuel cell industry is still developing and the question is can it compete against the electric vehicle system.
misc industrial products
PAST TOP PICK
(A Top Pick Jun 21/21, Up 6%) It has caught up but has since sold off. The challenges are due to international banking. Also it announced recently it is moving from unsecured lending to secured lending so it doesn't have the financial flexibility of other banks. He is considering selling and moving the money elsewhere.
banks
PAST TOP PICK
(A Top Pick Jun 21/21, Down 51%) It was at a reasonable valuation a year ago and is now undervalued, trading at 14X this year's earnings and 12X next year's earnings. There is an advertising revenue concern. It is investing more in AI machine learning and connecting subscribers to e-commerce services but this will take a while. Lots of cash flow and is a buy.
Technology
