Stockchase Research Editor: Michael O'Reilly The online sales platform of EBAY is rightly valued now and is selected as a TOP PICK. Trading at 10x earnings, compared to 13x for peers and under 3x book, its strategy for streamlining operations will help improve its earnings going forward. It pays a nice dividend, backed by a payout ratio under 25% of cash flow. We recommend setting a stop loss at $35, looking to achieve $65.50 -- upside potential over 50%. Yield 2.08% (Analysts’ price target is $65.23)
Stockchase Research Editor: Michael O'Reilly With a good valuation and newly formed partnership, we select HMC as a TOP PICK. HMC and SONY have partnered and are expected to roll out a series of electric vehicles in the next year ready for retail by 2025. It trades at 7x earnings, compared to peers at 29x and is trading under book value. Recently released earnings beat analyst expectations by over 50% and the company is aggressively retiring debt and buying back stock, while still growing cash reserves. Its dividend can be sporatic, so the high yield should be taken with caution. We recommend a stop loss at $21, looking to achieve $30.50 - upside over 20%. Yield 6.49% (Analysts’ price target is $30.30)
Stockchase Research Editor: Michael O'Reilly CMC is $4 billion market cap has been for over 100 years a manufacturer, recycler and fabricator of steel and metal products with an international foot print. It trades at 5x earnings, compared to peers at 10x. This included record high margins. Recently reported earnings beat analyst expectations by over 75% and supports a robust ROE over 30%. We recommend setting a stop loss at $30, looking to achieve $45 -- upside over 21%. Yield 1.54% (Analysts’ price target is $45.00)
(A Top Pick Mar 15/22, Up 42.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TOU triggered its stop at $69.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 58%, when combined with previous buy recommendations.
(A Top Pick May 31/22, Down 16.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SSD triggered its stop at $90. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 16%, when combined with previous buy recommendations.
(A Top Pick Dec 21/21, Up 34.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CVX triggered its stop at $155. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 42%, when combined with previous buy recommendations.
(A Top Pick Apr 21/22, Down 13.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AD.UN triggered its stop at $17. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 9%, when combined with previous buy recommendations.
(A Top Pick Jun 07/22, Down 7.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MOS triggered its stop at $52. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 19%, when combined with previous buy recommendations.
(A Top Pick Jun 07/22, Down 6.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WBA triggered its stop at $40. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 13%, when combined with previous buy recommendations.
Allan Tong’s Discover PicksBEI.UN stocks sport only a 4.1x PE (Killam Apartment REIT trades at 5.9x), yet pay a 2.58% dividend, admittedly not the highest. (Killam pays 4.19%.) Also, daily volumes average only 145,000, so it’s not the most liquid asset out there. However, Boardwalk margins are attractive and comparable to its peers. Its profit margin is nearly 103% and ROI is 8.21%, which is in-line with the sector. Circling back to the oil boom, Boardwalk has been enjoying that tailwind. Current weakness in the TSX correction represents a buying opportunity. Read 3 defensive stocks to find stability with your money for our full analysis.
Allan Tong’s Discover PicksDG stocks project same-store stales to rise 3-3.5% in 2022, net sales to increase 10-10.5%, and EPS to advance from 12% to 14%. All this as the chain opens another 1,110 stores this year. At the start of 2017, DG boasted 13,601 locations and started this year with 18,356. Compound annual growth rate (CAGR) between 2016 and 2021 was a healthy 9.2%. Its metrics beat its competitor, Dollar Tree whose CAGR in 2015-2021, for instance, was 4.9%. DG pays a 0.95% dividend and trades at 23.66x PE. Read 3 defensive stocks to find stability with your money for our full analysis.
Allan Tong’s Discover Picks I reiterate a buy on this renown REIT, especially after shares have slid $15 this year to below $44 to 52-week lows, while the dividend has climbed from well below 3% to 3.35%. CAP REIT owns 57,000 units particularly prime real estate in Ontario and to a lesser extent, Quebec. It’s the largest multi-residential REIT on the TSX. CAP REIT’s occupancy rate was 98.6% as stated in the company’s 2021 annual report. The PE is now an attractive 5.75x, though admittedly higher than other residential REITs like Boardwalk, as noted above. Read 3 defensive stocks to find stability with your money for our full analysis.
This is a shopper's dream--everything is on sale. Higher interest rates and oil prices means consumers will have less money to spend. Offsetting that partially are people who won't buy a new home and spend in retail instead. Tech has been punished. So has banking. Canadian banks are down at least 15%, but American ones a lot more, even though the banks are in great financial shape (share buybacks and dividend increases). Energy and metals stocks: buy them when prices are low and sell high. 12 months from now, the Russian war will likely be over (to no one's satisfaction) and energy prices will subside partially. Oil prices are probably near their peak.
It's the cheapest stock he owns, trading at 3x earnings. They generate fresh cash flow. They close the sale in late 2022 of one of their divisions. He expects them to use a major share buyback with those proceeds, and a bump in the share price finally. This is an incredible value stock or everybody is missing something. We'll see.
They've fallen into a tough time due to supply chain issues. They are bleeding cash. 9% of shares are shorted because the street expects them to raise equity at a terrible time which will dilute existing shares. They remain a well-run business, a successful Canadian company. They generate over $2 billion revenues. They have an order backlog and hold a strong position in the bus industry.