HOLD
He continues to like it, though all commodities are suffering now, from oil to metals, as the market fears a recession. Hang on. There's sunshine on the other side of a recession if one happens.
non-base metal mining
TOP PICK
Bought it in 2006. Trading now 20% off its highs, so now is a good time to enter. Shares are down because of the shutdown in China from supply and customer standpoints, but CEO Tim Cook comes from a supply chain background and will navigate this. They have 1.5 billion installed devices globally at a 93% loyalty rate. Do the math. They have a captive market and are innovative, spending nearly $20 billion annually in R&D. They produce $90 billion in free cash flow annually and over $100 billion in revenue this quarter. They bought back $27 billion shares in the March quarter.
electrical / electronic
TOP PICK
no price target given They own Booking.com, Priceline, Kayak, Open Table and RentalCars.com They cross-sell. Expects them to earn $100 per share in 2022 and $150 by 2025. Little debt. Reasonable PE in the high-10s. Great entry point now.
department stores
TOP PICK
An activist investor is pushing them to be more diligent, and he likes the new management. He sees great opportunity here. Delivery for packages is growing exponentially. Drone delivery in the future will cut down labour costs. Also, they trade at only 10x earnings. Lots to like here. (Analysts’ price target is $295.65)
Transportation
BUY
They execute well with their Snap-dragon chip, 5G and the internet of things. PE isn't high. Good runway ahead.
Telecommunications
DON'T BUY
Allan Tong’s Discover Picks Rogers has no one to blame but itself for Friday’s debacle. Shares plunged 4.61% the following Monday. The company was already making shareholders nervous with its bitter and very public family feud for control of the reigns. This battle last winter that made the hit series, Succession, look like a children’s cartoon. Despite paying a 3.25% dividend and trading at an 18.9x PE, Rogers stock is still flirting with year-to-date lows. Compare this to Telus which pays a 4.7% divvy and trades at 23x, and BCE which pays 5.79% at 19.59x. To be fair, Rogers stocks’ competitors are also trading near 2022 lows, but during Monday those shares were trading flat or slightly positive. Read Oligopolies, duopolies, 3 telcos stocks examined for our full analysis.
Cable
BUY
Allan Tong’s Discover Picks AMT stocks are a play on the in-progress 5G network, renting space on their towers to American telcos. Even post-Covid, data usage will remain high and shows no signs of slowing. Between now and 2027, data usage worldwide is predicted to climb 24% annually. With AMT stocks, expect 7% growth and quarterly dividend increases that stretches back to 2021. It currently pays out 2.24% and trades at 44.64x. AMT has nadily beat three of its last four quarters, missing one quarter. Read Oligopolies, duopolies, 3 telcos stocks examined for our full analysis.
Telecommunications