PARTIAL SELL
Paying down debt, buying back shares, increasing dividend. Trying to be less into fossil fuels, more into renewables. Two risks: overspend on renewables, no clear vision on cost of capital. Oil is not sustainable at these high levels. In better shape than pre-Covid, lots of free cashflow. Good for now, but then think about Canadian oil companies that don't have the currency risk.
integrated oils
HOLD
Great company. Spinning off asset management, and this should garner a higher multiple because there's a lot of free cashflow growth in that business. Repricing of all assets has hurt them. Very smart operators. Will continue to do a good job.
management / diversified
COMMENT
Investing now. If there's an earnings contraction and multiple contraction, that's when you want to buy the stock market. In this environment, you can look for great companies that you always wanted to own, because the valuations have gotten cheaper. You get a few opportunities in the stock market, and this is one of those times.
Unknown
HOLD
Great business. Multiple has contracted to 24x, small yield of 1%. Key is the cloud, which continues to grow. Great balance sheet. ATVI deal would be additive. Room to grow. When it reports, look at cloud direction and ATVI deal.
computer software / processing
BUY
A buy at these levels. At 19x earnings, lower multiple than other tech. Good momentum on Search for travel and retail. Make sure monetization of YouTube continues. Digital ads will continue to grow, though headwinds include cutbacks. Cloud is a strong growth area.
Business Services
HOLD
Massive barriers to entry, strong moat. Good pricing power in the right environment. More environmentally friendly than trucking. Should do well over the next little while. Oil transportation will continue to be a reasonable part of their business.
Transportation
PAST TOP PICK
(A Top Pick Jul 22/21, Down 11%) Whole spectrum of eyewear business. Screen time has increased demand for kids' eyewear. Demographic play for older adults. Balance sheet getting better. Designer brands. Corporate governance improved.
Healthcare