PAST TOP PICK
(A Top Pick Jul 22/21, Up 3%) Cybersecurity is a strong secular growth market. Issues from transition to SaaS and new products. Long run, should see strong revenue and free cashflow growth. Continues to buy here.
computer software / processing
PAST TOP PICK
(A Top Pick Jul 22/21, Down 52%) Should do better on the ad side than smaller players. 3B users, great EBITDA margins. Not expensive at 13x earnings, lots of cash on balance sheet. Free cashflow should start growing again next year. When it reports this week, look at advertising trends and if Reels is catching up to TikTok. Buy here, do well over the next couple of years.
0
BUY
You can buy it here. Parks have to come back, as it drives a lot of their business. Disney+ outperformed expectations and will continue to do so. Look to see if Disney+ continues to grow and has pricing power. Movie blockbusters are a positive. Cost-cutting can come from selling assets.
entertainment services
BUY
CM vs. MFC CM has a dividend yield of 5.2% vs. MFC at 5.8%. CM trades at 8x earnings, MFC at 7x. CM trades above book value, MFC below book. MFC is cheaper, strong Asian franchise with room to grow. CM has become a strong retail bank. CM will be affected more than MFC by what happens to the Canadian economy. Buy either at these levels.
banks
BUY
MFC vs. CM CM has a dividend yield of 5.2% vs. MFC at 5.8%. CM trades at 8x earnings, MFC at 7x. CM trades above book value, MFC below book. MFC is cheaper, strong Asian franchise with room to grow. CM has become a strong retail bank. CM will be affected more than MFC by what happens to the Canadian economy. Buy either at these levels.
insurance
COMMENT
Price forecast for WTI oil 2022 and 2023? He doesn't have one. Hard to get right. Oil is in a unique situation presently and won't be in that same position a year or two from now. As drilling increases, the price will stabilize. It will come down to more reasonable levels as the world normalizes.
Unknown
HOLD
40-45% ownership by one German family gives it stability. Free cashflow yield of 16%, trades at 6x earnings, not expensive. Slowdown of core business in China could make for tough quarters, plus tricky transitioning to an EV company. Yield is 6.8%.
Automotive