- Page 1/3
- Next Page
HOLD
Doing something that many companies are not able to do, which is to pass on higher costs. Still have to be careful where the economy is going, possible deceleration, and how much you want to have in the industrial/transport space. Company is predicting profit will rise 15-20% this year, but in the current climate, hard to see if they'll meet those expectations.
Transportation
COMMENT
Market strategy. Nice relief rally of the S&P 500, up about 9% from the mid-June lows. He gets asked every day if we've hit a bottom. Difficult to ascertain the bottom during a bear market or correction. Possible we've already marked the bottom, or we could be closer to the bottom than many expect. This bear market is 7 months old, getting long in the tooth. The last 8 bear markets have ended within 6 months. Seeing a bit of an inflection point on inflation. Gas, commodity, and lumber prices are falling. Housing is already cooling in Canada, expected to cool in the US with fewer starts and lower sales. Central banks are making a tradeoff between growth and inflation. By next year, we'll see a deceleration in the economy, and the central banks will start to lower rates at that point.
DON'T BUY
Longer trend has been up and down, more or less flat. 200-day MA has remained pretty steady. Price is below that now. Short-term, hard to stay. Outperforming the S&P 500 over the last year, though it's been underperforming during this latest technical relief rally, probably because it's a value name. Yields about 3%. He owns AIG and a couple of Canadian insurers.
insurance
WEAK BUY
GWO vs. MFC vs. SLF He looks at price to book. MFC is one of the cheapest names out there. GWO is trading at 1.17x, whereas MFC is at 0.87x. SLF is more expensive at 1.4x, but you get the heavier wealth management arm and more exposure to Asia. No issue with it, pretty high and secure dividend at 6.3%. On a combination of growth and valuation, he likes MFC more. GWO is on par with SLF as a pick.
insurance
BUY
MFC vs. SLF vs. GWO He looks at price to book. MFC is one of the cheapest names out there. GWO is trading at 1.17x, whereas MFC is at 0.87x. SLF is more expensive at 1.4x, but you get the heavier wealth management arm and more exposure to Asia. No issue with it, pretty high and secure dividend at 6.3%. On a combination of growth and valuation, he likes MFC more. GWO is on par with SLF as a pick.
insurance
WEAK BUY
SLF vs. GWO vs. MFC He looks at price to book. MFC is one of the cheapest names out there. GWO is trading at 1.17x, whereas MFC is at 0.87x. SLF is more expensive at 1.4x, but you get the heavier wealth management arm and more exposure to Asia. No issue with GWO, pretty high and secure dividend at 6.3%. On a combination of growth and valuation, he likes MFC more. SLF is on par with GWO as a pick.
insurance
HOLD
Forming a bit of a bottom. Very inexpensive valuation, about 14x forward earnings. 3.4x price to sales, has really come down. 10-11% EPS growth down from 20%, since they're going through transformation. Still growing user base. Ad revenues per user continue to grow. Watch out for competition. Reports tonight.
Technology
PAST TOP PICK
(A Top Pick Aug 05/21, Down 49%) Sold. Plagued by regulatory risk. Application for dual Hong Kong listing will alleviate some concerns. Outperforming the tech index. He's on the sidelines for now. 14x forward earnings, near 10-year low. 13-15% EPS growth rate, 2x forward price to sales. Demographics and internet penetration are positives.
0
