WAIT
For US banks, mortgages originate at the community banks and then move up the channel and can be sold. MS participates in this. Income from these is largely transactional. If transactions slow, as in a rising interest rate environment, this would be a revenue headwind, and you'll see a spike in non-performing loans. US banks will trade down. But when we bottom out, there will be a significant opportunity. Wouldn't touch a US bank now.
BUY ON WEAKNESS
Recovered nicely. Good stock moving forward. Good story and long-term track record. You can buy at these levels, buy more if it goes lower.
TOP PICK
3-5 year hold. He's taking advantage of currency dislocations and valuations in Europe. Asset light. Industrial applications. History shows that if you don't buy on sale, it's a mistake. Tuck-in acquisitions. Very well run. Growing dividend, attractive valuation. Retraced, and could retrace further. Yield is 2.08%.
TOP PICK
World #1 elevator and escalator manufacturer. Sitting on excess cash. Stock's down meaningfully, and this will improve next 3-5 years. Next leg up will be when China reaches zero Covid. Dividend's attractive and safe. (Price target in Euros.) Yield is 4.54%. (Analysts’ price target is $50.40)
TOP PICK
A national champion, best of breed. Track record of dividend growth, renewables pivot, underlying opportunity for growth. Carbon-based fuel will continue for the foreseeable future. Exposure to that without going into development side. Stable cashflows and dividend growth with take or pay contracts. Attractively priced. Yield is 6.64%. (Analysts’ price target is $60.55)
COMMENT
Sectors for a recession. Historically, commodities such as metals or energy are the #1 performers during a recession. The other categories are consumer staples and pharma. Gives an opportunity to participate in inflation.
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TOP PICK
Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to more than 1.6 million Americans daily. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. The company provides an array of whole being health products and services for the entire family through over 2,400 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to approximately 4 million members nationwide. Social media mentions are up 650% in the past 24h.
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TOP PICK
Energy Transfer Operating, L.P. owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. Energy Transfer Operating, L.P. also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP , and the general partner interest and 39.7 million common units of USA Compression Partners, LP. Social media mentions are up 1500% in the past 24h.