DON'T BUY
Good opportunity with China opening up? China is the source of its largest orders. There's been a lag. Not too involved in China's EV trade. Longer term, hydrogen is more of a 10-year story, not a China reopening story. Can this technology be commercialized, and does BLDP have enough tech leadership to make it unique as everyone scrambles for a piece of the pie? Lots of challenges. High on speculation, so it depends on your timeline and risk tolerance.
DON'T BUY
Hasn't had the strong growth, cashflows, or stability that he looks for. Challenging market. Safety concerns with higher rates of shrinkage. Healthcare ambitions are going up against the likes of UNH, which he owns and would recommend looking at.
HOLD
He looks for strong growth, cashflows, and stability. He owns, and would recommend looking at.
DON'T BUY
Japanese companies are managed differently. There are times to own them. It's been pretty much flat to the year, doesn't see much growth for the next year. He'd pick some of the US tech companies instead.
TOP PICK
Oversupply, plus cloud computing is starting to slow with the macro weakness and what we've seen in the tech sector. Decade-low multiple right now at 14x EBITDA. Headwinds should start reversing into tailwinds over next 12-18 months. E-commerce activity is starting to pick up. Can take a lot of market share next 2-3 years. Cloud computing still only in 3-4th inning, AWS revenue growth will re-accelerate in 2024. No dividend. (Analysts’ price target is $133.35)
TOP PICK
With lockdowns behind us, aerospace activity is starting to pick up again. Will benefit as companies ramp up their needs for engines and maintenance. Defense will be a steady, slow growth buffer that provides nice cashflow. Can grow EPS close to 20% over next 3-4 years, at a 20 PE ratio. Lower risk, industrial play. Yield is 2.21%. (Analysts’ price target is $109.90)
TOP PICK
Energy prices are higher, and companies are much more disciplined and focused on shareholder returns. One thing he likes in particular is that it's still investing in the company for growth, rather than just returning capital to shareholders. Acquisition this summer is a prime jewel, will use its cashflow to to pay down debt, and that's the playbook it will follow. Yield is 5.28%, which will grow significantly when it reaches its debt target this June. (Analysts’ price target is $14.67)
BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Company recently acquired (Great Elm). At $80M it is a sizeable deal, but adds $60M in revenue and $13M in EBITDA. Should be $2M in cost savings and it is accretive to cash flow. The market likes the deal. Good earnings growth is expected. Unlock Premium - Try 5i Free

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Spends about $37B a year on research. ChatGPT is probably its best shot at making Bing anything more than a joke. We do not think GOOG needs to be sold. It is too cheap, and a return to advertising spending will still be very positive for earnings. Would recommend buying. Unlock Premium - Try 5i Free

HOLD

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. MRS closed a small financing last week, but there has been no other news. Trading volume picked up a bit, but dollar value of trading remains quite low. Still, it is up 68% YTD with a January small cap bounce. Unlock Premium - Try 5i Free

COMMENT

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. What is the P/E Ratio? The price-to-earnings ratio, or otherwise known as the “P/E” ratio, is a financial metric commonly used to measure how expensive a stock is compared to its earnings. The ratio can be rephrased as the amount that an investor is willing to pay for every $1 of earnings for a specific company. The ratio involves two components; the first is the ‘P’ portion, which is the current price per share of the stock, and the second is the ‘E’ portion, which is the Earnings Per Share (EPS) of the stock. For example: if Stock A has a current price per share of $30, and an EPS of $1, then the P/E ratio is 30X (calculated as: $30 Price / $1 EPS = 30X P/E). To maintain a stable P/E ratio over time, the price must appreciate at the exact same rate as the earnings per share. For instance, for the P/E to remain at 30X in the next year, if the share price increases by 10% from $30 to $33, then the EPS must also increase by 10% from $1 to $1.1 (calculated as $33 Price / $1.1 EPS = 30X P/E). Unlock Premium - Try 5i Free

BUY
Their just-released quarter shot the lights out, with great loan growth and defaults well below pre-Covid levels. Shares surged over $9 today. The street expected their credit card business would be plagued by defaults, but those folks were wrong.
COMMENT
Enough of being in the penalty box. The current CEO is getting punished for the mistakes of the past CEO. Shares are slowly moving up, though its peers are outpacing it.
BUY
They delivered a great quarter today, finally thriving because of the post-Covid travel boom. It's a cash flow story, not an earnings story, and cash flow came in much better than expected. Managers guided even higher. He once expected Boeing to do a major equity issue, but doesn't see that happening anymore. They're starting to win larger shares of plane orders. He predicts China, now out of lockdown, will order more planes from them and be a growth area again.
BUY
He kicks himself for not buying this. They just reported great numbers, because they found many more engineers. Are seeing a lot of orders from defence and commercial businesses. Are enjoying an aerospace bull market, too.