Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Bill Harris, CFA commented about whether GEI-T, ATKR-N, BCE-T, BN-T, VET-T, TRP-T, CP-T, CNR-T, CVE-T, AEM-T, SPB-T, ARX-T, LUN-T, ATZ-T, ENB-T, TF-T are stocks to buy or sell.

COMMENT
Buy or sell puts?

Since everyone now has a cell phone, the options industry has exploded. He doesn't do it. He runs a long-only, pension-type strategy. His focus is bringing stability to investments.

BUY ON WEAKNESS

Amazing Canadian business. Numbers are spectacular. Relatively good multiple, especially compared to US peers. Big piece is they're going into the US by opening stores methodically. Next 2-3 years will be great. Stock's down on concerns of a consumer recession. Unique brand. Target demographic still employed.

HOLD

The sector is really tricky. In his income portfolio. Stable business. Don't think of where the stock might be going. Instead, decided if it can generate income for your timeframe. New mine opening around 2027, right when copper supply drops off. Anchor base metal position. See his Top Picks.

PAST TOP PICK
(A Top Pick Feb 10/22, Up 9%)

Commodity cyclical. Commodity is low again because of the warm weather. Thinks a lot of that is already in the price. Stock should be $25-30. Hoping the commodity tightens up over the summer.

PAST TOP PICK
(A Top Pick Feb 10/22, Down 16%)

Income-producing stock. Financing acquisitions with debt is not particularly great in this environment. At current price, great income stream at 6% yield. Low volatility. Brookfield's now involved, so it's a core investment for him.

PAST TOP PICK
(A Top Pick Feb 10/22, Up 23%)

With inflation, mining costs went up. So he moved into royalties, where he remains.

DON'T BUY

Fear of a slowdown makes him a bit more cautious on the oil space. Would be a lot more interesting around $20. Hard to be enthusiastic on it right now. 

DON'T BUY

Tricky. In a pension fund, you want to have a rail because they're incredible businesses. Can you replicate this business? No. Extraordinary pricing power. CNR has done a great job squeezing everything it can out of its infrastructure. A few years ago, CP had slightly cleaner story in terms of future profitability. CP now has the full continent and more upside. 

BUY ON WEAKNESS

In a pension fund, you want to have a rail because they're incredible businesses. Can you replicate this business? No. Extraordinary pricing power. CP now has the full continent and more upside than CNR. Would love to have a full position, but it's kind of expensive. He's waiting for a bad day to buy more.

BUY ON WEAKNESS

He owns a starter position and would like to add. Market is skeptical, so you might be able to get it at a giveaway price. If you're building capex, the market's nervous. Coastal GasLink is massively over-budget, unlikely the company will build one of these again. Lots of project potential in eastern US through gas and infrastructure. Would be highly surprised if 6% dividend gets touched. Defensive.

DON'T BUY

Big volatility out there. Hard to figure out. He's looking for consistency and stability, and that's hard. The money's really moving. He's staying away.

DON'T BUY

It's become so complicated. He likes simple, transparent, and can I analyze it? In this environment where interest rates have moved so fast, he doesn't know what credit events are coming. He's standing back. It's a yellow flag right now. Instead, he owns BIP.UN and BEP.UN.

TOP PICK

Today's theme is simple, high-quality, essential businesses that don't need access to capital markets. If we have a slow market and you're accumulating shares as you go, you're compounding your investment. In the last 2 recessions no one has not paid their cell phone bill, it's the last thing to cut. Yield is 6.35%.

(Analysts’ price target is $65.53)
TOP PICK

Cabling. Essential, simple business. Clean to understand. Taps into electrification of everything. Inexpensive. You can own the sexy stocks, but they still all need wiring. Gradually growing. Picks and shovels. No dividend.

(Analysts’ price target is $169.80)
TOP PICK

Simple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%.

(Analysts’ price target is $25.64)