Today, Chris Blumas and Stockchase Insights commented about whether RBLX-N, CS-T, CTS-T, CVS-N, DIS-N, AQN-T, RTX-N, BA-N, F-N, TSLA-Q, TSM-N, NVDA-Q, CCO-T, ENGH-T, GWO-T, YUMC-N, ARE-T, AMZN-Q, GOOG-Q, ABX-T, FNV-T, AEM-T, KKR-N, BAM.A-T, BRK.B-N, BIP.UN-T, BN-T, QBR.B-T, SU-T are stocks to buy or sell.
View on uranium has totally changed over the last couple of years. Energy transition is very difficult to do without something like uranium. Spot pricing probably less volatile than oil or gas. From time to time, disappoints on the quarter. Westinghouse servicing component gives them more vertical integration and cashflow stability, lowers risk profile. Go-to name, but valuation has come up so he's leery.
Well run. Wonderful growth company, but too rich. 40-50x earnings, 1% FCF yield. The most cutting-edge and complicated chips. AI arms race needs sophisticated chips, and this plays well for them. Big in data centres, gaming, and AI. Consider TSM instead with a more reasonable valuation, better diversified.
Down 40% last few months. Rough Q3. Higher interest rates and taxes. Earnings profile should stabilize. Inexpensive valuation compared to peers. Good assets. Don't just toss it, as you're giving up too much value. 12x earnings. Window of opportunity to turn things around. Whether Kentucky Power goes through or not, positive either way. Reasonable path to $15 over the next 2-3 years. Yield is 5.87%.
(Analysts’ price target is $11.49)Unique healthcare exposure. Retail pharmacy, PBM, health insurer. Recent acquisition of primary care network. Vertically integrated, synergies across the platform. Inexpensive at 10x earnings, 8% FCF yield. Regulatory reform is an overhang. Covid proved how essential it is. Yield is 2.74%.
(Analysts’ price target is $113.30)Stock was $3.70-ish prior to the rumour/confirmation of the strategic review.
The tech world has changed to the positive since then, fairly dramatically.
But the recent miss needs to be taken into account as well.
Plus, we need to believe management that the three big deals are on their way.
Currently 13X earnings, we think a proper multiple without all this 'noise' would be in the 17 to 18X range.
So assuming growth, and using forward consensus estimates, that gets us to $8.28, so on a present value discounted basis about $7.50 with no control premium applied.
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The engineering and construction sector has really been impacted by cost inflation. Lots of problems with fixed-price contracts, will take time to go through the system, and so the repricing cycle is longer. Be cautious. Layer in, don't weight over 5%. You don't want to be all in if sentiment is going to tick down.