Latest Stock Buy or Sell? Make More Informed Decisions!

Today, David Driscoll commented about whether JMHLY, ATRI, CCA.TO, AC.TO, OTIS, KNEBV-OMX, PAYX, MSFT, IBM, NVO, PFE, H.TO, SVNLY, CB, FMX, LFUS, LNN, ENGH.TO, CGNX, NVZMY-PK, BCE.TO, UL, RSG are stocks to buy or sell.

PAST TOP PICK
(A Top Pick Dec 29/22, Up 1%)

Still likes it, because their investment portfolio rose with higher interest rates. They have the best combined ratio at 88%. Have a AA credit rating.

PAST TOP PICK
(A Top Pick Dec 29/22, Up 11%)SHBA-STO

It pays a 5.5% dividend, so you don't need much share growth. They have the best credit rating in Europe, mostly exposed to northern Europe, not Italy, Spain and Greece. Conservative balance sheet. The central bank in Sweden raised rates, which raised the stock price, but like Canada, Sweden's economy relies heavily on real estate. So, there could be write-downs in the future. He'll stick with this.

WEAK BUY

Benefitting from more immigration to Ontario. A predictable utility that'll grow 5% annually, so just collect the dividend. Shares won't do much. It's a slow-growing business. But Fortis and Emera pay higher dividends.

DON'T BUY

It's show-me time. They made money during Covid, but they haven't performed since. Is the forgotten pharma company. Need to release a big drug. Tax-loss selling is nearly done, so shares should rise. Trades at a reasonable PE. Pays a 6% dividend, but grows at only 3.8%.

COMMENT

A personal holding since 1995. Their weight-loss drug is the big news now. Remember that after this hype, we'll see if there are any long-term side effects (i.e. the stomach). It's an unproven drug, but could be fine. Meanwhile, they grow their dividend 12% annually. He took profits, because shares ran up so fast. Have the highest R&D to revenues among pharmas. A long-term hold.

DON'T BUY
IBM vs. MSFT

IBM lacks the spread of clientele like MSFT. Also, IBM has been getting rid of their hardware business, focusing more on software with AI. In terms of quality, MSFT is better (customer loyalty, Office Suite) while IBM is inferior, offering little growth. IBM isn't a big player moving forward. Among megatech, MSFT is the top.

BUY
IBM vs. MSFT

IBM lacks the spread of clientele like MSFT. Also, IBM has been getting rid of their hardware business, focusing more on software with AI. In terms of quality, MSFT is better (customer loyalty, Office Suite) while IBM is inferior, offering little growth. IBM isn't a big player moving forward. Among megatech, MSFT is the top.

WEAK BUY

Since 1995, has returned 14% annually. Margins have been growing as they've grown beyond payroll processing among small/medium-sized businesses, which offer growth. They benefitted from higher interest rates. He continues to buy it, though it's currently expensive. They project 6-8% revenue growth but will be hit if the economic weakens or rates decline.

COMMENT
Kone vs. Otis

Look at revenues and find out who's building office towers. Look at recurring revenues, because elevators often break down and need constant service. Kone is more European while Otis is global. If the USD falls, Otis will improve better. It comes down to the USD.

BUY
Kone vs. Otis

Look at revenues and find out who's building office towers. Look at recurring revenues, because elevators often break down and need constant service. Kone is more European while Otis is global. If the USD falls, Otis will improve better. It comes down to the USD.

DON'T BUY

Airlines must borrow a lot of money to buy planes while they're at the mercy of the wider economy which effect flight demand.  Also, they don't pay dividends and almost airlines have junk credit ratings. Westjet pilots just got a pay increase, but expect AC pilots to get a raise.

TOP PICK

Pays a 6.3% dividend that's growing 10% annually vs. other telcos at 5%. CCA generates better cash flow. The knock is that CCA deals a lot in the US where consumers hop from one carrier to another in search of cheaper phone deals. They're gaining some market share in the US to compete with AT&T and Verizon.

(Analysts’ price target is $71.30)
TOP PICK
no price target

They make medical supplies, like lens cases for contact lenses. Shares plunged this year due to high interest rates, so their customers didn't buy much from them. But when those customers finish working through their existing inventory, they will order from ATRI again. Trades at only 20x PE, and pay s a 2.5% dividend, which rising 10% annually except this year.

TOP PICK

Are exposed only 25% to China; rather, Indonesia is their greatest exposure where they collet revenues in the Indonesia rupee, but must show profits in US dollars. In the past year, the rupee has fallen then come back, but this isn't reflected in their earnings yet. It will in the next report. If interest rates fall, then the USD will and Jardine's profit will rise. The dividend grows 6-10% yearly (and could rise higher with a weaker USD), paying 5.5% now. It's like a bond proxy. Lots of room to buy companies.

(Analysts’ price target is $54.61)