Today, The Panic-Proof Portfolio (Stockchase Research) and Darren Sissons commented about whether GIVN-SIX, ENB-T, BTI-N, HON-N, AMZN-Q, TFII-T, F-N, LVMUY-OTC, SAN-N, JD-Q, BEPC-N, TD-T, 005930-KRX, ACN-N, ASML-Q, NVO-N, GOOG-Q, GIB.A-T, ENGH-T, INTC-Q, BAC-N, AMD-Q, NSRGY-OTC, AEM-T, SPB-T, MTL-T, TS-N, MEQ-T, CPX-T, MELI-Q, UBS-N are stocks to buy or sell.
Is critical of Ottawa's latest tax changes, because it disincentivizes wealth accumulation and entrepreneurship, those who creates jobs. This will encourage flight risk. Canada is seeing slow economic deterioration as unemployment and credit card defaults slowly increase, but there is no major systemic risk or irrational moves in the stock market. The U.S. is in a much better economic space with a strong consumer. He expects some, but not substantial interest rate cuts. Meanwhile, the Canadian government is spending which is inflationary.
We reiterate UBS as a TOP PICK. The Swiss based bank is under pressure as analysts believe it may be required to hold larger capital reserves. Management argues it can withstand a $200 billion loss. The government will not publish its recommendation until next year. Meanwhile, cash reserves are strong, as debt is aggressively retired. It trades at book value and supports a 38% ROE. We continue to recommend a stop at $24.50, looking to achieve $32.50 -- upside potential of 19%. Yield 1.2%
(Analysts’ price target is $32.49)