Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Hap (Robert) Sneddon FCSI and Stockchase Insights commented about whether GME-N, CWB-T, EFR-T, CHE.UN-T, COST-Q, SU-EPA, NVO-N, RACE-N, CM-T, CMG-T, BRK.B-N, PLTR-Q, PANW-N, CP-T, DB-N, AC-T, NFI-T, JPM-N, NFLX-Q, CSU-T, TRP-T, IMG-T, ABX-T are stocks to buy or sell.
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A name he'll probably hold forever. If you plan to hold for 5-10 years, you don't worry about price action too much, but keep adding to it. He's at maximum position size now, may need to sell bits over time to keep the position size in line. Chart action now will probably resolve higher. Expect more volatility and exceptional growth.
Sideways pattern should resolve itself higher. If you don't understand tech analysis, and you think Warren Buffet's a smart guy, you should probably just buy some of this today, a half position. Then add later. You're not going to go wrong over time. Great succession plan in place.
Spiked up on the close last week. Everything looks really good about this for the long term, everything says you should own some. RSI against S&P since 2022 has been really good, up and to the right.
Buy some today with a partial position, then add a second component on a further breakout, and a third. Hope to get more at a lower price but, if not, you still own some. Screaming buy at $10.50, but doesn't think it will get back there.
Acting quite nicely If you want to redeploy funds, take some from a good situation and put them toward a better one. Uptrend since January, though down over 2 years. Sell 1/2 or 1/3 and redeploy. He loves DFY, or look at FFH or GS, or try oil & gas.
Keep the rest, and he encourages using a DRIP.
Fantastic stock since Day 1. Short term, looks a little soft. Stories about high-end real estate not moving and high-end consumer getting tapped out (but he thinks the wealthy always have money). Looking a bit top heavy. Would expect around $390 as a spot to park; if that doesn't hold will probably see $365 level. Ultimate pounding would be around $310, a 25% haircut.
RSI compared to S&P above the line and leading. You want names like this long term.
Electric contracting and equipment. Growing. Long, long term. Double top recently, so expect a bit of weakness. Part of the digital transformation to energy. At the centre of the need to manage energy distribution and delivery. Tons of upside. Cashflow's increased in a year by 36%, 62% over 2 years. 90% institutional ownership. Could be volatile in short term, but in 10 years you'll be happy. Yield is 1.5%.
(Analysts’ price target is $44.89)Small company, good takeout candidate. Pretty volatile. Sometimes the high dividend makes him nervous, is he missing something? But this is an underappreciated name. Sulfur and water chemicals. If can get above previous peak, around $10.50, pretty good upside. Really healthy margins. Raised guidance after recent earnings. Nice yield of 7%.
Pricing power. Good name to have in an inflationary environment. You'll be happy 2-3 years out.
EFR has been quite volatile over the last few years, but things have been trending up recently and the stock is up 11% over the last year. Recent growth has been very high and first quarter earnings recorded significant EBITDA growth. The balance sheet continues to be strong with essentially no debt and $194M in net cash. Cash from operations and free cash flows were positive in the recent quarter as well. It is very expensive when looking at multiples but that is more-so due to the current stage the company is at. We are interested in the $8.50's range.
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Regional banks are having a tough time competing with well-established big banks in general due to their inferior scale and less famous brand recognition. CWB is trading at a cheap valuation of only 0.7x Price/Book, but operational efficiency is not as good as the high-quality operators in the banking industry. Return on equity was around the 10% range in the last few years, which is quite weak relative to the large banks, while net margin is also lower than large banks. CWB could be an interesting value name once in a while, but we think it makes more sense to hold high-quality, more efficient banks in the long term. CWB does have energy sector exposure, which is both good and bad depending on the cycle. But for an income stock, we prefer the safety of the larger banks. We would prefer RY or TD.
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Keep in mind GME is a stock we have deliberately chosen not to follow too closely, as it would use up pretty much all of our time with the craziness it exudes. The financing puts it into decent financial shape, with about $1.8B net cash now. But, cash flow was negative $204M in the last 12 months. The issue comes with dilution, and even with a 6-fold increase in EPS expected from 2025 to 2026 (January year end) that still only amounts now to 6c per share, at best. So the P/E, as they say, is way up there. It still has a 21% short interest. IF GME makes an acquisition we might be more interested in it. But as it is, its revenue is about 40% lower than it was in 2018, even with higher inflationary forces. It is very hard to succeed, long term, with such declining revenue. It certainly is not a stock we would be comfortable owning, unless for pure amusement purposes ala a lottery ticket. The financing will give it flexibility, but this in itself does not guarantee a 'turn'.
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Hedging Options:
Value stocks as a hedge. We agree with this thought process, and it ties into the importance of diversification in a portfolio. Tech stocks are generally classified as ‘growth’ stocks, which are characterized by trading at high multiples, not paying dividends, and the goal is capital appreciation. Due to these characteristics and the consumer focus of technology companies, they typically perform poorly in a recessionary environment.
So, in order to hedge tech stocks an investor would want to have an efficient allocation towards stocks with the opposite traits. Value stocks would fit the bill here, typically being stable, mature companies that trade at low multiples, and which pay dividends at regular intervals. In a recessionary environment, there is typically a shift towards value investments due to the stability they provide. Therefore, by incorporating an offsetting allocation towards value stocks into a portfolio that may be too heavy in technology, there will be some degree of ‘hedging’ in the event of a sector downturn in tech.
Stocks in defensive sectors specifically would also be good to target as a hedge. Defensive sectors are those that are seen as ‘recession-proof’ and will perform similarly no matter the market conditions. Defensive sectors typically have companies with ‘value stock’ characteristics. Sectors such as: energy, consumer staples, and utilities are commonly thought of as being defensive. Utilizing an ETF in one/multiple of these sectors would be an efficient way to manage one’s portfolio.
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He got out nicely before the drop. Above trendline means got ahead of itself, below means selling overdone. Pretty good long-term trend. Volatile, choppy. Right now it's showing a double top.
Despite "sell in May", technology has a second wave then tends to go through to September. Once we get through the pause in the next couple of weeks and before we accelerate toward the election, the whole tech space will likely accelerate, including this name.