Today, Barry Schwartz and Stephanie Link, Chief investment strategist, Hightower commented about whether AVGO-Q, MMM-N, STX-Q, AAPL-Q, AMZN-Q, GME-N, CHTR-Q, COST-Q, ATD-T, PKI-T, NVDA-Q, CSU-T, OTEX-T, QSR-T, TRI-T, DIS-N, JNJ-N, V-N, CSGP-Q, MSCI-N, FSV-T, SYK-N, AMZN-Q, HLT-N, MAR-Q, ABNB-Q, BKNG-Q, CCL-N, GRT.UN-T, STN-T, WSP-T, KO-N, CNQ-T, CCL.B-T, GE-N, ADBE-Q are stocks to buy or sell.
He has 2 types of portfolios. One is best ideas, and the other one is more balanced with Canadian dividend payers that have good balance sheets and potential for growth. Canadian dividend aristocrat, raising dividend each year for over a decade.
M&A got ahead of itself. Capital allocation was lacking. Activism. Refinery closed. Not as good as ATD, so he'd recommend that one. Valuation is arguably very cheap, could be some short-term events, generates lots of cashflow, balance sheet now in great shape. Not great, but decent at a very attractive valuation.
Doesn't know if they're going to split, and it's not important to him. Valuation expensive, but worth paying up for (see his upcoming podcast on Monday for why). Everything they do is to improve the business long term -- cares about employees, tries to add value for members, great balance sheet.
Best retail business in the world bar none. 10K Walmarts globally, but fewer than 900 Costco stores and they're all busy. Goal is to open 20-30 new stores a year for multi-decades. Business model is very certain. Doing everything right.
Its poor performance has put him off investing in telcos. Lots of competition for internet, wireless, and mobile. Using a lot of free cashflow to buy back stock at much higher prices, so balance sheet not as good anymore. Interest rates have gone up, and lots of cashflow being used to service this cost.
He fell in love quickly, but speculative here. Arguably cheap valuation but, until you see a turn in the business, hard to say where the stock is going.
Just bought this for the first time. AI is driving a new refresh cycle in PCs. Also, we haven't upgraded PCs in 4-5 years. Dell just said their PC business was up 3% instead of the expected -2%. HPQ will see growth in the second half of this year, for the first time in 2 years. Also, AMD said last Sunday that their AI PC chips are 5x the speed of existing chips. Seagate leads this sector. Gross margins are poised to go higher. Margins could expand 1,000 basis points year over year. They have pricing power and volumes are rising. She might be early on it, but that's fine.
Was upgraded today. Most calls remain sell. This is a turnaround story, but shares are cheap at 14x. They cut the dividend, now 2.8% but it remains higher than the industry average of 1.8%. They spun-off their healthcare business, so the company is simplifying. The current CEO as a good, massive track record from L3Harris and UTX. Will buy on any weakness.
First-mover advantage. Gross margins are out of sight at 75%. No one's caught up to it yet. At some point, companies will make their own chips and rely less on NVDA, but not right now. Big tech is spending $200B this year on capex to meet AI demand, and a lot of that is going to NVDA.
Arguably inexpensive. At some point growth will tail off, but he's not smart enough to know when that will happen, so it's in the "too hard" pile.