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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate RNR, a reinsurer of catastrophic natural disaster insurance, as a TOP PICK.  Cash reserves are growing, along with premiums collected.  It trades at 7x earnings and 1.3x book value, while supporting a 24% ROE.  We continue to recommend a stop at $208, looking to achieve $269 -- upside potential of 18%.  Yield 0.7%

(Analysts’ price target is $269.00)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate this Latin American e-commerce company as a TOP PICK.  Its investment in Brazil is growing over $4 billion this year and the company intends to hire 11,000 new workers there to keep up with demand.  Recently reported earnings showed a 71% increase in profits.  Cash reserves are growing, while debt is aggressively retired and shares bought back.  We recommend trailing up the stop (from $1300) to $1450, looking to achieve $2000 -- upside potential of 25%.  Yield 0% 

(Analysts’ price target is $2007.59)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate ALK as a TOP PICK.  Following a grounding of one-third of their fleet due to Boeing related issues, the company has since been compensated $160 million by the aircraft manufacturer.  Air travel is hitting all time record highs and ALK is well positioned.  It trades at 22x earnings and 1.3x book value.  We will continue to recommend a tight stop at $38, looking to achieve $56 -- upside potential of 34%.  Yield 0%

(Analysts’ price target is $56.40)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 30/24, Up 12.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with UBS is progressing well.  To remain disciplined, we recommend trailing up the stop (from $24.50) to $27.00 at this time.  

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 10/23, Up 41.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with RY.PR.H has achieved its target at $25.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $14) to $18.  

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 18/24, Up 22.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with UTHR has achieved its target at $292.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $255) to $259.  

COMMENT

The US indices keep making new highs, but the TSX has been left behind. This comes down to the composition of the TSX which is heavy in sectors such as banks but they have been hit hard lately like the deeper cyclicals. The TSX is great for income investors, but he certainly likes some US tech names. Growth names have been bid up, so if you chase a tech name at a high valuation it will limit your returns.

BUY

A wonderful company, one of the best in this sector with a unique operating platform. Shares had declined, but popped after striking a deal with Microsoft in a good deal; data centres need massive power.

COMMENT

Most active managers fail to beat the index long term. You can buy and hold a passive index fund. But active traders take advantage of dips and they dollar-cost average. Also, you can buy an index fund at the top of the market, then be under water for a while. That said, the index plus dollar-cost averaging tend to beat the majority.

BUY

It has 2 businesses: renewables and regulated utilities. AQN trades under 12x PE whereas a pure-play renewable or pure-play utility would trade a lot higher. AQN has changed management and aim to optimize their assets. He sees a lot of value here, so he has actually added to it. He sees a plan in place to realize value, and it's trickling through. There are plans to spin off or sell the renewable business to return to being a pure utility. The market isn't giving AQN any credit, so AQN sits in the penalty box because of past management mistakes.

DON'T BUY

Very well run, optimizing costs. But the elephant in the room in BHP and potash. BHP will go ahead with their potash mine, similar to Nutrien's, so this makes potash pricing very uncertain for the medium term.

BUY ON WEAKNESS
2-3-year outlook

Likes it very much but cautions over its 35x PE. Has a phenomenal growth profile, though, due to cloud business, software with an overlay of AI. MSFT boasts a lot of data, which is essential for AI.

COMMENT

A phenomenal business. Its rise is justified by its fundamentals. Trades at 40x forward PE, but it's insane how fast this business is growing. They've cornered the market in AI chips. His own concern is that NVDA's clients will eventually design their own chips for their specific purposes. Medium term, NVDA will face more competition. A risk is that it wouldn't take much for shares to slide; all it takes a quarter where growth is no longer 55% and re-rates to 40%. So shares slide by a third. It's tough--don't chase a stock, but NVDA is a phenomenal company. He's wary.

HOLD
Caller sold some AMD shares to buy competitors. Sell the rest of AMD?

Hold on. The momentum is very strong in the semis space, all driven higher. Semis used to be very cyclical, but not anymore and their demand will be more durable. If NVDA shares slide, AMD won't necessarily fall with them, because AMD's chips are different, are not as cutting-edge as NVDA's

BUY

Wonderfully run. A great chart. They did a large acquisition when its peers were tied up. Banks in general have been beaten up, so RY's PE is a reasonable 12x PE. Likes it a lot.