Today, The Panic-Proof Portfolio (Stockchase Research) and Chris Blumas commented about whether FTS-T, V-N, MEQ-T, CIX-T, BNS-T, ENB-T, GE-N, LNR-T, CP-T, CNR-T, BN-T, RTX-N, TD-T, AAPL-Q, RY-T, AMD-Q, NVDA-Q, MSFT-Q, NTR-T, AQN-T, VOO-N, BEP.UN-T, UTHR-Q, RY.PR.H-T, UBS-N, ALK-N, MELI-Q, RNR-N are stocks to buy or sell.
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.
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.
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.
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 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
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)