Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Lorne Steinberg commented about whether LOGI-Q, PFE-N, VOW-GR, CIX-T, TD-T, NVDA-Q, TSM-N, GIB.A-T, AC-T, T-T, PHG-N, DD-N, CU-T, 7951-HK, CSCO-Q, DIS-N, JNJ-N, CTVA-N, BDX-N, ATD-T, BCE-T, LLY-N, NVO-N, VTRS-Q, HAL-N, SLB-N, CVS-N, L-T, WBA-Q are stocks to buy or sell.
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Short term, he has no idea. But there's no question in his mind that central bankers are being so careful, that they'll keep rates high as long as they have to to slay the beast of inflation. Even if that takes another 6 months to a year, so be it. But at some point, consumers will suffer with high interest rates and things will slow down.
This might be a next-year story, but that's not very far off in the investment world.
Very focused on where to find value. Canadian market has lagged badly for many years. Partly because we don't have large-cap tech stocks. As well, we're completely out of favour because of low productivity, and currency's been weak. For him, that's an opportunity.
He recommends that Canadian investors have a solid weighting to Canada. The bulk of his global stocks are in the US, but he does have a number of stocks in Europe and Japan. He's not in EMs. Always very value focused.
He started in this business in 1989. The US market was about 30% of the MSCI world index. Today it's about 70%. Just goes to show that there are so many good companies elsewhere that have been totally ignored. With so much money flowing into US ETFs, etc., it's leaving some of these companies stranded and trading at crazy valuations.
A bit cleaner financial shape than BCE. Dividend secure. Tough regulator, and the whole sector's looking for some relief. Sit with it and collect the dividend. If we haven't bottomed out, we're probably pretty close. Yield is 7.5%.
Looking ahead 5 years you'll have collected a good dividend, probably gotten some growth out of the stock, and there's your double-digit return.
Not a great investment for many years. Airlines, in general, are a tough business. Huge fixed costs, Boeing issues are restraining capacity. Possible short-term benefit if WestJet mechanics strike, until the strike is settled.
One of his criteria is the balance sheet. High-yield bond issuer. Still has a fair bit of debt. When he goes to work every day, he has his 5 biggest investment mistakes sitting on his desk -- the common theme was that they each had too much debt.
Makes NVDA's chips. Building massive plant in Arizona, got $$ from Biden administration. Great growth ahead, driven by AI chips. Building new capacity, which will be completely sold out over the next few years. Less upside and downside than NVDA, as they make chips for a diversified group.
Two completely different companies. NVDA is the creative genius leading the way in AI, whereas TSM makes the chips.
The ugly is the issue with money laundering, which stemmed from lax internal controls, will end up paying a nasty fine. Should have reasonable growth after that. Things will return to normal in a few years, and you'll own a rock-solid company. Two years ago, it was the best bank in Canada.
Will be blocked from making acquisitions for a while, which could preclude management's overpaying for something. Hefty dividend. Remains a spectacular retail bank. Always take the long view.
Aggressive acquisition hunt for the last decade. Tough to be an independent in Canada, as Canadian banks control so much of net worth. He'd rather own the banks with their broader diversification. Warren Buffet says "A lousy industry will beat great management every time."
Not a huge fan. Reasonably well managed. Slowdown in EV buying, just as it's been ramping up its EV production. The field is getting crowded, and Chinese makers have the cost advantage. These factories take so many 10s of billions of dollars of investment, so if you don't get demand in a reasonable time, EPS suffers.
Auto companies haven't been great investments over the long haul.
Look at the 30-year chart. Stock's around the same price today as then, despite the 10s of billions in acquisitions over the years. Partly speaks to industry conditions, partly to lack of blockbuster drugs. Dividend secure. Terrible investment for decades. Yield is 6%.
Pharma can't raise drug prices the way they used to. We're all going to suffer, because if these companies can't spend the money on R&D and get a return, they're going to have less money to spend on R&D. It's hurt the industry.
Always possible that a company will come out with a world-changing drug like Ozempic, but he'd never invest on that basis.
