Latest Stock Buy or Sell? Make More Informed Decisions!

Today, John Zechner and Bill Baruch, Founder, Blue Line Capital commented about whether CRWD-Q, ARX-T, BMO-T, TECK.B-T are stocks to buy or sell.

BUY
Down because VW and Ford cut back on EV plans?

Not necessarily. All copper stocks have been under pressure, due to copper getting ahead of itself to over $5/pound. Shanghai inventories going higher, sector had a lot of speculative plays. Copper is still a good story. TECK story looks fantastic, now purely positioned as a copper/zinc player, which puts it more in the global arena. Generating cash. 

PARTIAL BUY

Picking away at this name. Missed 2 quarters, increased loan loss provisions, and he expects this to continue for a couple more quarters. Short-term risk is that capital markets aren't as big in Canada as in the US. Concerns about Bank of the West acquisition timing, regional bank issues. 

Those concerns are priced in. Coming through that, valuation now more attractive, good dividend while you wait. Getting to the point where earnings should turn up in the next year or so.

BUY

With acquisition of Seven Generations, now more diversified. Valuation's looking more attractive. A good play in the sector, better even than TOU with its extended valuation. ARX has more upside on valuation, growth, and production.

COMMENT
Who benefits from Trans Mountain?

Mainly the heavy oil side, the pure oil players. The whole industry will benefit from tighter spreads.

BUY ON WEAKNESS
The massive CrowdStrike outage today

It's a disaster, but he appreciates their transparency. We will see another outage down the road by another company. There could be claims, but he sees today's pullback as a buying opportunity. He's watching $270 as support. He doubts there will be government intervention. The outage could trigger even more spending in cybersecurity.

COMMENT

Believes crude oil prices will remain high throughout 2024. Under investment in energy development will ensure relatively high oil prices. Energy stocks are the cheapest they have been in recorded history. Is bullish on Canadian oil and gas sector. Gold prices have recently pulled back, and is a good time to buy. Any time investors have ability, it is a good time to buy gold. Physical gold is a very good hedge against inflation. Gold equities should close the cap between physical assets prices, and stock market valuations. Believes owning physical gold trusts is a good option for investors - don't have to physically own it "in person".

TOP PICK

Believes stock is selling at less than half of what it is worth. Consolidation in assets very good for company. Increased interests in various African assets. Committed to distributing 50% of cash flow to investors through dividends. 

TOP PICK

Opportunity for amalgamation. Neighboring companies likely to merge with company. Recent financing suggests amalgamation with partner. Lowest cost quartile in terms of costs. Both a discovery stock and amalgamation play. 

TOP PICK

Selling at a discount to royalty and cash holdings - lots of free upside. Commercially good company, along with technical talent. Exploration skills very high. Speculative pick, but very good option. 

PAST TOP PICK
(A Top Pick Jul 14/23, Up 49%)

Functions almost as a closed end fund. Recent high prices have fallen, but will continue to hold. Value of parts of company exceeds the whole of the company. 

PAST TOP PICK
(A Top Pick Jul 14/23, Up 51%)

Company has increased share price since recommendation. However room left to grow. Mine continues to grow. Believes upside still left in the stock. 

PAST TOP PICK
(A Top Pick Jul 14/23, Up 129%)

Small royalty generator through exploration skills. Producing royalty in Mexico going very well. Nevada silver royalty also producing high amounts of cash. Expecting more growth from the company. 

BUY

Part of syndicate that brought company to markets. Financials in China a little opaque, but company has been generous to shareholders through dividends and buybacks. Would recommend buying. 

BUY

Owns shares in company - a bedrock security. Excellent company with good assets and strong management team. Royalty structure creates high margins with low liability (no physical well bores). 

BUY

Company has over invested in assets outside mining. However, company has been rebuilt, and is emerging as a premier company. Will continue to invest in this company. High quality due diligence. Would recommend buying.