PAST TOP PICK
(A Top Pick Sep 15/23, Up 13%)

Still likes it here. Wealth management side has been flattish. Achieved rebound in investment banking. Still positive longer term.

PAST TOP PICK
(A Top Pick Sep 15/23, Up 18%)

Still very positive, especially as spending by pharmaceuticals is getting more robust.

DON'T BUY

Leader today in CPUs, an area that's growing, but losing market share to AMD. NVDA is the leader in the AI accelerator market, with 10x the sales of the next closest competitor AVGO. They're not competitive in the infrastructure arena either.

WEAK BUY

Very competitive marketplace. Down today on overwhelming concern about consumer spending and prospects for travel for the next 12 months. Better positioned than EXPE, because Expedia's multiple brands cause confusion.

Generative AI is a concern for the future, as it may circumvent the go-between status of BKNG and EXPE and provide a personalized travel experience.

DON'T BUY

Very competitive marketplace. Down today on overwhelming concern about consumer spending and prospects for travel for the next 12 months. BKNG is better positioned than EXPE, because Expedia's multiple brands cause confusion.

Generative AI is a concern for the future, as it may circumvent the go-between status of BKNG and EXPE and provide a personalized travel experience.

BUY

He thought recent numbers were pretty good, yet stock's off. YouTube was a bit weak. Incredible that a stock can move by missing on only 30 basis points. Overdone. Not that expensive at 22x. 

Future overhang is what Search looks like in light of generative AI. Will it lose market share to MSFT? Thinks it will work through all this.

DON'T BUY

Super-competitive space, so it's tough to get excited about it. The market itself isn't growing. Pricing game. Can't morph itself into something else to be more competitive.

BUY

Very well managed. Had volume, pricing and inventory issues. Overwhelming healthy messages from government to limit intake. Younger generation doesn't drink as much as older ones. Not expensive, a lot of the negatives are priced in. Yield is just over 4%.

Take a look. Nice, conservative name to own. Potentially undervalued, and could turn around.

COMMENT

Dollar stores in the US are very different from those in Canada. Super-competitive in the States, with lots of DG lookalikes. It's an issue that sourcing (ie. from China) is not of concern to them. It would come down to the best valuation in the space and what returns per square footage were.

WATCH

He's definitely looking at it, exciting at these levels. Hiccup with Breezethrough over last couple of weeks, what will inventory write-downs be? EM penetration requires lower margins. Doesn't report until September. Worth doing your homework. Hoping they can right the ship and get back to growth. 

BUY ON WEAKNESS

Expectation that generative AI spending, by way of building out data centres, is going to be very robust through 2030. This is a way to play, 100%. Stock's done well, has pulled back with the others. Well positioned going forward.

Rhetoric going into the election about Taiwan and China, so could be more weakness.

COMMENT
Market selloff today -- be conservative and buy today, or be greedy and wait for more downside?

Trying to time the market is a flawed strategy. Look at your own time horizon and tolerance for risk. He cautions against making market decisions based only on what's on TV when you turn it on.

TOP PICK

Chart shows how stock's come off. Behemoth in luxury goods. Very well positioned. Reported results a week ago, most of the stock move was already baked in. Great track record of executing through slowdowns. Trades at only 20x earnings; cheaper than COST or WMT, but with higher growth over the long term because of positioning and superb margins. (Price target in euros.) Yield is 2.1%.

Thinks stock can be up 20% over next 12-18 months. 

(Analysts’ price target is $825.99)
TOP PICK
14 price targets were moved up after earnings report.

Little spike in the stock after they reported. Travel is slowing a bit after being robust after Covid. Volumes are picking up around the world. Benefits from cash to card conversion; whether consumer to consumer, consumer to business, or B2B. Offers analytics. Yield is 0.6%.

Can grow in at least the low double digits over the medium-long term, with earnings growing in the mid-teens. Steady grower. Valuation not extreme, good entry point.

(Analysts’ price target is $517.47)
TOP PICK

Health and life insurance in South East Asia, big exposure to Hong Kong and China. Overall market there has a very robust growth rate, penetration rates are very low compared to more mature regions. As the middle-class gets larger, health and life insurance become more important. Buying back stock. (Price target in British pounds.) Yield is 2.5%.

(Analysts’ price target is $1173.82)