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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

SIG has over 2600 retail jewelry stores through North America and Europe.  It trades 6x earnings, under 2x book value and supports a robust 32% ROE.  Its dividend is backed by a payout ratio under 10% of cash flow.  We recommend setting a stop-loss at $60, looking to achieve $97 -- upside potential of 28%.  Yield 1.3%

(Analysts’ price target is $120.40)
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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).

TOP PICK
They have just acquired six new vessels at a time when there is limited shipyard capacity for new orders.

INSW is one of the world's largest oil and refined products tanker operators.  They have just acquired six new vessels at a time when there is limited shipyard capacity for new orders.   Recently reported earnings beat analyst estimates by 18%.  It trades at 5x earnings, 1.3x book and supports a 29% ROE.  We like that cash reserves are growing, while debt is being retired.  We recommend setting a stop-loss at $39, looking to achieve $70 -- upside potential over 40%.  Yield 1.0%  

(Analysts’ price target is $70.63)
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

GDEN owns 71 gaming taverns in Nevada, operating over 550 slot machines and over 6000 hotel rooms.  It trades at 17x earnings, under 2x book and supports a 60% ROE.  The company has been diligently reducing debt and buying back shares.  We recommend setting a stop-loss at $24, looking to achieve $38 -- upside potential of 28%.  Yield 1.7% 

(Analysts’ price target is $38.14)
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 09/24, Down 2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with SEE has triggered its stop at $33.  To remain disciplined, we recommend covering the position at this time.  

COMMENT

The current volatility doesn't totally surprise him; the market was in a risky position. We haven't hit bottom, because too many people remain too heavily invested in the market. The next move in interest rates will be lower and the economy is weakening. Today, Home Depot reported the latter, though investors are pricing this in. Starbucks, UPS, McDonald's, Airbnb, many companies are signalling a weaker economy, but has the marketed discounted this in valuations? He predicts a short, shallow recession, and a 0.5% rate cut in September to catch up to other central banks in Canada and Europe. This will ultimately benefit investors, because lower rates will support higher valuations. Buy on weakness.

DON'T BUY
1-3 year outlook

Telcos have acted poorly, so he's become cautious here. They have a higher PE and they used to earn this premium valuation because of ancilliary operations had growth, like technology. Their Telus International is a disaster. Telus faces more competition. BCE is very cheap and Rogers will grow after buying Shaw, so Telus is ranked third.

WEAK BUY

Recent earnings will slightly disappointing, and like many companies is seeing some growth slowdown. AmEx is cheaper. But Visa is a good play in payments. 

PARTIAL BUY

Leg into this slowly. Expect a few more challenging quarters, while their PE is a little high. Even rate cuts won't trigger a bounce in the housing market. In the US, the mortgage rate has fallen from 7% to 6.5%, but the 30-year mortgage is under 4%. A better leading indicator is the price of lumber.

BUY

Picking up small industrial companies has been a great strategy, while the last few quarters have beaten expectations. Well-managed, though economically sensitive. Likes this growth-oriented industrial.

DON'T BUY

Has recovered well in recent years, but it's private equity, which is opaque--what do they own?

BUY

His top pick in the past. This offers rare growth in the industrial space. Expects 25% earnings cash flow growth over 5 years and likely a 8x cash flow.

BUY

Long-term, the story hasn't changed: there will still be supply constraints that won't meet growing demand from EVs and the electricity grid. This, like mid-sized copper miners--are possible takeover targets.

HOLD

He lightened shares recently amid disappointing earnings in recent quarters, plus they made more credit provisions. Buying the bank of the west was huge. It now ranks at the bottom of Canadian banks, but tailwinds are developing for the long terms for Canadian banks.

BUY

His top pick in Canadian banks. True, many don't like their KeyCorp purchase, but it gives BNS national presence in the US and the valuation is cheap.

BUY

He doesn't know what penalty they will pay over money-laundering charges in the US, but TD has a ton of free cash flow that they could use to buy more shares and operations are very good.