COMMENT

Yes, a good bank, and recent acquisitions were smart, but they trade at a valuation. He prefers a cheaper one among Canadian banks, like BNS.

PAST TOP PICK
(A Top Pick Aug 22/23, Up 6%)

Telcos disappointed the past year, there's price competition and Rogers swallowed an acquisition. But interest rates are starting to fall and the operating cash flow is only 7x. He still likes it.

PAST TOP PICK
(A Top Pick Aug 22/23, Up 35%)

He took some profits after a good run. Is a better third play in pipelines because of its growth potential. Trades at 9x operating cash, beat earnings last week and pays around a 6% dividend. Offers some growth. 

PAST TOP PICK
(A Top Pick Aug 22/23, Down 13%)

We didn't have a winter last year. People bought ski-doos during the pandemic, but are travelling now. He still likes it. It's cheap and there's less competition now. He sold it, but will re-enter it.

BUY

A cyclical player, but that happens in the auto industry. He's added to this recently. Still cheap. Autos have issues: inventories are climbing and EVs haven't take off as expected. MRE can supply both EVs and traditional cars, and there's been insider buying. Trades at 3x operating cash flow and 8x forward PE.

DON'T BUY

They missed recently and an acquisition isn't paying off as expected. It's always grown well by acquisition, but the bigger you get the bigger the companies you need to buy and more to pay. Trades around 18-20x cash low, but other companies trade at half that. 

PARTIAL SELL
Shares are soaring after SBUX poached the Chipotle CEO

Would take a profit on the trade. Short-term, a new CEO doesn't change the fundamental story, maybe long-term. The problems are a saturated market and the consumer is watching their pennies. 

DON'T BUY
SBUX poached their CEO today

This has an immediate negative impact on CMG, and their PE remains elevated. The outgoing CEO was key to CMG's growth. No, he wouldn't rush to buy today's dip.

DON'T BUY

Boeing has several problems, including the 737 Max. There are better industrials with cheaper valuations and better growth.

BUY

Likes it at these levels and potash prices look firm. They have great retail operations, and trades at 7x operation cash flow and are buying back shares. Have growth sooner than later.

TOP PICK

Valuation is very cheap. Unlike the past, they have a varied portfolio of operations. Huge cash flows and are buying back shares that will likely rise later this year. Cyclical, but undervalued. Should be trading at $7.

(Analysts’ price target is $6.50)
TOP PICK

They lead in online mobile ads that Facebook can bundle with their other apps and sell to advertisers, all at a market multiple. He sold this and bought it back recently. 

(Analysts’ price target is $569.78)
TOP PICK

Fundamentals have been sloppy and there's growing competition. They're spending more on capex which hits cash flow. Pays a 8.5% dividend though there are fears of a cut; he doubts that. Valuation is at the low end historically while free cash flows are growing. Will benefit from AI integration. Be a little patient and collect the dividend as you wait.

(Analysts’ price target is $50.04)