PAST TOP PICK
(A Top Pick Feb 07/24, Down 32%)

Sold in late August. Exuberance in AI quickly turned to disappointment in investors' minds. He may not have agreed with that, but you have to face reality, so he made a quick exit. Still a good company, but risks with core business. He'd look elsewhere for new money.

PAST TOP PICK
(A Top Pick Feb 07/24, Down 12%)

Still holds. Last month brutal for homebuilders. Though interest rates drifting lower, clear that won't be going as low or as fast as the market first thought. So the interest-sensitives are being punished. Yet mortgages are going up, somewhat negative for homebuilders. 

Long US mortgages cause resale market to dry up, but will eventually force home buyers to homebuilders. He's looking closely to see if this is an opportunity to increase his holding in homebuilders.

PAST TOP PICK
(A Top Pick Feb 07/24, Up 47%)

Still likes it. Leader in the space on profits and growth rate. Now trades at about a market multiple, not extreme. Growing in mid-teens annually, and expected to continue.

BUY

Likes it very much. Some hiccups from Covid buildout, but they've grown into it. Profitability rising quite dramatically. AWS doing quite well, #1 or #2 in cloud. Prime streaming also doing well. Well priced, excellent growth metrics.

DON'T BUY

Dominated by international and air freight. Today, he'd lean toward a domestic provider like UPS.

WEAK BUY

Leans more domestic. Very profitable, historical 20% ROE. Very good dividend and historically stable, though payout ratio is getting uncomfortably high so be careful. Good growth. Lots of opportunity to enhance efficiencies.

BUY

Lots of opportunity. Ability to monetize AI has really helped customers. Going gangbusters. Runway is far out, both on fundamentals and on price.

COMMENT
CDRs.

Doesn't use them. He likes to invest in the economy and currency of the stock itself, sees it as an advantage. Just look at the past 6 months to see the benefit of having USD investments that come back to investors in Canadian currency.

If you're investing in US companies, but not in its currency, you have to go back to the premise of why you're investing in an economy you don't like. He likes the US market, the biggest in the world with many investment-grade companies.

STRONG BUY

Homebuilder space hit very hard over last 30 days. He sees it as an opportunity. Stocks go up and down, focus on the fundamentals. Long term, the chart's been good. One of his favourites. Wholeheartedly recommends.

SELL

Valuation always high in mid-high 20s PE. Profitability is solid, but margins are thin. Half of business is from grocery, with historically narrow margins of 2-3%. Management's good. Look elsewhere.

TOP PICK

New purchase for him, using proceeds from trimming JPM. Key player in capital markets. Capital markets business in 2025 should do extremely well -- lots of pent-up demand from the tight regulatory environment, which will change under Trump. Steepening yield curve will benefit. Undemanding valuation of 1.4x book. Yield is 2%.

(Analysts’ price target is $618.04)
TOP PICK

Good opportunity here. Mid-range homebuilder. In 26 states. Good valuation around 10x PE. Some of the heat will come off the mortgage market, which will benefit homebuilders. Yield is 1%.

TOP PICK

Off highs. 2025 provides a broad opportunity in healthcare. Big cancer drug Keytruda coming off patent in 2028, but that's built into the stock price trading at 10x PE. Other drugs in the pipeline to fill in the space. Track record of successful and profitable blockbusters. Yield is 3%.

(Analysts’ price target is $126.88)
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

RIT holds Canadian real estate assets.  We like that its holdings are not concentrated in only two assets.  The average PE is 12x and it trades below book value.  REITs are a good way to diversify your portfolio.  The space has been under pressure for a while due to interest rate volatility, but with rate cuts anticipated going forward this is a good time to enter.  We recommend setting a stop-loss at $14, looking to achieve $19 -- upside potential of 18%.  Yield 5.18%

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

CGRE holds 64% of its real estate holdings in the US, the rest is split between Canada and internationally -- adding some global diversification.  We like that its holdings are not concentrated in only two-three assets.  It trades at 1.4x book value with an average PE of 24.  REITs are a good way to diversify your portfolio.  The space has been under pressure for a while due to interest rate volatility, but with rate cuts anticipated going forward this is a good time to enter.  We recommend setting a stop-loss at $17.50, looking to achieve $25.00 -- upside potential of 18%.  Yield 5.18%