Today, Stan Wong and The Panic-Proof Portfolio (Stockchase Research) commented about whether SHLE-T, WLKP-N, GDEN-Q, PCTY-Q, AZN-N, SNY-N, RPRX-Q, XLF-N, DECK-N, AAPL-Q, SLF-T, MFC-T, XDIV-T, CCO-T, UBER-N, VFV-T, XEI-T, VDY-T, JPM-N, GS-N, BAC-N, DOL-T, CAH-N, ASML-Q, NVDA-Q, LLY-N, NVO-N, COST-Q, WMT-N, SBUX-Q, BCE-T, RCI.B-T, CNQ-T are stocks to buy or sell.
That brings up issues of Canadian patriotism. He has to look at things from the stance of what he needs to do for clients to grow their portfolios in a risk-managed way. The US will always have the biggest sandbox; from WMT to SBUX to AMZN, it has names that we just don't have in Canada.
Lots of people are saying to buy Canadian products. That's fine, but they're in WMT and COST buying Canadian products. In his opinion, not sure how in this global world you can accomplish buy-Canadian in a major way that makes a difference.
Basket of about 21 Canadian names; ENB is the top weighting, followed by TD, SU, and RY. Insurance, pipelines, banks, etc. Insurance adds the factor of quality. Total return about 10.7% over 5 years. Makes sense. Yield is ~4.5%.
No issues with it, but consider that the US is on stronger footing right now.
Global tech behemoth. His son always tells him that it's all about the ecosystem. That's what drives customer loyalty and recurring revenue. Innovation continues to drive earnings and customer loyalty. Services are where it's at on a go-forward basis. Apple Music is very high margin and recurring revenue, offsets sporadic cyclicality in hardware sales.
AI initiatives offer good growth potential. Balance sheet is bigger than many countries combined. FCF generation very strong. Shareholder friendly initiatives. Sees 15% earnings growth going forward. High, high quality for long-term investors. Yield is 0.4%.
Leading footwear and apparel, founded 1973. Explosive growth in running shoes segment. Highly profitable lifestyle brand UGG boots. Very disciplined inventory management.
Direct-to-consumer channel very strong and driving margin expansion. Global demand for premium footwear is rising, this name can capture that market share. Robust balance sheet, good management execution. Sees ~15% earnings growth.
Short-term comments and guidance caused stock to drop to the 200-day MA, but he's not worried longer term. Good chance to buy a quality name. No dividend.
Diversified exposure to US banks, investment firms, asset managers, and insurance. Economic activity in the US is improving. Financials are poised to benefit from higher trading volumes and more robust capital market activity. New US administration is pro-business, and that will boost the sector via de-regulation, corporate tax cuts, and business-friendly policies. All that will drive M&A, increasing profitability and fees.
Top names include JPM, GS, Visa, BRK.B. All well-positioned to benefit from these trends. During Trump's first year in 2017, financial sector went up by 22%. Yield from Canadian banks is better, but US names will give you more capital growth. Yield is 1.4%.
Technical structure has been very strong. 200-day MA trending higher. Stock's trading right at that 200-day, which could provide support. Fell off on the DeepSeek buzz (if not as much energy is needed, maybe not as much uranium is needed either) -- quite a stretch. Long term, makes a lot of sense. Expensive valuation.