HOLD

He owns the quarterly debentures. It was a good story, but now stuck in neutral. Sales and revenue growth are lumpy, because they depend on contracts (in infrastructure). Has disappointed investors. He will let his debentures mature in 2026. They have cash to buy companies as revenue grows. It's worth holding onto.

WEAK BUY

It's the cheapest oil company. Are buying back stock an are increasing the dividend, but they let their debt get too high. Then, oil prices softened. We likes the new CEO, though, and will announce a new strategy. He expects asset sales to reduce debt and eventually raise share prices.

PAST TOP PICK
(A Top Pick Feb 16/24, Up 68%)

It's a UK private equity investment firm that buys and flips companies, including a European discount retailer, a huge retail success. He expects this growth to continue as that retailer adds more stores globally. As long as that retailer does well, so will 3i shares.

PAST TOP PICK
(A Top Pick Feb 16/24, Up 23%)

They rallied last summer, then faced headwinds last fall when a cancer drug failed to perform in trials and there was an investigation in their large Chinese business. Both problems are clearing now. They have a drug pipeline that should become a great growth story. Trades at 15x PE. 

PAST TOP PICK
(A Top Pick Feb 16/24, Up 36%)

A year it ago, it traded at a dirt cheap 6-7x PE. Many thought it was left for dead with bad insurance contracts. In Dec. 2023, they sold a lot of those contracts at a decent price. That's when he entered this. But he recently sold this to buy TD (which has more upside).

BUY

He's most excited about banking de-regulation, loosening constraints as a result of the 2008 banking crisis. De-regulating will loosen a lot of capital, so he owns MS in anticipation.

BUY

Volatile the past year, though paying great returns. After a sleepy history, it is now benefitting from the AI build-out as it works with Broadcom. The recent downturn is tied to headlines of a slowdown in building date centres. Ultimately, revenues will increase over 2-3 years, and the 2028 outlook will drive this stock higher.

BUY

It's one of his largest holdings. Waymo is a great product and a pillar of growth for GOOG; how will they monetize it? GOOG leads in autonomous driving. GOOG has the cheapest PE in the Mag 7 and the strongest moat. Isn't worried about their search business declining.

HOLD

He owns a small holding. Likes their growth profile from their weight-loss drug; they will continue to take market share from Novo Nordisk. The big news this week was that drug shortages were over. They lowered the price too. But shares are expensive at  20x PE on 2028 numbers--expensive for a pharmaceutical. It's had a big run, so he's not adding shares, but trimming.

BUY

He recently added to it. There's $25-26/share of asset value, considering all their projects on a NAV value. Question is, how will they finance growth? The answer is their new CEO, from Atkins Realis. He sees lots of value in NPI.

COMMENT

Is one of his largest holdings. It's had a rough week. Their infrastructure business stores oil in Alberta and Texas, and they have a marketing business. The latter has been weak and volatile. The dividend is sustainable; cash flow covers it. Is not worried about tariffs.

TOP PICK

They changed the CEO last summer, one of the best in fast food (did a great job at Chipotle). The CEO is improving through-put, will restore the coffee house vibe, and wants to add 10,000 locations in the US alone. You're betting on the CEO.

(Analysts’ price target is $106.55)
TOP PICK

Has benefitted from gen AI growth. Dominant, they just surpassed Walmart as the biggest global retailer. They continue to invest in faster delivery, and are increasing Prime memberships. He sees strong growth in profits, taking market share in the cloud. He earns 10% net margins, which he expects to double in 6-7 years. Shares have pulled back 15% recently.

(Analysts’ price target is $268.84)
TOP PICK

The luxury market has been weak after the post-Covid boom. Chinese consumers are a major factor. Plus, their Gucci brand wasn't resonating with consumers. Their designer tried to make the brand more into leather goods and classic fashions, but that isn't what Gucci is about. They have a new designer, so he sees upside. Long-term, he likes luxury goods for being stable and an oligopoly. It trades at 17x PE forward where mid-20s is the norm, so there's room here.

(Analysts’ price target is $22.60)