Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Larry Berman CFA, CMT, CTA and Stockchase Insights commented about whether XQQ-T, STN-T, DD-N, KKR-N, ZBAL-T, RY-T, ZWU-T are stocks to buy or sell.

COMMENT
Alternative to GIC to shelter cash for 1 year?

The government interest rate is 2.75%, and it's looking 60/40 for a rate cut. To do better than this, buy a dividend stock. It is what it is. There is no super-safe strategy without risk. Doesn't exist.

BUY ON WEAKNESS
Better to gain exposure to private markets through stocks like KKR or an illiquid private fund?

Yes, if you can handle the ride. No, if you can't. When Trump was elected last November on promises of market regulation, these stocks ripped. Then, tariffs hit, and KKR shares plunged. You can nibble at it here at these lows.

COMMENT
educational segment

The Pro-Eyes S&P Opportunity Index is sharply up, therefore issuing caution. But during the flash-crash of spring 2020 and other corrections, the index flashed opportunity. So, be prepared to add to your favourite names on crazy days. However, we could see a couple quarters of choppiness. What this index doesn't say is how long choppiness will last. We are oversold enough for a trading rally. Secondly, the Tactical Risk Monitor shows that we are set up for a bounce and rally, but we need a headline from the White House or Congress saying they will handle tariffs better. The rumour this morning saw markets briefly rip. Likely, the bounce will be moderate, with resistance at 5,500 on the S&P, over the next month at least. Technically, the market is very oversold. The S&P trough in 2022 to the high recently: the tariff sell-off in recent days slashed those gains in half, back to the high of 2021. Now, we have good support and a good time to buy, BUT this situation may not hold for sure. Next support is 4,500 then low-4000s. We're not free and clear yet, but this is a tradable rally now. 

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

In the current market it is hard to determine how much of the recent drop was China related, or market related. It is not good news, and the stock is down 24% YTD. It is also, of course, sensitive to the economy, which has gone from hot to cool to maybe cold. Good earnings growth is expected based on estimates, and even if this comes down a bit there should still be some earnings growth. We think it is cheap enough to hold through the current cycle. It may stay volatile in the short term, along with pretty much everything else. 
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HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We continue to like STN, but at the time we felt its valuation was lofty relative to its historical averages, and we were looking for higher growth opportunities elsewhere. We think it is a solid moderate growth name, and for a long-term investor, we would be comfortable holding it over the long term. It can go down along with the market if we continue to see declines for the TSX, but it has a strong history of margin expansion, revenue growth, and free cash flow growth.
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BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The Nasdaq 100 is currently down about 22%, and was down as much as 25%. While the markets could decline further, and it is tough to time bottoms, there have been many positive signals that have been triggered recently. For example: the VIX has spiked, most markets are in bear market territory, valuations have become more reasonable, certain markets are breaking down (oil, bonds, the credit markets). These usually signal good long-term buying opportunities, but there is likely to be a lot of volatility in between, and potential further downside. We would comfortable buying here today.
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COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Saving on Fees:

We’ve heard it a million times before, but even deceptively small fees have a massive negative impact on wealth. Investing $100k at seven per cent for 35 years will result in a tidy nest egg of almost $1.1 million. Tacking on an annual two per cent fee might not sound like much but would effectively cut your final balance in half. Financial services represent a 63 billion dollar industry in Canada—63 billion dollars from fees of various forms. There are a lot of well-meaning people working in it, but the fact is that the industry is built upon increasing their wealth, not yours. Saving fees by investing your own money might be the most important financial decision you can make. 
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DON'T BUY

Their balance sheet isn't too good, and if the car companies are cutting back their demand (caused by tariffs), then demand for steel will decline. This will fall to $6.5

DON'T BUY

At these levels, why buy this? Buy Bitcoin itself.

BUY

At these levels, you can buy this, not Coinbase.

BUY

Trades at 10x PE and pays a 4.75% dividend yield. Has fallen and is now cheap historically.

BUY

They delivered a solid quarter, sales strong with an earnings beat thanks to higher than expected margins. Guidance is unchanged. Shares are down 45% from highs last June, but showed life at today's close.

BUY

Is -28% from February's high. The fear is that tariffs will crush their core e-commerce business; most of their goods are made overseas which will get a lot more expensive. But they've become more of a consumer staples business like Walmart, and they have the scale to force the suppliers to eat the tariffs. They also have a sticky Prime business and AWS has enough to growth offset weakness in retail. Trades at 25x PE, half its historical average.

BUY

It appears to have little exposure to tariffs, because they sell advertising, but this could be a target of EU tariff retaliation or if the trade war leads to recession. Is -30% from highs, and these fears are baked into the stock. Trades under only 20x PE.

PARTIAL BUY

Has a durable business with Office software essential in the workplace. Their large cloud business adds to overall growth. Is -24% from highs, the best among the Mag 7 during this tariff war. However, its CoPilot isn't successful and they are breaking up with Open AI. At 27x PE, you can buy some shares now.