PAST TOP PICK
(A Top Pick Jun 11/24, Up 26%)

Is the top cybersecurity stock. They just accredited to get more involved in US operations, a huge market. He has used this as a source of funds, like selling in May.

BUY
Visa vs. Mastercard

He owns Visa and owned MA a long time ago. Both are great, but he prefers Visa. Visa trades slightly cheaper in terms of valuation, and is much larger than Mastercard (Visa is bigger than all competitors combined). MA is more internationally active. Visa has a higher percentage of debit cards, which grows faster than credit cards. Visa competes well in terms of growth rates with MA, yet trades at a lower multiple, so cheaper. He likes that the debit card business is growing faster than credit cards.

BUY
Visa vs. Mastercard

He owns Visa and owned MA a long time ago. Both are great, but he prefers Visa. Visa trades slightly cheaper in terms of valuation, and is much larger than Mastercard (Visa is bigger than all competitors combined). MA is more internationally active. Visa has a higher percentage of debit cards, which grows faster than credit cards. Visa competes well in terms of growth rates with MA, yet trades at a lower multiple, so cheaper. He likes that the debit card business is growing faster than credit cards.

COMMENT

Is the leader in streaming. But you have to be a little wary of film accounting--you put the cash out front, but accountants will amortize that cost over time. So, earnings don't really reflect the true cash impact on an expanding portfolio of new releases. For a long time, NFLX was challenged on a cost basis, nor producing free cash. This is past and are now producing free cash.

BUY

They are rewiring America for 1-gig fibre. They have the major streamers and telcos as clients.

DON'T BUY

Won't touch it. Leadership is far too volatile by throwing tantrums and silliness. If it's a car company, it is ridiculously priced, and if it's tech, show me the success. Yes, SpaceX is incredibly successfully, but not Tesla.

DON'T BUY

This has run so far that it's too expensive now. Multiples don't support future cash flow growth.

WATCH

They could benefit from AI; a lot of healthcare tech benefits from AI. Is a great success story.

BUY

The threat could be that a competitor will eat their lunch in internet search, but on the positive side is that they could lose some share in search, but GOOG also has an AI presence and the search pie could get bigger. Also, YouTube is the largest streamer in the world with over 2 billion active monthly users, and Waymo which is promising.

DON'T BUY

Too much reputational damage. Reputations are easily lost. Before the Max 737, Boeing had a spotless record.

TOP PICK

A long-term turnaround story under a new CEO (three years ago). Same-store sales are rising rapidly with new menu options, and a digital marketing campaign. They own several restaurant brands including Chili's. Not cheap nor expensive, but trades at a market multiple at 19x PE.

(Analysts’ price target is $167.47)
TOP PICK

Is perfectly positioned for the tailwinds under the Trump presidency. After April's tariffs, corporate boards have been sitting and waiting, reluctant to do deals, but a strong capital market will eventually happen. Pays a good dividend and are very well-capitalized.

(Analysts’ price target is $596.61)
TOP PICK

See his other comments today. Is a juggernaut. Will benefit from higher inflation, because they are paid on transaction volumes, which have not declined. There's great growth in Europe, Latin America, Africa and Canada, though it's subdued in the U.S. P

(Analysts’ price target is $387.33)