Today, Lorne Steinberg and The Panic-Proof Portfolio (Stockchase Research) commented about whether FLR, CRM, CMCSA, HCI, ENVA, NKE, UL, UMG-AMS, DEO, FC.TO, AC.TO, TD.TO, SLF.TO, AAPL, CCO.TO, 7951.HK, CSCO, DIS, RY.TO, RCI.B.TO, T.TO, BCE.TO, BRK.B, CLS.TO, GIB.A.TO, PPL.TO, SNE are stocks to buy or sell.
Has been poorly managed for many years. Have a BB credit rating. History says that when things go well, they buy back a lot of shares, but don't touch their debt. They need a better balance sheet, stop issuing shares, and totally change of management style. The industry is so competitive that there is no consumer loyalty; consumers buy the cheapest flights online.
The largest music publisher in the world (i.e. Beatles, Drake, Taylor Swift, Rolling Stones, Lady Gaga, U2). Music is a huge growth and cash flow business. Spotify is raising its rates to pay UMG more. So, there's profit growth. Other revenues come from video games, fitness and social media. Cash flow is growing strongly. They will soon get a US stock listing. Pays a 2% dividend that should grow.
New management has made this a growth business again. Earnings and margins are rising. Cost structure is fantastic. Are in 190 countries. Are spinning off their ice cream business which should create shareholder value. Trades at 17x PE and pays a 3.3% dividend. One of the fastest growing consumer products companies.
(Analysts’ price target is $69.60)The largest sneaker company in the world. Almost zero debt. Are still buying backs shares and paying dividends. They changed CEOs and ditched his distribution strategy. ON is a competitor, but Nike has the money to produce competitive products. Are cleaning out past inventories which will impact the next few quarters, but earnings should double in the next few years. Shares are cheap now.
(Analysts’ price target is $77.54)
Half of their sales remain the iPhone, and people are changing that iPhone less often. They're struggling with VR. Also, they're not a cheap stock. Until the last quarter, revenue growth has been flat. They're lagging in AI, a huge question mark.