Latest Stock Buy or Sell? Make More Informed Decisions!

Turnaround story looks real. Traded at a discount for years, now catering to the middle class consumer. Possibly more near-term upside due to valuation.

Great compounder over the years. Small-mid cap. Nice network effect of recurring revenue on its commercial leasing. Profit margins expanding. Growth is there, solid momentum. After recent drawdown, seems to be basing and moving up.

Safe stock: generally pays a lower yield, has a cheap/modest valuation, lower levels of volatility.
Volatile stock: associated with a compounder, traditionally pay low/no dividend yield, high volatility, premium valuation.

The key factor is that many investors equate volatility with risk. But really, volatility can just be the engine of compounding. Some of the best-performing stocks over the last decade have all had a 50% drawdown at some point. That’s not always a reason to sell.

He did an analysis across 1000+ stocks. Stocks that have compounded the best over the last decade look nothing like what most investors are comfortable buying. Most want a good dividend yield, low volatility, cheap valuation. Actually, some of the best-performing names have high valuation, lots of volatility, and low/no yield. These names typically take FCF and reinvest it back into the business for future growth. Nascent companies often have lumpy earnings, but the long-term trajectory is intact.

There are a lot of behavioural and psychological aspects to investing. Investors really prefer investing with the herd. It’s uncomfortable going outside the norm, but most $$ is usually made by being a contrarian and thinking critically. There’s a quote that “Comfort is the enemy of returns.”

For example, being uncomfortable during the “liberation day” drawdowns and investing anyway paid off quite well.

Returning capital to shareholders via buybacks and dividends. Really nice free cashflow. As soon as oil spikes, it flows almost immediately to top and bottom lines. Recent acquisition should add synergies and volumes. Cutting capex should boost margin profile.

Buy now if you’re in it for the long runway. Waiting for a pullback makes more sense if you think oil will plummet on a definitive ceasefire in Middle East.

Consumer’s hurting a bit at the lower end. Huge fan of this company. Classified as Consumer Discretionary, but it’s more a Consumer Staple. Performs well in both up and down business cycles. Choppy recently. Premium valuation, warranted. Core holding that helps stabilize your portfolio.

Often lumped in with GSY, so it took a hit. Credit loss provisions popping up, and fears are warranted. However, likes it for the long term because so much exposure is US-based. Canadian exposure is quite small. Recent UK acquisition bolstering earnings. Proprietary AI credit score is leased out. Momentum weak. He’d wait for a breakout to a higher high, perhaps around $28.

Really likes it. OK valuation. Safe jurisdictions give it lots of tailwinds. Gold itself has had a big run, and looks to have broken that. Investors are likely taking profits from the miners. Hold, then add if gold sees serious momentum and breaks to new highs.

Pretty impressive. From near-bankruptcy to where we are today. Debt brought down, leverage profile now 2.6x (fairly good). Canadian government contracts, tailwinds from defence spending. Good growth profile. Increased FCF probably put to buybacks instead of dividends.

Discount to peers, mostly because of the MEG acquisition. Now has high debt load, and that will take a bit of time to work through. Long term, MEG will add synergies and volumes. OK buying here, but know that focus probably on reducing debt rather than on buybacks/dividends.

Cheap valuation. Numbers on a fundamental basis look really good on paper, yet stock price has really struggled to break out. Acquisitions haven’t moved the needle. He’d want it to break out, perhaps above $6 or so, before adding.

Labour-cost challenges over the years. Accident volumes last year were pretty weak, now seeing an uptick. Slight tailwinds from complexity in vehicles being more expensive to repair. Need to see a base, then momentum to kick it higher.

Simple business, often overlooked by investors. Compounded really nicely. Core operations of operating the exchanges are like a toll road. Benefits from increased volumes. During volatility, benefits from derivatives volumes increasing. 

The real story is in data analytics -- creating unique, niche benchmarks for ETF issuers and collecting index licensing fees. The company’s fastest-growing segment. Margin expansion. Yield is 1.89%.

Vertical software segments such as transit system scheduling or golf course management. Obvious fears of AI, and there is some legitimacy there. Its advantage is that it’s had to resolve all these “edge” issues over the years -- all the little exceptions to the rules that crop up. A new company would have to start from scratch on that front. 

New strategy of acquiring smaller stakes in larger companies -- acts as a defence against AI. Trades at 15x forward PE, cheapest in 13 years. Yield is 0.23%.

Winning the global commerce infrastructure war. Valuation is always the hurdle for investors. Has a real moat and real fundamentals. CEO has an AI-first approach, which helps to expand margins. No dividend.

(Analysts’ price target is $157.00)