Today, The Weekly Buzzing Stocks by Billy Kawasaki and The Panic-Proof Portfolio (Stockchase Research) commented about whether GWO.PR.P.TO, ZGI.TO, GEO, IESC, WDC, SOUN, SNDK are stocks to buy or sell.
Nothing has been sleepy about this summer, or this year in general. Feels as though we're on a constant seesaw. War on/off? Interest rates down/up? Economy weakening/strengthening? If US jobs numbers are weakening that might be a good thing, as perhaps interest rates won't go up.
And now we're also in the middle of earnings season, so we're seeing a lot of volatility because of that.
Mostly positive. Her focus isn't really in the AI-tech space, so she can't comment on some of the negative earnings today. When you're trading at really high valuations, you're priced to perfection. Even a small revision to estimates, or a small miss, results in a large stock price move. Energy stocks have been pretty good with oil prices higher.
In general, pretty volatile. Yesterday, all the pipelines that she loves and cherishes were down. Why? Was it because SHOP was up 20%? Because oil prices were up? So hard to tell in this type of market what's causing the moves.
The best thing for her sanity and client portfolios is to look through the short-term noise and focus on the long term.
Preservation of capital is the most important thing for her clients. This actually makes it very difficult to invest in this type of environment, since market valuations are elevated. Even the boring stuff that her firm owns might be trading at 20-year highs.
The other thing to focus on is dividend income. If you're collecting 4-5% in the form of dividends, then regardless if the market is up, down or sideways, you're still getting income year in and year out. Stock price only matters when you're looking to sell. Her firm wants to own names for 5, 10, 20 years. Look through short-term volatility, and use weakness as a buying opportunity.
For new clients, they're sitting on too much cash really. With valuations elevated, it's hard to find decent places to invest. For example, it's been hard to buy Canadian banks this year.
For clients already invested, dividends that aren't withdrawn have been put into money market funds. This provides dry powder to deploy if there's a correction.
Pretty impressive. Handles the ticker you see at the bottom of your screen, sports cameras. Legacy business is audio/video infrastructure. Half software, half hardware. Nice juicy yield of 5%. Gives 90% of FCF back to shareholders. Military assistance for surveillance for drones. Something to look into.
Not very liquid, as management owns about 2/3 of the float. But a good, stable business.
Earnings weren't even that bad. 2027 growth is still intact. Lowered revenue and EBITDA guidance for 2026. Consumer staple that's done an extremely good job expanding capacity in US. Commodity prices up means margin compression. Inflection point in US growth has happened.
A no-brainer Buy today.