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Today, Brett Girard, CPA, CA, CFA commented about whether NZYMB-CPH, BCPC-Q, ATD.B-T, DKNG-Q, UL-N, VEEV-N, TDOC-N, BAM-N, BEP.UN-T, WMT-N, ATRI-Q, ITRK-LON, DHR-N, TD-T, CB-N, F-N, TCEHY-OTC, OTIS-N, AOS-N, RAVN-Q are stocks to buy or sell.

COMMENT
Artificially inflated market? January started quite strong. Then Covid was just in China, but it spread and brought the market down by about 35%. Governments stepped up and moved a ton of stimulus into the market. So now we're up 61% from the March lows. A bit of wind has come out of our sails, but we're up from where we started at the beginning of the year. Not out of the woods. No vaccine, no clear communication on long-term stimulus, threat of a Canadian election, and the US election. Valuations are quite high. Plus, certain pockets have rampant speculation. Next 6-18 months are going to be critical for preserving capital. You should be happy if you're even or a little bit up on the year.
Unknown
COMMENT
Considerations for preserving capital. 1) Forward returns are a function of what you pay. 2) Use time to your advantage and hold for a long time, rather than trading. 3) Have some cash on the sidelines to take advantage of opportunities. Always have a wish list at the ready for market downturns.
Unknown
BUY
Raven Industries
Engineered film like tarps, plus the more exciting agriculture segment. Autonomous farm equipment. Small cap. They're big fans of this stock. Food scarcity is going to necessitate efficiencies.
INDUSTRIAL PRODUCTS
BUY
A.O. Smith
Water boilers and filtration technology. Increasing penetration into India, and this will be the catalyst. Grows free cash flow by about 12% per year. Dividend has grown by about 22% over the last 5 years.
misc industrial products
BUY
Industrials have lagged, and if there's a recovery, we're going to see widespread participation. If you believe we're on that path, Otis would be a good way to play this.
machinery
DON'T BUY
Challenge with Chinese stocks is when you invest in China, you don't actually hold the shares in your name. From a political perspective, you don't have claim to those assets. Now we have US-China tensions. He'd rather buy one of the multinational companies with operations in China that benefit from the recovery.
0
DON'T BUY
Ford Motor

Like the Google of the auto world, in that they have one big product, the Ford F-150. Unemployment data in the US, around 10%, it's a challenge for them to buy an expensive vehicle. Challenged going forward. Dividend suspended. He's not interested.

Automotive
BUY
Chubb Limited
Premiums have been invested in fixed income, so profitability has gone down. Relative to the equity markets, fixed income is less volatile, and so their float is safer than some of its peers. For business interruptions and any big payouts, premiums will increase going forward. Long-term, with eventually higher interest rates, profitability will increase. A good company.
insurance
PAST TOP PICK
Toronto Dominion
(A Top Pick Oct 28/19, Down 13%) Still their bank of choice in Canada. A big mistake for Canadians is to hold too many Canadian banks. TD is underindexed on oil and gas, dividend has increased this year, franchises have grown, insurance has done well. Predicts job cuts later this year.
banks
PAST TOP PICK
Danaher Corp.

(A Top Pick Oct 28/19, Up 54%) Covid is impacting them. They bought GE pharma division, and the timing couldn't be better. Grown dividend by 28% over the last 5 years, paying down debt.

machinery
PAST TOP PICK
(A Top Pick Oct 28/19, Up 22%) Test electrical capacity and food content. A certification company. Done well this year. Cash flow and dividend have grown. A great long-term hold.
0
COMMENT
Atrion Corp
There are 7,000 publicly traded companies in the world, and their firm runs 20 different screens. The most important is free cash flow growth. With that, you can invest in R&D, do acquisitions, pay down debt, buy back shares, or pay a dividend. Atrion has very strong dividend increases. Small company, but really strong free cash flow characteristics.
Healthcare
COMMENT
How do you choose a company to invest in? There are 7,000 publicly traded companies in the world, and their firm runs 20 different screens. The most important is free cash flow growth. With that, you can invest in R&D, do acquisitions, pay down debt, buy back shares, or pay a dividend.
Unknown
WEAK BUY
Walmart Inc

Recent retail sales data in the US shows that about 40% is concentrated in the 4 names of Walmart, Home Depot, Lowe's, and Target. Going forward, this is a play on the US GDP. If you believe the economy will chug along at a decent rate, this is the one to buy. If not, then look at one of the niche e-retailers.

department stores
DON'T BUY

BEP.UN vs. BAM They always defer to the parent, BAM, as with it you get a fully diversified portfolio. All the subsidiaries pay management fees up to the parent. Though BAM's price is under pressure, he'd add to it.

Utilities