Recent Opinions | StockChase

Home > Recent Opinions

Opinions Table


Signal Opinion Expert

2017-11-22

N/A
A Comment -- General Comments From an Expert 

Market. The TSX 10-year chart shows it breaking into highs which were reached before the financial crisis, which is pretty sad. The TSX index is the worst major Index in the world. It is dominated by resource and financials. Normally, a country’s stock index should reflect the economy of a country. Because so many of our large companies are foreign owned or privately owned, ours does not reflect that at all. In the US and in most countries, their main index better reflects their economies. He would never own a Canadian Index product. Most indexes are market cap weighted, so that as a stock goes up in value its percentage in that index keeps going up. There is an index you can buy called an equal weight index, where all stocks are weighted equally. It better reflects what is really going on in markets.

Norman Levine

Managing Director, Portfolio Management Corp

Price: $0.020
Owned: _N/A

2017-11-22

N/A
A Comment -- General Comments From an Expert 

Market. This is the time of year when we might see some distortions in the market, when certain Selling and Buying occur. One level is where institutional investors are looking to lock in bonuses and not have difficult conversations with their bosses. There is also the tax loss selling process, which we are beginning to see in some of the Canadian names. It’s the time of year when valuations can get a little obscure. As we move further into the holiday season, there tends to be a lot of people on holidays. If you have fresh capital and are looking to buy some quality names that have been beaten up, now is a good time to start thinking about it. Also, for tax planning, taking a little money off the table is a good idea. If you are in the FAANG stocks, you want to probably cut it in half at this point.

Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $0.020
Owned: _N/A

2017-11-22

N/A
A Comment -- General Comments From an Expert 

With US$ falling, would investing internationally be smart? After the global financial crisis, we really got the lesson that if you didn’t invest internationally, it was really tough. If you want a portfolio that is going to be diversified by currency, product line, geography and income streams, over time you will end up with a more stable type of income stream. The answer is Yes, Buy internationally.

Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $0.020
Owned: _N/A

2017-11-22

N/A
A Comment -- General Comments From an Expert 

Blockchain crypto currency technology? Thinks the technology has a serious amount of vapour beneath it. Longer-term, it is obviously serious technology, because a lot of industries are looking to use the technology. For him, the big challenge is who is actually controlling this. The old concept of having a currency and it being controlled by a central bank, completely goes out the window on a crypto currency context. He does think it is going to evolve in the form of a few bankruptcies, but out of that noise, we will ultimately get a new technology which will be highly beneficial.

Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $0.020
Owned: _N/A

2017-11-22

COMMENT
Apple (AAPL-Q)

What price would you pay for this? This has been a fine performer. The challenge you have buying a substantial holding, is a little problematic because of how fast the company has grown. The market in many cases is pricing in the continued growth, the capital repatriation story. In the next 3-5 years, the company is going to run into the challenge of how much further it can grow. At these levels, he thinks you are fine because the US tax issue is going to be carried.

electrical/electronic
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $174.960
Owned: Yes

2017-11-22

PAST TOP PICK
Arc Resources Ltd (ARX-T)

(A Top Pick Dec 28/16. Down 30%.) In hindsight, this had been a mistake. The company has an excellent balance sheet, great management, is mostly natural gas in the Montney area. He was optimistic on the price of natural gas. His mistake was buying a Canadian natural gas stock rather than a US natural gas stock. The Henry hub price for natural gas has gone up significantly since last year. Unfortunately, most of the Canadian natural gas does not get priced at Henry hub, they get AECO which is priced off of Alberta, and that price has collapsed.

oil/gas
Norman Levine

Managing Director, Portfolio Management Corp

Price: $15.770
Owned: Yes

2017-11-22

COMMENT
Alibaba Group Holding (BABA-N)

The challenge is that it is a very, very expensive stock. Feels it has a smell in terms of the pricing. You can’t discount what they have done or the growth, but he just feels there is a correction needed in the price. If you own, you might want to start thinking about cutting it in half.

Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $189.840
Owned: No

2017-11-22

PAST TOP PICK
Bank of America (BAC-N)

(A Top Pick May 5/17. Up 13%.) The story on this is higher interest rates in the US. Under the Trump administration, we might see a roll back of the Dodd Franks punitive legislation. The balance sheet is very strong. At some point we are going to see multiple raises of the dividend, but are not quite there yet. This is still a Buy.

banks
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $26.660
Owned: Yes

2017-11-22

BUY
Badger Daylighting (BAD-T)

The company has most of its earnings outside of the oil patch now, and most of its revenues outside of Canada. It is by far the largest hydro-vac company in North America. It has attracted the attention of a major short-seller, who has damaged the stock. The Short is zeroing in on what their 0-30 day receivables are, which is an irrelevant number. A good company and is showing excellent growth. He is still buying for new clients.

oil/gas
Norman Levine

Managing Director, Portfolio Management Corp

Price: $28.180
Owned: Yes

2017-11-22

BUY
BCE Inc. (BCE-T)

Owns because of its steady growth in income. It steadily grows its dividend every year. It’s not exciting and you’re not going to get rich, but you are not going to get killed either. Like other utilities, it is very interest rate sensitive. If interest rates are going down, these types of stocks tend to do really well. It is a bond alternative. Should be a part of everybody’s portfolio. Dividend yield of 4.7%.

telephone utilities
Norman Levine

Managing Director, Portfolio Management Corp

Price: $61.560
Owned: Yes

2017-11-22

TOP PICK
British American Tobacco (BTI-N)

The 15-year total return on the stock is 9.3X in Cdn$, which is 930%. This is currently on sale, because last year they purchased the remaining portion of Reynolds American that they didn’t own, giving them a bit more debt than normal. A very sticky business model. Dividend yield of 3.4%. (Analysts’ price target is $77.88.)

tobacco
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $66.800
Owned: Yes

2017-11-22

TOP PICK
Cara Operations Ltd. (CARA-T)

The largest restaurant chain in Canada, and have grown quite a bit by acquisition. The stock went public and it was a market darling until it got overpriced. Then with the downturn in Alberta, oil prices started to tumble and people stopped going, so same-store sales took a big hit. That is now starting to stabilize. They’ve made some acquisitions which have diversified them. Valuation is very reasonable. Dividend yield of 1.6%. (Analysts’ price target is $26.)

food services
Norman Levine

Managing Director, Portfolio Management Corp

Price: $24.630
Owned: Yes

2017-11-22

COMMENT
Cameco Corporation (CCO-T)

If you look at the commodity sector, it has started to get a bit of a bounce. Is the world going to be able to get off nuclear energy? The balance sheet is okay on this. If you think about electric cars and the increasing demand for electricity, there are countries that do not have the capability of generating their own electricity. The longer-term story is good, but the money and this company could be dead for a couple of years.

integrated mines
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $12.540
Owned: Unknown

2017-11-22

TOP PICK
China Mobile Hong Kong (CHL-N)

This is usually a direct beneficiary for Europeans wanting exposure to China. In the last while, we have seen the opening up of the Chinese market via the Hong Kong market. The strategy has put some capital into other major Chinese corporations. The company is cheaper now than it was during the global financial crisis. They paid a special dividend earlier in the year, when they sold off their towers. This typically tends to band trade higher in an upward direction. At the moment it’s at the bottom of its low-end range. It has more cash than debt, so the dividend is a very safe. Dividend yield of 3.6%. (Analysts’ price target is $68.70.)

Telecommunications
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $50.590
Owned: Yes

2017-11-22

BUY
Cisco (CSCO-Q)

When John Chambers was running this, it was a phenomenal growth story. Now it seems to be a US story plus, but is definitely not an aging growth story. Has a lot of cash and has become a dividend growth story. Feels it needs an acquisition, but has a very poor reputation in acquiring companies, integrating them and taking them forward. It will continue to benefit from the US government. It’s a company transitioning into a dividend paying, growth, mature tech company, and a longer growth story. Dividend yield of 3.2%.

electrical/electronic
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $36.450
Owned: Unknown

2017-11-22

HOLD
Constellation Software Inc. (CSU-T)

A great company and very well-managed. A consolidator of software companies, and their strategy continues to work. (See Top Picks.)

computer software/processing
Norman Levine

Managing Director, Portfolio Management Corp

Price: $760.470
Owned: No

2017-11-22

PAST TOP PICK
Walt Disney (DIS-N)

(A Top Pick May 5/17. Down 8%.) In the process of trying to acquire the 21st-Century Fox assets. Also looking to deliver their own Netflix stream. This is the time you want to take advantage to buy a high quality franchise like this.

entertainment services
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $102.740
Owned: Yes

2017-11-22

HOLD
Callaway Golf (ELY-N)

Sold his holdings about a year ago, because it had gone from “turnaround” to “good profits”, and had thought that in the near term its profitability had probably gotten ahead of itself. However, the CEO has continued to deliver great results. They are the leading company in the industry.

Consumer Products
Norman Levine

Managing Director, Portfolio Management Corp

Price: $14.340
Owned: No

2017-11-22

COMMENT
Emera Inc (EMA-T)

Long-term hold? Canada has a number of Public utility companies, and a couple of them, such as this one and Fortis (FTS-T), are what he would call growth utility companies, where they don’t just stick to the market they are in, but are active acquirers and growers in other geographies, mostly in the US. He looks at this as being the leading Canadian growth utility company, and sees them continuing to grow their earnings in Canada, and more so outside Canada. Interest rate sensitive, so if interest rates go down, the stock does better. For a long-term investor, companies like this should be a part of your portfolio.

mngmnt/diversified
Norman Levine

Managing Director, Portfolio Management Corp

Price: $48.420
Owned: Unknown

2017-11-22

COMMENT
Enbridge (ENB-T)

Has been a poorer performer this year, down about 20% or so. It comes on the heels of making a large acquisition. Up until this year, this was largely an oil based pipeline company. They bought Spectra Energy which diversified them much more into natural gas pipelines. Took on a lot of debt doing it. He doesn’t believe the dividend is in jeopardy, but it is now a “show me” stock. They are having an investor day in a few weeks, where he hopes there will be more information. Yields about 5.5%, the highest yield it has ever had. Believes the dividend is safe. If you are a value investor, you are buying a great company with growing and excellent income at a good price.

oil/gas pipelines
Norman Levine

Managing Director, Portfolio Management Corp

Price: $47.010
Owned: Yes

2017-11-22

TOP PICK
Enbridge (ENB-T)

They bought the Spectra assets, and the US shareholders looked to unload their shares, and the stock started to move sideways. There is a little concern around their ability to fund projects moving forward, possibly leading to issuing some equity, perhaps sell off some projects, but ultimately they’re guided towards 10%-12% dividend growth through 2024. This is on sale now, and it doesn’t go on sale very often. Dividend yield of 5.2%. (Analysts’ price target is $60.00.)

oil/gas pipelines
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $47.010
Owned: Yes

2017-11-22

COMMENT
Advisorshares New Tech & Media (FNG-N)

To him a highly speculative investment, but has some very high-quality companies that have been market leaders in what they do. These are momentum stocks, and this is not his style.

E.T.F.'s
Norman Levine

Managing Director, Portfolio Management Corp

Price: $23.340
Owned: No

2017-11-22

BUY
General Electric (GE-N)

Recently sold this from his taxable accounts for tax loss, with the intention of buying it back after 30 days. A new CEO has come in and the market was disappointed, but he doesn’t know what they were expecting. You want a CEO to “under promise” and “over deliver”. Investors are looking for a CEO who will “overpromise” and “hopes he delivers”, which is not realistic. He isn’t upset that the CEO is under promising to start with. Thinks it is going to take 2 to 3 years for the new CEO to prove himself. His new clients are buying this.

electrical/electronic
Norman Levine

Managing Director, Portfolio Management Corp

Price: $18.150
Owned: Yes

2017-11-22

PAST TOP PICK
Halliburton Co (HAL-N)

(A Top Pick May 5/17. Down 8%.) Has put this in the International portfolio, really in the context of trying to capture some of the recovery of the oil cycle. The majors are starting to do a little bit of spending. Thinks there is more upside here and it is very cheap.

oil/gas field services
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $41.430
Owned: Yes

2017-11-22

BUY
HSBC Holdings P L C (HSBC-N)

One of the big drivers is Asia. The headquarters for the Asian business is in Hong Kong. Hong Kong interest rates are pegged to the US interest rates. When the US raises interest rates, so does Hong Kong. You have a high growth region where money is sloshing over the border from China and into loans, so there is a lot of growth here. The British portion will right itself so that is good. There is an opportunity to grow the insurance business as well. Global recovery is going to be good for this bank. A good, safe way to play multiple jurisdictions.

banks
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $49.180
Owned: Yes

2017-11-22

HOLD
ING Groep NV (ING-N)

Sell ING or European telcos? The 1st question would be which telcos. However, the broader story on European telcos is different than what is happening in Canada or the US. Fibre to the home is being built out in Europe, and for the 1st time in about 12 years, European telcos are growing revenues and earnings. Thinks there is still a little upside in the telcos. Regarding financials in Europe, the big driver is going to be higher rates. Higher rates are going to be good for financials, so there is a little more room to run on ING. The balance sheet was freshly recapitalized. They sold off some assets. There is probably upside here as well.

investment companies/funds
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $17.910
Owned: No

2017-11-22

BUY
Japan Tobacco Inc. (JAPAF-5)

Tobacco. This has been a very strong value creator, even in Cd$. Tobacco is transitioning away from being a carcinogenic cancer product. 15% of the Japanese smoking population now use vapour. There is a new CEO who is looking to do an acquisition. A great story and is quite interesting. (See Top Picks.)

Consumer Products
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $0.000
Owned: Unknown

2017-11-22

HOLD
Magna Int'l. (A) (MG-T)

Doesn’t own any auto stocks, but if he were going to own one, it would be this. Very well run and the market leader. Auto sales in the US have plateaued for now, but have plateaued at a high rate. European auto sales are growing. The NAFTA worries are overhanging the prices of Canadian autos, but if you are an investor, it’s a decent buy here.

Automotive
Norman Levine

Managing Director, Portfolio Management Corp

Price: $69.010
Owned: No

2017-11-22

HOLD
National Bank of Canada (NA-T)

Almost a pure Canadian play. Being a pure Canadian play, people worry about what their exposure is to high debt levels that people have run up in housing. Being mostly a Québec based bank, this bank hasn’t had the same exposure to the housing market in Toronto and Vancouver. Compared to other banks, it has more of a capital exposure, and has done well at that. This is fine to own.

banks
Norman Levine

Managing Director, Portfolio Management Corp

Price: $63.250
Owned: No

2017-11-22

TOP PICK
Open Text (OTEX-T)

A market consolidator in business software, helping large businesses organize information, storing it and retrieving it. Their acquisition policy is buying up competitors. Did a couple of acquisitions earlier this year, and the market is waiting to see how those work out. Dividend yield of 1.6%. (Analysts’ price target is $40.)

computer software/processing
Norman Levine

Managing Director, Portfolio Management Corp

Price: $41.950
Owned: Yes

2017-11-22

PAST TOP PICK
Pfizer Inc (PFE-N)

(A Top Pick Dec 28/16. Up 14%.) This has given him decent earnings along the way and they have raised the dividend along the way. A good company and a good story to keep. They are investigating whether they are going to split the company in 2.

biotechnology/pharmaceutical
Norman Levine

Managing Director, Portfolio Management Corp

Price: $35.430
Owned: Yes

2017-11-22

BUY
Parkland Fuel Corp (PKI-T)

A consolidator in gas stations, mostly in Canada, but is more diverse than just gas stations, having propane distribution and wholesale fuels. Earlier this year, they made 2 major acquisitions; the Canadian assets of Ultramar which gives them a lot more gas stations in eastern Canada and Chevron operations in Canada which were largely in BC as well as a refinery in BC. Took on a lot of debt to do this. The refinery has a big maintenance schedule ahead of it, and investors are a little nervous as to whether they can pull off these 2 big acquisitions at the same time. Their history has shown they’ve been very good acquirers.

merchandising/lodging
Norman Levine

Managing Director, Portfolio Management Corp

Price: $25.240
Owned: Yes

2017-11-22

BUY
Royal Dutch Shell PLC (A) (RDS.A-N)

A global energy stock to invest in? He owns Royal Dutch Shell (RDS.A-N) and Statoil (STO-N). The large super majors are cash flow positive now, and there is even a possibility that dividends are going to rise. If you take a 3-5 year view and don’t wholeheartedly buy into electric cars taking over the world, there is some upside here. Royal Dutch Shell is a good name.

integrated oils
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $62.150
Owned: Yes

2017-11-22

COMMENT
Rio Tinto (RIO-N)

His general view on the oil majors is effectively the same that he has on the mining majors, that is, we have sort of come through the other side. In many ways, what happened to mining is similar to what happened to oil. There were big supply issues which are slowly coming to an end. Copper has worked, global has been interesting, etc. This is a little more expensive than it was 18 months ago, but still relatively cheap. He prefers BHP Billiton (BHP-N), but doesn’t have any problem with buying this company here.

other mines
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $49.010
Owned: No

2017-11-22

TOP PICK
Sanofi-Aventis (SNY-N)

An international health care company, mainly in rare diseases, MS, immunology and oncology. Has been growing both by acquisition and through drugs of its own. Earlier this year, they bought Boehringer Ingelheim’s consumer products division. The latest quarter was a little soft and the market has punished them. He doesn’t worry about quarter to quarter. They’ve developed some drugs with Regeneron. Their partnership is dissolving, but any drugs they’ve developed, will continue on. A good, long term investment. Dividend yield of 3.7%. (Analysts’ price target is $54.)

Pharma & Healthcare
Norman Levine

Managing Director, Portfolio Management Corp

Price: $45.370
Owned: Yes

2017-11-22

COMMENT
Toronto Dominion (TD-T)

The main attraction, would be its growing US presence. He doesn’t own it, because he has no problem going to the US and buying US banks if he wants US bank exposure. However, this bank is fine.

banks
Norman Levine

Managing Director, Portfolio Management Corp

Price: $74.510
Owned: No

2017-11-22

BUY
Toronto Dominion (TD-T)

Has been a favourable story this year. He is continuing to buy for new clients. The US portion is obviously benefiting from higher rates. If you can get it slightly cheaper, that would be good, perhaps in the new year.

banks
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $74.510
Owned: Yes

2017-11-22

PAST TOP PICK
Teva Pharmaceutical (TEVA-N)

(A Top Pick Dec 28/16. Down 61%.) He got out of this 2 months later at about $32, so was down about 10%. Shortly after he bought this, the CEO left for undisclosed reasons, and he took that as a giant warning sign, so he ran away that same day.

biotechnology/pharmaceutical
Norman Levine

Managing Director, Portfolio Management Corp

Price: $13.480
Owned: No

2017-11-22

COMMENT
Tourmaline Oil Corp (TOU-T)

One of the best management in the industry and one of the best balance sheets. Has great properties, mostly gas and mostly in the Montney area. It has suffered from the huge decline in Canadian natural gas stocks. At these prices, it is very reasonably priced. Sold some of his for tax-loss selling but will be buying it back in 30 days.

oil/gas
Norman Levine

Managing Director, Portfolio Management Corp

Price: $23.620
Owned: Yes

2017-11-22

DON'T BUY
Tesla Motors Inc (TSLA-Q)

He equates this with what we saw in the 2000 timeframe in regards to Internet related stocks. Electric vehicles will be operated over time, but a number of things have to happen. We have to have a better production for electricity. Also, will Tesla be able to operate production for the demand. OK for 30,000-40,000 cars, but if looking at mass production volumes to hit the kind of demand expected, it would fundamentally change the automotive landscape. To him, that is not possible. He considers this as a vapour stock.

Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $312.600
Owned: Unknown

2017-11-22

BUY
Visa Inc. (V-N)

The acquisition of Visa Europe has been a game changer, and you can see that on transaction volumes. He would like to see a little more growth here. He continues to buy for new clients.

other services
Darren Sissons

Vice President and Partner, Campbell Lee & Ross

Price: $110.820
Owned: Yes

2017-11-22

COMMENT
iShares S&P 500 (CAD-Hedged) ETF (XSP-T)

In his 41 years experience, he’s never come across anyone who is any good at picking currencies consistently. Buying something hedged will sometimes work for you, but sometimes won’t, and you don’t really know ahead of time. You pay for the hedge as it is built into the cost of running that portfolio. He doesn’t believe in hedging.

E.T.F.'s
Norman Levine

Managing Director, Portfolio Management Corp

Price: $29.720
Owned: Unknown

2017-11-21

TOP PICK
Hamamatsu Photonics (6965-JP)

This builds components, which generally deduct very low levels of light or ionizing radiation. Also has sources that generate light and generate ionizing radiation. You can’t build a blood analyser or a gene sequencer without their equipment. You can’t build an optical chip inspection system. It is necessary for downhole tools for oil and gas, to measure while drilling. They’ve built equipment that dices semiconductor wafers down into individual chips. An extremely innovative company that does a huge amount of research and development. Has lived through major product lines, disappearing and replacing them repeatedly over a 40-50 year history. Really strong balance sheet. Business has started to turn around as optical inspection orders have started to come in. He is hoping for an upswing in the oil/gas equipment business. Dividend yield of 0.9%. (Analysts’ price target is ¥4.075.)

David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $0.000
Owned: Yes

2017-11-21

TOP PICK
Hoya Corporation (7741-JP)

The world’s low-cost producer of eyeglass lenses. Thinks this will benefit from the merger of Luxottica/Essilor merger, because he thinks the market share will be in play. They made them at very low cost in Thailand. The Thailand floods hit them, so they built the 2nd plant in the Philippines, an extremely low-cost place to make things. Very high-quality products made in a low-cost environment. This is also a monopoly producer of glass substrate for hard disks, and believes they dominate 2.5”. There are still 3.5” platters to be converted to glass, which is a huge opportunity. Dividend yield of 1.3%. (Analysts’ price target is ¥6,530.)

Healthcare
David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $0.000
Owned: Yes

2017-11-21

N/A
A Comment -- General Comments From an Expert 

Investing. If he doesn’t like the look of a sector, he stays out of it. There used to be the phenomena where people thought that if you picked the best house on a bad block, you’d be okay. For most of his career, that was true, but it is becoming less and less of an appropriate way of looking at things. Everybody remembers the banks and insurance companies having a difficult time during the global financial crisis. It created a tremendous opportunity within real estate, but he noticed his real estate companies were getting hurt on days when other financials were getting hurt, then he realized real estate was part of the financials. Today credit spreads are very narrow, the economy is growing very nicely, so if looking for an underperformer in an outperforming sector, is the market telling you that it is going to do poorly the next time the market corrects? Also, a lot of that is incredibly time sensitive. To him, 3-5 years is what counts. 

David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $0.020
Owned: _N/A

2017-11-21

N/A
A Comment -- General Comments From an Expert 

Market. North American equity markets made new all-time highs in 2013, the 1st time since the 90s. We rallied 2 years into 2015 and corrected globally. Since February 2016, the market has been slowly making its way higher. We had begun a long reflation of equities in 2016. We have a synchronized growth going on globally, and equities are really an attractive asset class when you have the beginnings of reflation. It can go on for a long time. The hardest thing in a bull market is to stay in your winning positions. Everybody worries, which is good. Looking at the 3 years that came after the first major correction in a bull market of the 50s, there was a rally for 3 years with no volatility. In the rally after the first major correction in 1984 for the 80s and 90s bull market, you had 3 years with no major correction. Since February 2016, we’ve been getting 3%-4% corrections. Another correction is not coming, as there are people with cash sitting waiting for it. In the next 12 months you are going to see a real correction, and then you’ll probably get another 3-4 years of good markets. Regarding cyclicals, flows out of bonds has barely begun. (They’ve been flowing into bonds for over 40 years.) It is relatively early. US banks are trading at 1X BV, and they traded at 2X-3X in the past, and BV is growing.

David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $0.020
Owned: _N/A

2017-11-21

N/A
A Comment -- General Comments From an Expert 

Price to Book ratio? The value you pay for an asset in the event there was a problem. When looking at US banks trading at 1X or 1.5X BV, you are not paying that much for the assets you are getting.

David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $0.020
Owned: _N/A

2017-11-21

BUY
Apple (AAPL-Q)

An inexpensive company. Filled with cash, but has lots of interesting catalysts. Their recent iPhone 10 is really interesting, as it gives them the only true integrated platform for augmented reality, which could turn out to be much bigger than people think. Margins are strong when looking at services, and is growing very rapidly.

electrical/electronic
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $173.140
Owned: Yes

2017-11-21

BUY
Applied Materials (AMAT-Q)

There are 4 key structural themes in technology. Cloud-based computing, software as a service, the Internet of Things. This makes equipment that makes semiconductors. Estimates are that the average house will have 17 connected devices over the next 3 years. From early to the middle of October, the market started to consolidate. While the percentage of stocks in uptrends didn’t deteriorate, it went from 78% of stocks with positive weekly price momentum down to 30%. In the last 3 days, the leadership groups have re-accelerated, broke out and made new highs. This company fits right into that camp.

electrical/electronic
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $58.800
Owned: Yes

2017-11-21

COMMENT
Amazon.com (AMZN-Q)

It’s not too late to get into this. As long as we are in a decent market and as long as this continues to beat estimates, it should continue to participate. The leader in a Bull market tends to be a leader to the very end. You are likely to see the weaklings roll over first. Right now, breadth is expanding and weaklings are not rolling over. Stay in the leading stock as they have a tremendous advantage.

specialty stores
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $1139.490
Owned: Unknown

2017-11-21

PAST TOP PICK
Bank of America (BAC-N)

(A Top Pick Dec 13/16. Up 20%.) We are still very early in a revaluation of US banks. Trading at 1X Book. BV is growing, so there could be an expansion of the multiple of BV. Tax reform would be good for this bank. 85% of its revenues come from the US.

banks
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $26.730
Owned: Yes

2017-11-21

TOP PICK
Bank of America (BAC-N)

When in a strong market and there is clear leadership, there is no reason to jump from one boxcar to another. If the things causing structural change are continuing to strengthen, that is a good reason to stay in position. There are 4 key things that are going to move this higher. 1.) Rising interest rates. 2.) Deregulation. 3.) Cost cutting. (Have cut $10 billion of expenses since 2010.) 4.) Economic growth is accelerating, which helps grow business. Raised their dividend 60% last year, and it is going to increase again this year. Financials can be revalued, multiples can expand and earnings can get better, for 5 to 7 years. Dividend yield of 1.8%. (Analysts’ price target is $29.)

banks
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $26.730
Owned: Yes

2017-11-21

PAST TOP PICK
Belimo Holding AG (BEAN-SW)

(A Top Pick March 27/17. Up 33%.) Makes intelligent building controls. If you install their controls on a commercial building, the energy savings pays back the cost and under 12 months.

INDUSTRIAL PRODUCTS
David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $0.000
Owned: Yes

2017-11-21

COMMENT
Baytex Energy Corp (BTE-T)

Energy is tough. When it rolled over in 2014, there was a 66% decline. At $26 a barrel, oil reversed and there was a one-year rally, quite similar to what happens when a bubble bursts. The difficulty is that the industry has changed. When the price goes up, production can come on pretty quickly with fracing. Look at these as trades, not some structural long-term bull market. If you are going to invest in oil, you want to buy one that has been able to get better while everybody else has been struggling. The 150-day moving average on this one is falling. He would pick a point below the price it is trading at now, such as $3.50, and use that as a Stop/Loss.

oil/gas
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $3.820
Owned: No

2017-11-21

BUY
China Technology Gugenheim (CQQQ-N)

One of his big themes has been China. The conception is that the market opportunity is pretty big. As a piece of a portfolio, he sees no reason why you can’t have a piece of this.

E.T.F.'s
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $66.850
Owned: No

2017-11-21

DON'T BUY
Credit Suisse Group (CS-N)

This has issues on multiple levels. They’ve had to raise capital twice in the last 12-18 months. He has a real issue with financial institutions where there is a question about capital. Looking at their lines of business, they are particularly concentrated in fixed income, relative to their peers. Not sure of being a huge fan of the high-yield area. The RNBS (mortgage-backed bonds?) space needs a very particular catalyst. RNBS is well below normal because of the function of Dodd Frank requiring banks to have skin in the game when they issue mortgages.

Financial Services
David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $16.400
Owned: Unknown

2017-11-21

COMMENT
Dollarama Inc. (DOL-T)

An equity which has a tendency to do well when resource stocks in Canada are not. Has done well because they it is perhaps the 1 out of 10 Canadian companies which is actually a good company. It’s always on his Watch List. They are producing very attractive returns and in some areas, are best in class.

Consumer Products
David Fingold

VP and Portfolio Manager, Dynamic Funds

Price: $158.700
Owned: Unknown

2017-11-21

BUY on WEAKNESS
Dollarama Inc. (DOL-T)

One that got away from him. He likes companies that are good and getting better, and this is one of them. The price chart seems to gap higher about every 3 months. He’s been very cautious on retail, but this has been a really good foil against the group. It tends to rally around the earnings period and then consolidates after. In the short run, it’s a little extended and a little stretched away from the 50-day moving average, so there is a little risk. A good company. As a long-term hold, this is good.

Consumer Products
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $158.700
Owned: No

2017-11-21

PAST TOP PICK
Dow Chemical (DOW-N Merged)

(A Top Pick Dec 13/16. Up 7%.) This has merged and is going to split into 3 pieces. The underlying metrics of the 3 different businesses are all generally improving. Generates a lot of cash.

chemicals
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $66.650
Owned: Yes

2017-11-21

TOP PICK
DowDuPont Inc. (DWDP-N)

The scenario is playing out, the merger is complete and they are working toward spinning out these 3 different businesses. The economy continues to get better, so pricing is good. Feedstock costs are low. This can go on for a long time. The dividend will grow. Dividend yield of 2.2%. (Analysts’ price target is $80.)

chemicals
David Burrows

President & Chief Investment Strategist, Barometer Capital Management

Price: $71.260
Owned: Yes

Showing 1 to 60 of 170,630 entries
<< < 1 2 3 4 5 > >>
 
Successfully Saved Company