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November 26, 2020
Stockchase Research Editor: Michael O'Reilly CVS, the 2nd largest pharmacy in the US, recently came under pressure with the announcement of Amazon stepping into the pharmacy space. However, now trading at 11x earnings, CVS is good value here -- especially after announcing they are hiring 15,000 staff in Q4 to likely become a mass vaccine distributor. Recent earnings of $1.66 per share beat expectations of $1.34. Management raised guidance of annual 2020 earnings to $7.35-$7.42 per share, above analyst calls for $7.23. It pays a great dividend, backed by a 33% payout ratio. We would buy this with a stop-loss at $57, looking to achieve over $82 -- over 21% potential. Yield 2.96% (Analysts’ price target is $82.43)
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Stockchase Research Editor: Michael O'Reilly CVS, the 2nd largest pharmacy in the US, recently came under pressure with the announcement of Amazon stepping into the pharmacy space. However, now trading at 11x earnings, CVS is good value here -- especially after announcing they are hiring 15,000 staff in Q4 to likely become a mass vaccine distributor. Recent earnings of $1.66 per share beat expectations of $1.34. Management raised guidance of annual 2020 earnings to $7.35-$7.42 per share, above analyst calls for $7.23. It pays a great dividend, backed by a 33% payout ratio. We would buy this with a stop-loss at $57, looking to achieve over $82 -- over 21% potential. Yield 2.96% (Analysts’ price target is $82.43)
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November 26, 2020
Stockchase Research Editor: Michael O'Reilly The maker of anti-virus software and cybersecurity products has been beaten down this year, but is now at solid values. Their products for small business are ideal as working remotely is trending. Trading at only 13x earnings, it is that one-third of its peers in the sector. It pays a meaningful dividend, backed by a payout ratio of 10%. We would buy this with a stop-loss of $15, with an objective of $24 -- 30% potential. Yield 2.75% (Analysts’ price target is $24.05)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly The maker of anti-virus software and cybersecurity products has been beaten down this year, but is now at solid values. Their products for small business are ideal as working remotely is trending. Trading at only 13x earnings, it is that one-third of its peers in the sector. It pays a meaningful dividend, backed by a payout ratio of 10%. We would buy this with a stop-loss of $15, with an objective of $24 -- 30% potential. Yield 2.75% (Analysts’ price target is $24.05)
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November 26, 2020
Stockchase Research Editor: Michael O'Reilly BIIB has been on a roller-coaster. When the FDA announced a priority review of a new Alzheimer's drug, it stock soared to $360. When the review failed to approve the drug in the first go-round, the stock plunged to under $250 -- so it goes with drug manufacturers. Its MS drugs continue to do well and it is working on treatments for Parkinson's disease as well. Trading at 8x earnings, it is cheap compared to peers at 30x. We would buy this with a $180 stop-loss looking to achieve $305 -- 26% upside. Yield 0%. (Analysts’ price target is $305.90)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly BIIB has been on a roller-coaster. When the FDA announced a priority review of a new Alzheimer's drug, it stock soared to $360. When the review failed to approve the drug in the first go-round, the stock plunged to under $250 -- so it goes with drug manufacturers. Its MS drugs continue to do well and it is working on treatments for Parkinson's disease as well. Trading at 8x earnings, it is cheap compared to peers at 30x. We would buy this with a $180 stop-loss looking to achieve $305 -- 26% upside. Yield 0%. (Analysts’ price target is $305.90)
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November 26, 2020
Temperature-controlled warehouses are an integral part of the food chain connecting producers and retailers to the consumer. Defensive cashflows, structural tailwinds. High demand sector. E-commerce potential. Seasoned management. Share price attractive, significant discount to peers but with secure growth. Yield is 2.49%. (Analysts’ price target is $41.67)
Show full opinionHide full opinionTemperature-controlled warehouses are an integral part of the food chain connecting producers and retailers to the consumer. Defensive cashflows, structural tailwinds. High demand sector. E-commerce potential. Seasoned management. Share price attractive, significant discount to peers but with secure growth. Yield is 2.49%. (Analysts’ price target is $41.67)
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November 26, 2020
Second largest single-family rentals in the US. Record high occupancy. Solid collections. Greater than expected development pipeline of homes for 2021. Covid has accelerated demand. Recent value trade has created a buying opportunity. Yield is 0.69%. (Analysts’ price target is $32.50)
Show full opinionHide full opinionSecond largest single-family rentals in the US. Record high occupancy. Solid collections. Greater than expected development pipeline of homes for 2021. Covid has accelerated demand. Recent value trade has created a buying opportunity. Yield is 0.69%. (Analysts’ price target is $32.50)
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November 26, 2020
Small cap. Properties associated with delivery of healthcare. Predictable long-term cashflows, stable revenue growth. Consistently generate double-digit growth. Raise dividend every single quarter. Management takes compensation in stock. Yield is 3.80%. (Analysts’ price target is $51.67)
Show full opinionHide full opinionSmall cap. Properties associated with delivery of healthcare. Predictable long-term cashflows, stable revenue growth. Consistently generate double-digit growth. Raise dividend every single quarter. Management takes compensation in stock. Yield is 3.80%. (Analysts’ price target is $51.67)
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November 25, 2020
Results are accelerating. Multiples are cheap for a fortress balance sheet, riding digital tailwinds, enormous amount of cash. Yes, risk of antitrust. Business is improving, so much optionality. One of the best businesses in the world at a reasonable valuation. No dividend. (Analysts’ price target is $1917.31)
Show full opinionHide full opinionResults are accelerating. Multiples are cheap for a fortress balance sheet, riding digital tailwinds, enormous amount of cash. Yes, risk of antitrust. Business is improving, so much optionality. One of the best businesses in the world at a reasonable valuation. No dividend. (Analysts’ price target is $1917.31)
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November 25, 2020
Has one of Canada's greatest CEOs. Best growth days are probably behind it, but still a great business. It buys companies and uses the free cashflow to keep buying more. He thinks eventually its businesses will spin off. Great balance sheet. Yield is 0.32%. (Analysts’ price target is $1679.38)
Show full opinionHide full opinionHas one of Canada's greatest CEOs. Best growth days are probably behind it, but still a great business. It buys companies and uses the free cashflow to keep buying more. He thinks eventually its businesses will spin off. Great balance sheet. Yield is 0.32%. (Analysts’ price target is $1679.38)
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November 25, 2020
Global industrial e-commerce play. CEO is excellent. Exposure to Magna is no longer a tailwind. Nice dividend, good growth going forward. One of Canada's best REITs. Yield is 3.87%. (Analysts’ price target is $84.15)
Show full opinionHide full opinionGlobal industrial e-commerce play. CEO is excellent. Exposure to Magna is no longer a tailwind. Nice dividend, good growth going forward. One of Canada's best REITs. Yield is 3.87%. (Analysts’ price target is $84.15)
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November 24, 2020
Stockchase Research Editor: Michael O'Reilly Fresh buying by a key investment fund and a re-iterated buy with a $60 price target by another is bringing INTC back into favour. With a PE of only 9x, compared to the sector average of 71x, it is good value now. Another catalyst is the announcement that Dish Network will use their products for their 5G roll out. It pays a good dividend, backed by a 25% payout ratio. We would buy this with a $40 stop-loss, looking to achieve $58 – 24% upside. Yield 2.91% (Analysts’ price target is $57.83)
Stockchase Research Editor: Michael O'Reilly Fresh buying by a key investment fund and a re-iterated buy with a $60 price target by another is bringing INTC back into favour. With a PE of only 9x, compared to the sector average of 71x, it is good value now. Another catalyst is the announcement that Dish Network will use their products for their 5G roll out. It pays a good dividend, backed by a 25% payout ratio. We would buy this with a $40 stop-loss, looking to achieve $58 – 24% upside. Yield 2.91% (Analysts’ price target is $57.83)
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November 24, 2020
Stockchase Research Editor: Michael O'Reilly MATW provides end of life and mortuary services. Recent earnings resulted in a record cash generating flow for the company, which allowed a $100 million reduction in debt. It trades at 9x earnings as earnings are expected to grow over 5% next year. It pays a good dividend that has increased for 22 consecutive years. We would buy this with a stop-loss at $22.00, looking to achieve $45 – 54% upside. Yield 3.04% (Analysts’ price target is $45.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly MATW provides end of life and mortuary services. Recent earnings resulted in a record cash generating flow for the company, which allowed a $100 million reduction in debt. It trades at 9x earnings as earnings are expected to grow over 5% next year. It pays a good dividend that has increased for 22 consecutive years. We would buy this with a stop-loss at $22.00, looking to achieve $45 – 54% upside. Yield 3.04% (Analysts’ price target is $45.00)
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November 24, 2020
Stockchase Research Editor: Michael O'Reilly REGN’s COV2 antibody treatment used by the US President during his treatment has been granted Emergency Use Authorization by the FDA. Even though vaccine alternatives are coming, this will provide treatment options for those infected and will help reduce hospitalizations. We would buy this with a $425 stop-loss looking to achieve $630 – 21% upside. Yield 0% (Analysts’ price target is $628.52)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly REGN’s COV2 antibody treatment used by the US President during his treatment has been granted Emergency Use Authorization by the FDA. Even though vaccine alternatives are coming, this will provide treatment options for those infected and will help reduce hospitalizations. We would buy this with a $425 stop-loss looking to achieve $630 – 21% upside. Yield 0% (Analysts’ price target is $628.52)
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November 24, 2020
Chinese online retailer. Like Amazon, because they have their own branded products. Heavily invested in drone delivery. Scale advantage, clear margin expansion profile, growing valuation of subsidiaries. His price target is $101. Suggests buying in stages at $87, $72, and $60. No dividend. (Analysts’ price target is $99.01)
Chinese online retailer. Like Amazon, because they have their own branded products. Heavily invested in drone delivery. Scale advantage, clear margin expansion profile, growing valuation of subsidiaries. His price target is $101. Suggests buying in stages at $87, $72, and $60. No dividend. (Analysts’ price target is $99.01)
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November 24, 2020
His price target is $69. Suggests buying here around $56, in low $50s, and again around $45. Cloud, hardware, software, and services doing well. Given blessing to buy NA version of TikTok. Good one to own when markets are elevated. Yield is 1.69%. (Analysts’ price target is $62.81)
Show full opinionHide full opinionHis price target is $69. Suggests buying here around $56, in low $50s, and again around $45. Cloud, hardware, software, and services doing well. Given blessing to buy NA version of TikTok. Good one to own when markets are elevated. Yield is 1.69%. (Analysts’ price target is $62.81)
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November 24, 2020
Leader in collaboration and work management space. Growth faster than others. Analysts' valuation based on 30% growth, but he sees about 45% growth. Co-founders were also co-founders of Facebook, so follow the smart people. Buy around $22. Price target of $36. No dividend. (Analysts’ price target is $27.00)
Leader in collaboration and work management space. Growth faster than others. Analysts' valuation based on 30% growth, but he sees about 45% growth. Co-founders were also co-founders of Facebook, so follow the smart people. Buy around $22. Price target of $36. No dividend. (Analysts’ price target is $27.00)
