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Compiling comments that experts make about stocks while on public TV.

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Gordon Reid , President and CEO

GoodReid Investment Counsel

Address
47 Colborne Street
Suite 400
Toronto, ON
M5E 1P8

Contact Info
Telephone: 416.364.0890
Toll Free: 1.888.466.3734
Fax: 416.364.1788
Email:


Date Signal Chart Symbol Company Opinion Price
2015-02-25 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

US Markets. US stocks are trading at about 17X earnings. Given the interest rate environment, profit margin growth and productivity trends, it is probably in fair market range. You have to look at individual sectors, industries and companies for your growth, as opposed to allowing the market itself to take you higher. With lower rates, the cost of capital is cheaper for corporations and they are more likely to make money easier, so profit growth is more easily accomplished. From a market standpoint, rates (bonds) are a competitive asset class, so when you have low rates, people gravitate towards stocks. Also, you could look at it from the point of earnings yield. If you take the P/E ratio, and invert it, E/P gives you an earnings yield which, historically, has pretty much matched the B-AA bond, the worst investment grade bond out there. Currently, there is about a 2 point spread, which means that either valuations can go higher, or interest rates will go higher. His suspicion is that both will happen. You are going to see articles that the multiple in the market is getting way out of whack, and this is going to happen in large part because energy companies are expecting to see earnings halved in 2015 over 2014. That is going to have an effect on the multiple of the S&P 500. You have to look at 2 things. 1.) Is it a transient event (which is debatable) and 2) it is isolated to energy companies and one should look at the other 9 major sectors. There is going to be lots of places to look for value.


Price:
$0.020
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
_N/A
2015-02-25 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Tax Info. One of the very big things for people who have foreign assets is the Foreign Income Verification form (T1135). This is a complicated form to complete and is required for anybody who has $100,000 of foreign assets outside of their RRSP. You can go to www.goodreid.com to E-articles to read about this.


Price:
$0.020
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
_N/A
2015-02-25 COMMENT Must be logged in to use chart AAPL-Q Apple

There is more clarity than there was 2-5 years ago, when it was thought that they had to reprove themselves on innovations. They now have new products coming such as the new watch and Apple Pay. He thinks there is still a lot of growth and a long runway. Have become much more shareholder friendly. No company globally produces the amount of free cash like this company. His guess is that the 1.44% yield will probably close to double in April.


Price:
$128.790
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
2015-02-25 COMMENT Must be logged in to use chart AIG-N American International Group

He likes this. It is coming out of the mess of 2008 and becoming a traditional property/casualty Company. Sold off their aircraft leasing operation. Trading at about 10X earnings and only about 75% of BV. Very good value. The future is bright.


Price:
$54.800
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
2015-02-25 COMMENT Must be logged in to use chart BAC-N Bank of America

If you have a spot for a financial to complement the rest of your portfolio, you should fill it. This one is an opportunity. Generally speaking, the whole group is going to move together. It is going to take a catalyst and that catalyst is likely going to be higher interest rates that will allow net margin spread to increase because of a steepening yield curve. This is a decent choice in US banks. (See Top Picks.)


Price:
$16.490
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 TOP PICK Must be logged in to use chart C-N CitiGroup

CEO is doing a good job and concentrating the bank on core efficiencies. They are getting out of a lot of countries and out of risk areas. They go through another stress test in March, and he is quite hopeful they will be allowed to increase their dividend and their buyback. Relatively cheap on a variety of metrics. Trading at about 10X earnings compared to the average bank that is trading at about 13X. Also, trading at about 90% of tangible book value compared to the average bank of 163%. Yield of 0.08%.


Price:
$52.090
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
2015-02-25 COMMENT Must be logged in to use chart COST-Q Costco Wholesale

The company has done a wonderful job. He likes the model. They are in a low margin business, but they have the membership fees, which is pure gravy. A nice recurring revenue. However, the multiple is quite high, which has made him shy away. He doesn’t think you can build in any multiple expansion, so it is going to have to be on internal or organic growth.


Price:
$147.480
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 SELL Must be logged in to use chart DIS-N Walt Disney

Sold his holdings on a valuation basis some time ago. He believes it continues to be a great company and doing a very good job in terms of good solid revenue as well as great cash flow. However, they are expensive. If you own, he would make a switch into Time Warner (TWX-N).


Price:
$105.570
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 BUY Must be logged in to use chart F-N Ford Motor

To him, this is the best in the automobile space. The new F150 is getting a lot of very good reviews and is the best selling vehicle globally. Total car shipments worldwide are running somewhere around 60 million with 17 million of that in North America. There are lots of opportunities there, but also lots of worries. They have had a tough time in Europe. From an investment standpoint, that creates opportunity. He thinks there is some promise this year and in the next few years for Ford.


Price:
$16.510
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 TOP PICK Must be logged in to use chart FB-Q Facebook

Has been looking at this for a long time and what put him over the top was the sheer size of having 1.39 billion in monthly average users. Some of their purchases such as Instagram and Messenger are doing incredibly well. Also, the advertising trends are very exciting. Mobile for example, which grew 100% year-over-year, is leading the way from an advertising standpoint with Facebook. However, when you look at the statistics, 25% of the US adult media time is done on Mobile, yet only 11% of advertising dollars are aimed at Mobile. There is a lot of room to catch up, so that will be in favour for Facebook. He sees another Google coming along.


Price:
$79.560
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
2015-02-25 DON'T BUY Must be logged in to use chart GILD-Q Gilead Sciences Inc.

They are getting competition now so they have to charge less for their products. He has been very skittish and cautious on this company. What you saw on the surface was this fast growing low multiple company, which looked almost too good to be true. They charge an enormous amount of money for their hepatitis C drug, but they are now getting a lot of competition. Insurers are now negotiating with their competition.


Price:
$104.430
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 DON'T BUY Must be logged in to use chart GLW-N Corning Inc

Has always resisted this because of his fear of a commoditization, i.e., falling prices. In the LCD world we have seen that. This company has done well because they have been smart in running their business. Based on a valuation level and his fear, he wouldn’t Buy this one.


Price:
$24.600
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 PAST TOP PICK Must be logged in to use chart HD-N Home Depot

(A Top Pick Feb 26/14. Up 45.53%.) Not an inexpensive stock. He expects them to make about $5.50 a share in 2015, which puts the multiples in the low 20s. They continue to outperform and surprise on the upside.


Price:
$116.310
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
2015-02-25 DON'T BUY Must be logged in to use chart INTC-Q Intel

This is a similar situation to Microsoft (MSFT-N) in that they are a very large company and generate a fair bit of cash, but there is really not a lot of traction. Although PCs have had a bit of resurgence, long term he doesn’t think much has changed in terms of predictions that it will be a falling situation.


Price:
$33.945
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
No
2015-02-25 PAST TOP PICK Must be logged in to use chart KBH-N KB Home

(A Top Pick Feb 26/14. Down 28.79%.) A few months ago they came out with a warning that their gross margins were not going to be as good as the Street thought they were going to be. This was because they were paying a much higher price for land. Stock sold off into the high $1100 and he thought it was just too much. The trend in the industry is still very, very positive. He’ll be looking to see if there is a better place to be.


Price:
$14.150
Subject:
US EQUITIES
Bias:
BULLISH
Owned:
Yes
Showing 1 to 15 of 1,479 entries
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