Vice President and Partner at Campbell Lee & Ross
Member since: Jan '12 · 1838 Opinions
There's great opportunity in event-driven, idiosyncratic opportunities like a CEO resigns suddenly (i.e. affair with a secretary). Investors should be happy. Most portfolios should be at all-time highs. Ex-uranium, commodities look cheap, such as oil and copper. China is bolstering their economy, which bodes well for commodities. Financials look very good, especially in Europe which sees negative interest rates.
Carbon energy isn't going anywhere soon. ENB pays an 8% dividend. Hold it for 10 years and you get back 80%, assuming the share price and dividend hold. Falling interest rates are a catalyst for dividend stocks.
Many UK stocks have been hit by Brexit. The UK pound has been declining against the Canadian dollar. The company isn't doing well, either, though its valuation is cheap. Look elsewhere like P&G.
Their product line is very mature and offers little growth. This has been a sideways stock. Their snacks business is doing well, but not a growth driver. Either the stock declines and the dividend rises, or they buy another company.
Buy drug stocks when there's no good news about their drug pipelines, or else you pay up when there is good news, in which case it becomes a trade, not investment.
Pays a 9.5% dividend, so over 10 years, you've returned 95% of your capital, assuming no dividend cut. But there is a huge ESG overhang in this sector; everybody hates tobacco stocks. Debt is paid down and the balance sheet is fine, so there's no real risk. The company is transitioning away from burning cigarettes.
Nvidia is a client of theirs. TSM makes all AI chips. A great company that's had a great ride. If you believe China will invade Taiwan, look at Samsung. TSM is best of breed. But the semis sector is overheated now and there will be moderation coming. Also, AI will be driven by software.
Their business is excellent, but there's too much risk of interference from Beijing. A hard pass.
Buy a commodity when they're really weak, and trim them when they start to run then completely exit. If you hold for the cycle, hold only a small portion. He doesn't own lumber. Supply chain problems have been solved, so prices have fallen. Also, demand for housing is not a catalyst, because immigration will offset that.
After Russia invaded Ukraine, European defence stocks rallied. If you park your ESG, you will see long-term structural growth in defence stocks. PLTR is okay, but prefers defence contractors.
A terrible one-year chart, but if it was in Canadian dollars, it looks much better. He owns this and has seen sizable gains. A good long-term hold and will benefit from a strong currency.
The US defence budget is not constrained by the overall US budget. They're upgrading through their stealth bomber and their space program are drivers. They had an issue with a fixed contract. However, NOC gets access to US defence spending, the highest historically in the world. The only negative is that you have to buy this in inflated US dollars.
The dividend yield is elevated. Stock has more upside. It's a bond proxy if you hold this long term. A good, long-term story.
Benefits from continuing spending post-pandemic. Has long owned this. Continues to be the market leader. But if there's a meaningful recession, this will get hit like all else, but that would be the time to add more shares.
Ignore social media, where negative chatter is coming from anonymous accounts without technical background. Note that the Chinese are dominating EVs, which will be a big issue moving forward. Tesla's valuation is extreme compared to peers in this space. Professional traders are lining up to short this when the stock breaks. Carbon offsets have benefited Tesla huge. A trader can make money on this, but investors should avoid it.