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

Recent Opinions

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Date Signal Company Expert Opinion Price
2017-05-19 N/A A Comment -- General Comments From an Expert
A Commentary
John Petrides

Market. Volatility is what most investors are wrestling with now. Volatility was at all-time lows for some time, and investors felt there was complacency in the market. We really only had one piece of Trump news this week. His pro-growth policies fell off the table for a couple of hours, and the market sold off pretty aggressively. Investors used that window as a buying opportunity, and there has been a come back in trading. 70% of companies have reported their results for the last trading period. Analysts were looking for a 9% earnings growth, which would have been the best since late 2011. However, it is not just looking at what stocks have done, it is what you are buying at today’s prices that you are getting from earnings. If expectations were for 9% earnings growth, if achieved, that would be the best since Q4 2011, and we are already surpassing that. That means that when looking at PE valuations, the earnings (E) part of the equation is understated, which means valuations are more attractive than what many are suggesting. With wage growth at about 2.5%, and the unemployment situation being fine, low volatility in the stock market, the Fed has to just be ecstatic with where things are right now.


Price: $0.020
Subject: US EQUITIES
Bias: BULLISH
Owned: _N/A
2017-05-19 N/A A Comment -- General Comments From an Expert
A Commentary
David Driscoll

Market. This had a bit of a comeback today. He guesses that people are just stepping back feeling that earnings season had been pretty good for the corporations, and if the US does ever get any their fiscal policies enacted, then they are going to be flush with cash to take advantage of M&A or to continue on with the stream they are doing in innovation. There are a lot of expectations built in going forward for 5-10 years. It is always nice to have some cash, because if you are fully invested, you get hit with the market. The growth in ETF’s, is not an issue now, but if it gets to 50% of the market, then we are going to have extreme volatility. There could be a 20% decline in any one day. Probably not now, but you just never know.


Price: $0.020
Subject: GLOBAL
Bias: UNKNOWN
Owned: _N/A
2017-05-19 N/A A Comment -- General Comments From an Expert
A Commentary
David Driscoll

Percentage of cash in a portfolio? In the worst markets such as 2008, the prudent amount to hold was 20%. In these markets, if they continue to rise further, you don’t want to have too much cash, because you can’t keep up with the markets. Having about 20% cash, if you are all equity, is probably the most appropriate. That way, you will have 80% invested in the market, and if the market falls off, you have cash to allocate at a better entry price.


Price: $0.020
Subject: GLOBAL
Bias: UNKNOWN
Owned: _N/A
2017-05-19 COMMENT A Comment -- General Comments From an Expert
A Commentary
David Driscoll

Fang stocks? Any stock that is trading greater than 30X earnings, and in some cases upwards of 75X, you have to be disciplined with your investing. Instead of throwing all your money into it, just put half of it in. If it doubles in price, you can sell half and then the rest is free. They’ve outperformed the S&P by a wide margin so far this year.


Price: $0.020
Subject: GLOBAL
Bias: UNKNOWN
Owned: Unknown
2017-05-19 COMMENT Apple
AAPL-Q
John Petrides

He still likes this despite its run up. It has a 4% position in the S&P 500 and is up 25%, and probably a 15% position in the NASDAQ. Has been a major driver of indices and performance year-to-date. The story is still attractive. You are getting the 10th anniversary of the iPhone in September, which should be a blockbuster product. By this time next year, with the new iPhone coming out, it has very low hurdle rates to jump over. Also, starting to ramp up their services business, which is very important for future growth. If and when Trump and the Republicans are able to pass through tax reform, this company has $250 billion of cash, whereby 95% of that is sitting overseas. If they were able to repatriate that cash and give it to shareholders, that would be a good thing.


Price: $153.060
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 COMMENT Advanced Micro Devices
AMD-Q
David Driscoll

Probably the poor cousin of Nvidia (NVDA-Q) right now. While they have a chip coming that is comparable, there is a difference between having great ideas and running the business, whereas Nvidia has been able to do both. This company has had difficulty in running their business. They haven’t been growing their cash flow and it hasn’t been generating positive cash flows, so they have been sinking a lot of money into CapX and R&D. Looking at their past, they still haven’t proven that they are able to get all their ducks in a row, so they can keep moving forward.


Price: $11.410
Subject: GLOBAL
Bias: UNKNOWN
Owned: Unknown
2017-05-19 HOLD Amgen Inc.
AMGN-Q
John Petrides

He likes this as an investment. It could be a core health care holding in any portfolio. They’ve generated tremendous cash flow and have a very strong balance sheet.


Price: $156.510
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 TOP PICK ASA Ltd.
ASA-N
John Petrides

He typically avoids mutual funds and prefers individual stocks, but as a closed-end fund, this has a limited number of securities. It is a basket of the gold miners. Owning gold in this environment with the heightened geopolitical risks, prepares your portfolio for the unexpected. Owning gold miners makes a lot of sense. As a closed-end fund, there are limited shares, and the fund will move up and down at a premium or discount to its NAV. Right now, this is trading at a 9% discount to its NAV. Closed end funds uses leverage to enhance its value, but this fund does not use any leverage.


Price: $12.160
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2017-05-19 COMMENT Alibaba Group Holding
BABA-N
David Driscoll

The opportunity to be the Amazon of China is definitely there. They’ve got 500 million users now. They are kind of a quasi-Amazon eBay. The way you have to play this is, these are trading stocks, they don’t pay dividends, you don’t get voting control. Therefore, if you are going to trade them, do a half a position. If it doubles in price, then you take half off the table and then the rest is free. It’s a good company and they are in a good space, but he would still be cautious in investing in companies like this.


Price: $123.220
Subject: GLOBAL
Bias: UNKNOWN
Owned: No
2017-05-19 BUY on WEAKNESS Bank of America
BAC-N
John Petrides

Financials are one of his favourite sectors. He would definitely recommend Holding this and buying on any dips. With the fundamentals of the banking sector, the wind is really at your back, because they had been regulated post the crisis, and have so much capital on their balance sheets, that they are the strongest they have been since World War II. By and large, the consumer is fairly healthy, so the loan book is actually quite strong for banks in general. Also, the Fed is embarking on raising rates. As they continue to move higher, higher interest rates are good for bank revenues. If Trump is able to put some sort of deregulation into the banking sector, that is icing on the cake.


Price: $23.050
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 COMMENT Bank of America
BAC-N
David Driscoll

Bank of America (BAC-N) or Citigroup (C-N)? This one will give you more of the mortgage business. If your a believer that the economy is going to continue to grow, housing is going to expand, then this is for you. It comes down to where your comfort level is going to be. He would personally prefer J.P. Morgan (JPM-N), given that their investment banking arm is probably doing better than Goldman Sachs (GS-N) right now. This is fairly cheap on a relative basis.


Price: $23.050
Subject: GLOBAL
Bias: UNKNOWN
Owned: No
2017-05-19 TOP PICK Becton Dickinson
BDX-N
David Driscoll

This started a long time ago making syringes and needles, and that’s pretty much been their core. It’s all consumables in the hospitals, etc. Just made a recent acquisition of CR Bard (BCR-N) in the urology business. Both companies generate consistently growing free cash flows. There’s a 10% bump to the dividend every year. This merger is going to give them some debt that should be paid off within the next 2 years. He likes the company at this price.


Price: $184.130
Subject: GLOBAL
Bias: UNKNOWN
Owned: Yes
2017-05-19 BUY Blackstone Group LP
BX-N
David Driscoll

He is looking at this. People are looking for some kind of alternative investments, and this is the biggest private equity firm out there. The dividend yield is upwards of 8% right now, and that is just because you get that lumpiness of deals being bought and sold. If you look at their stock price long-term growth, it has risen about 30% a year on average for about the last 10-20 years. He is quite interested in this.


Price: $29.870
Subject: GLOBAL
Bias: UNKNOWN
Owned: No
2017-05-19 BUY CitiGroup
C-N
John Petrides

His favourite financial to own. The one bank that is still trading at a discount to its tangible BV. When trading at a discount to Book Value, the market expects your BV to erode, but since 2011, every single quarter, their BV has increased.


Price: $61.100
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 COMMENT CitiGroup
C-N
David Driscoll

Bank of America (BAC-N) or Citigroup (C-N)? This gives you a little more international exposure and more investment banking. It comes down to where your comfort level is going to be. He would personally prefer J.P. Morgan (JPM-N), given that their investment banking arm is probably doing better than Goldman Sachs (GS-N) right now. The stock is fairly cheap on a relative basis.


Price: $61.100
Subject: GLOBAL
Bias: UNKNOWN
Owned: No
2017-05-19 BUY Chicago Bridge & Iron Co.
CBI-N
John Petrides

This got crushed this week. They had a poor earnings call, but the following sell-off each day was probably sentiment of Trump’s infrastructure package getting delayed, or taken off the table entirely. Their backlog is still pretty good and valuation is about 4.5X earnings. He likes this is a purchase at this time.


Price: $20.800
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2017-05-19 DON'T BUY Celgene Corp
CELG-Q
John Petrides

Trading at 25X price to cash flow, a bit too rich for him. The stock is up 17% over the last 12 months. The bet on this company is that you have faith in their pipeline executing on future drugs. There is much more attractive value in healthcare outside of this.


Price: $116.930
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2017-05-19 DON'T BUY Cisco
CSCO-Q
David Driscoll

There is a split right now in the technology space. If you think of Cisco, Intel, and even IBM, they are old legacy businesses and are starting to drop off the vine. It is commoditized and they are not making much money off of it. They are desperately hurrying into the tech side of the business. With this one, you are getting away from the set-top boxes, and getting into Cloud and other services. Everybody is up in the Cloud right now and you are starting to get commoditization on prices, which is not going to help this company over time. If they start to see a slowdown on their upscale business, then of course, with a slowdown in the hardware side, it is going to hurt. People are investing for the yield, and he thinks there are better tech stocks out there. 3.7% dividend yield.


Price: $31.210
Subject: GLOBAL
Bias: UNKNOWN
Owned: Unknown
2017-05-19 DON'T BUY CSX Corp
CSX-Q
John Petrides

This has run up so much that he wouldn’t go near it. If you want to play the rails or the transports, he would look at Kansas City Southern (KSU-N) which has been held back by the fears of a wall for Mexico. You could look at maybe the truck stocks or airlines. Feels there is better value elsewhere.


Price: $50.380
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 COMMENT CVS Health Corp
CVS-N
John Petrides

He likes this a lot. Trading at 13X earnings, a discount to its major competitor Walgreens (WBA-Q) at 16X. Trading at a big discount to the market. You get a really nice dividend. The company buys back a lot of stock. Also, has Caremark, the pharmacy management business, which is under a bit of pressure because of drug prices. You really have a diversified business model between the PBM side and the store side. Long-term fundamentals on the healthcare business are very favourable, where you have an aging and growing population. This is very attractive.


Price: $76.320
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 PAST TOP PICK Amdocs
DOX-Q
John Petrides

(A Top Pick Feb 9/17. Up 8%.) Provides the back office and billing support for many global wireless carriers. AT&T (T-N) is a 30% customer, so when you get a bill from AT&T, this company is providing that and doing all the support behind the scenes. Has a recurring revenue and generates a lot of cash flow. Has no debt on the balance sheet. For the last 10 years, they’ve been buying back stock at 4% annually. Trading at about 14X earnings. Have grown the dividend about 30% annually for the last couple of years.


Price: $63.970
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2017-05-19 TOP PICK Dassault Systemes
DSY-FP
David Driscoll

This is artificial intelligence. It is 3-D CAMCAD technology for both the Procter & Gambles as well as carmakers. It’s all designs. So if you have an idea, you run the design simulation 3000-4000 times, and it will spit out the right way to do it, create the supply chain, make any changes, and then off they go. The company has been growing at 15%-20% profitability. They are #1 in their segment and are growing nicely quickly. The dividend increased 14%, which is double the historic average for the global market.


Price: $0.000
Subject: GLOBAL
Bias: UNKNOWN
Owned: Yes
2017-05-19 COMMENT Ford Motor
F-N
John Petrides

If you’ve been a shareholder of this company, it is probably the most frustrating stock in your portfolio. Ridiculously cheap from a valuation standpoint. They pay out a huge dividend. Their balance sheet, excluding Ford Financial, is very, very healthy. Has more cash than debt. They are committing capital for electric cars in 2020 and 2021. Doing everything the Trump administration would want. Car sales in the US are now sub 17 million on an annualized basis. Investors are fearful that the car market is rolling over and that the segment is slowing down. At current prices, this looks really attractive.


Price: $10.870
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2017-05-19 BUY Foot Locker
FL-N
David Driscoll

This has free cash flow growth. Against their competition, they have actually been doing quite well. You’re getting a 10-year growth rate and CapX at 50%, cash from operations of 110%, and dividend growth of 184% over the last 10 years. The free cash flow has grown at about a 3rd over that time frame. A brick-and-mortar company that knows what they are doing.


Price: $58.720
Subject: GLOBAL
Bias: UNKNOWN
Owned: Unknown
2017-05-19 PAST TOP PICK Fomento Economico Mexican
FMX-N
David Driscoll

(A Top Pick June 7/16. Down 2.69%.) A perfect example for these 3 past Top Picks to be able to take advantage in the fall, for buying more of them to dollar cost average. With the Trump victory, the peso was getting crushed. Unfortunately, this company went down with it, simply because it was Mexican, even though they don’t do any business in the US. They are the Coca-Cola bottler outside of the US. They have OXO convenience stores and gas stations, and have gone into pharmacies all through Mexico, Latin America and south America. Their earnings are good, they are still opening gas stations, and have about 20,000 OXO stores, and now are adding gas pumps with them. Earnings are growing at a fairly decent clip.


Price: $91.440
Subject: GLOBAL
Bias: UNKNOWN
Owned: Yes
2017-05-19 BUY General Electric
GE-N
John Petrides

If you don’t have much exposure to industrials, this is a good name to own. It reminds him a lot of Microsoft (MSFT-Q), which was stuck in the mud back around 2013. When Ballmer was replaced, the stock hasn’t looked back since. If the CEO was replaced, he could see the stock significantly higher. Good dividend yield.


Price: $28.050
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2017-05-19 PAST TOP PICK Gemalto
GTO-NV
David Driscoll

(A Top Pick June 7/16. Down 1.21%.)  A perfect example for these 3 past Top Picks to be able to take advantage in the fall, for buying more of them to dollar cost average. He was buying more when it collapsed from $60 down to $40. This is cyber security. They do chip technology for credit cards and holograms for passports. This is Amazon’s biggest cryptologists encryption. They just bought a subsidiary of 3M that does iris and fingerprint scanning. Their big problem right now is with Sim cards. Everybody owns a smart phone, so they are not getting new phones replaced as quickly as possible, so the Sim card business is weakening. And with the E-Sim, they are involved, but there isn’t that kind of market mass for demand to start pushing revenues higher. Still trading on 2019 earnings at about 14X earnings, so it’s still cheap.


Price: $0.000
Subject: GLOBAL
Bias: UNKNOWN
Owned: Yes
2017-05-19 PAST TOP PICK Hanesbrands
HBI-N
John Petrides

(A Top Pick Feb 9/17. Up 3%.) Pressure on retail has hurt them. In 2012, cotton prices spiked. The company had a tremendous amount of debt. Management was focused on using their cash to pay down debt. At the same time, they embarked on a strategy called “Innovate to Elevate” an innovative commoditized category to elevate margins. They did so by imprinting tags on undershirts, etc. rather than having labels. Because of that they’ve been able to charge higher prices to get better margins. At 9X earnings, this is a very, very cheap stock.


Price: $20.720
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2017-05-19 COMMENT Home Depot
HD-N
David Driscoll

The crème de la crème in the retail space, something Amazon can’t fight. There are a lot of renovations. In housing, people are pretty much buying whatever they can because supply is not available, especially in the Midwest and California, so you get a teardown and start to renovate.


Price: $156.300
Subject: GLOBAL
Bias: UNKNOWN
Owned: Unknown
2017-05-19 TOP PICK Helmerich & Payne
HP-N
John Petrides

Down 25% year to date. Energy was the best performing sector in 2016, and has been the worst to start. The largest land driller in the US. They have more cash than debt on the balance sheet. In 2015, they finished a multi-year CapX upgrade cycle to all their rigs. They are going to market with the most technically advanced and updated rigs and picking up tremendous market share. At 12.5X cash flow, with the balance sheet and the dividend, this is a very good buy. 4.5% dividend yield.


Price: $60.040
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
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