Tag Archives: TOT

Top Canadian Stocks For 2019

Despite recent volatility, you still hear a lot about the dominance of tech stocks. But what many don’t tell you is how uneven the run for stocks has been lately.

For instance, did you know that a handful of popular large-cap tech stocks like Apple Inc. (NASDAQ:AAPL) account for more than 10% of the S&P 500’s entire value? And did you know that, thanks to the recent underperformance of one-time darling Apple, most investors have suffered a drag on their portfolio even if they only own broad-based index funds?

If ever there is an argument against index investing, then 2018 is it. Because the broader stock market may be choppy, but a handful of high-flying stocks are simply knocking it out of the park — with or without Apple along for the ride!

In fact, simply by being overweight in these high-growth tech stocks, you could have doubled or even tripled your gains last year.

So don’t settle for tracking the market when you can ride high-quality tech stocks to triple-digit gains.

And don’t throw your money away on risky tech startups and IPOs that don’t deliver.

Instead, look for high-potential investments in the tech sector that offer a high likelihood of outperformance in the near-term, and a chance of DOUBLING or even TRIPLING your money in the next 12 months with strong performance expected across this year.

Some of these investments are admittedly quite aggressive, of course, so please do all your own research and make sure these trades are just a part of a well-balanced portfolio.

Top Canadian Stocks For 2019: MGM Growth Properties LLC(MGP)

The move over the last decade to see hotel and casino operators separate their real estate assets from their general operations happened to MGM Resorts International (NYSE:MGM) in late 2015.

Activist real estate investor Land & Buildings pushedfor MGM to both spin off its real estate assets as well as its business in China to lower its debt burden. It did that by creating MGM Growth Properties LLC (NYSE:MGP), which it took public in April 2016 at $21 a share.

Included in the REIT IPO were 10 MGM properties including the Mandalay Bay and The Mirage in Las Vegas.

If you’ve got any reluctance about investing in a casino company like MGM that’s heavily reliant on the U.S., the triple-net leases of MGP give you good income without the ups and downs of the casino business.

On May 9, 50,000 casino workers in Las Vegas said they would vote May 22 whether to go on strike anytime after June 1. A strike would cripple the casino industry in Las Vegas. The last job interruption was in 1984 and lasted more than two months.

Buying the REIT makes a lot of sense given the current situation.

Top Canadian Stocks For 2019: Occidental Petroleum Corporation(OXY)

How do you know that oil prices are rising? Oil and gas producers are handily beating earnings estimates and share prices are hitting 52-week highs. Occidental Petroleum Corporation (NYSE:OXY) reported earnings per share May 9 of 92 cents, 30% higher than analyst estimates. On the top line, Occidental had revenue of $3.83 billion, 3.5% higher than analyst expectations and 29% higher than a year earlier.

That’s what happens when a barrel of oil goes from $40 to over $70 in less than a year. Even better, if you’re an OXY shareholder, the company upped its production guidance for 2018 to as high as 665 million barrels of oil equivalent per day (Mboe/d).

Making money at less than $70 a barrel — much less if oil prices move even higher, which many expect to happen this summer — Occidental will be rolling in the dough.

“Once we achieve our remaining milestones we will be well-positioned in the future with the cash flow necessary for our $40 oil price business sustainability and $50 oil price business growth scenarios,” CFO Cedric Burgher said. “But we will continue to operate our business to reduce those breakevens even further.”

Bring on $80 oil.

Top Canadian Stocks For 2019: General Motors Company(GM)

A company that emerged from bankruptcy less than a decade ago may not sound like an ideal stock to hold in retirement, but there are other things retirees may want to consider about General Motors. The carmaker’s shares today pay a dividend yielding 4.1%, and they trade at a P/E of just 5.5, compared to the S&P 500’s P/E ratio of 24.2. In other words, your cost for a dollar of GM’s earnings is less than a quarter of what you’d pay for the those of the broader stock market.

Because it’s in a cyclical industry, the Chevy maker’s results may fluctuate more than those of a typical defensive stock in the consumer staples or healthcare sectors. However, even with the American auto market past its peak, GM still expects earnings growth to return in 2019 as it introduces a new line of full-size pickups, and its low valuation means share buybacks will go a long way to lifting earnings per share.

The car market is transitioning toward autonomous and electric vehicles, and in both of these arenas, GM appears to have a leading position. Bolstered by its acquisition of Cruise, the company plans to produce a line of self-driving vehicles for a ride-sharing service next year, and it recently released an image of a prototype Cruise AV without a steering wheel. Led by the Chevy Bolt, the company delivered 69,500 electric vehicles last year, and it plans to introduce 20 new all-electric models by 2023.

With a solid dividend yield, cheap valuation, and promising future ahead of it, General Motors looks like the kind of reliable income stock that is perfect for retirees.

Top Canadian Stocks For 2019: TotalFinaElf, S.A.(TOT)

It may seem ridiculous to include one of the world’s largest oil companies on a list of stocks helping the environment, but Total SA (NYSE: TOT) is doing just that. The company’s long-term strategy focuses on two areas: renewable technologies and natural gas. The former includes a budding portfolio of wind, solar, and energy storage companies acquired over the years that can provide small but growing contributions to the bottom line today. For instance, it owns 56% of solar panel manufacturer SunPower. It’s also made several Hail Mary investments in synthetic biology to produce next-generation renewable fuels for aviation.

But the French energy giant’s massive bets on natural gas, specifically liquefied natural gas (LNG), may end up providing the biggest environmental and economic benefits. By 2020 Total will be the world’s second largest LNG player and generate $3 billion in operating cash flow from the supercooled gas. Soaring imports from China and India almost guarantee that. The two countries, which consume the majority of the world’s coal, are turning to LNG to clean up their electricity mix. Since natural gas produces half as much CO2 emissions as coal, swapping one for the other would be one of the century’s biggest environmental success stories.

Top Canadian Stocks For 2019: Enova International, Inc.(ENVA)

Enova International Inc (NASDAQ:ENVA) is an online consumer lender and a great addition to your list of growth stocks. It is growing its slate of products both domestically and in the United Kingdom, as well as starting to build a portfolio in Brazil. Its underwriting continues to be exceptional, and loan losses have been stable at their historical levels. Enova remains, in my eyes, the premier online consumer lending operation, growing earnings at an exceptional rate.

There is some additional good news. The new head of the Consumer Financial Protection Bureau has indicated that he may curtail the onerous rules that were issued by his predecessor regarding payday lending.

In addition, the payday loan trade association has filed a lawsuit against the Bureau, in which it alleges that the Bureau’s rule have no evidentiary support, that research there fails to show any consumer harm, and that the rules put in place are a de facto control of interest rates, which is beyond the Bureau’s power.

If this payday loan rule goes away, Enova will expand back into this extremely lucrative business. It was making money hand over fist and growing at an astonishing clip until the CFPB got involved. If this payday loan rule is completely overturned, I believe Enova could become even more profitable.