Independent Insight

Don’t Underestimate the Magnitude of Amazon’s Growth

Don’t Underestimate the Magnitude of Amazon’s Growth

Everyone knows Amazon.com (NASDAQ:AMZN) is a colossus. Jeff Bezos’ little online book selling company has transformed into a sprawling, global e-commerce, logistics and cloud services giant. But do we fully appreciate the sheer scale and continuing growth possibilities of the company? To drive the point home, RBC Capital Markets has published a report entitled The Magnitude & Meaning of AMZL. The ‘L’ stands for logistics.

Four Reasons Bull Market Could Last Until 2038

Four Reasons Bull Market Could Last Until 2038

Thomas J. Lee is a well-followed, well-respected strategist who’s been top-ranked by Institutional Investor every year since 1998. He was Morgan Stanley’s Chief Equity Strategist from 2007 to 2014 and is the Managing Partner, Head of Research and a co-founder at Fundstrat Global Advisors. In short, he’s one of those people worth paying attention to when he speaks. His latest take on the bull market for stocks is from a demographic perspective. Lee believes this bull could keep running until 2038. Here’s why.

Glittering Franco-Nevada Outperformance Will Continue

New CEO, same gilded-edge strategy. Franco-Nevada has indeed been the gold standard in the precious metals industry for decades. Since going public again in 2007, the royalty and streaming company’s stock has put up 21 per cent compound annual growth rate, far outstripping the major stock indices, its peers and gold itself. We talk to new CEO Paul Brink about how he plans to keep that legacy going, opportunities, the prospects for gold and more.

Bear & Bull Cases for Brookfield Property Partners

Bear & Bull Cases for Brookfield Property Partners

The management team of Brookfield Asset Management has been held up as a gold standard for many years now and rightfully so. Bruce Flatt and his crew have assembled an impressive array of real estate, infrastructure, private equity and renewable power assets. But questions are now swirling about the value of Brookfield Property Partners and Brookfield Property REIT, which have shown to be especially exposed during the pandemic. Here are the bear and bull cases.

The Trillion Dollar Wealth Transfer & Why It Matters

BMO Private Wealth estimates that more than one trillion dollars will be transferred to women in Canada over the next decade. That’s a lot of money women will be looking to have managed either by their current financial advisor, if they have one, or someone new. The problem is that more than 70 per cent of women say they’re dissatisfied with the financial industry. And that the majority of them don’t believe advisors, 80 per cent of which are male, are properly respecting, understanding or hearing them. Libby Wildman, Senior Partner at Davis Rea, explains the disconnect and what can be done. 

read more
Stocks Off The Charts

Stocks Off The Charts

We present a bevy of interesting charts courtesy of well-known value investor, Whitney Tilson, who runs Empire Financial Research. Based on research from hedge fund manager Mark Spiegel of Stanphyl Capital, there’s a compelling case to be made that the major U.S. stock market indices and, more specifically, technology stocks are in a bubble of epic proportions. Some of the froth has come out of Tesla et al recently and the extreme valuations don’t necessarily mean the bull market is over.

read more
Tech Bubble Echoes Japan in Late ’80s

Tech Bubble Echoes Japan in Late ’80s

The current bubble in a select group of technology stocks compares to the real estate bubble in Japan in the late 1980s. That’s according to Andrew Perlin, founder and Chief Investment Officer of Washington Peak, an investment advisory firm. Perlin has written an opinion editorial in the Financial Times, the crux of which is that the current hyper-enthusiasm for anything perceived to be disruptive echoes the behaviour of investors in Japan more than 30 years ago and the ones who drove dot-com stocks to stratospheric levels in 2000. Perlin believes that this time is not different and that the current bubble will likely not end well.

read more

Walmart’s Copycat Service Will Fail

Walmart is still the world’s largest retailer with a market value of nearly $400 billion. And its stock has gained more than 120 per cent the last five years. But the company has long since been passed by Amazon, which has a market cap of about $1.6 trillion and its shares have surged more than 520 per cent over those same five years. And when it comes to competing head-to-head with Amazon, Walmart usually flails. The retailer’s new membership service could be its latest misstep. Here’s why. 

read more
Where to Now? Bullish & Bearish Scenarios.

Where to Now? Bullish & Bearish Scenarios.

Ed Yardeni is a glass half full kind of guy. That positivism has allowed the head of Yardeni Research to be completely correct for several years now about the upward direction of the major stock indices. In his latest research note, Yardeni presents the bull and bear cases for where the markets may go next.

read more

How Violent Protests Could Tip the U.S. Election

There are a myriad of ingredients that go into an election victory recipe. Some are expected and understood, some are unexpected and only make sense after the fact. The U.S. election of 2016 is the best example of that. In an effort to gauge Donald Trump’s and Joe Biden’s paths to possible victory in early November and what it may mean for investors, John O’Connell and I examine the state of the race and several of the key factors that are currently being stirred in a jumbled stew of uncertainty.

read more
Smart Money Sells Most Stock Since 2015

Smart Money Sells Most Stock Since 2015

Spooked by the recent decline in the stock market? Smart money insiders saw it coming. Market watchers had been pointing to a number of stretched metrics as evidence the major market indices were due for a pullback, if not a correction of 10% or more. A tell tale sign the smart money is selling to the so-called dumb money retail investor is the selling of shares by insiders of publicly-listed companies, which hit a five-year high in August.

read more
Netflix to Grow 30% Annually Next 10 Years

Netflix to Grow 30% Annually Next 10 Years

RBC Capital Markets analysts have been bullish on Netflix for the last ten years. They’ve been right to be. The stock of the media streamer has surged by nearly 2,300 per cent over that time. Surely Netflix can’t keep up that pace over the next ten years. Probably not. But RBC thinks the company can still grow its earnings per share an average of 30 per cent annually the next decade with the stock achieving annual mid-teens growth. Here are seven reasons why.

read more
Allied REIT Has 40% Upside

Allied REIT Has 40% Upside

You may recall we had Michael Emory in our Uncommon Sense Investor studio about six weeks ago. The founder, President and CEO of Allied Properties REIT covered a number of topics during our conversation. Analysts at Goldman Sachs are optimistic about Allied starting coverage with a “buy” rating and putting a price target on the units that imply upside of more than 40 per cent.

read more
Investors Should Position for Rising Odds of Trump Re-Election

Investors Should Position for Rising Odds of Trump Re-Election

As the Global Head of J.P. Morgan’s Quantitative and Derivatives Strategy, Marko Kolanovic has been called a guru. That’s because since the COVID-induced stock market crash in March, he’s been unerringly accurate in predicting the trajectory of the stock market. Now, Kolanovic is saying Donald Trump’s chances for re-election are improving and that investors would be wise to position themselves for that possibility.

read more
Summer Rally Fling for Investors or Real Romance?

Summer Rally Fling for Investors or Real Romance?

This was the summer investors fell hard for risk — at first reluctantly and now avidly. The embrace of stocks by those willing to take the chance in the spring has been blissful: The S&P 500 has gained 60% from the March 23 low and 13% since June 30. Up more than 7% this month, it’s lining up to be the best August since 1984. The approach of shorter days and cooler nights now prompts the question: Has it been too good to last without some hard adjustments?

read more
How Financial Advisors Can Better Engage with Women

How Financial Advisors Can Better Engage with Women

Women and men are different. Influenced by physiological and societal factors, women’s motivations, perspectives, priorities and communication styles are different than men’s. For financial advisors to engage couples and female clients successfully, they need to be aware of these differences and adapt accordingly. Here’s how.

read more
10 Stocks to Own Through 2025

10 Stocks to Own Through 2025

Unless you’re a trader, the advice to investors from portfolio managers worth their salt is to own well-managed, dependable, market-leading companies that people touch every day, and to own them for the long haul. So what do you want to own from now until at least 2025? We ask because RBC Capital Markets Global Equity Research team has put together an exhaustive, nearly 200 page report entitled Imagine 2025: Themes, Opportunities and the “Law of Accelerating Returns”. Luckily for you and to save you time, we’ve plucked some key commentary, a list of 70 stocks from seven sectors, a sub-list of 10 stocks, and a few intriguing charts.

read more
Trump Blinks in His War on China

Trump Blinks in His War on China

Alarm bells went off in the business community when Trump, feeling empowered and on a roll about how much money he was going to earn from confiscating assets, decided to up his game and ban WeChat. That’s the real big dog in this fight. If Trump outlaws WeChat expect serious problems for American companies.  It could be a devastating blow for US technology, retail, gaming and entertainment, and telecommunications companies.   

read more
Why the “Awesome Eight” Will Roll Over

Why the “Awesome Eight” Will Roll Over

Tired of reading and hearing about the extraordinary outperformance of the big technology stocks and their inordinately large share of the stock market? Well, you may not have to deal with it much longer. All good things must end and investors with profits in these market leaders may want to consider looking at taking some money off the table and applying it to some out of favour sectors and stocks…

read more

Five Keys to Picking Winners

The Veritas Way. It’s the rigorous, disciplined, forensic, accounting-based method by which independent analyst Anthony Scilipoti has analyzed stocks for more than 20 years at the firm he co-founded, Veritas Investment Research. It’s allowed his clients to reap the benefits of winning stocks and avoid the calamity of value destruction in the cases of Bombardier, Nortel, Valeant. Here are the five keys to picking winning stocks and dismissing the losers.

read more

He Nailed Bombardier, Nortel & Valeant. Who’s Next?

In Roman mythology, Veritas is the goddess of truth. And that’s what Anthony Scilipoti has been seeking for more than 20 years in applying forensic, accounting-based research at the independent firm he co-founded, Veritas Investment Research. Find out in this interview who’s on his radar now. Scilipoti also discusses the importance of being independent, and the methods that make Veritas’s research invaluable to a broad spectrum of clients including regulators, pension funds and investment advisors.

read more
Stock Market Storm is Coming

Stock Market Storm is Coming

The U.S. stock market’s five-month rally is coming to an end. Of course I don’t know when. That’s important to acknowledge, since this spring I presented arguments for why the market’s March lows could be retested in mid-June or mid-August. As many of you have emailed me recently to remind me, neither scenario came to pass. Nevertheless, conditions are even stronger now for a correction.

read more