Independent Insight

Three Tech Stocks Trading at the Most Compelling Valuations in Years

Three Tech Stocks Trading at the Most Compelling Valuations in Years

You likely know that technology stocks have not fared well this year after generally hitting all-time highs last November.

But did you know that several of the most impressive, market-leading companies with large customer bases are trading at the most compelling valuations in years?

Buying at the right price is a key component in achieving strong, long-term gains.

Watch and listen to the bull case for these three stocks.

10 Undervalued High-Quality Stocks

10 Undervalued High-Quality Stocks

Depending on who you talk to, we may or may not be in a recession. The textbook definition of an economic recession is two consecutive quarters of decline in gross domestic product, which we’ve experienced in 2022. However, other economic indicators that often fall during recession—including employment and consumer spending—have trended up so far this year. Keep reading…

“People Have FOMO and Freak Out Low”

“People Have FOMO and Freak Out Low”

Want some free investment and trading advice from an experienced professional? Who wouldn’t? So, what are the worst habits of investors and how can they be corrected? Mistakes in investing and trading will always happen but having a repeatable process to eliminate or at least minimize those mistakes is critical to successful investing. Keith McCullough has nearly 25 years experience as a research analyst, hedge fund manager and, since 2008, as CEO of Hedgeye Risk Management, which advises institutional clients that have trillions of dollars under management. Hedgeye also has thousands of retail subscribers who are coached through the company’s data-driven, and transparent investment process. In this segment, find out how to fade your feelings, prepare, curate, narrow down, and focus on the right types off investments at the right time, and how to execute dispassionately to generate better returns for your portfolio. 

When Will the Fed Stop Hiking Rates?

When Will the Fed Stop Hiking Rates?

There’s been premature talk in financial markets about a “Fed pivot”. That the U.S. central bank is already indicating it will stop its interest rate increases sooner than later. That’s news to the yield curve of two and 10-year U.S. Treasuries, which remains inverted, implying more rate hikes and slowing economic growth. But, at some point, the Fed will end its battle to reel in inflation and stop raising rates. The question is when. J.J. Johnston has some thoughts on the matter from our live show.

“If You Have Money Put It In the Stock Market”

“If You Have Money Put It In the Stock Market”

Our live Davis Rea quarterly conference call produced a lot of cogent insight, analysis, and actionable ideas. We’re carving out the hi-lights of the show to post over the next week. In this segment, John O’Connell, Chairman, CEO, & CIO, makes an impassioned and convincing argument that now is the time to be an investor in the stock market. Find out why. 

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“There’s No Rush to Call a Market Bottom”

“There’s No Rush to Call a Market Bottom”

When you’ve called every bear market since 2008, including the current one, you’ve earned the right to have strong, provocative opinions. Keith McCullough, who is not a perma-bear, doesn’t hold back in this interview. The CEO and Founder of Hedgeye Risk Management prepared his institutional clients and subscribers to preserve and grow their capital as his proprietary, data-driven, “go anywhere”, macro process sniffed out the stock market peak last year and the subsequent market downturn. In our conversation, McCullough covers a lot of ground explaining his views on the deteriorating macro economic picture, why there’s no rush to find the stock market bottom, why earnings are a “certified train wreck”, dishonest CEOs, why the Fed is dead wrong…again, Cramer and the CNBC “clown show”, liars, thieves, and scoundrels and much more. 

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Three Mighty Mid-Cap Stocks

Three Mighty Mid-Cap Stocks

About a year ago, we brought you what turned out to be a very popular article entitled 11 Mighty U.S. Mid-Cap Stocks, courtesy of Kiplinger. Now, Canadian investment writer Will Ashworth has come up with 15 Mighty Mid-Caps to Buy for the Rest of 2022. See below for the full article and list. As a taster, we’re featuring three of these stocks that have 12-month upside of between 24 and 48 per cent. 

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Big Picture: Stocks, Economy, the Loonie, Inflation & More

Big Picture: Stocks, Economy, the Loonie, Inflation & More

Davis Rea Investment Counsel has sent out its latest quarterly report to its clients and we have exclusive access to it. John Johnston, Economic Advisor, has surveyed the landscape and crunched the numbers to present a cogent view of the economy, recession risk, commodities, the Canadian dollar, inflation, bonds, interest rates, and equities. Go behind the scenes to get Johnston’s Big Picture outlook. 

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10 Top Signal Strength Stocks from Hedgeye’s Keith McCullough

10 Top Signal Strength Stocks from Hedgeye’s Keith McCullough

Keith McCullough, the CEO and Founder of Hedgeye Risk Management, keeps a running tally of his 20 Top Signal Strength Stocks. They’re ranked based on his proprietary price, volume, and volatility algorithm, which includes risk range levels as to where to buy and sell them. McCullough was gracious enough to give us more than a peek into his list by rattling off 10 of the stocks that currently rank highly. There are far fewer than usual because of the poor stock market conditions. But watch this video, part one of our conversation, to find out what’s working now. 

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Leveraged Speculation Shifts to the Short Side

Leveraged Speculation Shifts to the Short Side

It’s incorrect to think that the speculative fervour among retail investors has come out of the stock market because so much pain has been inflicted on the downside. Like the title of that new movie. Nope. A lot of these investors have simply re-loaded and are now making aggressive, speculative bets against the market by making short trades. Find out more from Jesse Felder, and see three very telling charts. 

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Have Investors Reached “Full Capitulation?”

Have Investors Reached “Full Capitulation?”

Capitulation. A former colleague and I used to jokingly throw that word around the BNN newsroom in the early 2000s because it was so ubiquitous as pundits tried to pick the bottom of the market after the tech crash. Now, capitulation – the action of surrendering or ceasing to resist an opponent or demand – is back in the headlines as investor sentiment plumbs new lows and many wonder if the worst may be over for stocks. 

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Amazon Tells Consumers to Spend…Less

Amazon Tells Consumers to Spend…Less

Amazon is tackling inflation head on…with an advertising campaign. The e-commerce and web services giant is actually encouraging parents to spend less on their kids for their back-to-school needs. Will this attempt at humour and playfulness work on consumers, many of whom are experiencing the real world effects of higher prices? Keep reading…

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The Three Best Canadian Dividend Stocks Right Now

The Three Best Canadian Dividend Stocks Right Now

After recent market downturns, value stocks may be falling back in favour. Their ability to generate free cash flow in times of high inflation can provide resilient monthly income. Canadian businesses that deliver value with dividends have also proven to protect on the downside. The Morningstar Canada Index (NR) fell 8.53% as of June 27th – not bad but greatly outmatched by the Morningstar Canada Dividend Yield Focus (NR) and its gain of 2.53%. The flight to free cash flow has found many receptive companies, with a variety of returns year to date. As some income stocks underperform the broad market, undervalued opportunities could be forming in value stocks. Keep reading…

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Tech Crash Mirrors Path of Early 2000s

Tech Crash Mirrors Path of Early 2000s

While the decline in the broad stock market over the first half of this year has led many to believe the current bear market is just that old, it may be important to note that many of the most popular stocks in the market peaked and rolled over well before the major indexes did. In fact, it was the meme stock blowoff top back in February of 2021, nearly a year before the peak in the broad market, that marked the beginning of the bear market for many. And this sequence should be familiar to those of us who were involved in markets a couple of decades ago. Keep reading…

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Wall Street’s Sudden Pessimism a Sign of Hope

Wall Street’s Sudden Pessimism a Sign of Hope

Equity research analysts are usually the last ones to succumb to negativity. That’s partly because the firms they work for often conduct investment banking business with the companies they cover. While the so-called Chinese Wall is supposed to exist whereby analyst coverage is not supposed to unduly favour investment banking clients, we know it still goes on. That’s why many analysts in general are very hesitant to turn negative on a company’s prospects. But lately, many analysts have been throwing in the towel and capitulating to what the stock market has been signalling for months. That is that the rate of change for most companies revenue and earnings is dropping precipitously from the unprecedented numbers from last year. When analysts get pessimistic in a hurry it’s often a sign the worst is over and a new dawn for stocks may be coming into sight. 

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Q3 Equity Strategy Outlook

Q3 Equity Strategy Outlook

Hard economic landing or soft? Recession or not? Second-half rally for stocks or more pain to come? There are many questions to be answered in the coming months. BCA Research is taking its best stab at how the economy and financial markets will unfold over that time with their third quarter strategy outlook. We’ve culled the salient hi-lights and a few charts from what is an insightful, informative, and exhaustive report by Chief Global Strategist Peter Berezin, and his team. 

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11 Reasons to Get More Bullish on Equities

11 Reasons to Get More Bullish on Equities

Let’s first consider: Does a mild and brief landing lie ahead? Have interest rates peaked? Will lower rates lead to a rally in large-cap growth stocks and for the market as a whole? I am growing increasingly, and incrementally, more bullish on equities, in part based on my expectations of a mild and brief recession and a possible rapid deceleration in the rate of inflation, causing a less hawkish Fed. Keep reading…

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Hedgeye’s McCullough Nails Another “Quad 4” Bear Market Crash

Hedgeye’s McCullough Nails Another “Quad 4” Bear Market Crash

The record of Keith McCullough is intact. The voluble founder and CEO of Hedgeye Risk Management has not failed to anticipate a bear market crash since 2008. That prescience over the years has saved him and his subscribers and large institutional clients untold billions of dollars. The crash of 2008 was the year after McCullough was fired as a hedge fund manager by Carlyle Group for being “too bearish.” He, of course, turned out to be correct about what we now call the Great Financial Crisis. McCullough, who hails from Thunder Bay, Ontario, founded Hedgeye in 2008 with a goal of bringing hedge fund-quality research to the masses through trust, transparency, and accountability. Since then, he’s been refining his data-driven process to the point that he’s been right in calling every bear market – commonly accepted as a major stock index dropping 20 per cent or more from its recent peak.

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Four Leading Stocks You’ll Be Happy to Own a Year From Now

Four Leading Stocks You’ll Be Happy to Own a Year From Now

We’re near the midway point of 2022, and this year is shaping up to be a lot different than most investors had expected. And that means, as investors look to retool their portfolios with the best stocks for the rest of 2022, they’ll have to take a somewhat different tack than they did at the start of the year. The optimism following strong returns in 2020 and 2021 has given way to bear market angst. All major U.S. indices crossed into official bear market territory in the first half of 2022. As for the reasons? Keep reading…

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These Two Stocks May Be the Best Inflation Hedges Out There

These Two Stocks May Be the Best Inflation Hedges Out There

The bear market crash for stocks accelerated this week with the S&P 500 joining the Nasdaq Composite and Russell 2000 in falling more than 20 per cent from its peak. This as the U.S. Federal Reserve scrambles to get the inflation genie under control, let alone back in the bottle, after the Fed let it loose by keeping monetary policy way too easy for way too long. Long-term investors are being told to not fret and that everything will be just fine over time. But short-term, where’s an investor to turn? In this conversation with John O’Connell, we isolate two companies that millions of people use every day. One is like a toll booth and somewhat inflation resistant. The other has pricing power in this inflationary environment. 

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European Vacation: Boots on the Ground View of EU Economies & Multi-National Companies

European Vacation: Boots on the Ground View of EU Economies & Multi-National Companies

John O’Connell recently took a European vacation. The Chair, CEO & CIO of Davis Rea Investment Counsel spent time in Germany, Italy, France, and Monaco, and drove through Switzerland. Naturally, he was enjoying the sights. But also, naturally, he had a keen eye out in order to glean empirical and anecdotal evidence of what’s happening economically in those regions of Europe. Are the shops and restaurants busy? Is there steady foot traffic at McDonald’s? Did that consumer just use a Visa card? How many FedEx trucks and Amazon deliveries has he counted in this residential neighbourhood? How many iPhones can he count on this crowded street? Get O’Connell’s impressions of his European (working) vacation, and hear his answers to those questions about the health of multi-national companies, and what his on-the-ground research may mean for your investments.

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Inflation & The $64,000 Question for Stocks

Inflation & The $64,000 Question for Stocks

The weakness in the stock market so far this year has many pundits and investors alike wondering if we might be closer to the end of the drawdown than the beginning. From the indicators I watch, it is fairly obvious that we are still in the very early days of the process. Either way, ‘how much further can stocks fall?’ is now the $64,000 question (or, given the inflation rate since that game show last aired, I should probably say $640,000 question).

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Six Reasons for Optimism About the Economy & Stocks

Six Reasons for Optimism About the Economy & Stocks

Our most recent video conversation focused on what needs to happen to rid investors of all of their pessimism. This video examines six reasons the economy and corporate prospects aren’t nearly as dire as many believe. John O’Connell looks at housing, consumer spending, lumber and auto prices, inflation, and what the U.S. central bank might do. The Chair, CEO & CIO of Davis Rea Investment Counsel concludes that investors are safe to calm down, not get blown off their investment goal path, and enjoy the summer. Here’s why.

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