Never mind. That double in Amazon’s stock from its pandemic low to its peak in the summer of last year is mostly gone now. The e-commerce and web services giant is no longer a trillion dollar company. But that’s a good thing. As Amazon restructures, reassesses and repositions, it may be time for investors to consider reloading on the stock. Like many of its products over the holidays, the shares are on sale, down about 50 per cent from their highs. Amazon is unlikely to grow like it used to but many fund managers and analysts believe that five years out, this taming of a juggernaut is merely a temporary setback. Get John O’Connell’s views on the future of Amazon, and read some analysts’ commentary.
We try very hard to not have our headlines smack of hypberole. This one, we acknowledge, walks a fine line. In this case, we’re essentially the messenger as we came across an article in the venerable Barron’s, which cites research into companies that grow their stock prices by ten times or more over about a five year time frame. Nearly 50 per cent of the 175 stocks that have achieved that feat since 1980 have been in the technology sector. An investment research company has isolated five tech companies that its analysts believe have a chance at being ten-baggers over the next five years. No guarantees, of course.
How are you handling the steep downturn in the major stock indices and the increasing volatility? If you can’t stand it and can’t sleep, then maybe you should not be invested in the stock market. That’s one of the messages in this conversation with John O’Connell, Chairman, CEO & CIO, Davis Rea Investment Counsel, who has lived through every bad day in the stock market since the crash of 1987. He also discusses the psychology of fear and greed, the difference between young investors and experienced investors, and their tolerance for risk. O’Connell told us two years ago that the meme stock craze would end in tears, and he was right. He says it’s a shame that so many young investors had to learn such a painful lesson. Watch this conversation for these invaluable and crucial comments from O’Connell during this difficult time in the markets.
The world’s largest and most diversified precious metals streaming and royalty company is well insulated from cost inflation. The President and CEO of Franco-Nevada, Paul Brink, explains in this interview how the company’s business model and locked-in contracts are ideal in this inflationary environment. In fact, Franco-Nevada benefits from some higher prices because it also gets revenue from its oil and gas assets. Brink also talks about how the company has achieved a 17 per cent compound annual growth rate since 2007, acquisitions, gold, the Fed, and much more.
Inflation is the most spoken word when discussing the state of the economy these days. To kill inflation, interest rates are raised to the point where business and consumers spend less. This causes people to lose jobs. The combination of reduced spending and growing unemployment causes a recession. The theory goes that when spending falls, demand falls to the point where there is excess stuff for sale and prices fall. Voilà, inflation goes away…keep reading.
Golden Rose in Central Newfoundland is now a turnkey project. Joel Freudman, CEO of TRU Precious Metals (TSXV:TRU), updates investors on the company’s latest acquisitions, which have doubled the size of the project. Freudman says Golden Rose is now just one of three dominant players in the region. It’s ideally situated in a prolific neighbourhood beside Marathon Gold, which plans production in 2025, and Matador Mining. Find out more about TRU’s discovery potential in this “once in a lifetime opportunity”, which boasts Eric Sprott as one of the company’s largest shareholders.
As interest rates continue to rise, there is increasing anxiety in financial markets about the possibility of some kind of credit event. The Financial Times has assembled a list of more than 200 companies that it calls “debt monsters in the downturn”, whose debt is trading more than 10 percentage points or 1,000 basis points above government bonds. That means the market may be concerned about the possibility of some of these companies defaulting on their debt. FT’s list features seven Canadian companies.
25 Years After Bre-X by the Man Who Made a Fortune Going Long & Short of the Biggest-Ever Mining Fraud
Mention Bre-X to anyone who was even remotely following financial markets in the late 1990s and they know exactly what you’re talking about. The company, which claimed it had discovered massive amounts of gold in Indonesia, turned out to be a $6 billion fraud. Warren Irwin was a young MBA grad when he first visited Indonesia in 1991 and had a feeling he would be back to make his fortune. It was a very prescient premonition because four years later, Irwin, then with Deutsche Bank, returned to the country, met the Bre-X team and toured the the company’s mine site. Here is Irwin’s account of his experience with the Bre-X story…keep reading.
We know stocks are generally down this year. And we know the so-called MegaCap-8 stocks – Netflix, Nvidia, Meta, Alphabet, Microsoft, Amazon, Tesla, and Apple – have also been hit. But it’s instructive and interesting to compare and contrast the stock performance, earnings forecasts, and price-to-earnings ratios of these widely popular companies from the technology peak of late last year with today. Ed Yardeni of Yardeni Research takes us through the numbers with some helpful charts to explain why the MegaCap-8 have lost some of their once unassailable might.
This has no doubt been a very challenging year for conservative 60/40 investors who have been told for so long that having a decent weighting in long-term bonds will help protect their portfolios during market corrections. We can’t blame them though, as it has been a successful strategy for the most part. But, although rare, this has not always been the case. The Morningstar Canadian Neutral Balanced category of fund managers faired a bit better, but is still down approximately 12.5 per cent this year. Here are five ways we’ve found to be very helpful in navigating this unique market environment.
Dollarama is one of those stocks that I’ve always liked but have never owned because of, I don’t know, stupidity? Laziness? It’s a moot point. Bottom line is that this dollar store operator remains one of the most consistent and best-performing companies and stocks out there. That’s especially true since the pandemic and as inflation has taken hold. Dollarama beat analysts estimates with its latest quarterly earnings results and raised its forecast. Here’a a nice, tight summary from an analyst on how the company continues to go from strength to strength and why it’s is one of the best inflation fighting stocks there is.
Don’t shoot the messenger. But when Niall Ferguson speaks he has that E.F. Hutton effect – people listen. The historian and author of 16 books is making us think with his provocative comments that economically and politically the 2020s, far from being a redux of the roaring 1920s, could be worse than the 1970s. Here are Ferguson’s reasons why.
We’re back with Chris Mayer to talk some sense into us during this bear market. The fund manager and author of 100-Baggers: Stocks That Return 100-to-1 and How to Find Them, has some important reminders for investors on how to not get shaken out of some of the best businesses on the planet that were bought at good prices. Following media narratives and short-term thinking can be very detrimental to your portfolio. Mayer, co-founder and Portfolio Manager at Woodlock House Family Capital, also provides two stocks that he’s holding for the long-term, which may be down in price but the companies are clicking on all cylinders.
Hedge funds as a group have a poor long-term track record, but there’s still something irresistible about knowing what the putative smart money has been up to. Besides, you’ve got to give them credit where credit is due. Hedge funds as a group might not be generating positive returns in 2022, but hey, at least they’re beating the broader market. And by a wide margin at that. Keep reading…
This chart makes a compelling case for the bears that stocks and bonds are likely going to keep falling as they’ve mostly done this year. But all hope is not lost as Ed Yardeni of Yardeni Research points out in this brief commentary accompanied by that dreaded chart and another one that offers a ray of light for the bulls.
One of Bay Street’s more respected investment strategists believes it’s a good idea to raise some cash because more pressure is coming for stocks. But he expects a recession to be avoided, and says an inverted U.S. Treasury bond yield curve is not as dire as in the past. This strategist also recommends the sectors to overweight. Find out more.
Apple has handily outperformed the broader stock market during the rally that started in June. Shares have risen about 31 per cent, roughly double the return of the S&P 500. If the tech giant’s stock can hold a certain level, that could mean further gains of more than 30 per cent, and signal a new bull for the rest of the market. That’s according to a Bank of America analyst. Find out more.
In our latest piece on whether the stock market has bottomed, we look at the Rule of 20. This is the only indicator, going back to 1974, that has flashed at every market bottom. Are we there yet?
Maybe the debate about the current stock market rally is moot. Some believe stocks are in a new bull market. Others think recent price action is nothing more than a garden variety bear market rally. But LPL Research believes three signals have virtually 100 per cent...
David Rosenberg is often called a perma-bear, which isn’t fair. Yes, the founder of Rosenberg Research & Associates is often less than enthusiastic about economic prospects and negative on stocks, but he’s sometimes generally bullish and usually has long recommendations for various asset classes. Right now, Rosenberg is having a moment because, while he was early, his call that the economy and stocks would retreat from their lofty levels from last year is proving to be correct. He doesn’t believe in this recent stock market rally and details five reasons the major stock market indices have yet to hit bottom.
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.
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…