John Stephenson, President & CEO, Stephenson & Company

FOCUS: North American Large Caps and Resource Stocks

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MARKET OUTLOOK:

The stock market has moved up sharply since the U.S. election. Although the U.S. market should continue to move higher over the balance of the year the market is currently pricing in a best-case scenario for policy implementation. Investors should adopt a more cautious approach to the market until more significant progress is demonstrated on tax reform and regulatory changes in the United States.

Top Picks:

Amgen (AMGN.O) – last bought on December 13, 2016 at $139.20

  • A relatively de-risked biotech company
  • It’s cheap at 13x 2017E earnings with a 8 per cent FCF yield and a 2.8 per cent dividend yield
  • One of the lowest set of expectations amongst its biotech peers

*Short* Walmart (WMT.N) – last shorted on January 27, 2017 at $65.64

  • The company’s productivity loop has entered the phase of diminishing returns
  • Ecommerce to continue to gain share versus bricks and mortar
  • A Border Adjustment Tax could be very negative for WMT

Facebook (FB.O) – last bought on February 24, 2017 at $133.53

  • A very large and growing user base
  • Mobile overhang addressed
  • Engagement still very high

 

Disclosure Personal Family Portfolio/Fund
 AMGN N  N  Y 
WMT  N  N  Y 
FB  N  N  Y 

 

Past Picks:  February 18, 2016

Slate Retail REIT (SRT_u.TO)

Then: $14.20
Now: $14.36
Return: +1.68%
TR: +10.17%

*Special dividend issued

*Short* Yahoo! (YHOO.O)

Then: $29.42
Now: $45.73
Return: -55.44%
TR: -55.44%

Cash

Total Return Average: -22.64%

Disclosure Personal Family Portfolio/Fund
 SRT_u  N N  N 
YHOO  N  N  N 

 

Company Twitter Handle: @Stephenson_Co

Personal Twitter Handle: @stephensonfiles

Company Website:  www.stephenson-co.com

Blog:   Strategic Investor  (www.stephensonfiles.com)