Gordon Reid, president and CEO at Goodreid Investment Counsel
Focus: U.S. equities

MARKET OUTLOOK

Big cap stocks, mostly related to technology, are masking a less dramatic move in market indexes. Cap-weighted indexes (bigger companies have a greater weighting in the index) have entered record territory, but the average stock remains roughly 5 per cent below record levels, and value-focussed indexes are over 10 per cent off their highs. There appears to be a wide divergence between the economy and the stock market. Stay tuned as this resolves itself.
 

TOP PICKS

Gordon Reid's Top Picks

Gordon Reid, president and CEO at Goodreid Investment Counsel discusses his Top Picks: Anthem, Alphabet and United Rentals.

Anthem (ANTM NYSE) - Last purchased: August 2020 at US$285

Anthem is a managed care operator with 41 million members. With the tailwind of an aging population and a desperate need to provide health insurance solutions, ANTM will be in the mix. Goodreid expects earnings of US$26 per share in 2021, yielding a P/E of just over 10 times and a free cash flow yield of 8 per cent.

Alphabet (GOOGL NASD) - Last purchased: Aug 2020 @ US$1522

Google’s advertising revenues are taking a modest hit as COVID-19 slows business around the world. While concerning, as the world’s most robust search engine, it is likely that a rebound is in the cards. Expect this company to resume its 15 per cent growth clip. Other revenue sources sprouting from the US$20B annual R&D budget are positive wild cards.

United Rentals (URI NYSE) - Last purchased: Nov 2019 @ US$157

United Rentals is the largest equipment rental company in the world, positioned well for the infrastructure theme that is gaining traction in the U.S., especially under a Democratic administration. Normalized earnings are in the US$20 per share range making this an attractive offering, even though the stock price has rebounded smartly.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ANTM   Y N Y
 GOOGL Y N Y
 URI N Y Y

PAST PICKS: August 22, 2019

Gordon Reid's Past Picks

Gordon Reid, president and CEO at Goodreid Investment Counsel discusses his Past Picks: Anthem, Booking Holdings and Cisco Systems.


Anthem (ANTM NYSE)

  • Then: US$261.06
  • Now: US$271.52
  • Return: 4%
  • Total return: 5%

Booking Holdings (BKNG NASD) – Sold March, 2020

  • Then: US$1,952.47
  • Now: US$1,890.41
  • Return: -3%
  • Total return: -3%

Cisco Systems (CSCO NASD)

  • Then: US$48.18
  • Now: US$42.15
  • Return: -13%
  • Total return: -10%

Total return average: -3%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 ANTM Y N Y
BKNG N N N
CSCO Y N Y


Website: www.goodreid.com