Gordon Reid, president and CEO, Goodreid Investment Counsel

FOCUS: U.S equities

MARKET OUTLOOK:

The market’s new obsession is the geopolitical upheaval in Ukraine. At Goodreid, we certainly do not take the threat to world stability lightly, but as it pertains to the market, we are witness to a fairly orderly and reactive market move.

Nervousness is leading to increased selling pressure. In fact, the market has not been this “risk off” since the Brexit vote in the summer of 2016. Odds strongly favour a solid recovery when sentiment is tilted so negatively.

Dislocations within the market often create opportunity and in Goodreid’s U.S. large cap portfolio, we bought two affected issues, Booking Holdings and Honeywell. We also took advantage of the relative strength within healthcare to sell Abbvie, a stock that has performed very well for Goodreid clients, but whose future is somewhat clouded by the patent expiration of their blockbuster drug, Humira. In addition, we trimmed our positions in Anthem and Apple.

TOP PICKS:

Gordon Reid's Top Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, discusses his top picks: Booking Holdings Inc., Honeywell International Inc, and Qualcomm.

Booking Holdings (BKNG NASD)

Latest purchase March 2022 @ $1841

Booking Holdings was poised to pick up where it left off in 2019 before the pandemic disrupted everyone’s travel plans, but the geopolitical events of early 2022 has temporarily put that on the back burner. As the 21st century answer to travel booking, this on-line behemoth will deliver $15B in revenue and EPS of close to $100 in 2022.  Look for a rapid ramp up to $150/share plus by mid decade.

 

Honeywell (HON NASD)

Latest purchase March 2022 @ $183

HON is the ultimate defensive holding with a growth kicker. Its A+ balance sheet, 2 per cent dividend yield and highly-predictable earnings trajectory make this a comfortable holding. Its aerospace division, which comprises a third of the company, is poised to grow briskly in the next few years. With a compelling valuation of 20X earnings this issue offers much promise.

 

Qualcomm (QCOM NASD)

Latest purchase March 2022 @ $154

At current prices, QCOM offers a good opportunity to participate in the tech revolution of 5G, Internet of Things, automotive and other chip-led transformations. Trading at just 17X this year’s expected EPS and growing at an impressive 15-20 per cent annual clip, we are very high on QCOM. A 10 per cent increase in their dividend payout announced in March 2022 also provides support.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BKNG NASD Y N Y
HON NASD Y N Y
QCOM NASD Y N Y

 

 

PAST PICKS: March 19, 2021

Gordon Reid's Past Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, discusses his top picks: Bank of America, Lowe's Companies, and Raytheon Technologies.

Bank of America (BAC NYSE)

  • Then: $38.53
  • Now: $40.92
  • Return: 6%
  • Total Return: 8%

Lowe’s Companies (LOW NYSE)

  • Then: $179.49
  • Now: $221.04
  • Return: 23%
  • Total Return: 25%

Raytheon Technologies (RTX NYSE)

  • Then: $78.36
  • Now: $99.01
  • Return: 26%
  • Total Return: 29%

Total Return Average: 21%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 BAC NYSE Y N Y
LOW NYSE Y N Y
RTX NYSE Y N Y