, an Investment Advisor at National Bank Financial
, shares his three top investment picks.
– “We have been buying apple for a little while now,” White says. “As the valuations became more attractive on the company, we became more interested in buying. From a fundamentals perspective we like Apple as they have proven again and again that they can generate strong revenues and have an excellent balance sheet. One of the things that makes Apple so attractive to us is the moat they have built around their customer base. Anyone that uses Apple products will have a difficult time moving to a different platform, as their preferences and user experience has been ingrained into their devices. iPhone 3 and 4 cycles were huge and now with double the user base heading into the tenth anniversary of iPhone, we believe that next cycle will even larger with new devices such as iPhone 8 (aka iPhone 10 for the anniversary).”
– “We typically don’t like airlines as the variability in costs can cause difficulties. However, WestJet has been in our portfolio for some time now. One of the most attractive components to WestJet is their brand loyalty. We believe that the experience WestJet is creating for its travellers will continue to translate to above average long term growth as compared to their peers. They will need to increase their RASM (Revenue per available seat mile) in 2017 to keep earnings up with rising fuel costs, but we believe that management will be able to navigate this well, especially as we see improving trends in Alberta.”
Whitecap Resources –
“As the energy sector somewhat normalizes, we believe that Whitecap stands be one of the companies leading the charge. Whitecap is currently trading at about 6.1x 2018 EV/DACF, which is in line with the peer average but is well below the three year average of 8.2x. If things were to normalize further, a return to the historical 12 month forward multiple would represent about a 35% upside from the current share price. Management has demonstrated that they are able to execute on their plans, completing 78% of the Q1/17 drilling program, with results which mostly exceeded expectations. They remain on pace to meet guidance for Q1 and 2017 as a whole. If venturing into resources, Whitecap is one of our top picks.”
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX). The opinions expressed herein do not necessarily reflect those of National Bank Financial. The securities or sectors mentioned herein are not suitable for all types of investors. Please consult your investment advisor to verify whether the securities or sectors suit your investor’s profile as well as to obtain complete information, including the main risk factors, regarding those securities or sectors.
A portfolio manager's picks
A portfolio manager's picks