Stocks - The Best Buys 2

[DoubleK]

I got diluted so hard on Thursday, I'm still steaming about it.

[bluejays]

Been awhile since any meaningful discussion has happened on here. Economically, where do some people see things going over the next year? Some expected major economic things expected: multiple Bank of Canada rate hikes; pandemic slowing; inflation; chip shortage continuation; etc.

Assuming any of the above are facts continuing to happen or will happen, where do others see where there are opportunities to invest?

Personally, I continue to see Banks getting stronger if rates increase. I can also see the FAANGs getting stronger (minus Facebook) despite the large rises over the past few months, though I wonder about Apple being dependent on chips.


And how about the Rogers' rigmarole?

[DoubleK]

56th ATH close on the S&P 500 in 2021.

Stonks only go up.

[shermanator]

Suncor doubles their dividend to 0.42 a share and announces share buybacks last night. Up almost 10%. Was going to average down when it was around $23 a few months ago but didn't. Oh well...

https://www.bnnbloomberg.ca/suncor-r...plan-1.1673074

[Table 5]

I imagine we see a lot of that with O/G companies going forward. It's too toxic to put it towards capex, so they'll buy back shares and up their dividends.

[bizaro86]

Originally Posted by Table 5

I imagine we see a lot of that with O/G companies going forward. It's too toxic to put it towards capex, so they'll buy back shares and up their dividends.

I've seen a number of arguments that O&G is the new tobacco.

Low reinvestment, high cash flow from a shrinking business, where volume declines are made up with price hikes. All cash flow returned to shareholders via dividends/buybacks. Everyone hates you, and ESG funds and many mainstream investors won't touch your stock.

[Table 5]

Yeah, I've heard that argument too...although with coal. I can see it being true for both. Trying to get into the space these days gets harder and harder, so if you're an existing company on decent ground, it gives you a pretty nice moat.

[chemgear]

Shopify with an earnings "miss".

. . . up 9%.

[Slava]

Originally Posted by bizaro86

I've seen a number of arguments that O&G is the new tobacco.

Low reinvestment, high cash flow from a shrinking business, where volume declines are made up with price hikes. All cash flow returned to shareholders via dividends/buybacks. Everyone hates you, and ESG funds and many mainstream investors won't touch your stock.

Honestly, if you look at a 10 year chart for something like Altria though, most investors wouldn't be all that disappointed. There are better performing sectors and companies (of course), but those guys have a good dividend and shares have more or less tripled over that time.

[Leondros]

Originally Posted by bizaro86

I've seen a number of arguments that O&G is the new tobacco.

Low reinvestment, high cash flow from a shrinking business, where volume declines are made up with price hikes. All cash flow returned to shareholders via dividends/buybacks. Everyone hates you, and ESG funds and many mainstream investors won't touch your stock.

Reinvestment will have to come back as fossil fuels are not going anywhere and the supply side is in for a rough time. High prices will see reinvestment coming back. Hopefully everyone is level headed this time and don't go full ham on investment because I am getting real sick of the ups and downs.

It may be like tobacco currently, but when people are paying the price in transportation, heating, and general energy costs they will turn their opinions around real quick. Tertzakian already a good article in the National Post this week and everyone should read it.

[bizaro86]

Originally Posted by Slava

Honestly, if you look at a 10 year chart for something like Altria though, most investors wouldn't be all that disappointed. There are better performing sectors and companies (of course), but those guys have a good dividend and shares have more or less tripled over that time.

Oh for sure. The people making that argument to me were all bullish. Tobacco has had spectacular returns for decades.

If the going in setup is similar to tobacco (low market interest, necessary product, continual price increase) o&g could do very well. The part that gives me pause is that the cigarette companies can keep production flat with basically zero capex. That is very much not true for O&G.

[zamler]

Someone explain TSLA to me. No way it should be mooning this fast.

[Leondros]

Originally Posted by zamler

Someone explain TSLA to me. No way it should be mooning this fast.

If I could explain that I would be on my own private island somewhere.

[burn_this_city]

Mooch told everyone riding in a Tesla was like a spaceship, that's worth another $50B in market cap.

[rain_e]

Anyone have any junior lithium plays?

[zamler]

Elon said the deal with Hertz is not finalized, that's worth -$50B in market cap lol.

[Wormius]

Originally Posted by rain_e

Anyone have any junior lithium plays?

I have Lithium Chile. It has done well. I bought at around 38 cents, up to 72 today.

[DoubleK]

Originally Posted by zamler

Elon said the deal with Hertz is not finalized, that's worth -50 dkp in market cap lol.

Fixed

[TapeToTape]

Originally Posted by rain_e

Anyone have any junior lithium plays?

I've got some Spearmint Resources. It took a dip for a while but has risen back to average in the last week. I am in the early stages of learning to invest, so take this for what it's worth

[Fuzz]

I'm more interested in metals and mining. It doesn't matter the battery chemistry, electric vehicles use loads of different metals in the motors and wiring. I feel like there is more value in it, as good mine sites are not as plentiful as lithium. Not to mention charging infrastructure, and general electrification in the future.