Review of Top Picks: Q2 2018

From September 12 2017 to August 16 2018, an equal weight in all 10 business has returned 16.21%.

Refer to the Top Picks tab to find a breakdown of all 10 businesses.
Here is my most recent posts covering the Top Picks: Reviewing Q1 Earnings Part 1 & Reviewing Q1 Earnings Part 2.
Compared to the S&P 500, the portfolio has generated Alpha of 3.19%.
Brookfield Asset Management 2Q18 FFO $0.77, Revenue of $13.28B, up 40%

-This was a blowout quarter for Brookfield, and the stock has responded – reaching new all time highs.

-I went into some more detail here.

-Their Letter to Unitholders is also worth reading, which can be found here.

CCL Industries reports 2Q18 EPS of $0.70, up 2.9% and Revenue of $1.26 billion, up ~1%

-This wasn’t the best quarter from CCL, and the stock price followed.

-Costs have been increasing which is something to watch out for.

-I continue to hold my shares, and I have no plan to sell – ever.

Kinaxis 2Q18 EPS $0.16, down 22%, and Revenue of $39 million, up 22%

-On the surface, this was a mixed quarter, but 2 of the 3 metrics I follow impressed.

-EPS fell, revenue was up and cash increased 5% to $174 577 million (no debt).

-The stock has been ripping higher, smashing through previous highs and the previous woes seem to be in the rear view mirror.

Magna International 2Q18 EPS of $1.67, up 15% and Revenue of $10.28 billion, up 12.4%

-A reduction in EPS guidance and the potential for tariffs on Canadian automobiles caused Magna’s stock to sell off.

-I plan on continuing to hold my shares through the NAFTA negotiations as I’m hopeful a new deal will be reached. For investors without a position, if they were tempted to buy – perhaps start with a half position and wait for the dust to clear. It never hurts being patient.

Shopify 2Q18 EPS $0.02 and Revenue of $245 million, up 62%

-The shares fell due to a growth metric slowing, you can read more about it here on BNN.

-Quantitatively, Shopify has no debt and is raising cash to fuel their growth ambitions.

-Simply, I would define Shopify as a ‘winner’ – a first-mover in an important and growing industry. I ignore the pundits continuing to scare investors that the stock is ‘overvalued’. To me – overvalued is a great sign, it’s a sign you’ve found a great business worth investing in. With big gains comes big volatility – and Shopify is no different.

Savaria reports 2Q18 EPS of $0.14, up 100% and Revenue of $64.2 million, up 61.2%

-Momentum has reversed after Savaria’s impressive quarterly results and the stock is approaching their all time highs. As an investor whose position was underwater, this is nice to see.

-I continue to enjoy watching this company grow at impressive rates with the backdrop of an aging population that will need mobility help.

-A monthly dividend doesn’t hurt either, one that was most recently raised by 38%.

Disclosure

I hold a position in BAM, CCL, KXS, MG, SHOP and SIS.

Please consult a financial advisor before making investment decisions.

This report represents my views, not actionable advice.