Investment Portfolio
Welcome to my Investment Portfolio.
My portfolio is compromised of various companies ranging from technology to financials. I strive to provide you information on my portfolio that is credible and reliable (e.g., regulatory filings, financial reports (10K’s, 10Q’s, etc.), articles on CNBC, Bloomberg and more).
All of the equities and index funds are chosen based on extensive research and analysis.
Below is the list of equities and index funds in my portfolio.
**I am not a financial advisor. The information provided on this website is my own opinion and is guided toward people that are just beginning to invest. To read more about our Terms of Use click here.
Please do your own research and due diligence before investing.
Automotive
Ford
Ticker Symbol: F
Exchange: NYSE
Written on October 29, 2020
Ford is seeing a huge amount of interest in its EV pickup, the F-150 Lightning. As of early December, there were 200,000 reservations (all of them being retail customers). The company has also taken additional steps to increase production, with manufacturing capacity reaching a rate of 150,000 trucks per year by mid-2023.
Compared to last year, Ford sales are down 6.8% but the company is still making strides. It sold 508,451 vehicles in the fourth quarter, a 27% increase over the previous quarter. Keep in mind that the industry as a whole declined 3% during the period, making Ford a standout. Inventory increased by 22,000 in December for a total of 247,000 vehicles, which shows that Ford is overcoming the chip shortage challenge. Andrew Frick, vice president of Ford sales in the U.S. and Canada, described 2021 as “turbulent and dynamic” during a call with reporters. He said the company was “pleased” with Ford’s finish for the year.
Consumer Discretionary
Caesars Entertainment
Ticker Symbol: CZR
Exchange: NYSE
Written on July 18, 2024
Through Eldorado Resorts acquiring Caesars Entertainment Corporation in 2020 and rebranding itself to Caesars Entertainment, the casino empire has been able to slowly de-lever itself and grow its online gaming presence.
While I will be covering the company in one of my newsletters in the future, I believe Caesars Entertainment has near-term potential as a result of the synergies the Eldorado Resorts merger provided.Nike
Ticker Symbol: NKE
Exchange: NYSE
Written on December 28, 2020
Updated on August 5, 2024
I initially invested in Nike in December 2020 due to the company’s focus on its DTC business, primarily through its digital channels. I saw this as a way for Nike to increase sales during COVID-19 at a time where consumers could only shop online. However, I ended up selling in August of 2022 as the company was struggling for this very reason.
Due to a change of catalysts, the primary one being a change in leadership, I invested in Nike again. The company’s shift to its former successful self will take time. Its key strength is innovation, especially with its performance-running products. With competitors such as On Running and Hoka taking up market share of Nike, the company has a hill to climb to get to where it once was. New CEO Elliott Hill has his work cut out for him, but it appears that the company is getting back on track, having brought on more retail partners since its DTC (direct-to-consumer) strategy did not go as planned.
I have a 1-year price target of USD$97.43.
Click here to read my full analysis.
Energy and Industrials
Baytex Energy
Ticker Symbol: BTE
Exchange: TSE
Written on October 11, 2023
Updated on September 4, 2024
I first invested in Baytex Energy in October of 2023 due to its high-quality and diversified oil portfolio, free cash flow generation, reduction in net debt, and ability to generate shareholder value in the form of dividends and share buybacks. Click here to read my full analysis. At the time I had an outperform rating on the company and a one-year price target of CAD$8.32.
This past September, I wrote an update on Baytex Energy and revised my price target to CAD$5.65 based on my 2025 estimates for the company. While my previous price target did not materialize, I believe I was early to the party and overly optimistic with my 2024 free cash flow estimates, which led to my price target not being reached. Looking forward to the rest of the year and into next, I am still bullish due to the reasons I stated previously. I also believe that the company will have a meaningful increase in free cash flow due to capital expenditures beginning to taper off towards the end of this year along with strong well results from its assets in the Eagle Ford, Peavine, and Pembina Duvernay.
Canadian Natural Resources
Ticker Symbol: CNQ
Exchange: TSE
Written on August 4, 2023
Also known as CNRL, this company is an oil and gas producer that focuses on the Western Canada Sedimentary Basin (a large geological feature composed of sedimentary rocks that stretches from northeastern BC to southwestern Manitoba) and is a producer of SCO (synthetic crude oil), light, medium and heavy crude oil, bitumen and natural gas.
I invested in CNRL because of its increasing ROI as a result of strategic investments and diversified asset portfolio. It also has strong free cash flow generation and consistent (and increasing) dividends.
Here is a brief summary of its most recent earnings report.
For Q1 2023, CNRL reported net earnings of $1,799 million compared with $3,101 million in Q1 2022. Cash flows from operating activities were also down compared to last year, coming in at $1,295 million in Q1 2023 and $2,853 million in Q1 2022.
The decrease in both earnings and cash flows was attributed to lower crude oil, natural gas pricing and sales volumes. This came as realized crude oil averaged $58.85 per bbl for Q1, compared to $93.54 per bbl for Q1 2022. Natural gas averaged $4.22 per mcf for Q1 2023 compared to $5.20 per mcf in Q1 2022.
Overall, CNRL has the reputation of consistently growing its dividend because of its history of generating strong free cash flow, even during periods of low oil prices. This has resulted from management allocating capital to strategic long-term investments and acquisitions that enables CNRL to generate meaningful returns compared to its peers. Through the use of its diversified asset base including Horizon Oil Sands, Athabasca Oil Sands Project and the Scotford Upgrader (oil sand upgrader facility) I believe that the company will be able to continue its consistent and efficient operations all while providing shareholder value. The increase in demand that is expected in the second half of the year should help CNRL increase product sales (especially if oil prices rise as I believe they will) and will result in higher free cash flow in the coming quarters.
For my full analysis of the company, please click here.
Cenovus Energy
Ticker Symbol: CVE
Exchange: TSE
Written on January 19, 2024
I invested in Cenovus Energy in January of this year because of its refinery assets, high torque to oil prices, and ability to allocate 100% of FCF to shareholders at the end of this year or early next year. With its Superior and Toledo Refineries being cash flow positive, this will help the company reach its $4 billion net debt target and distribute 100% of free cash flow to shareholders.
The company provides upside due to its fully operational downstream assets, which will increase in cash flow as U.S. gasoline demand increases and crack spreads widen. Even if this does not happen, this cash flow will be generated by its upstream segment (which will see a meaningful increase in cash flow once the TMX pipeline expansion is online). Cenovus Energy is currently below its historical EV/DACF multiple and it has the assets needed to benefit from the future Canadian oil & gas environment (mainly tighter WTI-WCS differential).
It may require some patience, but I believe it is only a matter of time before Cenovus Energy reaches higher valuation multiples.
I have a 1-year price target of CAD$28.
Click here to read my full analysis.
Enbridge
Ticker Symbol: ENB
Exchange: TSE
Written on October 26, 2020
Enbridge is known for its massive pipeline network. The energy company makes money by charging customers to use its pipeline network similar to a toll-road network. This network connects oil-rich regions with refineries and storage facilities across North American and generates a steady stream of revenue for Enbridge. This revenue is then passed on to investors in the form of dividends. The main reason why Enbridge is a good investment is because of its dividend (quarterly 8.59% yield). This gives you an annual dividend of $3.24 per share.
Enbridge is in a defensive segment that continues to generate recurring revenue. By diversifying into renewables, the company is able to set its self up for additional revenue streams and long-term growth. Especially with an incredible quarterly dividend ($0.81 per common share), there’s no reason why you shouldn’t include this in your portfolio.
Suncor
Ticker Symbol: SU
Exchange: TSE
Written November 23, 2020
Suncor’s largest operations include the oil sands production sites. Suncor also has offshore oil assets and in addition, the company runs four refineries and roughly 1,500 Petro-Canada retail locations. Suncor’s operating breakeven is around $35 per barrel. For the stock to fully recover lost ground, fuel demand needs to ramp up to support higher revenues for the refining retail groups.
I believe Suncor still offers a great long-term investment. The current dividend should be safe and provides a 4.17% yield. Volatility should be expected in the next few months but fuel demand should increase in the second half of 2021. The International Energy Agency (IEA) says hundreds of billions of dollars in investment is needed to replace reserves in the next decade to meet demand growth, possibly making the market tight due to massive cuts made to investment this year. Suncor stock is currently trading at a market cap of $28 billion, indicating a forward price-to-sales ratio of 1.1 (price-to-sales ratio tells investors how much they are paying for the stock per dollar of company sales, investors prefer a lower number for the ratio because a ratio less than 1 means that investors are paying less than $1 for $1 of the company’s sales) and a price-to-book ratio of 0.77 (price-to-book ratio measures the market’s valuation of a company relative to its book value, a price-to-book ratio under 1 are typically considered solid investments). Revenue is forecasted to fall by 34% in 2020 to $25.7 billion but is estimated to rise by 22% to $31.4 billion in 2021. If Suncor stock ends 2021 with a price-to-sales ratio of 1.1, it should gain around 23% in market value. If you take into consideration their dividend yield, 12-month returns should be closer to 30%.
Parkland Corporation
Ticker Symbol: PKI
Exchange: TSE
Written on April 20, 2023
Parkland (known as Parkland Corporation, ticker: PKI, trades on the TSE) is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. It is based in Calgary, Alberta, and operates gas stations under the Chevron, Pioneer, Ultramar, Fas Gas Plus brands, and more.
The company operates its own 55,000-barrel-per-day refinery in Burnaby, BC. It also provides services in Canada, the U.S., and the Caribbean through three channels: Retail, Commercial, and Wholesale.In early 2022, Parkland bought M&M Food Market, a frozen food retailer in Western Canada. This was in part to reach the $2 billion EBITDA target by 2025 and because the acquisition “represents one of many steps we are taking in our retail diversification strategy.” The transaction cost was $322 million, which was funded out of its existing credit facility capacity and represented a valuation metric of less than 8.5x estimated 2021 Adjusted EBITDA.
What I like most about Parkland are its diversification strategy, cash flow, and debt control. M&M was acquired by Parkland’s existing cash flows and its CEO, Bob Espey, has locked in the cost of debt for the majority of the outstanding debt. Although the company has $6.1 billion in gross debt, $4.5 billion of that has a fixed interest rate. While the income statement will be impacted by increasing interest rates, no fixed-rate debt matures before 2026, which will allow for future free cash flow to reduce the credit facility.
With M&M and Journie combined, this will allow customers to use their reward points at gas stations and at M&M or vice versa. Parkland also has convenience stores at each of its gas stations, making it easy to carry M&M products.
For my full analysis of the company, please click here
TC Energy
Ticker Symbol: TRP
Exchange: TSE
Written on July 2, 2024
South Bow is going to focus on its oil infrastructure business, which includes 4,000km of crude oil pipelines in North America while the new TC Energy will continue to focus on its natural gas infrastructure and power-energy business. This decision comes as its liquids pipelines business has been on the back-burner when it comes to capital allocation due to its Coastal GasLink pipeline being the main area of focus as LNG Canada is expected to come online in 2025.
I believe having two separate public companies will allow each to achieve their respective objectives and provide shareholders with different options based on their risk appetite. Overall, both the new TC Energy and South Bow complement each other and enable investors to choose which line of business they want exposure to, without having to sacrifice their growth objectives.Tourmaline
Ticker Symbol: TOU
Exchange: TSE
Written on March 8, 2024
Updated on October 2, 2024
I first invested in Tourmaline in March of this year because of its high-quality resource plays & LNG exposure within the WCSB, cost efficiency, and capital allocation. Click here to read my initial analysis. Its position in the NEBC Montney and Alberta Deep Basin provides an advantage due to its supply of natural gas and low operating costs, respectively, along with a breakeven natural gas price of less than US$2/mcf. This has helped the company maintain an annual ROE greater than 10% over the past 2 years (providing investors with base and special dividends) and become a leader when it comes to operating low-cost assets.
Since then, I provided an update in my newsletter this past October, highlighting the company’s acquisition of Crew Energy and maintaining my CAD$76.21 price target. In addition to my reasons stated above, I believe Tourmaline’s acquisition of Crew Energy builds on its history of previous Montney acquisitions and compliments its existing South Montney asset base, is accretive to its key financial and reserve metrics, and aligns with its growth strategy for when LNG Canada comes online in 2025.
Veren Energy
Ticker Symbol: VRN
Exchange: TSE
Written on October 3, 2023
Veren Energy (formerly known as Crescent Point Energy) explores, develops, and produces light and medium crude oil, natural gas liquids, and natural gas reserves. It has a primary emphasis on advancing high-yield resource plays within Western Canada and is committed to enhancing shareholder value by continually improving its asset portfolio, prioritizing safety, cost-efficiency, and environmental responsibility through exceptional operational performance. It is also known to have a low-risk drilling inventory of long-life assets and is enhancing its balance sheet strength and shareholder returns.
I bought VRN because of three main reasons:
- Strategic acquisition
- Recent acquisition of Spartan Delta’s Montney assets in May 2023
- Dispositions and reduction in net debt
- Reducing debt through asset divestments and cash flow generation
- Selling assets in North Dakota
- Reducing debt through asset divestments and cash flow generation
- ROC (return on capital)
BHP
Ticker Symbol: BHP
Exchange: NYSE
Written on June 13, 2024
Financials
Citigroup
Ticker Symbol: C
Exchange: NEO Exchange
Written November 1, 2024
I first invested in Citigroup today based on the progress it has made in restructuring and cost-cutting. CEO Jane Fraser has been able to make the bank nimbler through layoffs and effective by streamlining its operations in both its Services and Wealth segments. The key catalysts I see for Citigroup are continued growth in both of these segments and its continued restructuring. With the Federal Reserve having already started its rate-cutting cycle, this will provide the bank with an increase in mortgage and lending activities as well as further increases in its Markets division as investment banking activity continues to pickup. The cost cutting the bank put in place and the selling of its Mexican retail banking business, allows it to focus on its core operating areas and are a part of the catalysts for Citigroup. I have a 1-year price target of $74 based on a P/B ratio of 0.7x in 2025.
Click here to read my full analysis.
Technology and Telecommunications
Amazon
Ticker Symbol: AMZN
Exchange: NASDAQ
Written on August 2, 2024
Apple
Ticker Symbol: APPL
Exchange: NASDAQ
Written on October 30, 2020
1. Apple will weather the current (and future) economic storms just fine
Apple has a lot of cash on hand (they have $191 billion as cited in their Q3 earnings report) which will continue to help make its dividend payments long into the future. This cash can also help Apple continue to expand in new ways and ride out the current economic climate.
2. DevicesApple’s wearable tech is one of the company’s fastest-growing revenue segments, increasing by 22.5% year over year. AirPods are one of Apple’s best-selling wireless earbuds on the market along with the Apple Watch, which is the top-selling smartwatch.
This was also when there were reports of Apple working on an “Apple Car”. However, times have changed and so has my thesis, at least slightly.
In the same newsletter I wrote about Amazon, I also touched on Apple. I am bullish on Apple because of its Services segment and outlook for the Vision Pro. The company’s large install base of 2 billion active users provides the foundation of its recurring revenue, especially with its customer base’s high loyalty and retention rate. Apple is not as aggressive as it was in the past when it comes to growth, however, it continues to succeed because of its reputable products and ability to appeal to the masses. The adoption of the Vision Pro will take time, but I believe it will integrate perfectly with Apple’s existing suite of Services. As a result, the share price will reflect this through higher valuation multiples.
I have a 1-year price target of USD$210.
Shopify
Ticker Symbol: SHOP
Exchange: TSE
Written on June 10, 2024
I have a 1-year price target of CAD$123.
Click here to read my full analysis.
Solventum
Ticker Symbol: SOLV
Exchange: NYSE
Written on August 16, 2024
I first invested in Solventum in August of this year. A spinoff of 3M’s healthcare business, Solventum is a global healthcare company with segments in Medical Surgical, Dental Solutions, Health Information Systems and Purification and Filtration.
While the company first started trading in March around USD$70 per share, it immediately plunged. This may have been because it was a spinoff. Investors sometimes partake in forced selling as there were no analysts covering the company at the time and no earnings data available. I saw this as an opportunity to gain exposure to a company that can achieve its respective growth and tailored capital allocation plans, away from 3Ms legal settlement with public water utilities which will cost $10.3 billion.
For a company with a forward P/E of 12x, I find it undervalued compared to its competitors such as Zimmer Biomet and Smith & Nephew.
Rogers
Ticker Symbol: RCI.B
Exchange: TSE
Written on April 19, 2024
I first invested in Rogers in April of this year because of the company’s role as a market leader, the value provided by the Shaw merger, and the ability to allocate capital efficiently and effectively. The company has maintained its market position due to an increasing subscriber base across its wireless, cable, and media segments and its ability to grow consistent free cash flow and provide shareholder value through dividends. I have a 1-year price target of CAD$71.36.
Click here to read my full analysis.
U.S. Large Cap and Small Cap
Vanguard S&P 500 Index ETF
Ticker Symbol: VFV
Exchange: TSE
Written on November 13, 2020
This index fund tracks the S&P 500 and invests in companies such as Amazon, Microsoft, and Facebook.
The fund seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the S&P 500 Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies. The charts below give you a snapshot of the ETF’s investments on April 30, 2020. The ETF’s investments are subject to change.
An S&P 500 index fund should always be in an investment portfolio. Historically, the market has gone up over the long-term and I believe that this will continue as vaccines get distributed and the world gets back to normal. This will take time but eventually we will get there.
This is the growth of $10,000 since this index fund was first created
