A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
Citi made change Monday to its U.S. Focus list of top stock picks – adding Blackrock Inc. and removing Chubb Ltd. and Pioneer Natural Resources Co. - after analyst departures. The full list now includes nine names which include General Mills Inc., Teva Pharmaceuticals Industries Ltd. and General Motors Co..
“@SBarlow_ROB C makes changes to its U.S. Focus list of top picks” – (full table) Twitter
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A new study concludes that the number of Canadian streaming users will surpass cable tv subscribers by next year. Past history suggests the CRTC could step in shortly to protect the interests of cable companies, but the media landscape has changed so much in the past decade that history might not be an accurate precedent,
“The number Canadian households paying for at least one streaming video service will eclipse traditional TV subscribers for the first time next year, predicts an annual report on consumer habits. Convergence Research Group says the growing popularity of an array of streaming options — ranging from Netflix and Crave to sports platform DAZN — is leading to a gradual shift in where viewers invest their entertainment dollars…"If we look at things a year ago compared to where we are now, you're starting to see the global platforms enter Canada, and that'll only intensify in the next couple of years," [said Brahm Eiley, president of Convergence Research] ‘
“Streaming services will eclipse TV subscribers in 2020, report predicts” – Globe and Mail
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I’m not sure how to take Morgan Stanley’s equity strategists at this point.
They were extremely accurate in 2018 with their early prediction of a ‘rolling series of bear markets’ when everyone else was talking about a synchronized global economic boom. In 2019, however, they have admitted they under-estimated the effects of central policy changes and have been too bearish. Bearish they remain, according to a Monday report from Michael Wilson,
"Late cycle narrative now fully priced? With the market now pricing in lower growth and rates, both growth and defensive stocks have become very expensive in our view. As such, investors appear to be searching for value which has spurred some performance in laggard areas - cyclicals and lower quality … Real rates and price momentum may determine the next stage. Since last summer, the movements in the S&P 500 have been almost 100 percent determined by the change in multiples. With P/Es so sensitive to the change inreal 10 year interest rates, the recent back up bears watching… Value is gaining on Growth since October. Is your portfolio vulnerable?”
“@SBarlow_ROB MS: "Bitcoin's recent participation [in the rally] suggests investors may be reaching for returns at this point" – (research excerpt) Twitter
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Citi analyst Prashant Rao is bullish on Canadian oil producer Cenovus Energy Inc., raising his price target from $13 to $15,
“Stronger price realizations in the Upstream due to higher benchmark oil prices and narrowed Canadian differentials could drive meaningful upside to Wednesday's 1Q19E results. We also see the potential for upward 2Q19 estimate revisions, helped by bullish sentiment for continued upstream price strength in the near-to-intermediate term.”
“@SBarlow_ROB Citi bullish on Cenovus “ – (research excerpt) Twitter
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Tweet of the Day:
Diversion: “What people don’t get about why planes crash” – Vox
Newsletter: “Don’t be afraid to flip-flop in your portfolio” - Inside the Market
Scott Barlow