Speaker 1: The US market over the past month has been relatively quiet, with just a slight rise in prices and not much volatility. Now, obviously, we want to be the opposite. We want panic. We want prices to go down. We want sales with the stocks we’re buying. Nevertheless, even in an expensive market, there’s always opportunity to find a deal. So in this video, we’re talking about three stocks for the month of July.
These three stocks are fairly simple to understand as a buyer. And they’re all value picks. If you’re from Canada or the United States in these talks will particularly suit you. Let’s get straight to it.
Stock one is Starbucks Corporation Ticker Symbol Box. Now, please tell me you guys know what this company does, but I guess for those three people living in eastern Uzbekistan, I’ll inform you, they’re a coffee company. They make coffee and sell it for a higher margin. It’s a really simple business model. They also sell a range of beverages and some snacks on the side and Starbucks, which started in the United States, but it’s now expanded to 75 countries across the world. And let’s be honest, they have particularly dominated America. Everyone knows what Starbucks is. They’re they’re a popular brand name. I mean, there are over 13000 Starbucks stores in the states and they’re also pretty big in other Western nations. One nation that they’re not big. And yet as China and I really do mean the word yet because one of Starbucks goals is to grow in China. They plan on opening 2700 stores in China in the next five years. That’s a new store every 15 hours. So people who say Starbucks are too big and will not grow anymore are not thinking properly that big in the West. But they still have a lot more opportunity to grow, especially in countries such as China. And numbers wise, they’re pretty good as well. They’re cheaper than the average stock in the US market. The price is fifty seven dollars and for their fifty seven dollars you’ll get three dollars of earnings and return. This gives it a PE ratio of eighteen point seven seven and the average PE ratio in the US is twenty five point twenty four. They pay dividends of two point one per cent, which is around the same as the risk free rate of a government bond. But unlike a government bond, you’ll get an increase in the share price over the long term. Now, last month I recommended a stock that Bill Gates was seemingly a huge fan of. This month, I couldn’t help but dig into his portfolio and recommend another stock that both he and I like. And the stock is Canadian National Railway Company, ticker symbol C ENI. This company is engaged and the retail transportation business during the use of railways, and they own over 20000 miles of railway and North America.
Types of goods that they transport include petroleum and chemicals, metals and minerals, forest products, coal, grain and fertilizers. So it’s mainly commodities. And this might not be the most exciting of stock. It’s no Netflix that is producing new movies and new comedy specials every month. It’s a simple and boring business, exactly what I like. And there are four main reasons why I like it. First, because, as mentioned, it’s simple and easy to understand Warren Buffett’s first rule tech. Second, it’s got an amazing moat. Now I’m just going to assume you guys know what a Moataz if you don’t watch some of my previous videos or just Google it. And it’s Moat as the established railway system.
They’ve been around since 1919 and have over 90000 mile of railway track competitors can easily set up shop and say, I’m going to compete with you that have to build a whole new railway and find a whole new client base. Who’s going to look to compete with Canadian National Railway Buffet sic and real competitive advantage tech. Thirdly, any old joker could run the business. Its system is etched into stone and the business pretty much runs itself. And Buffett’s Lázaro. The price must make sense as a tech as well. Prices eighty two dollars PE ratio solid at fifteen dividend average at one point seven per cent and price to book value is four point eighty four. Forgive the talk about all these new and exciting wait companies. Let’s talk about something that’s been around for ages and a seemingly forgot about. And that’s beer. Beer has been making shareholders rich for years now and I’m going to talk about a company that appears to be undervalued in today’s market. Stock three Molson Coors Brewing Company ticker symbol TAP. These guys are brewer. Funnily enough, it’s all in the name. They make beer predominantly through the United States and Canada, but also around the world as well. Some brands sold include Miller Lite, Coors Light and for any Canadians out there, Molson Canadian. And the main reason why I like the stock is its price in today’s market. P e ratio of ten is a sight to behold for any value investor. If we take a look at the revenue and earnings, we can see that.
The topline has been increasing and the earnings have been doing pretty decent as well. 2015 earnings was 395 million and this increased to one point four billion. And 2017, if they can retain earnings of this much, they should deliver a 10 percent return in the long run. And this is pretty darn good compared to most other US stocks. And those are my three stocks for the month of July. Let me know what you think of them in the comments below. Do you own any of the stocks? Do you like any of them or do you just think they’re completely rubbish? Also, very importantly, this video is only for entertainment and educational purposes with each and every stock. Do your own research and due diligence.