First companies to become Value Calls in this situation?

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There’s a single Value Call that slowly gets updated once in a while here, but we may soon face another post-pandemic situation where some companies will have trouble recovering, while others will actually be great buying opportunities.

While it’s a bit early to tell, what do you have in mind in terms of a watchlist for such opportunities?

Could we see a series of value calls at some point? I’m sure there will be many.

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Asked on April 4, 2025 11:29 am
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As you mentioned, it's just a bit too early to tell at this point. When the market is dipping 5%+ a day, it's a bit hard to say what is strong value at this point because it could be MUCH stronger value even a week down the line.

I'm starting to see a lot more value in major US names, whereas prior it would have been the Canadian names. But obviously, we have the Canadian markets holding up much better at this point in time so the drawdowns aren't as extensive.

One company off the top of my head that I will likely add to soon is Amazon. I have a bit of a cash stockpile at this point in time and I'm certainly not rushing out to deploy it, but I will do is strategically over the next while here. But Amazon interests me in particular. Valuation wise, it is trading at some of the lowest price to operating cash flows in a very long time.

However, I'm just not buying anything right now until we get some clarity. I know a lot of people want to jump the gun on a 10%~ drop in two days, but in my mind, I'd rather let the dust settle here until we get a bit of stability before I begin pulling the trigger. I know a lot of people advocate for not timing the market, but I think there is a reasonable case for kind of sitting on the sidelines until the markets aren't showing 5%+ swings in either direction.

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Posted by Dan Kent
Answered on April 5, 2025 10:29 am