Use the Corruption at Credit Suisse to Your Advantage with This Speculative Play
Let me be frank, I think Swiss banks are among the most corrupt banks in the world. Credit Suisse (CS), for example, is a mess of a bank that could be out $9 billion due to a lawsuit and saw substantial premarket losses this week (around 3.8% before the markets opened on May 31).
Yet, I say it’s a stock worth buying, and I tell you why in today’s Buy, Sell, or Hold.
06/03/2022 Buy, Sell, or Hold Transcript
Hey everybody. Shah Gilani coming to you with your Friday BS.H, as in Buy, Sell, or Hold – where I tell you what I think about the stocks you guys send in for me.
Surprising as it is with this choppy market, I’ve got four-fer for ya. And they’re all buys. Yeah, crazy. You guys sent in some interesting stuff.
First up, ExxonMobil (XOM).
How could it not be a buy, people? Of course, it’s a buy. Energy is the only sector in the market that’s working and it’s working beautifully. Energy prices are going to remain lofty, not so great for inflation, but pretty darn good for the likes of Exxon Mobil, which is hitting it out of the park.
This is a monster company with $310 billion in annual revenue over the last 12 months. Insane. What’s even better is its revenue growth on a quarterly basis. Year-over-year, it’s up 52%. Yeah. Energy hitting and out of the park. Its quarterly earnings growth was more than a hundred percent in the last quarter versus a year ago. Absolutely insane.
So yes, buy XOM. There’s nothing I don’t like about the energy space right now. Plus ExxonMobil pays you a dividend, the yield 3.67% on about $97 price. You absolutely want to own ExxonMobil. You want to be in the energy space. I love this. I like pretty much all of them, but you asked me about ExxonMobil. It’s a buy, people.
Next up… This is a great one. I’m glad you guys threw this in. Ford Motor Company (F).
You know what? Yes. Ford down here is a buy. Absolutely love it down here. Doesn’t mean it can’t go a little bit lower, but I think you want to get in here because it looks great at $13.85 and change. I think you can get back up to $20. It’s gonna take a little bit of time, but you’ll have a nice 50% gain ahead of you on Ford. So yeah, I absolutely like it. 2.92% dividend yield on Ford. So close to 3% dividend yield. I used to put a lot of my excess cash in Ford for the dividend. It’s come down a lot, but I think here it’s gonna be great. I think they can increase the dividend. They got plenty of money to do that.
But Ford down here looks really great. I think it’s on sale. I’d probably add to my position long term, Ford’s gonna be around and it’s gonna continue to pay. They got close to 3% dividend yield. So Ford is a buy down here.
Next up… And this one made me laugh. Credit Suisse (CS).
To just say this about that: It’s a mess people. This is a giant Swiss bank and I… I’m gonna say it. I think Swiss banks, all of them, are probably the most corrupt in the world. As far as banks, as far as institutions, they’re a mess. This one is too, and it’s bad. CS has got a lot of hangover problems from the whole green cell thing where they, they might be out $9 billion. They’re gonna try and recoup this. We’ll see what happens… The stock has taken a hard hit because of it.
There’s nothing I like about the metrics on this company, but I do like it down here as a play. It makes sense because it’s been beaten up so hard and fast that I think it’s worth a shock down here. It’s a gigantic me. It’s not going to go under, I wouldn’t worry about that. It’s ugly. You look at the balance sheet. You look at the profit margin you look at, it’s just, it’s a mess. It’s leveraged to the hill. It’s got just this. I got nothing good to say about it, but I’d buy it.
I’d buy it down here. It’s a little shy of $7, people. I think it’s a great little trade. I think you can make a 50% profit on this in, I’d say, 18 months.
Do I like it down here? Yes. Is it speculative? Yes. It’s a bank. Whoever thought a bank would be speculative, but guess what? We know they can be. This one is speculative, cuz it’s a mess, but it’s not going anywhere.
The stock costs $6.92 thereabouts right now. Buy some, take 50% gain on it and laugh.
Next up… Or should I saw last but not least, Unilever PLC (UL). Absolute giant.
I love this company for a lot of reasons. Revenue is $52 billion a year thereabout and is growing beautifully. Its profit margins are close to 12, just shy of 12%. For a company that has all these fantastic household products and everything we use. And it’s huge in Europe and all the most of their products are sold across Europe. But when there’s plenty of them come to the United States, absolutely hugely profitable companies been profitable forever Unilever’s profit margin and just shy of 12% yields against that 52 billion in revenue, a profit margin, I would say, excuse me, profit, which is my favorite method of looking at profit is net income available to common shareholders.
That’s what matters to me and the net income available to common shareholders as far as Unilever goes is north of $6 billion. And what do they do with that? Why is that important to me? Because out of that, I wanna see what they’re gonna do with it. And they use a lot of that money to pay a very fat dividend. The dividend yield on Unilever is 4.2%.
Yeah, the stock is down, but it’s a great buy down here at $46 and change. I think it’s got a 50% move in it in the next 18 months, two years at the most, that’s a fantastic gain. You’re gonna get in less than two years, I think. And you get paid 4.2% a year to park your money here and watch it grow. Watch your appreciation in front of your own eyes while you getting paid. I love it. I love Unilever. It’s a buy people.
Unilever’s a buy. Credit Suisse is a speculative buy. I think you can make 50% easy on that one for it. Absolutely like another 50% gain within I think two years, maybe sooner depends what the market is going to do as far as are we gonna settle out down here? Are we gonna hit a recession or not? We hit a recession. All these are gonna take a little longer to do what I expect ’em to do, but they’re all buys.
Exxon Mobil, enjoy your dividends while you watch the stock go a lot higher?
That’s it, people hope you have a great weekend. I’ll catch you next week. Cheers, everybody.