Current Hotline

Prem Watsa’s Bet Breaks Out

Major U.S. market averages ended 2017 on a positive note, with all major averages closing higher over the past week.

The S&P 500 closed the week 0.59% higher, while the Dow Jones jumped 0.59% and the Nasdaq rose 1.26%. The MSCI Emerging Markets Index shot out of the gate, jumping 3.34%.

Emerging markets remain out of favor with U.S. investors. That may be about to change. After all, emerging market stocks trounced the U.S. stock market in 2017. The MSCI Emerging Markets Index ETF (EEM) soared 37.28% compared to the 21.70% gain for SPDR S&P 500 ETF (SPY).

Your Smart Money Masters portfolio had a solid week. Wilbur Ross’ Navigator Holdings (NVGS) rose 6.70%. Prem Watsa’s BlackBerry Ltd. (BB) gained 6.56%. George Soros’ Liberty Broadband (LBRDK) jumped 3.96%.

An additional four positions, Texas Pacific Land (TPL), Vistra (VST), Baxter International (BAX) and Restaurant Brands International (QSR), each gained at least 3%.

The three biggest gainers in your Smart Money Masters portfolio are Fiat Chrysler Automobiles N.V. (FCAU), BlackBerry Ltd. (BB) and Berkshire Hathaway (BRK-B). These positions are up 58.61%, 33.30% and 20.20%, respectively.

Five of your positions are trading below their 50-day moving averages and are currently HOLDs.

Portfolio Update

Prem Watsa, “Canada’s Warren Buffett,” has a massive 42.71% bet on BlackBerry Ltd. (BB). That bet now looks to be paying off.

BlackBerry shares jumped above $12 for the first time in nearly three years. That’s because the company has transformed itself successfully from a fading smartphone hardware company into a cutting-edge cybersecurity software outfit.

The company’s recent earnings tell the story. For the quarter that ended in November, software revenues rose to a record $190 million, while handheld revenues fell to only $6 million.

Total revenues came in at $226 million — better than the $212 million analysts had been expecting. Adjusted earnings per share totaled $0.03, beating estimates for the second quarter in a row. Guidance for the fiscal year ending in February was also positive.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

Current Recommendations

StockTickerBuy DateBuy Price$Current Price$Total ReturnRisk RatingStop Price$Comments
Texas PacificTPLDec 14, 2017402.81454.75+12.89%Risk Rating 2300.00Buy. Texas-Sized Land Play
General Motors CompanyGMNov 9, 201742.0443.70+3.95%Risk Rating 332.00Hold. Undervalued Auto Maker
Vistra Energy Corp.VSTOct 12, 201719.0818.61-2.46%Risk Rating 315.00Hold. Contrarian Energy Play.
St. Joe CompanyJOESep 15, 201718.3018.25-0.27%Risk Rating 415.00Hold. Real Estate Riches?
Fiat Chrysler Automobiles N.V.FCAUAug 11, 201711.6221.43+84.42%Risk Rating 316.30Buy. Contrarian Bet on a Car Company
The Priceline Group, Inc.PCLNJul 14, 20171949.471835.20-5.86%Risk Rating 31610.00Buy. World's Top Travel Portal.
Vanguard FTSE Emerging Markets ETFVWOJun 19, 201740.9047.82+16.92%Risk Rating 335.00Buy. Emerging Markets Ascend.
Baxter International, Inc.BAXMay 11, 201756.3368.86+22.24%Risk Rating 348.00Buy. Medical Equipment Momentum
BlackBerry Ltd.BBApr 13, 20178.9513.90+55.31%Risk Rating 55.00Buy. Bullish on BlackBerry
Markel CorporationMKLMar 9, 2017977.811113.22+13.85%Risk Rating 2800.00Buy. Baby Berkshire
Navigator Holdings Ltd.NVGSFeb 10, 201711.3510.28-9.43%Risk Rating 36.50Buy. Petroleum Power
The Kraft Heinz CompanyKHCFeb 10, 201790.3678.55-13.07%Risk Rating 275.00Hold. Big Brands. Big Profits
Restaurant Brands International Inc.QSRFeb 10, 201751.5063.13+22.58%Risk Rating 339.00Hold. Restaurant Rewards
Liberty Broadband Corp.LBRDKFeb 10, 201786.3289.77+4.00%Risk Rating 452.00Buy. Broadband Bet
Costco Wholesale CorporationCOSTFeb 10, 2017171.84187.83+10.06%Risk Rating 2135.00Buy. "Munger's Favorite Stock"
Berkshire Hathaway Class B SharesBRK-BFeb 10, 2017164.07200.92+22.46%Risk Rating 2152.00Buy. Buffett Bet

Current Newsletter

Smart Money Masters — February 2018 Issue

Find out about our latest recommendations, and all of the most recent market-moving news, in the newest issue of Smart Money Masters that has just been completed. I invite you to download the issue as soon as you have a chance. As a valued subscriber, we want you to have this information as quickly as […]