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Market Crash 2020: These 3 Stocks Are Screaming Buys Today – The Motley Fool Canada

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I know you’re hearing it everywhere, but I just want to remind everyone what a massive buying opportunity this market crash is. You’ll likely have to wait years for a better time to put cash to work.

I’m the first to admit the short term looks bleak. That’s exactly why this market crash happened, after all. The long term, however, looks much better. Governments around the world are poised to help out consumers with short-term liquidity issues and make sure depressed businesses can make payroll. This stimulus, combined with effective social-distancing techniques, should ensure the economy bounces back faster than most expect.

Although I have no idea when the bottom will be, I do know stocks are currently very cheap. It’s a generational buying opportunity for many sectors that have been beaten down by the market crash. Let’s look at three different companies I think are absolute screaming buyS today. In fact, I’ve even added these companies to my portfolio recently.

Royal Bank of Canada

Canada’s largest and arguably best-run bank is now available at a bargain price. What an excellent opportunity to add Royal Bank (TSX:RY)(NYSE:RY) to your portfolio.

It seems like Royal Bank dominates everything it touches. Its domestic banking operations have the highest market share in Canada. More Canadians bank with Royal Bank than anywhere else. This translates into solid mortgage growth, good results from wealth management, and impressive insurance operations. Royal Bank’s capital markets division is also one of the best in the business, and we can’t discount its operations in the United States or the Caribbean.

What makes Royal Bank an excellent buy during this market crash is its suddenly reasonable valuation. After years of trading at a high price-to-earnings multiple, Royal Bank’s P/E ratio has dropped to just 8.7 times. The dividend yield is also much higher than normal; Royal Bank shares yield 5.5%.

RioCan REIT

If you think Royal Bank’s 25% sell-off has been a big story during this market crash, you’ll want to check out Canada’s REIT sector. Many high-quality names are off 50%.

RioCan REIT (TSX:REI.UN) is one of the best in the sector. It has smart management, good assets located in major cities, and a conservative balance sheet. Much of the rent from its 220 property retail and mixed-use portfolio comes from major grocers and other solid retailers, companies that are handling this market crash just fine. Sure, some of the other tenants will be affected, but I’m confident RioCan will make it through this crisis.

Meanwhile, the company’s development pipeline should boost profitability in the future. Financing has been secured for these projects, and construction will continue. These are big projects, too. The Well, which is RioCan’s marquee development in downtown Toronto, will feature 1.1 million square feet of office space, 500,000 square feet of retail, and some 1,800 apartments.

In the meantime, the market crash has nicely elevated RioCan’s yield. The current payout is more than 10%.

Manulife Financial

The market crash is a great opportunity to load up on Manulife Financial (TSX:MFC)(NYSE:MFC) shares at a substantial discount to their fair value.

Yes, I’m the first to admit coronavirus-related costs will be an issue in the short term. Life insurance payouts will be elevated, and many folks will make heavy use of their workplace benefits over the next few months. Investors are also concerned about results from Asia, which has been the company’s big growth driver over the last few years.

But this is an excellent overall business that now trades at a bargain price. Manulife earned $2.78 per share in 2019. Shares trade hands at around $15 each as I write this. That’s a P/E ratio of just over five times. The stock also trades at a substantial discount to its book value, meaning investors are valuing the company’s brand at nothing.

And like the other stocks on this list, you get paid a fantastic dividend while you wait for the stock to come back. The yield is currently 7.5%.

The bottom line on these market crash stocks

Don’t overthink it. This market crash has given you the opportunity to buy some of Canada’s best stocks on sale. Forget about trying to time the bottom of the market and seize this opportunity. You’ll be glad you did.

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Fool contributor Nelson Smith owns shares of  Royal Bank of Canada, RIOCAN REAL EST UN, and Manulife Financial.

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Trump Strikes Deal With Mexico To Help Cut Oil Production In OPEC Deal – OilPrice.com

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Trump Strikes Deal With Mexico To Help Cut Oil Production In OPEC+ Deal | OilPrice.com

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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    The United States is ready to help Mexico reach its production cut quota as part of the tentative OPEC+ deal, Mexico’s President Andres Manuel Lopez Obrador said on Friday, while the global pact to reduce production was in a kind of Mexican standoff early on Friday as Mexico was still balking at the large cuts it is asked to make.

    Lopez Obrador spoke with U.S. President Donald Trump on Thursday and the United States agreed to cut 250,000 bpd for Mexico to help it reach the 400,000-bpd cut OPEC+ is asking of it, the Mexican president said at a news conference on Friday, noting that he had informed OPEC+ of this development.

    OPEC delegates told Bloomberg, however, that they were not aware of details of a Trump-Lopez Obrador agreement about the U.S. helping Mexico to achieve the cuts. 

    On Thursday, during the OPEC+ video meeting, Mexico – part of the non-OPEC group of producers in the pact since 2017 – disagreed with proposals that it should reduce its production by 400,000 bpd from its October 2018 baseline.  

    Mexico walked out of the OPEC+ talks yesterday, and its Energy Secretary Rocío Nahle tweeted later that Mexico offered to OPEC to cut its production by 100,000 bpd for the next two months, as part of its contribution to support oil prices. Mexico was offering to cut its oil production from 1.781 million bpd in March to 1.681 million bpd, Nahle said.

    Apparently, OPEC+ was not pleased with Mexico’s refusal to cut more and said in its official release about agreeing to 10 million bpd cuts that the deal “is conditional on the consent of Mexico.”

    Even if the U.S. would really help Mexico reach the 400,000 bpd cut, it’s not clear yet how OPEC+ would see the total U.S. contribution to the deal during the G20 energy ministers’ meeting, ongoing at the time of this writing.

    The U.S. has argued that its oil production decline is happening naturally as a result of the free market (and very low oil prices), but the heavyweights in the OPEC+ group, and most of all Russia, has signaled it would accept only voluntary production cuts as a contribution to the global deal.  

    By Tsvetana Paraskova for Oilprice.com

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      Shaw suspends share buybacks amid economic uncertainty caused by COVID-19 impact – Business News – Castanet.net

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      Shaw Communications executives said Thursday that the Freedom Mobile service won’t meet its 2020 target for growing its subscriber base because the COVID-19 crisis has kept stores closed and customers distracted, but they said the lost revenue will be offset by lower operating costs during the coming months.

      The comments came in a conference call to discuss the Calgary-based company’s results for the second quarter, which ended Feb. 29, just prior to the official declaration of a global pandemic and unprecedented social-distancing measures designed to slow and reduce the spread of the novel coronavirus.

      The quarter also ended before Saudi Arabia began a global price war that dropped the price of crude oil, a major source of revenue for Shaw’s customers.

      “While we generally feel very comfortable that we can manage through this crisis, it is difficult, if not impossible to accurately or precisely predict the impacts on Shaw,” chief financial officer Trevor English told analysts.

      Like other companies across Canada, Shaw and Freedom have closed their retail stores in response to official demands to avoid or limit activities that could move the virus through the community by person-to-person contacts.

      English said that Freedom customers “are simply not making decisions to switch or alter their services during this time” and Shaw expects its wireline businesses will also experience “considerably muted” activity for “a period of time.”

      He said some of Shaw’s business and residential subscribers may select less expensive packages or cut some services amid “increased difficulty for some customers to pay their bills.”

      However, English said those lost revenues will be manageable given Shaw’s financial strength and the importance of its communications and entertainment services while most Canadians are conducting work and school from home.

      The company said it will preserve cash by suspending a share buyback program that had cost Shaw about $130 million as of the end of March, but it will continue to maintain its dividend payments to shareholders.

      During the fiscal second quarter ended Feb. 29, net income, revenue and free cash flow were up compared with a year earlier.

      Net income was $167 million, or 32 cents per share, up from $154 million or 30 cents per share; Revenue was up 3.7 per cent to $1.36 billion from $1.32 billion. And free cash flow, which is the amount of cash available after servicing short-term debt obligations, was up 20 per cent to $191 million.

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      Trump Has “Big Talk” With Putin, Saudi King Salman About Oil – OilPrice.com

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      Trump Has “Big Talk” With Putin, Saudi King Salman About Oil | OilPrice.com

      Irina Slav

      Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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      U.S. President Donald Trump said he had a “big talk” with Russian President Vladimir Putin and Saudi King Salman regarding oil production, expressing hopes that a deal on the control of said production would be announced soon.

      “We had a big talk as to oil production and OPEC and making it so that our industry does well and the oil industry does better than its doing right now,” Trump said as quoted by Reuters.

      It remains unclear whether the deal Trump mentioned would involve the participation of the United States: Reuters reported on the U.S. president’s statement after OPEC+ sources announced that it had reached an agreement in principle to remove 10 million bpd from global supply beginning in May.

      It remains to be seen how much everyone will cut. Initial reports from unofficial OPEC sources suggest that Russia and Saudi Arabia will both slash their production to around 8.5 million bpd.

      Following those unofficial reports that were trickling in, OPEC issued a press release, in which it said that all producers would be cutting from a baseline of their average for October 2018 except Russia and Saudi Arabia, “both with the same baseline level of 11.0 mb/d.”

      The cuts, according to the press release, would be effective from May, and taper down after June, but staying effective at some level through April 2022, to be reviewed in December next year. This is quite a long time for an agreement of this size, which indicates OPEC+ is finally taking the threat that the pandemic is to world oil economic activity and oil demand seriously. However, it may, as some warned, be too little too late.

      A cut of 10 million bpd, even if it is effective for two months, as planned, would not do much to relieve the glut, which according to estimates may have reached 30 million bpd. The group said it expected other producers to join in with cuts of another 15 million bpd, which would be better for excess supply and storage capacity. 

      By Irina Slav for Oilprice.com

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