7 Bold Predictions for the Rest of 2026: Canadian Banks, Gold, Oil Stocks, Berkshire and Buyouts
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What is the main topic discussed in this episode?
Investing is simple,
but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day you have to remember that it's a business.
Just my reminder to people who own cyclicals. Don't be surprised when there's a cycle.
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
This has to be one of the biggest quarters I've seen from this company in quite some time.
Welcome to the Canadian Investor Podcast. I'm Smell Benage and I'm back with Dan Kent. We have a really fun episode. So we're doing something we've never done before. So we're actually doing our bold predictions for the rest of 2026. So maybe we should have done that a month and a half ago when it was half the back half of the year. But if we just were texting and we came up with this idea, you know. One that would be fun. It's only five months out until the end of the year, I guess, at this point, a little less. So they are pretty bold. I'll just say that. So I think it'll be a fun one. Let us know whether you think they'll happen or not. We had to be bold, so some of them may sound pretty crazy, but that's okay.
It's it's okay being wrong. So let's get started. You have four. I have three. So the first one regarding one of the Darling of the Canadian market. So Constellation Software. Let's get started with that. A company that, by the way, I made a tweet, a post, or whatever you want to call it, where I got a lot of traction. So I said I bought it at 3400 and sold it at 2300. And I did a really good job at timing the market there.
Yeah. Buy high, sell low.
Yeah, exactly. The trick to losing
money in the markets, but
Yeah, you can rewind this. You heard correctly. I lost money on it. Um I'm more than happy to say my good and bad moves, and actually I I find it easier to talk about my bad moves and I don't like to brag. So but anyways, I digress. Let's get started. Constellation, what's your bull prediction?
So I think it will close at four thousand plus a share by the end of the year. And again, these are gonna be a bit wilder than even the ones we do at the start of the year because we only have five months for them to come through, but This would be actually I I wrote these yesterday, so we're recording this Thursday at one time.
It'd be more than that because
Yeah, as we're recording this, they reported earnings yesterday. The earnings were actually pretty good, but the stock ended up kind of getting caught up in a software sell-off plus some low organic growth. So I think they need probably closer to thirty percent now, maybe a bit more than thirty through the final four and a half months of the year or whatever it may be, but kinda The reasoning for this is over the last thirteen or fourteen months here, I've kind of mentioned that these stocks are are Going to need to not only perform exceptionally well, but kind of have a shift in sentiment. And that sentiment shift is particularly difficult right now, I think, because with continued advancements with many AI companies and LLMs.
However, we are starting to see a bit of a shift. We're probably close to 35% off lows in terms of constellation constellation. Share price since the rock bottom when it hit like twenty You know, $2,300, I think. It's bounced back quite a bit. And a price of $4,000 by the end of the year says we'll get to about 75% off those lows. And I think there's a bit of shift here because of the fact that like AI disruption is still very much a market narrative and not really reflected in the results whatsoever for a lot of these companies. It was going to be a long road, and I still think it is going to be a long road for these companies to be favored by the market again, but we're Now six quarters into this whole AI narrative in regards to software companies with effectively zero disruption.
I mean, I just quick notes off Constellation's Constellations Quarter. I think free cash flow was up fifty-seven percent. Uh Capital deployment, I think fastest, the largest quarter in company history are pretty close to it.
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