Brendan Wood International
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TopGun Investors Extend Recovery Horizon – Accumulating Cash

May 7th, 2020 by TopGun Press

Brendan Wood International Shareholder Poll

For Immediate Release – New York, NY, May 7th, 2020 (TopGun Press)

Over the last three months the Brendan Wood investor panel has slowly but steadily extended its anticipated Coronavirus impact timeline from an early and optimistic three months to six or more. Today, 75% say six months or longer. Likewise, the anticipated return to January 2020 stock prices is being reset by investors, 80% saying 6 months or longer.

About 35% of the Panel report actively down-weighted their stock positions in February/March. This would not amount to news if these trades were being made to fund upgrades. In fact, most investors reported that was exactly what they intended. However, about 35% of the Panel were down-weighting without buying replacements. Even TopGun stocks, namely those in the top decile of investment attractiveness, were down-weighted in February/March. In April, buying of TopGun names increased, resulting in net buying of top quartile quality stocks.

Nonetheless, there is a fair amount of cash in the wings and more being accumulated in April by about 20% of investors. Our next reports will follow that money.

INVESTOR POLL:

1) Are you planning to be a net buyer in the near term 3 months? (Net buyer means own more $ in equities than you do today.)

Yes = 92% (95% last week) (March 16th = 100%)
No = 8% (5% last week) (March 16th = 0%)

2) Will you be buying using cash reserves or switching existing positions into higher quality names that were overpriced but have become cheaper?

Cash Reserves = 29% (33% last week) (March 16th = 40%)
Switching Existing Positions into Higher Quality Names = 63% (62% last week) (March 16th = 60%)

3) How long do you think that decreasing real spending, lower earnings and supply chain issues directly caused by Coronavirus will prevail as deterrents to investing?

1 Month = 0% (0% last week) (March 16th = 0%)
3 Months = 25% (31% last week) (March 16th = 70%)
6 Months = 68% (65% last week) (March 16th = 15%)
1 Year = 7% (4% last week) (March 16th = 15%)

4) Will markets/prices come back to January 2020 levels? 0-100%

Yes = 93% (96% last week) (March 16th = 86%)
No = 7% (4% last week) (March 16th = 14%)

5) How long will this recovery take?

1 Month = 0% (0% last week) (March 16th = 15%)
3 Months = 19% (24% last week) (March 16th = 70%)
6 Months = 44% (42% last week) (March 16th = 15%)
12 Months = 23% (22% last week) (March 16th = 0%)
12-18 Months = 14% (12% last week) (March 16th = 0%)

6) How do you rate the future effect of a change in the US administration from Trump to a democrat in November as a market performance risk 0-100%? (Risk of a negative impact on prices)

Yes = 62% (59% last week) (March 16th = 100%)
No = 38% (41% last week) (March 16th = 0%)
Average Level of added risk = 48% (46% last week) (March 16th = 57%)

Click Here for TYPICAL INVESTOR COMMENTARY:

About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private partnership generating independent performance audits globally. Brendan Wood debriefs large institutional investors worldwide on a daily basis. There are 2000 investors in the investor panel collectively managing + $40 trillion invested in the 1400 companies on the BWI Index. Relying on real time performance intelligence, the firm advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.

We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. Under no circumstances should any ratings or evaluations of individuals’ performances in these reports be considered as a sufficient basis for making decisions concerning the careers of individuals, including such matters as promotions, compensation arrangements, terminations, etc.

This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.

Related Links:

www.TopGunPress.com
www.brendanwood.com
@BrendanWoodIntl

Contacts:

Jordan Novak
Partner
Brendan Wood International
+1 416 924 8110
jnovak@brendanwood.com

Amanda Knott
Managing Director
Brendan Wood International
+1 416 924 8110
aknott@brendanwood.com

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