Air Canada, Couche-Tard & More at 52-week Highs and Lows (Feb 6-12)

Like the railroads in the '90s, the airlines are getting cleaned up. Unions are now onside with what is going on. He likes it. It just broke out. He would not get a full position here. If it pulls back, then buy more. It is now one of the better airline stocks. He likes it…

She likes how they make smart acquisitions and know when to sell out for good profits. It has an attractive yield. She owns the parent company as it gives exposure to infrastructure and renewables, allowing for more growth opportunities. This asset offers an investor the best opportunity for income between the two.

Just pulled back because of near-term concerns on upcoming European regulations, but believes that will ultimately create a tailwind as clients need to adapt a system to manage these new regulations. Trading at a 4-year low. He models a 6% EPS growth. They have an active Buy-back. Good balance sheet. Dividend yield of 3.1%. (Analysts’…

(A Top Pick July 18/17 - Up 26%) Garbage. As the economy improves more garbage being produce. Optically not cheap. Trading at 30 times earnings. But they continuously beat expectations. There are profit to be made here.

(A Top Pick July 3/15. Down 17.93%.) A really interesting company and is in the early innings of its growth phase. They are really trying to do something brand-new, building interior office solutions. It is now into hospitals, schools, and now even getting into residential. Earnings tend to be fairly lumpy, so he traded out…

You don’t get this one on sale very often. It has really come off. It is an opportunity to get into it. They have developments coming on line and good retail properties. This is a nice opportunity. They are continuing to diversify geographically.

All Brookfield stocks are good--you can buy more than one of them. There's one recent issue though: they bought an elephant of a building from Jared Kushner in New York--was it a good investment or is Brookfield cozying up to Kushner? Then again, BPY can't be hurt from any single building they buy.

The anchor tenants, in a large majority of their properties is Loblaws. Where he might be a little more hesitant in a real estate investment trust that has mall-based retailers, it is quite unlikely that grocery shopping will have the same problems. This would be one of the safer REITs. He is quite constructive on…

He is a big fan of the real estate. Took a big position. It is a one client operation - Canadian Tire. Now they are looking at neighbouring properties with shops that are where they are because Canadian Tire is next door and people go there.

Recently bought the stock. This is the 1st day that Element Financial shares are formally split into 2 companies, ECN Capital (ECN-T) and Element Fleet Management (EFN-T). Thinks both are undervalued. He tends to do this in terms of the Price to Book ratio. The BV is more or less about $4, so if you…

This REIT has been around a long time and holds a cluster of assets in Toronto, Vancouver and the US. Generally, it is well run and you could continue to hold it for the long term. He would prefer SRU.UN-T.

Owns a little. Canadian REITs have bounced off the bottom during the last couple of months, in part because of higher oil prices and higher commodity prices. That has benefited the entire sector. This operates in an area where rents are not regulated.

Proposing to take over True North Apartment REITs. A very controversial deal, and usually this company doesn’t do things that are deemed controversial. The market was not positive on this because basically you usually don’t do dilutive deals when you’re stock price is at a lower level and trading significantly below NAV. The view is…

This fund is being taken out. Recommends putting your money into a tax deferral and high yield fund.

A Canadian listed company that has all of its assets, over 60 grocery store anchored retail malls, in the US. This gives you a better economy and a healthier consumer. They are concentrated in smaller secondary markets of about 1 million population. Going into the grocery side because there are 37,000 grocers, a lot of…

Has done a little bit of work on this but is not an expert on it as yet. Really likes what they are doing in terms of third-party pension administration. Companies are outsourcing all sorts of administrative issues. They don’t need a whole lot of capital, because it is a service business. Stock has done…

Canadian company that is in the property management services business. Great growth capitalizing on concentration in the space. They own franchise business like California Closets. High multiple but growth justifies it. They are the largest player in the space but they are only 10% of the market. Exposure in the States as well. Very unique…

This would not be his favourite. This is a multi-family REIT. Some of the ones he likes a little bit better have internal management and better balance sheets. If you are buying this, you are really buying it for the yield. You can get better risk/reward with similar yield with something like a Pure Multi-Family…

They have been one of the best growth by acquisition company in Canada. It is leveraged but they have been buying $500 million every quarter. At this pace they will have lots of cash to play around with in 2-3 years. Convenience store purchases are uninterruptible. One of the better managed companies in Canada.

Avoid this sector. Competitive, paper-thin margins. Other sectors pay better dividends and have less volatility. Not enough of a dividend to justify holding through the sideways motion.

(Past Top Pick Nov.3, 2017, Down 11%) At the time, he liked its strong global growth and expected upturn at Tim Horton's. Burger King remains strong. Popeye's has turned a corner. Tim's is showing progress. He sees 17% EPS share. Trading at 19x with a reasonable growth rate. Their Q3 was a little disappointing, but…

It is one of the oldest companies in Canada. It is a no growth situation. There are far more interesting names to own in the food distribution space.

(A Top Pick Mar 07/18, Up 20%) A core holding for him. They pay a good dividend. They've bought good assets in the States. They're geographically diversified, so are no longer 100% Canadian, but 50/50 with America. Good balance sheet. They raise dividends 6-7% annually.

An independent power producer. They have about 3000 MW of basically US based, but they do have some projects, primarily wind, in Ontario and Manitoba. Trading very inexpensively. They have the ability through their parent Pattern Energy Group (PEGI-Q) to vend in new development projects, so they don’t sustain development risks. They are 89%-90% contracted…

We just had a positive transit. Maybe it is becoming known. $25.80 is the model price. 5.5% yield. It is underpriced. It looks like it is going to go places.

CGI vs. OTEX He's been watching Open Text and will buy it under $40. They're good at making purchases. He prefers it to CGI which is too high right now.

Why is it being favoured now? Shopify has been taking away a lot of business from Amazon. That said, the run in the stock has been incredible--and incredibly expensive. There's talk that Amazon wil buy them, but he doubts they would do it now. Hats off to them as a Canadian success story. They report…

Dead money for quite a few years. The technology was tied to laptops but now everyone is using tablets. Thinks earnings will come through with earnings from Samsung agreement.

Has been fantastic, all-time highs. Lots of gold stocks will do well, as people look for safety. Rates well fundamentally. Could see it coming down and finding support at $30. He'd be taking some profits. If markets rally, this could be a dangerous stock. Has potential to be sold off, as part of a sector…

(A Top Pick Jan 24/14. Down 11.04%.) He really likes this story. 80% of silver production comes from a by-product from copper mines and from mines that are really shutting down. Pure silver plays are rare. Located in Argentina which is probably why the price has been hurt a little more, but it hasn’t hurt…

An interesting one. Brazil. They have some high-grade veins that they have done some work on. They are drilling and it will prove it one way or the other. There will be lots of entry points coming up.

All this does is to invest in high interest deposit accounts. It is a constant steady stream of income. He hates recommending cash, but this is essentially a place to park your cash during the summer. You will at least get your 1% annual income.

Something you want to be careful of when looking at REITs is that interest rates will eventually move up. This is why you are seeing some weakness in the REIT market in Canada. On top of that when you pile on what is happening with oil prices and what is happening in Western Canada, and…

It doesn’t have a huge range of trading. Yield is okay at about 3%. Short-term pays you less than 1% on an after-tax basis, so this is not a bad place to park your money.

A lot of people are chasing yield but utilities are not in favour this time of year. Technicals are not favorable right now. Stay away from this and go toward the cyclicals. Get in in July.

A safe way to play the fixed income side of a portfolio. This company roams the world looking for opportunities in the fixed income market. It has produced very good long-term returns, and he would recommend it.

ZJK-T vs. ZHY-T. High yield is a sexy name for junk bonds. They are the worst quality bonds. In a downturn these companies will not be able to pay back their bond holders first. If equities fall 20%, high yield bonds fall 13%. There is more risk for a portfolio.

It started to roll over and get soft. $25.22 would be the support. We are at a 16 week low.

A media company that is building out their wireless platform, particularly in Western Canada. Doesn't feel any compelling reason to Buy this. Would rather own one of the national carriers. Dividend yield of about 4%.

A spin-off from Bankers Petroleum (BNK-T). Shale gas in the US. He doesn’t follow this one.

A market darling for a few years. When things went difficult in the oil patch they didn't react fast enough. They are still a big oil producer. There is a lot of uncertainty in that regard. A $100 oil seems to be a far away dream now. Stable but what is the catalyst for this…

Chart shows this has taken quite a dip in the last while. Changes in management because of production mishaps. Need to look at these from both a production standpoint and a commodity standpoint. Have a constrained balance sheet and not a lot of room to raise CapX for growth. More linked to oil than to…

Trucking and well completion services. Pre-eminent logistics player on oil sands. Expected them to make acquisitions by this time. Long-term, great company to own. 3.4% yield.

BBI-X is the old ticker. The merger involves a 10 for 1 split. PIPE-X shows a couple of weeks of trading and that is what to go by. They are coming on with new production facilities soon. By the end of the year, they will go to 10 times that. He thinks it is cheap…

This is not the first bear market he has seen. This is the next new big mine. Diamonds have been going thought a bit of a dry spell. There were finance issues. The rough market for diamonds is up a little right now. He prefers to go in at a little earlier stage. He believes…

Lithium space. There has been a lot of interest as agreements are signed. Companies signing early before TSLA-Q’s giga factory gets into production may not be an advantage. This one is probably cheap.

Located in Québec. Have had early good exploration results. What they are drilling trends under a Lake so they will be doing some winter drilling program on the ice. There could be an economic deposit.

Agricultural company focused in Brazil. Has a phosphate deposit, which is expected to come Into production over the next few years. Also looking at other opportunities. Brazil is going to have to import fertilizer, so there is a cost advantage of producing in Brazil.

Steel manufacturing. Play on infrastructure in Western Canada. Has done a great job over the past 18 months amassing capacity. Has about 420,000 ft.² in Western Canada. An area where he sees growth leading up to the Olympics in 2010. Have some large projects that the market doesn't know about. First 9 months did $80…

Has an old mine outside of Los Angeles that was run in the 1930s. Closed down during the Second World War and they are doing open pit mining in the area. Has some issues, but at these gold prices, it will probably start to work again. Under followed. Highly speculative.

Biofuel. Canada has an incredible forestry industry with a huge emphasis on planting trees. PL takes wood waste like sawdust and turns it into energy. This fuel can replace coal that is also carbon-neutral.

Eric Sprott’s one of the smartest people in Canada and is assembling a first-class investment team. There are some issues with Timminco (TIM-T) that have to be cleared up first. If you have a 2 or 3 year outlook, a great buy.

Blockchain technology. There are going to be big winners and big losers in this area. A lot of banks are getting involved. This, in many ways, is the wave of the future. At the same time, there are going to be a lot of companies that will simply disappear. You have to be very careful…

Involved in fibre-optics to the home. Interesting new technology. Would not buy until it is closer to the time when their first chips start coming out in ’07 and then wait to see if they can ramp up volume production.

If you like gold... Getting 2 times leverage as gold price decreases. Gold is a play on the U.S dollar. Makes money if the price of gold stock goes down.

Double leveraged fund. You only use it for short term holds. The seasonal period starts right now until the end of June, getting a return of 12% typically. We are starting to see some flatness in the chart now. HUN-T is not leveraged. There is less volatility.