Michael Simpson, CFA

Market. There is a demand for stability and for yield. There were some hundred-year European bonds issued in Austria at just over 1%. You are a lot better with European stocks that have a dividend over 1% and increase their dividends over time. Either the bond market or the stock market is right at being at all time highs. Resolving trade issues over the next 6 months would give reasons for the economy to improve. In a pullback he would look for sectors such as healthcare. Companies have to be able to increase dividends.

Canadian Banks. CM-T has the most exposure to the Canadian housing markets. CM-T is the cheapest but not his favourite. RY-T, BMO-T and TD-T are his preferences. This will be a good place to be if there are no housing blips.

It is a Canadian infrastructure pipeline company. They are creating plastics that will go into the US and create a lot of revenue. He is taking a look at it.

The holding company for Loblaw's and the Choice REIT. If we get inflation, then they will do well. We are seeing it now in the food chain. He likes it. At some point the bakery won't grow and then there is no point in holding it. (Analysts’ price target is $114.00)

It is part utility and part infrastructure. It started in Canada and has grown quite rapidly. It meets his criteria.

It is at lower valuations like others in the space. It is about 3.5 times cash flow and announced a share buyback. 48% natural gas. If other OPEC players cut production then this one will do very well. But as a long term investor at these levels. It is very cheap.

Yielding oil companies such as CNQ-T (Owns), WCP-T, VET-T. CNQ-T is cheap and trades under 5 times cash flow and has great assets. He has been buying it. VET-T is a great company and has maintained their dividend over a dozen years. WCP-T is smaller but an excellent company and trading at a cheap valuation.

It is a smaller bank, a regional player. It is tough in Canada to complete with the top 5. It is the only bank that is unionized. It could be caught in the culture by a bigger player. But the banks in Canada should do well in general.

They have assets around the world. Anything that can generate stable cash flow. They sometimes buy assets with operational issues. They have a history of raising the dividend and the caller should hold on it it.

It has a US parent and they want to deleverage their balance sheet. CMHC is the biggest in their space. Some banks like to give some of their business to Genworth. He does not know if the US parent will sell to the Canadian public. Holders should consult with a financial advisor as to whether to sell or move on.

(A Top Pick Jul 25/18, Up 32%) The largest US cable company in the US. People worry about cord cutting but they have a good broad band business. Continue to hold.

(A Top Pick Jul 25/18, Up 5%) They have been growing their wealth management business. It is cheap and well managed out of Quebec city.

(A Top Pick Jul 25/18, Down 5%) There was some concern about losing contracts. He likes it and they have no debt and are a great infrastructure play.

Wind in the North Sea. They started in Canada. They decided two years ago whether to put themselves up for sale and it did not go through. It has stable cash flows and there is potential for a rising dividend. Debt goes up when projects are build and then when completed, cash flow goes up and debt goes down. He sees good prospects for it going forward.