Colin Stewart

Obviously, Canadian market valuations are a bit lower because we have a weaker economy here. In the US,  however, valuations are at almost two-decade-level highs. We have to go back to 1999-2000 to see these types of elevated valuations. Some of that is driven by the tech sector, which has seen really strong results, but even the forward-looking multiple on the broad S&P 500 is 22-23x.

That, combined with all the uncertainty, tariff risk, and general unpredictability of the Trump administration, gives him pause on the US market. He's not calling for a huge correction necessarily, just that it makes sense for investors to be more careful where they're allocating capital. Perhaps look for value-type names trading at lower multiples and predictable cashflow.

Right now, he tends to favour the Canadian market, which people are down on. Thinks we might be at the maximum point of pessimism as it relates to the Canadian market.

Valuations are low in Canadian equities. Canada is somewhat likely to get a new federal leader, and deregulation and tax cuts in the US are going to force Canada into somewhat more business-friendly policies. 

Investors really need to analyze each company case-by-case. Businesses that are purely domestic shouldn't be impacted by tariffs. Businesses to do with the auto sector are potentially very exposed. There are other Canadian companies that have revenue, people, and facilities in the US; they aren't actually exporting goods from Canada, so it makes them less vulnerable to tariff risk.

Great, high-quality business. Very profitable, with 40% gross margins. Growing ~15% a year. Valuation reasonably expensive at 32x forward PE. If you own, hold. In a pullback, one to potentially put on your buy list.

Recent results were quite strong. Overhangs include respected CEO retiring and concerns about economy. Some regulatory risk on maximum interest charged. Overall, great compounder. Don't focus on short-term stock moves.

Looking at it closely. Long-term future of nuclear looks very positive. Electrification of the economy increasing power demand. Many governments more willing to build facilities. Well managed. Good buy on a pullback like today.

Now has ~3-4% market share in Canada. Lots of opportunity to expand, as Canadian market is more fragmented than, say, the US. Entirely domestic, not exposed to tariffs. Essential service, most patients have insurance. Market didn't love its equity issue; stock's down 20%, so he's been adding. Good insider ownership.

Fast-growing business. Legislative risk on the high interest rates they charge. Might also be susceptible to economic weakness. 

On his radar because it's a cheap software business, with high margins and recurring revenue. Lower valuation than CSU, but not as effective at consolidating. Disappointing results, organic growth weak, slower M&A. Strong balance sheet. Good insider ownership.

It is. Don't look so much on the chart and the share price, but focus on the business fundamentals and valuation. If the fundamentals are good over the long term, and valuation is cheap, it's usually worth hanging on to. 

Benefits from demographics and growth engine in Asia. Recent results not that strong; dig more into those before you jump in. Good, long-term business.

Great business. Benefits from online shopping and move to cashless. Trades at a premium valuation, so good news already built in. Best time to buy a blue-chip like this is on a market correction. Always regulatory risk, but Canada putting a cap on interest rates would not materially affect this name.

(Note: acquired in January 2024)  Bought out by a large private equity fund that focuses on infrastructure.

Stock's started to recover under the new CEO. Now focused more on faster growth. Margins have pulled back because expenses have increased, but still a high-margin business long term.

Stock fell soon after recommending, he sold, now it's recovered. Good company. Supply issues and inflationary pressures have normalized. Pretty good value at 11-11.5x PE. Watches it; could potentially add on a pullback.

Potential big beneficiary of AI. Doesn't love that it had issues filing its financials late. Also doesn't love buying after such a move up like today. As a value investor, he looks more to second-derivative AI plays such as power demand.