Christine Poole

Exactly. A lot of the industrial names that supply the data centre buildout have pulled back on fears that the buildout will slow, product demand won't be as great, and profits will suffer.

Pullback is healthy, as a lot of those names were trading at very high multiples.

Anthropic.

There's a lot of topline growth, but they're not making money right now. They do have cash, and they'll raise more from the IPO.

Peaked out in July, now 45% off highs. The classic cyclical. Data centre buildout will change this to secular growth. Pulled back when pace of AI buildout came into question.

Multiple's now more reasonable, ~22x forward PE. Huge backlog, no cancellations so far. Will generate a lot of FCF. If demand fades, earnings will eventually roll over.

Fines and regulatory concerns, but they'll work through it. Reasonable valuation. US economy doing well so far. You could enter here.

Disclaimer:  Christine doesn't own BAC. Her colleague John O'Connell does in his US-focused fund.

Mexican trade routes are very lucrative. Likes the rail industry in general, with its oligopolistic nature. If economics improve in Canada, rails will benefit.

She owns CNR instead.

Missed a few quarters, municipal funding issues on horizon. Benefited from renewable theme when Democrats were in power, but that faded. At $150, high multiple.

Believes in water long term -- scarce resource, EMs need to build out their infrastructure, developed countries need to modernize and repair.

Similar chart to CAT. Both suffering from fears of slowing data centre buildout. Between the two, she'd choose CAT. In Canada, further exploration in minerals or energy should be beneficial.

Good run. If you haven't already, take some $$ off the table.

Feeling impact of lower- and middle-income consumer; value menu tweaks will take time. Traffic is soft. US economy is K-shaped. Helping frachisees upgrade restaurants. Sees room to grow its chicken market, but equipment needs to be retooled.

Still likes it. Economies of scale, synergies, gets rent from many franchisees (a recurring cashflow stream).

Not inexpensive. Already corrected. If pace of buildout slows, stock price will be impacted.

In client growth portfolios. Executing very well. Great potential growth in US. Opening stores in US, traffic strong in Canada. E-commerce doing well. Hasn't even tapped international market. Wide age demographic.

Not inexpensive. Valuation reflects growth potential; hiccups can send the stock lower. Good candidate if you want to participate in e-commerce buildout.

Disclaimer:  Christine doesn't own it. He colleague John O'Connell does.

Diagnostic testing that did so well during Covid declined, and other segments weren't strong enough to offset that. Largely behind them, but now issues in nutrition business. 

Lawsuits regarding infant formula, many being settled out of court. Plans to spin off that segment next year.

Good pipeline, M&A continues. Valuation's pulled back. Yield is 2%.

Reduced capital spending last year, which freed up some free cashflow for buybacks and dividends. Operating ratio down (good). Signed deal with CP to expand reach in Mexico in exchange for not protesting KSU merger.

Demand for new equipment has been soft, particularly in China. This changed last quarter, with other countries picking up the slack and orders in NA up by double digits. Seeing strength in modernization.