Christine Poole

Is the US-Iran war carries on, then gas and oil prices will remain high and translate into inflation. We already see higher prices at the gas pumps. US unemployment remains low at 4.3%, but employment growth is slowing, while unemployment in Canada is high. This all puts central banks in a tough spot; in Canada, rate cutting is done, but not in the US before the Iran war erupted. Central banks are waiting and seeing, but if inflation continues to climb, then central banks may be forced to raise interest rates. Slow growth and high rates could lead to stagflation which is not good. Manufacturing in the US has been expanding while services has been healthy, though. Earnings growth is coming through, largely driven by technology. Growth is projected at 23% this year and 15% in 2027. Analysts are not projecting a significant slowdown. The AI data centre build is a long-term secular growth theme, but the lack of power would slow that build. A pullback in that build is possible. 

Good products and growth. The numbers they reported last week were fine, but future growth is moderating, which the markets doesn't like, consider its high PE. 

The past year has been trying. She doesn't believe there is no more growth or demand for their products. They lowered guidance and shares got punished hard. It remains a core holding for her. They face more competition. They bought a company recently in cancer treatment, which should add growth. She sees growth long term. The PE has fallen to the mid-teens, well below the historic norm.

Their pain management drug for dogs got negative press, though was approved. They reduced guidance. Also, customers are more careful about what they will spend on their pets. These are the headwinds. Meanwhile, their livestock business is doing quite well. ZTS now trades at 14x forward PE, instead of the usual 25x. She is holding, not adding. 

Shares are up because of a resurgence of demand for nuclear power. CCO is the largest producer of uranium and is a low-cost producer. The prices for uranium are expected to climb further.

A sound growth stock. Are starting to offer supply chain services to customers. 

The elevator business enjoys an oligopoly and a good service business, which boasts higher margins than on new elevators. But growth in China had slowed the past 3 years. However, there's growth in new lifts in the Americas and India, while aging elevators need more replacing especially in Europe. Shares have pulled back, because new equipment has been weak. But services are improving as well as new equipment. Otis is focusing on having new customers attach services to new orders.

Has owned this since 2011. AI concerns hit markets mid-2025 which has decimated the entire sector, not just CGI. Organic growth has been negative the past year or so, hurt by the US government shut down last year. CGI project organic growth later this year. Europe is 45% of their revenues, but given the Middle East war their economy is soft. So, companies are delaying decisions on taking on projects. CGI trades under 10x forward PE. The market wants to see organic growth for shares to rise. Is holding. The selling is overdone.

All the North American banks had a great 2025. JPM is the most profitable US one. The dividend yield is rising and financial results have been strong. Is the US bank to own.

Are half-defence, half-aerospace, both strong given wars in Ukraine and the Middle East as governments increase defence spending. Backlogs are at all-time highs. Is a concern that if oil prices remain due from the US-Iran war, then airlines will cut back and this will effect servicing airlines. Will monitor this. 

No one can replicate their network. This is a core holding. Their valuation has contracted after strikes, lower volumes and a soft Canadian economy. They reduced capex last year to buy back shares. Their network is functioning smoothly, so positioned well if the economy picks up. CNR traded at a premium to the group, but now a discount, which is attractive.

Are caught in the AI vs. software sell-off, with the market thinking WSP's clients will demand fewer services because clients can do more it themselves. She doesn't buy that. When you build a bridge, you can't use some AI program. This sector is under pressure. WSP recently reported a very strong quarter with higher margins. Are buying good companies, especially the US. Is surprised with this sell-off. WSP doesn't have a construction division, which can get a company into trouble. Are well-positioned in coming years for infrastructure building.

The lack of immigration has impacted them.  Also, tenants who signed higher-rent leases during Covid are exiting those leases now, which lowers the rent on those spaces. Let this play out. The PE is now attractive. It's a matter of time.

The stock has stabilized and their software is now being used in cars. Wants to see more sustainable growth to make a decision.

She owns Chartwell instead, because all their homes are private homes with no government units. Likes the aging demographic and there's a shortage of retirement homes. Also, there are few beds being added.  CSH's occupancy rate is above 95% vs. below 80% during Covid. CSH is buying companies and selling old properties.