Christine Poole

A welcome sign, especially in the US. The S&P 500 had been narrowly lead by the Mag 7. The past quarter that ended in September actually saw NASDAQ lag the broader market. And the TSX has outperformed the S&P. 

Encouraging, as it means there are more stocks and sectors going up in price. Investors are perceiving that the growth outlook is improving as well.

Overall, longer term, it would be a positive for investors if the Chinese economy improves. The government has targeted a 5% GDP growth rate, looks as though it will fall short this year. Many economists think it will continue to be sub-par next year.

Late September, the central bank cut interest rates, and will provide funds for loans so companies can buy back their own stock. Also making it easier for consumers to buy a second home. Initially, there was a very strong upside response. But we need more fiscal stimulus by the government, and they've hinted they'll provide it but without a lot of detail. That's why there's been a pullback. Some of the companies with exposure in China, such as luxury stocks, see continued softness in China.

It's a step in the right direction to have stimulus, but we need monetary and fiscal stimulus. If the Chinese economy does improve from current levels, a positive for companies that do business there.

US banks reported very strong results, and they hinted that the economy is on pretty solid footing. Sort of a "no landing", with growth continuing. Right now, bottom-up consensus estimates are that Q3 earnings will grow 4% YOY, with growth rates being higher in subsequent quarters.

We'll still get growth, but guidance from companies for next year will be very important. Given strength in the stock market and price appreciation, we need to have growth expectations met. Right now, earnings are supposed to grow 15% next year. We need that growth to materialize.

Q3 GDP is expected to grow 3.4%, so growth is continuing. But market is very sensitive to any negative news that may disrupt that growth profile.

Stock performance somewhat disappointing. She'd keep holding. After KVUE spinoff now simply a medical device, medical tech, and pharma company. Some drugs are going off patent, but successful in developing pipeline. Company still expects revenue to grow slightly as time goes on.

Very strong balance sheet, AAA credit rating. Nice dividend, increases every year. Ongoing talc litigation is the overhang, but positive steps toward resolution. Then PE multiple should lift. 

Most of the bad news should be reflected in the share price. While she maintains a position, has cut back weighting a bit, since growth profile will be muted because they can't grow in the US. The US side is about 1/4 of profits, so there is growth outside of that. Last quarter, Canadian division posted pretty decent loan growth and deposit growth. Attractive income stock, with capacity to grow dividend every year though not as much as previously. Capital position still strong.

For new $$, you'd be fine to start building a position over time and within a diversified portfolio. Shouldn't be your only Canadian bank holding.

She's going to increase her position in this to get more US banking growth exposure.

Librela's actually been on the market for a while, launched in Europe before US. Debate whether it helps or does it cause adverse effects. Company still tags very strong growth for this drug, vets are still recommending it. Reports in a week or two, so we'll get more visibility. If growth stalls on this one, a negative for the stock. So far, things seem on track.

Librela is important, as company thinks it can be a blockbuster. Their other drugs are doing quite well, pipeline is healthy.

Mostly electricity distribution. Successful cashflow generation. Core income name. Utilities in US are a big part of its profile. Data centre demand is a growth opportunity, but will take many years. Yield is 3.5%, dividend increases every year.

Excellent, well run. She prefers more balance between organic growth and M&A, and this one grows by acquisition. No opinion on whether stock will split. 

Attractive entry point, valuation is quite a discount to CP. Decreased earnings guidance due to general economy plus potential strike. Start building a position. Well positioned to take on additional capacity.

Tough business. Tim's has benefited from return to office post-pandemic. Historically, management was intent on cost-cutting. Hadn't done much innovation or product investment, but now focusing on that. 

In the space, she owns MCD.

Decent. She prefers names with better growth profiles. Spun off mainframe business, which improves growth profile. Now just consulting. Stock's done well, now getting into cybersecurity and AI.

Expects it to growth topline and bottom line going forward, usually around the 10% range. Sells branded generic drugs to EMs, medical devices, infant nutrition. Diabetes monitoring product has very good growth. Likes that it's diversified, well managed. Yield close to 3%, grown for over 50 consecutive years.

Her core US bank holding. Share price has gone up, but earnings have been growing. Company sees consumer doing OK in a pretty strong economy. Increasing loan provisions slightly. Net interest margin coming off a bit with interest rates being cut, but JPM sees that pivoting next year. 

Very high ROE of 16%, very high operating efficiency. Very strong balance sheet. CEO prefers liquid cash on the balance sheet instead of bonds, which allowed them to buy First Republic. She's increased her weighting.

All the tools and services that the healthcare industry needs, so you get diversity with just the one stock. Very well managed. Long-term growth targets are 7-9%. Always improves margins. China is about 8% of revenues, a bit weaker. Biotech funding dried up with higher rates. Inventory destocking. Hopefully, those 3 factors are behind them.