Opinions by Zachary Curry | StockChase
456
Zachary Curry

Chief Operating Officer & Portfolio Manager

ON STOCKCHASE SINCE May 2013

Davis-Rea Ltd.

http://www.davisrea.com/contact/

456
Zachary Curry

Chief Operating Officer & Portfolio Manager

ON STOCKCHASE SINCE May 2013

Davis-Rea Ltd.

http://www.davisrea.com/contact/


Opinions by Zachary Curry


Signal Opinion Expert Chart
N/A
General Market Comment 

September 20, 2017

Market. Feels the growth trajectory will slow down towards the end of the year. There are some headwinds facing Canada. However, it is a good place to be, notwithstanding it slowing. Thinks it will be more opportunistic towards the back half of the year, so he is positive on Canadian equities. There was a report out of the EIA lowering the Q2 and Q3 forecasts for shale producers. You could see it about $50 for sustained period of time. Doesn’t feel there will be a further rush to increase interest rates in Canada.

Market. Feels the growth trajectory will slow down towards the end of the year. There are some headwinds facing Canada. However, it is a good place to be, notwithstanding it slowing. Thinks it will be more opportunistic towards the back half of the year, so he is positive on Canadian equities. There was a report out of the EIA lowering the Q2 and Q3 forecasts for shale producers. You could see it about $50 for sustained period of time. Doesn’t feel there will be a further rush to increase interest rates in Canada.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

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TOP PICK
Apple(AAPL-Q) 

September 20, 2017

This keeps you in the eco system, which is extremely profitable for them. The apps and the music side is keeping you in there. The iPhone 8 and iPhone X should be positive heading into the holiday season. Also, it is not trading at an outrageous multiple. Dividend yield of 1.6%. (Analysts’ price target is $180.)

electrical/electronic

This keeps you in the eco system, which is extremely profitable for them. The apps and the music side is keeping you in there. The iPhone 8 and iPhone X should be positive heading into the holiday season. Also, it is not trading at an outrageous multiple. Dividend yield of 1.6%. (Analysts’ price target is $180.)

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$156.070
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Accenture Ltd.(ACN-N) 

September 20, 2017

More and more people are moving to the Cloud and not knowing how to do it. Production for this company is helping companies do it. That will grow, grow and grow in his view. Has a huge cash horde, and are very good at integrating acquisitions. Sees it in the $150-$160 range in a year. Dividend yield of 1.8%. (Analysts’ price target is $138.)

other services

More and more people are moving to the Cloud and not knowing how to do it. Production for this company is helping companies do it. That will grow, grow and grow in his view. Has a huge cash horde, and are very good at integrating acquisitions. Sees it in the $150-$160 range in a year. Dividend yield of 1.8%. (Analysts’ price target is $138.)

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$138.010
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Altagas Ltd(ALA-T) 

September 20, 2017

Subscription Receipts. They did a big deal with the WGL in Washington, and there is a bit of pressure there, but positive and the fact that you get your $31 back if the deal doesn’t work, and a 7% monthly income to wait. Dividend yield of 7.3%. (Analysts’ price target is $33.)

oil/gas

Subscription Receipts. They did a big deal with the WGL in Washington, and there is a bit of pressure there, but positive and the fact that you get your $31 back if the deal doesn’t work, and a 7% monthly income to wait. Dividend yield of 7.3%. (Analysts’ price target is $33.)

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$28.210
Owned Owned
Yes

Must be logged in to use chart
COMMENT
American Express(AXP-N) 

September 20, 2017

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is not a favourable one in his view.

investment companies/funds

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is not a favourable one in his view.

investment companies/funds
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$88.430
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
BCE Inc.(BCE-T) 

September 20, 2017

He is holding this for the income, which could be under pressure. Doesn’t think you are going to see dramatic increases in the underlying price, but the fundamentals are there. You potentially have a new wireless refresh cycle going on.

telephone utilities

He is holding this for the income, which could be under pressure. Doesn’t think you are going to see dramatic increases in the underlying price, but the fundamentals are there. You potentially have a new wireless refresh cycle going on.

telephone utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$58.930
Owned Owned
Yes

Must be logged in to use chart
COMMENT
CitiGroup(C-N) 

September 20, 2017

He would prefer Wells Fargo (WFC-N) or J.P. Morgan (JPM-N). Wells Fargo is more of a retail focused bank and has been under pressure because of some of the news items on opening of accounts. J.P. Morgan is more of a conglomerate bank of investment and retail. It is less focused on international markets, which he views as a positive.

insurance

He would prefer Wells Fargo (WFC-N) or J.P. Morgan (JPM-N). Wells Fargo is more of a retail focused bank and has been under pressure because of some of the news items on opening of accounts. J.P. Morgan is more of a conglomerate bank of investment and retail. It is less focused on international markets, which he views as a positive.

insurance
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$71.460
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
Canadian National R.R.(CNR-T) 

September 20, 2017

This is really predicated on economic growth. There are 2 facets to their model. One is price increases and the other is volume increases. They have been able to pass on price increases fairly consistently. On the volume side, it is economic growth. A very well-run rail with a low operating ratio.

Transportation

This is really predicated on economic growth. There are 2 facets to their model. One is price increases and the other is volume increases. They have been able to pass on price increases fairly consistently. On the volume side, it is economic growth. A very well-run rail with a low operating ratio.

Transportation
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$101.100
Owned Owned
No

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PAST TOP PICK

(A Top Pick June 21/16. Down 95%.) He sold this before the end of last year.

Pharma & Healthcare

(A Top Pick June 21/16. Down 95%.) He sold this before the end of last year.

Pharma & Healthcare
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$1.520
Owned Owned
No

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HOLD
Walt Disney(DIS-N) 

September 20, 2017

There has been a lot of news lately on the cable side of things, which has been an overhang. They recently released some news on their plans to move away from partnering with Netflix in terms of streaming. They have the content and it will be positive. It would take a couple of years to get there. Has an amazing library of content as well as potentially having the cable side of ESPN, which could fold into that. In the meantime, they have great movie franchises.

entertainment services

There has been a lot of news lately on the cable side of things, which has been an overhang. They recently released some news on their plans to move away from partnering with Netflix in terms of streaming. They have the content and it will be positive. It would take a couple of years to get there. Has an amazing library of content as well as potentially having the cable side of ESPN, which could fold into that. In the meantime, they have great movie franchises.

entertainment services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$99.210
Owned Owned
Yes

Must be logged in to use chart
HOLD
Fortis Inc.(FTS-T) 

September 20, 2017

An electrical utility company, generating electricity. You are not going to get a massive up-spike in that kind of company. You will get great and stable income as well as growth over the longer-term. Has been very successful in going into the US and buying assets. Extremely well-managed. They raise their dividend consistently.

electrical utilities

An electrical utility company, generating electricity. You are not going to get a massive up-spike in that kind of company. You will get great and stable income as well as growth over the longer-term. Has been very successful in going into the US and buying assets. Extremely well-managed. They raise their dividend consistently.

electrical utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$44.960
Owned Owned
Yes

Must be logged in to use chart
COMMENT
General Electric(GE-N) 

September 20, 2017

An interesting company. Selling off the finance side out of the last recession has clearly focused them on healthcare, infrastructure technology and energy. He is not constructive on this company yet, in terms of a conglomerate being in all sectors. You are better off picking and choosing specific companies for those sectors.

electrical/electronic

An interesting company. Selling off the finance side out of the last recession has clearly focused them on healthcare, infrastructure technology and energy. He is not constructive on this company yet, in terms of a conglomerate being in all sectors. You are better off picking and choosing specific companies for those sectors.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$24.320
Owned Owned
No

Must be logged in to use chart
COMMENT
Hydro One(H-T) 

September 20, 2017

He is pretty positive on this. You see a lot of trend of Canadian companies going down to the US to buy assets. It is a very long cycle, which is why the receipts are a good thing in terms of if it doesn’t happen. The conversion will result in dilution, but you are getting paid to wait. Thinks it will work out well.

electrical utilities

He is pretty positive on this. You see a lot of trend of Canadian companies going down to the US to buy assets. It is a very long cycle, which is why the receipts are a good thing in terms of if it doesn’t happen. The conversion will result in dilution, but you are getting paid to wait. Thinks it will work out well.

electrical utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$22.600
Owned Owned
No

Must be logged in to use chart
WATCH

A well-managed REIT. There are a number of headwinds with interest rates going up, potential debt maturities coming due. They have some office space in Calgary which is a bit under pressure, but not catastrophic. Good income. A “wait and see” situation.

property mngmnt/investment

A well-managed REIT. There are a number of headwinds with interest rates going up, potential debt maturities coming due. They have some office space in Calgary which is a bit under pressure, but not catastrophic. Good income. A “wait and see” situation.

property mngmnt/investment
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$21.330
Owned Owned
Yes

Must be logged in to use chart
COMMENT
Inter Pipeline(IPL-T) 

September 20, 2017

This has been caught up on the energy component, even though it has great contracts with bigger oil companies. Doesn’t consider it to be a dramatic high-yielder, so is not concerned about the payout ratio. They have some great, long term contracts, specifically with Imperial Oil (IMO-T). A good portion of it is shipping condensate for the oil sands. Notwithstanding the low energy prices, he doesn’t believe the oil sands projects are going to stop. Condensate will be needed and those contracts are long-term in nature.

oil pipelines

This has been caught up on the energy component, even though it has great contracts with bigger oil companies. Doesn’t consider it to be a dramatic high-yielder, so is not concerned about the payout ratio. They have some great, long term contracts, specifically with Imperial Oil (IMO-T). A good portion of it is shipping condensate for the oil sands. Notwithstanding the low energy prices, he doesn’t believe the oil sands projects are going to stop. Condensate will be needed and those contracts are long-term in nature.

oil pipelines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$23.870
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK
Keyera Corp(KEY-T) 

September 20, 2017

(A Top Pick June 21/16. Up 7%.) He still likes the name. A very well-managed company. Conservative debt metrics. Provides good income.

oil/gas

(A Top Pick June 21/16. Up 7%.) He still likes the name. A very well-managed company. Conservative debt metrics. Provides good income.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$38.580
Owned Owned
Yes

Must be logged in to use chart
COMMENT
Mastercard Inc.(MA-N) 

September 20, 2017

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is a bit more international, but trades a little higher on a multiple basis. American Express is not a favourable one in his view.

other services

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is a bit more international, but trades a little higher on a multiple basis. American Express is not a favourable one in his view.

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$142.240
Owned Owned
Unknown

Must be logged in to use chart
PAST TOP PICK
McDonalds(MCD-N) 

September 20, 2017

(A Top Pick June 21/16. Up 34%.) This continues to fire on all cylinders. New management has brought in new initiatives, new menus, technologies in the stores. It trades at a pretty hefty multiple now.

food services

(A Top Pick June 21/16. Up 34%.) This continues to fire on all cylinders. New management has brought in new initiatives, new menus, technologies in the stores. It trades at a pretty hefty multiple now.

food services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$159.880
Owned Owned
Yes

Must be logged in to use chart
HOLD
Manulife Financial(MFC-T) 

September 20, 2017

The best in class in Canada. There are always 2 components with the insurance companies, insurance and investments. A rising rate environment should be beneficial over the longer-term. Product sales are good. They are branching out into Asia. It has been well-managed.

insurance

The best in class in Canada. There are always 2 components with the insurance companies, insurance and investments. A rising rate environment should be beneficial over the longer-term. Product sales are good. They are branching out into Asia. It has been well-managed.

insurance
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$24.440
Owned Owned
No

Must be logged in to use chart
BUY
PPG Industries(PPG-N) 

September 20, 2017

Produces chemicals and products which are chemically-based, and is in a great sweet spot. There will be continued demand on the infrastructure side and input prices are low. A good company to be in.

INDUSTRIAL PRODUCTS

Produces chemicals and products which are chemically-based, and is in a great sweet spot. There will be continued demand on the infrastructure side and input prices are low. A good company to be in.

INDUSTRIAL PRODUCTS
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$108.810
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
SNC-Lavalin Group Inc.(SNC-T) 

September 20, 2017

A great name for exposure to infrastructure spending, which seems to be going on in every country globally. The concerns over the bribery, etc. is largely behind them. They could gain meaningfully out of some of the contracts going forward on infrastructure spending. He prefers Brookfield Infrastructure Partners (BIP.UN-T)

contractors

A great name for exposure to infrastructure spending, which seems to be going on in every country globally. The concerns over the bribery, etc. is largely behind them. They could gain meaningfully out of some of the contracts going forward on infrastructure spending. He prefers Brookfield Infrastructure Partners (BIP.UN-T)

contractors
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$55.200
Owned Owned
No

Must be logged in to use chart
COMMENT
Tesla Motors Inc(TSLA-Q) 

September 20, 2017

This is going to need a lot of cash. They advertise model 3 at $35,000, and when it comes to Canada, it will be in the $70,000 range. Need a lot of money to get production up and running to the levels they want to go to. The cash burn rate is very high. Thinks you will have lots of opportunities to back up the truck going forward. A large part of the company is due to subsidies. Not a company he would be looking to own at this time. A momentum play rather than an investment.

This is going to need a lot of cash. They advertise model 3 at $35,000, and when it comes to Canada, it will be in the $70,000 range. Need a lot of money to get production up and running to the levels they want to go to. The cash burn rate is very high. Thinks you will have lots of opportunities to back up the truck going forward. A large part of the company is due to subsidies. Not a company he would be looking to own at this time. A momentum play rather than an investment.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$373.910
Owned Owned
No

Must be logged in to use chart
SELL
Under Armour Inc.(UAA-N) 

September 20, 2017

A good company. CEO had not been super forthcoming in terms of his dealings with the company. It really comes down to their footwear. That is where a lot of their growth was expected to come from, which has not happened. It is extremely difficult competing with Nike (NKE-N). Also, Adidas is coming in, a huge player. He would look at this as a Sell candidate.

Consumer Products

A good company. CEO had not been super forthcoming in terms of his dealings with the company. It really comes down to their footwear. That is where a lot of their growth was expected to come from, which has not happened. It is extremely difficult competing with Nike (NKE-N). Also, Adidas is coming in, a huge player. He would look at this as a Sell candidate.

Consumer Products
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$16.540
Owned Owned
No

Must be logged in to use chart
COMMENT
Visa Inc.(V-N) 

September 20, 2017

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers this, the largest of the 3. Their recent acquisition of Visa Europe is positive. MasterCard is a bit more international, but trades a little higher on a multiple basis. American Express is not a favourable one in his view.

other services

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers this, the largest of the 3. Their recent acquisition of Visa Europe is positive. MasterCard is a bit more international, but trades a little higher on a multiple basis. American Express is not a favourable one in his view.

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$104.970
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
Westjet Airlines(WJA-T) 

September 20, 2017

Airlines really come down to being a high fixed cost model. On borrowing money, interest rates are low. Also, oil prices are low. They’ve had good growth. Announced they are going to launch an ultra low-cost carrier, which should bode well for them. Be aware that when rates go up and energy prices increase, that will have an effect on airlines.

Transportation

Airlines really come down to being a high fixed cost model. On borrowing money, interest rates are low. Also, oil prices are low. They’ve had good growth. Announced they are going to launch an ultra low-cost carrier, which should bode well for them. Be aware that when rates go up and energy prices increase, that will have an effect on airlines.

Transportation
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$26.970
Owned Owned
Unknown

Must be logged in to use chart
N/A
General Market Comment 

May 24, 2017

Economy. Global growth is still there, but is starting to plateau. Positive global growth is good for commodities. There has been a good deal of growth in 2016, plateauing a bit in 2017. A “steady as she goes” market, and a “steady as she goes” economy. He is not expecting any wild swings up or down. Oil is trading in a range, anywhere from $45-$55 is a good range.

Economy. Global growth is still there, but is starting to plateau. Positive global growth is good for commodities. There has been a good deal of growth in 2016, plateauing a bit in 2017. A “steady as she goes” market, and a “steady as she goes” economy. He is not expecting any wild swings up or down. Oil is trading in a range, anywhere from $45-$55 is a good range.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

Must be logged in to use chart
N/A
General Market Comment 

May 24, 2017

US Treasury Bonds? These are viewed as one of the safest things in the world. Any time there is market uncertainty, there is usually a flock to US Treasury Bonds. The demand is there, which is why you see yields come down from the 2.5%-2.6% level to where they are now. He views that as being a bit overdone.

US Treasury Bonds? These are viewed as one of the safest things in the world. Any time there is market uncertainty, there is usually a flock to US Treasury Bonds. The demand is there, which is why you see yields come down from the 2.5%-2.6% level to where they are now. He views that as being a bit overdone.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

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TOP PICK
Altagas Ltd(ALA-T) 

May 24, 2017

(ALA.R-T Subscription Receipts. 9/4/18.) This is part of a financing that was done in February in a deal to acquired WGL for $8.5 billion. This is scheduled to close in 2018, and subscription receipts are a way to play that. Should the deal fall apart, you get your money back. He looks at this as a “no lose” as you get close to 7% to wait.

oil/gas

(ALA.R-T Subscription Receipts. 9/4/18.) This is part of a financing that was done in February in a deal to acquired WGL for $8.5 billion. This is scheduled to close in 2018, and subscription receipts are a way to play that. Should the deal fall apart, you get your money back. He looks at this as a “no lose” as you get close to 7% to wait.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$30.590
Owned Owned
Yes

Must be logged in to use chart
COMMENT
BCE Inc.(BCE-T) 

May 24, 2017

With rates as low as they are, he is generally positive on the income, however, cautious on the sector because of media content. The real work is around the land lines. Over half their EBITDA is generated from land lines, and he would like to make sure that cord cutting does not accelerate. A large part of the driver on this company is on the income side of things. Sold half his position a long while ago. A good generator of income.

telephone utilities

With rates as low as they are, he is generally positive on the income, however, cautious on the sector because of media content. The real work is around the land lines. Over half their EBITDA is generated from land lines, and he would like to make sure that cord cutting does not accelerate. A large part of the driver on this company is on the income side of things. Sold half his position a long while ago. A good generator of income.

telephone utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$60.590
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK
Cerner Corp.(CERN-Q) 

May 24, 2017

(A Top Pick April 5/16. Up 19%.) Two of his favourite sectors are Information Technology and Healthcare, and this company borders both of those. It is a company in the healthcare space that basically takes records from paper to digital, which is a mandatory event in the US.

medical services

(A Top Pick April 5/16. Up 19%.) Two of his favourite sectors are Information Technology and Healthcare, and this company borders both of those. It is a company in the healthcare space that basically takes records from paper to digital, which is a mandatory event in the US.

medical services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$64.360
Owned Owned
Yes

Must be logged in to use chart
DON'T BUY

He would recommend something else. There are better banks out there. He wouldn’t own this one. It has the most in residential mortgages. Prefers something like Toronto Dominion (TD-T) or Bank of Montréal (BMO-T) which have avenues into the US. There is also Royal Bank (RY-T) or Bank of Nova Scotia (BNS-T).

banks

He would recommend something else. There are better banks out there. He wouldn’t own this one. It has the most in residential mortgages. Prefers something like Toronto Dominion (TD-T) or Bank of Montréal (BMO-T) which have avenues into the US. There is also Royal Bank (RY-T) or Bank of Nova Scotia (BNS-T).

banks
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$106.300
Owned Owned
No

Must be logged in to use chart
HOLD

They hold high quality assets, but questions the structure of the company and how management really raises equity. Too frequently for him. Any time you do anything, management goes out and raises equity, diluting existing shareholders, making the former dividend harder to pay.

oil/gas

They hold high quality assets, but questions the structure of the company and how management really raises equity. Too frequently for him. Any time you do anything, management goes out and raises equity, diluting existing shareholders, making the former dividend harder to pay.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$13.030
Owned Owned
No

Must be logged in to use chart
COMMENT
Cisco(CSCO-Q) 

May 24, 2017

A kind of “steady as she goes” company relating to Internet infrastructure. Don’t expect dramatic growth, but it pays a good dividend yield. Going forward, all the wireless, technology, routers and switches that are needed for the backbone will grow, but will be slower than in the past. Well-run company and great balance sheet, but you can find other companies exposed to the Internet that would be faster growing.

electrical/electronic

A kind of “steady as she goes” company relating to Internet infrastructure. Don’t expect dramatic growth, but it pays a good dividend yield. Going forward, all the wireless, technology, routers and switches that are needed for the backbone will grow, but will be slower than in the past. Well-run company and great balance sheet, but you can find other companies exposed to the Internet that would be faster growing.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$31.490
Owned Owned
No

Must be logged in to use chart
COMMENT
Cenovus Energy(CVE-T) 

May 24, 2017

Feels there is going to be a large overhang on this company for some time. They did a deal with Conoco (COP-N), issued a whole pile of stock and took on a whole pile of debt. That is really the inverse of what he would be looking for. There will continue to be an overhang with Conoco Phillips getting upside. If there is any oil appreciation, they are going to continue to get upside. However, $16 down to $12.80 is a nice downdraft, so you could almost argue that most of that is baked in. If they started to pay down the debt, that would be a really good sign.

oil/gas

Feels there is going to be a large overhang on this company for some time. They did a deal with Conoco (COP-N), issued a whole pile of stock and took on a whole pile of debt. That is really the inverse of what he would be looking for. There will continue to be an overhang with Conoco Phillips getting upside. If there is any oil appreciation, they are going to continue to get upside. However, $16 down to $12.80 is a nice downdraft, so you could almost argue that most of that is baked in. If they started to pay down the debt, that would be a really good sign.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$12.860
Owned Owned
Unknown

Must be logged in to use chart
HOLD
Walt Disney(DIS-N) 

May 24, 2017

He likes this and feels it is a good Hold. It is going to have a little volatility based on the overhang with ESPN. Live sports moving to the Internet is going to be an overhang for a while. This company holds a lot of amazing content. They have capabilities to produce great shows and movies, and a lot of ancillaries around that in the form of toys, etc. Perhaps this is one you could Trade. If it gets up to the $113 level, you could Sell, and if it gets down to $90 you good buy it.

entertainment services

He likes this and feels it is a good Hold. It is going to have a little volatility based on the overhang with ESPN. Live sports moving to the Internet is going to be an overhang for a while. This company holds a lot of amazing content. They have capabilities to produce great shows and movies, and a lot of ancillaries around that in the form of toys, etc. Perhaps this is one you could Trade. If it gets up to the $113 level, you could Sell, and if it gets down to $90 you good buy it.

entertainment services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$107.710
Owned Owned
Yes

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COMMENT

When the original company split, he was more constructive on this side of the 2. A good business. Incremental revenues on solid, long term contracts. They lost a bit of credibility with the street and need to make it back. If they generate good cash flow, you could see a dividend rise. He is just going to wait and see.

When the original company split, he was more constructive on this side of the 2. A good business. Incremental revenues on solid, long term contracts. They lost a bit of credibility with the street and need to make it back. If they generate good cash flow, you could see a dividend rise. He is just going to wait and see.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$10.870
Owned Owned
No

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PAST TOP PICK
Facebook(FB-Q) 

May 24, 2017

(A Top Pick April 5/16. Up 33%.) The biggest dominant player on the Internet with users. They have the audience that is able to tweak the apps that they have. A higher multiple, but they are definitely growing through that multiple at great rates. Good balance sheet.

(A Top Pick April 5/16. Up 33%.) The biggest dominant player on the Internet with users. They have the audience that is able to tweak the apps that they have. A higher multiple, but they are definitely growing through that multiple at great rates. Good balance sheet.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$150.040
Owned Owned
Yes

Must be logged in to use chart
COMMENT

He is very keen on this. They are doing great things. On advertising and search, they are taking away from the incumbents and have lots of things in the hopper. Great balance sheet and a really durable franchise. Going forward, the virtual reality and artificial intelligence are going to be really big components for them.

Business Services

He is very keen on this. They are doing great things. On advertising and search, they are taking away from the incumbents and have lots of things in the hopper. Great balance sheet and a really durable franchise. Going forward, the virtual reality and artificial intelligence are going to be really big components for them.

Business Services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$977.610
Owned Owned
Yes

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TOP PICK
Goldman Sachs(GS-N) 

May 24, 2017

In their last quarter, they had some trouble with their fixed income and currency side, and he views that as a “one off”. The stock was down 5%. With the proposed US deregulations and tax reform, that would be even more positive for them. There is lots of M&A going on. This is trading at 12X earnings, compared to the market which is at 17X. Feels they will generate growth of 12% for the next 3 years. Dividend yield of 1.4%. (Analysts’ price target is $251.)

investment companies/funds

In their last quarter, they had some trouble with their fixed income and currency side, and he views that as a “one off”. The stock was down 5%. With the proposed US deregulations and tax reform, that would be even more positive for them. There is lots of M&A going on. This is trading at 12X earnings, compared to the market which is at 17X. Feels they will generate growth of 12% for the next 3 years. Dividend yield of 1.4%. (Analysts’ price target is $251.)

investment companies/funds
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$223.830
Owned Owned
Yes

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HOLD

Healthcare is being overshadowed by a whole bunch of things, demographics, government policies, etc. He is fairly constructive on healthcare. One of the few spaces that is not trading at an overvalued market multiple. One of the overhangs is the political cloud, but if you can get past that, it is a positive space to be in, and not expensive.

biotechnology/pharmaceutical

Healthcare is being overshadowed by a whole bunch of things, demographics, government policies, etc. He is fairly constructive on healthcare. One of the few spaces that is not trading at an overvalued market multiple. One of the overhangs is the political cloud, but if you can get past that, it is a positive space to be in, and not expensive.

biotechnology/pharmaceutical
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$42.950
Owned Owned
Unknown

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COMMENT
Intel(INTC-Q) 

May 24, 2017

The largest chip manufacturer. A good part of their business is declining from traditional PC chips. Their latest acquisition will be positive in the long run. It is a company that makes chips for the autonomous cars. The company uses a good deal of their cash hoard, but they remain in good shape financially and pay a good dividend. He wouldn’t want to bet against this company.

electrical/electronic

The largest chip manufacturer. A good part of their business is declining from traditional PC chips. Their latest acquisition will be positive in the long run. It is a company that makes chips for the autonomous cars. The company uses a good deal of their cash hoard, but they remain in good shape financially and pay a good dividend. He wouldn’t want to bet against this company.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$36.120
Owned Owned
No

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COMMENT

A very strong name. The real question is if they can transition from the soft drink business to the healthier side of the business. Recently they announced some layoffs. Good distribution, but you are going to have to see that transition to healthier snacks.

food processing

A very strong name. The real question is if they can transition from the soft drink business to the healthier side of the business. Recently they announced some layoffs. Good distribution, but you are going to have to see that transition to healthier snacks.

food processing
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$45.030
Owned Owned
Unknown

Must be logged in to use chart
DON'T BUY
Linamar Corp(LNR-T) 

May 24, 2017

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

transportation equip & components

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

transportation equip & components
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$62.700
Owned Owned
Unknown

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COMMENT
Mastercard Inc.(MA-N) 

May 24, 2017

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. This one has a little more international exposure, and is a bit more advanced on the technology side, but Visa is the dominant player.

other services

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. This one has a little more international exposure, and is a bit more advanced on the technology side, but Visa is the dominant player.

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$120.700
Owned Owned
Unknown

Must be logged in to use chart
DON'T BUY
Magna Int'l. (A)(MG-T) 

May 24, 2017

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

Automotive

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

Automotive
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$60.110
Owned Owned
Unknown

Must be logged in to use chart
DON'T BUY
Martinrea(MRE-T) 

May 24, 2017

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

metal fabricators

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.

metal fabricators
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$11.420
Owned Owned
Unknown

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DON'T BUY

Potash is a really hard commodity to look at. It has a cartel type of mentality. Very dependent on foreign buying. There have been a lot of letdowns with this name. He would steer away from this right now.

integrated mines

Potash is a really hard commodity to look at. It has a cartel type of mentality. Very dependent on foreign buying. There have been a lot of letdowns with this name. He would steer away from this right now.

integrated mines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$22.260
Owned Owned
No

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COMMENT

Had a tough Go in their last quarter with a lot of redemptions in the US on the mutual fund side. He would prefer Manulife (MFC-T) which has a stronger exposure to Asia. Also, their core business of selling insurance is going very well. He doesn’t own either. Dividend yield of 3.9%.

insurance

Had a tough Go in their last quarter with a lot of redemptions in the US on the mutual fund side. He would prefer Manulife (MFC-T) which has a stronger exposure to Asia. Also, their core business of selling insurance is going very well. He doesn’t own either. Dividend yield of 3.9%.

insurance
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$44.210
Owned Owned
No

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TOP PICK

He likes this because it gets him exposure to consumer spending, home renovations and the housing market without having to take on 3 distinct companies. They just sold a component of their locks division, which he views as positive. They have a new component for their tool side, coming out with a battery that works with everything and should generate good numbers for them. A positive balance sheet and some good strength sales in Europe. Dividend yield of 1.7%. (Analysts’ price target is $150.)

misc industrial products

He likes this because it gets him exposure to consumer spending, home renovations and the housing market without having to take on 3 distinct companies. They just sold a component of their locks division, which he views as positive. They have a new component for their tool side, coming out with a battery that works with everything and should generate good numbers for them. A positive balance sheet and some good strength sales in Europe. Dividend yield of 1.7%. (Analysts’ price target is $150.)

misc industrial products
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$136.180
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK

(A Top Pick April 5/16. Up 14%.) The 2nd largest natural gas producer in Canada. Exceptional management team.

oil/gas

(A Top Pick April 5/16. Up 14%.) The 2nd largest natural gas producer in Canada. Exceptional management team.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$28.410
Owned Owned
Yes

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COMMENT
Visa Inc.(V-N) 

May 24, 2017

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. MasterCard has a little more international exposure, and is a bit more advanced on the technology side, but this one is the dominant player.

other services

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. MasterCard has a little more international exposure, and is a bit more advanced on the technology side, but this one is the dominant player.

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$94.810
Owned Owned
Unknown

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DON'T BUY

Low interest rates and low fuel prices are great for airlines and are definitely working for Air Canada (AC-T), and to a lesser degree Westjet. He doesn’t own airlines because it tends to be a high fixed cost model. This airline is getting into a low-cost carrier model, following Air Canada. Pilots are coming into a union, and thinks there are a lot of headwinds on this company.

Transportation

Low interest rates and low fuel prices are great for airlines and are definitely working for Air Canada (AC-T), and to a lesser degree Westjet. He doesn’t own airlines because it tends to be a high fixed cost model. This airline is getting into a low-cost carrier model, following Air Canada. Pilots are coming into a union, and thinks there are a lot of headwinds on this company.

Transportation
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$22.450
Owned Owned
No

Must be logged in to use chart
N/A
General Market Comment 

March 16, 2017

Market. We are starting to see a global recovery, although the US market is still in the lead. He is waiting for more certainty on policy to be introduced by the new administration to back that up. NAFTA will be a year or 2 out, and certain sectors will benefit and others might not. That uncertainty tends to gyrate up or down, and we haven’t seen that. There have been over 100 sessions of the S&P 500 where it hasn’t dropped more than 1%, very unusual given the uncertainty. You need to be a little reserved when investing, to take into account factors that are not necessarily being factored in now. Globally, certainly in developed countries, equity markets are over valued in certain sectors. There is caution warranted, but not overly extensive. A bit of a “wait and see” game.

Market. We are starting to see a global recovery, although the US market is still in the lead. He is waiting for more certainty on policy to be introduced by the new administration to back that up. NAFTA will be a year or 2 out, and certain sectors will benefit and others might not. That uncertainty tends to gyrate up or down, and we haven’t seen that. There have been over 100 sessions of the S&P 500 where it hasn’t dropped more than 1%, very unusual given the uncertainty. You need to be a little reserved when investing, to take into account factors that are not necessarily being factored in now. Globally, certainly in developed countries, equity markets are over valued in certain sectors. There is caution warranted, but not overly extensive. A bit of a “wait and see” game.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

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COMMENT
General Market Comment 

March 16, 2017

Lifecos? They have 2 components. One is the investment side, and the other is the business of selling life insurance. With interest rates going up in the past little while, that has been constructive for these companies, because of their investment portfolio getting listed in the income. Conversely, the selling of the actual life insurance is going fairly well, and that is the focus where you should be looking.

Lifecos? They have 2 components. One is the investment side, and the other is the business of selling life insurance. With interest rates going up in the past little while, that has been constructive for these companies, because of their investment portfolio getting listed in the income. Conversely, the selling of the actual life insurance is going fairly well, and that is the focus where you should be looking.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
Unknown

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TOP PICK
AltaGas Ltd(ALA.R-T) 

March 16, 2017

The company has just issued these Subscription Receipts for stocks, for a US acquisition they plan to do that should close in the 2nd quarter of 2018. There are a few worries where they have a big chunk of debt and some worries on the utility side. In his view, the debt levels will go down. If the deal doesn’t go through, the subscription receipt holders get their money back. This is trading at about $1 less then the common shares. Dividend yield of 7.1%.

Energy

The company has just issued these Subscription Receipts for stocks, for a US acquisition they plan to do that should close in the 2nd quarter of 2018. There are a few worries where they have a big chunk of debt and some worries on the utility side. In his view, the debt levels will go down. If the deal doesn’t go through, the subscription receipt holders get their money back. This is trading at about $1 less then the common shares. Dividend yield of 7.1%.

Energy
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$29.740
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK

(A Top Pick Jan 13/16. Up 30%.) This company buys the land under auto dealerships and then leases it back to them. These are triple net leases, meaning that the dealership pays for everything, taxes and maintenance. There is a 1.5% escalator clause for every year. The company has made 2 acquisitions since last year. It is paying just under 7.5%, so a good income generating investment.

REAL ESTATE

(A Top Pick Jan 13/16. Up 30%.) This company buys the land under auto dealerships and then leases it back to them. These are triple net leases, meaning that the dealership pays for everything, taxes and maintenance. There is a 1.5% escalator clause for every year. The company has made 2 acquisitions since last year. It is paying just under 7.5%, so a good income generating investment.

REAL ESTATE
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$10.740
Owned Owned
Yes

Must be logged in to use chart
COMMENT
Bank of America(BAC-N) 

March 16, 2017

Bank of America (BAC-N) or Toronto Dominion (TD-T)? He prefers J.P. Morgan (JPM-N), which is a bit more tilted to the investment banking side, and would see a bit more participation in the deregulation that he feels is coming. There is room for the Cdn$ to come down further.

banks

Bank of America (BAC-N) or Toronto Dominion (TD-T)? He prefers J.P. Morgan (JPM-N), which is a bit more tilted to the investment banking side, and would see a bit more participation in the deregulation that he feels is coming. There is room for the Cdn$ to come down further.

banks
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$25.220
Owned Owned
No

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COMMENT
BCE Inc.(BCE-T) 

March 16, 2017

He is constructive on this. Gives good income from the dividend. There will be some negative overhang with regards to the debt, continually borrowing money. A lot of negative overhang with the media side, a smaller component. They have a big wireless division which is growing. The landline division seems to have stopped its bleeding which is positive. He is looking at this cautiously, based on the fact that they are paying out a good deal of their income towards the dividend, as well as borrowing money.

telephone utilities

He is constructive on this. Gives good income from the dividend. There will be some negative overhang with regards to the debt, continually borrowing money. A lot of negative overhang with the media side, a smaller component. They have a big wireless division which is growing. The landline division seems to have stopped its bleeding which is positive. He is looking at this cautiously, based on the fact that they are paying out a good deal of their income towards the dividend, as well as borrowing money.

telephone utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$57.570
Owned Owned
Yes

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DON'T BUY
Cameco Corporation(CCO-T) 

March 16, 2017

They are selling to nuclear reactors, which take a long time to build and a long time to get going. The news out of Japan is certainly not constructive. He is not very positive on this. Feels natural gas is more cost effective, and is available in abundance.

integrated mines

They are selling to nuclear reactors, which take a long time to build and a long time to get going. The news out of Japan is certainly not constructive. He is not very positive on this. Feels natural gas is more cost effective, and is available in abundance.

integrated mines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$14.890
Owned Owned
No

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PAST TOP PICK
Cerner Corp.(CERN-Q) 

March 16, 2017

(A Top Pick Jan 13/16. Down 4%.) This converts medical records from paper to an electronic form. There is a law in the US that at a certain point, X number of paper documents have to be converted to digital. Regardless with what happens with the healthcare act going forward, this is in place and digitalization will continue. This company went from fully recognizing sales all at once, to more of a subscription type revenue recognition model, which has caused some lumpiness. He has a half position, and is looking to buy more, but wants to see some of that lumpiness disappear.

medical services

(A Top Pick Jan 13/16. Down 4%.) This converts medical records from paper to an electronic form. There is a law in the US that at a certain point, X number of paper documents have to be converted to digital. Regardless with what happens with the healthcare act going forward, this is in place and digitalization will continue. This company went from fully recognizing sales all at once, to more of a subscription type revenue recognition model, which has caused some lumpiness. He has a half position, and is looking to buy more, but wants to see some of that lumpiness disappear.

medical services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$56.350
Owned Owned
Yes

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COMMENT

Average down? His biggest issue is that they seem to be serial issuers of stock. They continue to dilute the existing shareholder base, not a friendly thing to do. The US assets are great and they have increased production, but it is important to focus on production growth per share, and this one gets diluted down. They’ve already cut their dividend.

oil/gas

Average down? His biggest issue is that they seem to be serial issuers of stock. They continue to dilute the existing shareholder base, not a friendly thing to do. The US assets are great and they have increased production, but it is important to focus on production growth per share, and this one gets diluted down. They’ve already cut their dividend.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$14.610
Owned Owned
No

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COMMENT
Enbridge(ENB-T) 

March 16, 2017

He is constructive on energy. Holds this as well as 2 others that are similar, Keyera (KEY-T) and Inter Pipeline (IPL-T), and is more constructive on them than on Enbridge. Enbridge is doing a lot of borrowing and have a fairly high payout ratio. Keyera would be his #1 pick in the space.

oil/gas pipelines

He is constructive on energy. Holds this as well as 2 others that are similar, Keyera (KEY-T) and Inter Pipeline (IPL-T), and is more constructive on them than on Enbridge. Enbridge is doing a lot of borrowing and have a fairly high payout ratio. Keyera would be his #1 pick in the space.

oil/gas pipelines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$55.700
Owned Owned
Yes

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PAST TOP PICK
Facebook(FB-Q) 

March 16, 2017

(A Top Pick Jan 13/16. Up 47%.) Quality management, good metrics and good things to come.

(A Top Pick Jan 13/16. Up 47%.) Quality management, good metrics and good things to come.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$139.990
Owned Owned
Yes

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TOP PICK
Facebook(FB-Q) 

March 16, 2017

This is firing on all cylinders. There are a billion users on Facebook and are growing on Instagram and WhatsApp. The average revenue per user grew 30% last year. From a valuation point of view, the growth is far and away north of 30%, and the stock is trading at less than 25X, so you are getting more growth than what you are paying for. (Analysts’ price target is $158.)

This is firing on all cylinders. There are a billion users on Facebook and are growing on Instagram and WhatsApp. The average revenue per user grew 30% last year. From a valuation point of view, the growth is far and away north of 30%, and the stock is trading at less than 25X, so you are getting more growth than what you are paying for. (Analysts’ price target is $158.)

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$139.990
Owned Owned
Yes

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COMMENT

He likes this, and doesn’t find it terribly expensive in terms of the multiple it is trading at, versus their growth. However, his preference would be Facebook (FB-Q). (See Top Picks.)

Business Services

He likes this, and doesn’t find it terribly expensive in terms of the multiple it is trading at, versus their growth. However, his preference would be Facebook (FB-Q). (See Top Picks.)

Business Services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$870.000
Owned Owned
Yes

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WAIT

The coyote fur controversy hasn’t had much effect on the IPO given that the stock price is up materially today. He doesn’t think it is going to have a very big impact going forward. This has had a great run, so he would be cautious and sit on the sidelines for a while.

clothing

The coyote fur controversy hasn’t had much effect on the IPO given that the stock price is up materially today. He doesn’t think it is going to have a very big impact going forward. This has had a great run, so he would be cautious and sit on the sidelines for a while.

clothing
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$21.530
Owned Owned
Unknown

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HOLD
Johnson & Johnson(JNJ-N) 

March 16, 2017

Hold or sell? With the sectors it is in, consumers, pharmaceuticals and products, it is a bit of a healthcare conglomerate. Given that the demographics are trending in the right direction and drug prices being a little less political than it was, he is constructive on healthcare. If you had to pick one stock as a barometer to all various sectors in healthcare, this would be a good one.

biotechnology/pharmaceutical

Hold or sell? With the sectors it is in, consumers, pharmaceuticals and products, it is a bit of a healthcare conglomerate. Given that the demographics are trending in the right direction and drug prices being a little less political than it was, he is constructive on healthcare. If you had to pick one stock as a barometer to all various sectors in healthcare, this would be a good one.

biotechnology/pharmaceutical
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$128.460
Owned Owned
No

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COMMENT
Kelt Exploration(KEL-T) 

March 16, 2017

He likes this company. Good balance sheet and good management. They’ve improved their balance sheet over the past little while with a couple of asset sales as their areas of focus. The price of gas has come down recently. Solid, long term management team.

oil/gas

He likes this company. Good balance sheet and good management. They’ve improved their balance sheet over the past little while with a couple of asset sales as their areas of focus. The price of gas has come down recently. Solid, long term management team.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$6.150
Owned Owned
Yes

Must be logged in to use chart
COMMENT

A very capable management team, which is a huge positive. The action in the REIT space is driven more by interest rates. Expects rates will stay lower in Canada, but yields have been dragged up in the US in the past little while. Every time the REITs go up, the income becomes less valuable, but a good portion of REITs have financed themselves out fairly far. He is positive on this company.

investment companies/funds

A very capable management team, which is a huge positive. The action in the REIT space is driven more by interest rates. Expects rates will stay lower in Canada, but yields have been dragged up in the US in the past little while. Every time the REITs go up, the income becomes less valuable, but a good portion of REITs have financed themselves out fairly far. He is positive on this company.

investment companies/funds
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$15.400
Owned Owned
Unknown

Must be logged in to use chart
BUY

He’s constructive on energy. Since the start of the year, the overall energy space in Canada is down about 10%. Smaller/intermediate companies like this are down anywhere from 20% to 25%, so there is a disconnect between the 2. A well-run company and the balance sheet is in great shape. Management has a great deal of experience.

oil/gas

He’s constructive on energy. Since the start of the year, the overall energy space in Canada is down about 10%. Smaller/intermediate companies like this are down anywhere from 20% to 25%, so there is a disconnect between the 2. A well-run company and the balance sheet is in great shape. Management has a great deal of experience.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$2.570
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Stryker Corp.(SYK-N) 

March 16, 2017

This is known for knees and hips, and they have sold millions of knee replacement implants. They’ve recently started using a robot to replace the body parts, giving greater accuracy and lower costs. With the robot, you can only use their parts, making it a closed system. He doesn’t foresee any changes in the US health care act having an effect on this company and their equipment. Dividend yield of 1.3%. (Analysts’ price target is $132.)

biotechnology/pharmaceutical

This is known for knees and hips, and they have sold millions of knee replacement implants. They’ve recently started using a robot to replace the body parts, giving greater accuracy and lower costs. With the robot, you can only use their parts, making it a closed system. He doesn’t foresee any changes in the US health care act having an effect on this company and their equipment. Dividend yield of 1.3%. (Analysts’ price target is $132.)

biotechnology/pharmaceutical
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$131.500
Owned Owned
Yes

Must be logged in to use chart
COMMENT
Toronto Dominion(TD-T) 

March 16, 2017

Bank of America (BAC-N) or Toronto Dominion (TD-T)? He thinks the dip in the stock is a bit overdone, but could persist for a while, so there is time. This bank has US exposure, but there is going to be a bit of negative headline news regarding their sales practices. Canadian banks are not cheap, trading at 2X BV, compared to US banks at about 1.5X. Prefers J.P. Morgan (JPM-N), which is a bit more tilted to the investment banking side, and would see a bit more participation in the deregulation that he feels is coming. There is room for the Cdn$ to come down further.

banks

Bank of America (BAC-N) or Toronto Dominion (TD-T)? He thinks the dip in the stock is a bit overdone, but could persist for a while, so there is time. This bank has US exposure, but there is going to be a bit of negative headline news regarding their sales practices. Canadian banks are not cheap, trading at 2X BV, compared to US banks at about 1.5X. Prefers J.P. Morgan (JPM-N), which is a bit more tilted to the investment banking side, and would see a bit more participation in the deregulation that he feels is coming. There is room for the Cdn$ to come down further.

banks
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$66.320
Owned Owned
Yes

Must be logged in to use chart
COMMENT

A violently cyclical company. The biggest positive is the zinc market, which is undersupplied. Exposure to coal is their main driver. There has been volatility in coal prices. The underlying economic growth should benefit the commodity cycle as a whole. Their Fort Hills exposure will be able to be funded from cash flow, which is positive. Be prepared for cyclicality. There has been a huge drive in the stock, mostly last year, so a lot of the value is in the name.

precious metals

A violently cyclical company. The biggest positive is the zinc market, which is undersupplied. Exposure to coal is their main driver. There has been volatility in coal prices. The underlying economic growth should benefit the commodity cycle as a whole. Their Fort Hills exposure will be able to be funded from cash flow, which is positive. Be prepared for cyclicality. There has been a huge drive in the stock, mostly last year, so a lot of the value is in the name.

precious metals
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$28.840
Owned Owned
No

Must be logged in to use chart
DON'T BUY

He would be negative on this. It is a company with a business model of increasing drug prices, by materially high amounts. This has bitten off a lot of debt in order to go on their acquisition binges. If interest rates rise and they need to get financing, it is going to be extremely difficult.

Consumer Products

He would be negative on this. It is a company with a business model of increasing drug prices, by materially high amounts. This has bitten off a lot of debt in order to go on their acquisition binges. If interest rates rise and they need to get financing, it is going to be extremely difficult.

Consumer Products
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$15.030
Owned Owned
No

Must be logged in to use chart
COMMENT
Westjet Airlines(WJA-T) 

March 16, 2017

There is a fair bit of positive news on airlines, including low fuel prices and low interest rates. There is also a positive pick up in economic growth. Times are working in their favour in terms of economic growth, energy prices and interest rates. You have to be really careful for when and if those change.

Transportation

There is a fair bit of positive news on airlines, including low fuel prices and low interest rates. There is also a positive pick up in economic growth. Times are working in their favour in terms of economic growth, energy prices and interest rates. You have to be really careful for when and if those change.

Transportation
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$22.380
Owned Owned
No

Must be logged in to use chart
N/A
General Market Comment 

November 17, 2016

Markets.  He stepped back from markets long before elections and has a good cash position.  He is taking a cautious approach after the election.  From a sector point of view, you can say that a sector might do better, such as energy (materials) but lumber might not under the new administration.  He is increasing his US exposure.   He is 40-45% geared to the US.  He feels the US dollar will do better going forward.

Markets.  He stepped back from markets long before elections and has a good cash position.  He is taking a cautious approach after the election.  From a sector point of view, you can say that a sector might do better, such as energy (materials) but lumber might not under the new administration.  He is increasing his US exposure.   He is 40-45% geared to the US.  He feels the US dollar will do better going forward.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

Must be logged in to use chart
N/A
General Market Comment 

November 17, 2016

Lumber companies with 50% production in the US.  Livestock and lumber trade with the US will be re-evaluated by the Trump administration.  Companies with US assets should do better.  He feels other sectors are more favourable for investment. 

Lumber companies with 50% production in the US.  Livestock and lumber trade with the US will be re-evaluated by the Trump administration.  Companies with US assets should do better.  He feels other sectors are more favourable for investment. 

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

Must be logged in to use chart
BUY
Altagas Ltd(ALA-T) 

November 17, 2016

He likes the name.  The dividend is high, but he feels it is safe.  A lot of their contracts are inflation protected.  6.5% is a good return.

oil/gas

He likes the name.  The dividend is high, but he feels it is safe.  A lot of their contracts are inflation protected.  6.5% is a good return.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$32.290
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Amazon.com(AMZN-Q) 

November 17, 2016

No Dividend.  Cloud computing is a strong grower.  The Alexa device will allow you to yell at it that you need something and it will be delivered in one day.  The web services are a huge growth engine.  (Analysts’ target:  $940.37)

specialty stores

No Dividend.  Cloud computing is a strong grower.  The Alexa device will allow you to yell at it that you need something and it will be delivered in one day.  The web services are a huge growth engine.  (Analysts’ target:  $940.37)

specialty stores
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$756.400
Owned Owned
Yes

Must be logged in to use chart
BUY
Bank of America(BAC-N) 

November 17, 2016

He is positive on the US banking sector.  He owns JPM-N.  He likes how management is getting BAC-N geared toward retail banking.  Banking regulation in the US should get more favourable.  The bump up in rates could help the banks. 1.5% dividend.

banks

He is positive on the US banking sector.  He owns JPM-N.  He likes how management is getting BAC-N geared toward retail banking.  Banking regulation in the US should get more favourable.  The bump up in rates could help the banks. 1.5% dividend.

banks
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$20.080
Owned Owned
Unknown

Must be logged in to use chart
BUY
BCE Inc.(BCE-T) 

November 17, 2016

All these income stocks have trailed off a little bit since the election.  It was a time for a bit of a breather which presents an opportunity to buy.  Cord cutting will increase bandwidth demand.  He feels average revenue per wireless user should increase with content delivery.

telephone utilities

All these income stocks have trailed off a little bit since the election.  It was a time for a bit of a breather which presents an opportunity to buy.  Cord cutting will increase bandwidth demand.  He feels average revenue per wireless user should increase with content delivery.

telephone utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$58.430
Owned Owned
Yes

Must be logged in to use chart
HOLD

It has come down due to bond yields.  He thinks it is a knee jerk reaction. It has exposure to Brazil who have been in the dog house for a couple of years.  There is some risk there, but seems to be under a new political regime.  He thinks the company is safe.  4.8% dividend yield.

INDUSTRIAL PRODUCTS

It has come down due to bond yields.  He thinks it is a knee jerk reaction. It has exposure to Brazil who have been in the dog house for a couple of years.  There is some risk there, but seems to be under a new political regime.  He thinks the company is safe.  4.8% dividend yield.

INDUSTRIAL PRODUCTS
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$43.360
Owned Owned
Yes

Must be logged in to use chart
HOLD

He feels there is value at these levels.  They are generating cash flow from operations. 

Pharma & Healthcare

He feels there is value at these levels.  They are generating cash flow from operations. 

Pharma & Healthcare
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$4.360
Owned Owned
Unknown

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BUY
Walt Disney(DIS-N) 

November 17, 2016

He is pretty positive on it from a franchise point of view.  They control their own destiny.  The big question is ESPN.  They think DIS-N is acting proactive in investment to stream things online.

entertainment services

He is pretty positive on it from a franchise point of view.  They control their own destiny.  The big question is ESPN.  They think DIS-N is acting proactive in investment to stream things online.

entertainment services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$99.370
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK

(Top Pick Nov 2/15, down 11.54%) It was recommended before the split.  He felt he was investing more on the fleet side and then they split up the company.  He liked the fleet assets more.  He sold after the split.  He would get back into fleet except recent results were not great.

(Top Pick Nov 2/15, down 11.54%) It was recommended before the split.  He felt he was investing more on the fleet side and then they split up the company.  He liked the fleet assets more.  He sold after the split.  He would get back into fleet except recent results were not great.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$11.880
Owned Owned
No

Must be logged in to use chart
PAST TOP PICK
Facebook(FB-Q) 

November 17, 2016

(Top Pick Nov 2/15, Up 12.79%) A great company.  With the numbers and the users, it comes down to a monetization of the site.

(Top Pick Nov 2/15, Up 12.79%) A great company.  With the numbers and the users, it comes down to a monetization of the site.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$117.790
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Facebook(FB-Q) 

November 17, 2016

It comes down to the number of users and monetizing that.  Whatsapp and Messenger are the drivers.  No dividend.  (Analysts Target $155.14)  He is happy with the move to video. 

It comes down to the number of users and monetizing that.  Whatsapp and Messenger are the drivers.  No dividend.  (Analysts Target $155.14)  He is happy with the move to video. 

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$117.790
Owned Owned
Yes

Must be logged in to use chart
BUY
Fortis Inc.(FTS-T) 

November 17, 2016

Interest sensitive names have come off here.  FTS-T has made a pretty significant transformation in going from Canada to the US.  It will play out in his view.  It is for income generation.  To get to $45 he feels there would have to be a growth driver.  Patience is a virtue.  Management has done a good job.  He does not think there is an issue servicing the debt.  If rates went up dramatically, he would look more closely at exiting it.

electrical utilities

Interest sensitive names have come off here.  FTS-T has made a pretty significant transformation in going from Canada to the US.  It will play out in his view.  It is for income generation.  To get to $45 he feels there would have to be a growth driver.  Patience is a virtue.  Management has done a good job.  He does not think there is an issue servicing the debt.  If rates went up dramatically, he would look more closely at exiting it.

electrical utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$40.420
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Keyera Corp(KEY-T) 

November 17, 2016

Management is exceptional.  It is a natural gas and processing company.  Take or pay contracts, with storage.  Dividend yield is 4.13%, low payout ratio.  (Analysts’ Target: $44.43)

oil/gas

Management is exceptional.  It is a natural gas and processing company.  Take or pay contracts, with storage.  Dividend yield is 4.13%, low payout ratio.  (Analysts’ Target: $44.43)

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$38.700
Owned Owned
Yes

Must be logged in to use chart
DON'T BUY
Loblaw Companies Ltd(L-T) 

November 17, 2016

It is one of the slower ones when it comes to being disrupted by Amazon and the like.  See his Top Picks today.

food stores

It is one of the slower ones when it comes to being disrupted by Amazon and the like.  See his Top Picks today.

food stores
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$68.240
Owned Owned
Unknown

Must be logged in to use chart
DON'T BUY

He prefers BCE-T.  He prefers wireless and Internet to the content space.  He thinks they pay themselves too much.

Cable

He prefers BCE-T.  He prefers wireless and Internet to the content space.  He thinks they pay themselves too much.

Cable
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$26.220
Owned Owned
No

Must be logged in to use chart
BUY
SNC-Lavalin Group Inc.(SNC-T) 

November 17, 2016

It will do very well with all the infrastructure spending that will go on, but in the US if you have a drive to some protectionism, you would have to see how this shakes out and can Canadian firms bid in the US.  Even the Canadian infrastructure spend will cause it to do well.  It will be 3 to 5 years for the money to trickle down to this company.

contractors

It will do very well with all the infrastructure spending that will go on, but in the US if you have a drive to some protectionism, you would have to see how this shakes out and can Canadian firms bid in the US.  Even the Canadian infrastructure spend will cause it to do well.  It will be 3 to 5 years for the money to trickle down to this company.

contractors
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$55.170
Owned Owned
No

Must be logged in to use chart
PAST TOP PICK
Spartan Energy Corp(SPE-T) 

November 17, 2016

(Top Pick Nov 2/15, Up 33.40%) One of the best managed companies in the energy space in Canada.  They have expertise and the balance sheet is in good shape.  You will be well rewarded holding this name.

oil/gas

(Top Pick Nov 2/15, Up 33.40%) One of the best managed companies in the energy space in Canada.  They have expertise and the balance sheet is in good shape.  You will be well rewarded holding this name.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$3.140
Owned Owned
Yes

Must be logged in to use chart
HOLD

It has had a really big run-up.  Metals have started showing their head above water.  TCK.B-T is one of those companies where the prices were really under pressure and they had a really big debt load.  It comes down now to how things play out with their commodities. 

precious metals

It has had a really big run-up.  Metals have started showing their head above water.  TCK.B-T is one of those companies where the prices were really under pressure and they had a really big debt load.  It comes down now to how things play out with their commodities. 

precious metals
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$31.450
Owned Owned
Unknown

Must be logged in to use chart
BUY
Tourmaline Oil Corp(TOU-T) 

November 17, 2016

Strong management are doing great things.  They are the lowest cost operators in their plays.  He does not think you could go wrong long term in owning this.  He feels the price of oil may take a bit of a breather.

oil/gas

Strong management are doing great things.  They are the lowest cost operators in their plays.  He does not think you could go wrong long term in owning this.  He feels the price of oil may take a bit of a breather.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$34.880
Owned Owned
Yes

Must be logged in to use chart
DON'T BUY
Tesla Motors Inc(TSLA-Q) 

November 17, 2016

He looks at it as a battery company.  There is a lot of uncertainty around this company.  With a low oil price it is not as important to go on the electric side.

He looks at it as a battery company.  There is a lot of uncertainty around this company.  With a low oil price it is not as important to go on the electric side.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$188.660
Owned Owned
Unknown

Must be logged in to use chart
N/A
General Market Comment 

August 23, 2016

Market. The S&P 500 and Dow are now trying to make another all-time high. From a monetary point of view and bond point of view this is warranted, but he is cautious from an earnings perspective. US earnings have gone down over past quarters, so the market going up is a bit of a countertrend, but the offer of what else is available is warranted, just because of interest rates being so low. December for an interest rate increase might be a more realistic option. The Fed seems quite concerned about global issues so they keep rescinding back their talk of interest rate hikes. Even if they raise rates, they are still going to be at very low levels, which is why we are seeing markets going to new highs. He is fairly constructive on the economy. The US and emerging markets are really driving the growth that we are seeing now. Japan and China seem to be bottoming. That is offset by the euro area and the UK which could see growth coming down.

Market. The S&P 500 and Dow are now trying to make another all-time high. From a monetary point of view and bond point of view this is warranted, but he is cautious from an earnings perspective. US earnings have gone down over past quarters, so the market going up is a bit of a countertrend, but the offer of what else is available is warranted, just because of interest rates being so low. December for an interest rate increase might be a more realistic option. The Fed seems quite concerned about global issues so they keep rescinding back their talk of interest rate hikes. Even if they raise rates, they are still going to be at very low levels, which is why we are seeing markets going to new highs. He is fairly constructive on the economy. The US and emerging markets are really driving the growth that we are seeing now. Japan and China seem to be bottoming. That is offset by the euro area and the UK which could see growth coming down.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
_N/A

Must be logged in to use chart
COMMENT
General Market Comment 

August 23, 2016

Canadian banks? Over the past 15+ years they have grown at a rate of double the GDP, which is hard to do consistently. We have had a housing market that has run, and debt levels that have increased. His view is that banks’ growth is slowing. Dividends are very important. A lot of the banks beat was done on the cost side. If you are looking for income, they are great investments, but as a capital appreciation, he doesn’t think they are going to rise at the pace they have.

Canadian banks? Over the past 15+ years they have grown at a rate of double the GDP, which is hard to do consistently. We have had a housing market that has run, and debt levels that have increased. His view is that banks’ growth is slowing. Dividends are very important. A lot of the banks beat was done on the cost side. If you are looking for income, they are great investments, but as a capital appreciation, he doesn’t think they are going to rise at the pace they have.

Unknown
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$0.020
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
Apple(AAPL-Q) 

August 23, 2016

He is constructive on this company. There have been questions on the refresh cycle going forward, but he is comfortable with that. The new phone coming out will be good. If there is not a rush to it, there will be a gradual type of refresh cycle. He is positive on their move to their eco system.

electrical/electronic

He is constructive on this company. There have been questions on the refresh cycle going forward, but he is comfortable with that. The new phone coming out will be good. If there is not a rush to it, there will be a gradual type of refresh cycle. He is positive on their move to their eco system.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$108.850
Owned Owned
Yes

Must be logged in to use chart
COMMENT
BCE Inc.(BCE-T) 

August 23, 2016

He likes this company. There are going to be some headwinds, but doesn’t think the pick and pay bundles are going to be that disruptive. The 4.4% dividend is the reason the stock is doing well. You are going to have to be careful, but as long as they are prudent going forward, you should see this name continue to plod along.

telephone utilities

He likes this company. There are going to be some headwinds, but doesn’t think the pick and pay bundles are going to be that disruptive. The 4.4% dividend is the reason the stock is doing well. You are going to have to be careful, but as long as they are prudent going forward, you should see this name continue to plod along.

telephone utilities
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$61.970
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
Bank of Montreal(BMO-T) 

August 23, 2016

Moving more towards a TD type model, more geared towards retail banking. With that, you are going to see more consistent results. Less volatility, less capital market ups and downs. With their Harris Bank in the Midwest, they are branching out in the US slow and steady. Not a bad dividend. He thinks you will see a steadier approach upwards, and constructive.

banks

Moving more towards a TD type model, more geared towards retail banking. With that, you are going to see more consistent results. Less volatility, less capital market ups and downs. With their Harris Bank in the Midwest, they are branching out in the US slow and steady. Not a bad dividend. He thinks you will see a steadier approach upwards, and constructive.

banks
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$86.270
Owned Owned
Yes

Must be logged in to use chart
WAIT
CitiGroup(C-N) 

August 23, 2016

This is more exposed to the emerging-markets. Based on his view on potential growth going forward, this one would be in the good camp if you had to pick a bank. They’ve been under pressure with the emerging-market pullbacks, but the bigger risk for them is in the political side. Both US candidates seem to be pretty stuck on pushing the banks further.

insurance

This is more exposed to the emerging-markets. Based on his view on potential growth going forward, this one would be in the good camp if you had to pick a bank. They’ve been under pressure with the emerging-market pullbacks, but the bigger risk for them is in the political side. Both US candidates seem to be pretty stuck on pushing the banks further.

insurance
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$46.590
Owned Owned
Unknown

Must be logged in to use chart
TOP PICK
Celgene Corp(CELG-Q) 

August 23, 2016

A biotechnology company that is primarily focused on cancer research. They take positions in companies, watch them do the R&D, and then they capitalize further. They’ve made 2 acquisitions, one in the MS space. They have a based strip cancer drug and then little bolt on drugs that combine with the based for changes in chemotherapy treatments.

Consumer Products

A biotechnology company that is primarily focused on cancer research. They take positions in companies, watch them do the R&D, and then they capitalize further. They’ve made 2 acquisitions, one in the MS space. They have a based strip cancer drug and then little bolt on drugs that combine with the based for changes in chemotherapy treatments.

Consumer Products
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$114.010
Owned Owned
Yes

Must be logged in to use chart
TOP PICK
Cerner Corp.(CERN-Q) 

August 23, 2016

Their premise is basically digitizing health records. Demographically that is a good place to be. There are lots of doctors’ records that are either handwritten or digital in a format that is not compatible with others. There is a US law that says that by this year you have to have this and next year you have to have that, etc. It is a forced conversion to electronic data management and records. They’ve generated about 15% revenue growth and 20% earnings growth consistently. Over the past year they’ve moved from a one-time revenue recognition model to a subscription type model, and the stock really came off. It is now started to come back.

medical services

Their premise is basically digitizing health records. Demographically that is a good place to be. There are lots of doctors’ records that are either handwritten or digital in a format that is not compatible with others. There is a US law that says that by this year you have to have this and next year you have to have that, etc. It is a forced conversion to electronic data management and records. They’ve generated about 15% revenue growth and 20% earnings growth consistently. Over the past year they’ve moved from a one-time revenue recognition model to a subscription type model, and the stock really came off. It is now started to come back.

medical services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$64.600
Owned Owned
Yes

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COMMENT
Cardinal Energy Ltd(CJ-T) 

August 23, 2016

Spartan Energy (SPE-T) or Cardinal Energy (CJ)?  Not a bad company, but he prefers Spartan.

oil/gas

Spartan Energy (SPE-T) or Cardinal Energy (CJ)?  Not a bad company, but he prefers Spartan.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$9.300
Owned Owned
Unknown

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PAST TOP PICK
Cisco(CSCO-Q) 

August 23, 2016

(A Top Pick July 30/15. Up 12.99%.) This is like the pipeline of the Internet. It doesn’t matter whether it is wired or wireless, it is going to be good for business. They are moving from a hardware side to a services side, which gives them more recurring revenue.

electrical/electronic

(A Top Pick July 30/15. Up 12.99%.) This is like the pipeline of the Internet. It doesn’t matter whether it is wired or wireless, it is going to be good for business. They are moving from a hardware side to a services side, which gives them more recurring revenue.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$30.980
Owned Owned
Yes

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COMMENT

Their exposure to the economy has been better than the GDP numbers. There are concerns about their recent shift in management. Also have been pretty good on the digital side of things. They own some good brands, so there is diversification. Its really a question of exposure to the Canadian consumer, and he prefers the US consumer.

specialty stores

Their exposure to the economy has been better than the GDP numbers. There are concerns about their recent shift in management. Also have been pretty good on the digital side of things. They own some good brands, so there is diversification. Its really a question of exposure to the Canadian consumer, and he prefers the US consumer.

specialty stores
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$137.410
Owned Owned
No

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COMMENT

He is holding his position and evaluating the name. Was surprised that on the last results on the generic drug competition. There are concerns about debt levels and the company has some headwinds. This is in a better place than a Valeant (VRX-N) where there is potential fraud. Should their earnings progress, it will have the ability to pay down debt.

Pharma & Healthcare

He is holding his position and evaluating the name. Was surprised that on the last results on the generic drug competition. There are concerns about debt levels and the company has some headwinds. This is in a better place than a Valeant (VRX-N) where there is potential fraud. Should their earnings progress, it will have the ability to pay down debt.

Pharma & Healthcare
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$11.550
Owned Owned
Yes

Must be logged in to use chart
PAST TOP PICK
Walt Disney(DIS-N) 

August 23, 2016

(A Top Pick July 30/15. Down 18.72%.) The problem really comes down to ESPN and its uncertainty on the cable side. He is more constructive on this in that ESPN could do their own streaming, and Disney take a piece of the NLB franchise. Doesn’t think people will be cutting the cord to the extent that some people think. Everything else is working.

entertainment services

(A Top Pick July 30/15. Down 18.72%.) The problem really comes down to ESPN and its uncertainty on the cable side. He is more constructive on this in that ESPN could do their own streaming, and Disney take a piece of the NLB franchise. Doesn’t think people will be cutting the cord to the extent that some people think. Everything else is working.

entertainment services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$95.970
Owned Owned
Yes

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PAST TOP PICK

(A Top Pick July 30/15. Down 29.55%.) Sold his holdings recently on the news that they were going to be splitting the company, and how they were going to be allocating costs, etc.

(A Top Pick July 30/15. Down 29.55%.) Sold his holdings recently on the news that they were going to be splitting the company, and how they were going to be allocating costs, etc.

0
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$13.390
Owned Owned
No

Must be logged in to use chart
SELL
Empire Company (A)(EMP.A-T) 

August 23, 2016

This is going to have the issues of taking over Safeway, which hasn’t been going smoothly. The exit of the CEO is indicative of that. These things just don’t happen in 6 months or a year, and all of a sudden get turned around. It could take a long time to settle out.

food stores

This is going to have the issues of taking over Safeway, which hasn’t been going smoothly. The exit of the CEO is indicative of that. These things just don’t happen in 6 months or a year, and all of a sudden get turned around. It could take a long time to settle out.

food stores
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$21.910
Owned Owned
Unknown

Must be logged in to use chart
PARTIAL BUY

Energy service companies have come off more so than the oil companies. Their budgets are driven by the oil companies, and also their cost structures seem to be fixed, so when the wind comes out of their sails, they still have the same cost structures. This is now at a pretty good level. You might look to pick away at these companies in the next month or so. This one is a good name and is one of the bigger ones.

oil/gas

Energy service companies have come off more so than the oil companies. Their budgets are driven by the oil companies, and also their cost structures seem to be fixed, so when the wind comes out of their sails, they still have the same cost structures. This is now at a pretty good level. You might look to pick away at these companies in the next month or so. This one is a good name and is one of the bigger ones.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$7.610
Owned Owned
No

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COMMENT

First Quantum (FM-T) or Teck Resources (TCK.B-T)? His view is definitely more constructive on Teck.

integrated mines

First Quantum (FM-T) or Teck Resources (TCK.B-T)? His view is definitely more constructive on Teck.

integrated mines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$12.050
Owned Owned
No

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HOLD
General Electric(GE-N) 

August 23, 2016

Got rid of the divisions which had really caused them trouble. This is an industrial company, certainly on the energy and infrastructure side. High debt levels by governments and infrastructure spending will benefit them.

electrical/electronic

Got rid of the divisions which had really caused them trouble. This is an industrial company, certainly on the energy and infrastructure side. High debt levels by governments and infrastructure spending will benefit them.

electrical/electronic
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$31.230
Owned Owned
Unknown

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TOP PICK
Keyera Corp(KEY-T) 

August 23, 2016

Great management team. Their business is conservative and their payout ratio is around 50%. They’ve consistently grown the dividend, 15 times since they started as a public company. They grow by taking smaller positions in plants and facilities, adding to those and eventually owning them outright. This allows them to get the experience in owning and running them. Their cost of financing is really low. Dividend yield of 3.9%.

oil/gas

Great management team. Their business is conservative and their payout ratio is around 50%. They’ve consistently grown the dividend, 15 times since they started as a public company. They grow by taking smaller positions in plants and facilities, adding to those and eventually owning them outright. This allows them to get the experience in owning and running them. Their cost of financing is really low. Dividend yield of 3.9%.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$41.140
Owned Owned
Yes

Must be logged in to use chart
HOLD

Had a really tough go with their stretch pants, management infighting, etc. Have done really well adapting to those changes, but this is a very competitive environment. Also fads are involved, and if you don’t get one right, that could be a pretty bad event. He is more on the staples side of consumer spending. Trading at 37X forward earnings, so it is expensive.

household goods

Had a really tough go with their stretch pants, management infighting, etc. Have done really well adapting to those changes, but this is a very competitive environment. Also fads are involved, and if you don’t get one right, that could be a pretty bad event. He is more on the staples side of consumer spending. Trading at 37X forward earnings, so it is expensive.

household goods
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$80.240
Owned Owned
No

Must be logged in to use chart
COMMENT

This is a commodity, and this company is the purest in terms of what is available in Canada. There has been a lot of pressure on the commodity. The buying has been done once or twice a year. Big buys and the prices tend to get set and stay there. At this level, it might be interesting to look at. The commodity price has come down, they have cut the guidance, and they have cut the dividend. Anywhere at these levels, you could look potentially to add to it, but he would do it with little bites at a time.

integrated mines

This is a commodity, and this company is the purest in terms of what is available in Canada. There has been a lot of pressure on the commodity. The buying has been done once or twice a year. Big buys and the prices tend to get set and stay there. At this level, it might be interesting to look at. The commodity price has come down, they have cut the guidance, and they have cut the dividend. Anywhere at these levels, you could look potentially to add to it, but he would do it with little bites at a time.

integrated mines
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$21.630
Owned Owned
Unknown

Must be logged in to use chart
COMMENT
Spartan Energy Corp(SPE-T) 

August 23, 2016

Spartan Energy (SPE-T) or Cardinal Energy (CJ)? He is very constructive on this. He likes management’s strategy and their location in Saskatchewan. Feels management has very good discipline in terms of what they want to do and how they are going to do it. Very proactive in keeping the balance sheet sacrosanct, and not paying more than cash flow. At $30 a barrel they are fine. It is expensive, but will always be expensive.

oil/gas

Spartan Energy (SPE-T) or Cardinal Energy (CJ)? He is very constructive on this. He likes management’s strategy and their location in Saskatchewan. Feels management has very good discipline in terms of what they want to do and how they are going to do it. Very proactive in keeping the balance sheet sacrosanct, and not paying more than cash flow. At $30 a barrel they are fine. It is expensive, but will always be expensive.

oil/gas
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$3.440
Owned Owned
Unknown

Must be logged in to use chart
COMMENT

First Quantum (FM-T) or Teck Resources (TCK.B-T)? His view is definitely more constructive on this one. It has zinc, coal, nickel. This type of company is always going to have ups and downs, but he feels the financial crisis from 2008-2009 with their debt levels, the management team came out looking much stronger. A good, well-run company.

precious metals

First Quantum (FM-T) or Teck Resources (TCK.B-T)? His view is definitely more constructive on this one. It has zinc, coal, nickel. This type of company is always going to have ups and downs, but he feels the financial crisis from 2008-2009 with their debt levels, the management team came out looking much stronger. A good, well-run company.

precious metals
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$20.940
Owned Owned
No

Must be logged in to use chart
WAIT
Visa Inc.(V-N) 

August 23, 2016

His concern right now is where do merchant fees go? In Europe, they have been a bit more aggressive in pushing them down. There could be more to go. With all the technology changing and how you pay, that is a risk for them. If we had a good market crack and the price went down, he would look at this.

other services

His concern right now is where do merchant fees go? In Europe, they have been a bit more aggressive in pushing them down. There could be more to go. With all the technology changing and how you pay, that is a risk for them. If we had a good market crack and the price went down, he would look at this.

other services
Zachary Curry

Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd....

PricePrice
$80.800
Owned Owned
No

Must be logged in to use chart
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