Bryden Teich
Member since: Jan '18
Portfolio Manager at
Avenue Investment Management
Avenue Investment Management
335 Opinions
Latest Top Picks
(A Top Pick Nov 28/18, Up 16%) A great way to get exposure to US industrial and e-commerce (Amazon is a big customer). They've done a great job acquiring proprties in Chicago, Milwaukee and Minneapolis, the mid-heartland of American industry. It trades at close to book. Pays 5.5% dividend yield. He continues to buy at these levels.
(A Top Pick Nov 28/18, Down 27%) Sold it in June and bought Arc. Liked it because they were exposed to European natural gas prices, and are they're good at growing their dividend. But their multiple got too high. VET remains a good company. The dividend is near 14%, but he thinks the stock will rise if they reduce the dividend.
(A Top Pick Nov 28/18, Up 16%) Genworth and Westinghouse have been great investments for them. They're great capital allocators. Still likes it at current prices.
Amazon had a record holiday season, which bodes well for CJT when they make a lot of their money in this quarter. Their relationship with Amazon will grow over time. CJT is the perfect proxy for e-commerce in Canada. It's a fine long-term buy even at $100. (Analysts’ price target is $115.91)
Offers great exposure to US banks, railroads, airlines as well as Apple. A nice collection of cyclicals. They sit on $130 billion in cash, great dry powder. Share have recently broken out. A great long term buy. (Analysts’ price target is $248.75)
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Opinion
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COMMENT
COMMENT
December 31, 2019
2019's broad-based rally impresses him, particularly the global nature of it with Europe making new highs. It feels different heading into past years. In 2020, the US dollar will struggle--Canadian investors are now very overweight the US dollar and US stocks, so they should reduce exposure heading into 2020, because he expects the US dollar to roll over. Meanwhile, the US deficit keeps growing. There's still good growth there, but they have expanded the deficit 5% to gain 2% economic growth. Investor sentiment is so bullish that we're not in an overbought market. Hold onto some cash for an opportunity in 2020--it's always great to buy when everything is negative. Shifts in sentiment can be big.
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2019's broad-based rally impresses him, particularly the global nature of it with Europe making new highs. It feels different heading into past years. In 2020, the US dollar will struggle--Canadian investors are now very overweight the US dollar and US stocks, so they should reduce exposure heading into 2020, because he expects the US dollar to roll over. Meanwhile, the US deficit keeps growing. There's still good growth there, but they have expanded the deficit 5% to gain 2% economic growth. Investor sentiment is so bullish that we're not in an overbought market. Hold onto some cash for an opportunity in 2020--it's always great to buy when everything is negative. Shifts in sentiment can be big.
BUY WEAKNESS
BUY WEAKNESS
December 31, 2019
MSFT vs. Intel vs. Facebook Facebook has performed well, but faces long-term regulatory headwinds. They will face more scrutiny. Intel has bigger headwinds reagrding where the technology is heading with microchips. Their legacy hardware chips will be under secular pressure. Don't buy. MSFT's cloud growth is impressive and will continue (he sold his shares already), but its multiple is really high. In the next pullback, buy MSFT. MSFT wins.
Show full opinionHide full opinionMSFT vs. Intel vs. Facebook Facebook has performed well, but faces long-term regulatory headwinds. They will face more scrutiny. Intel has bigger headwinds reagrding where the technology is heading with microchips. Their legacy hardware chips will be under secular pressure. Don't buy. MSFT's cloud growth is impressive and will continue (he sold his shares already), but its multiple is really high. In the next pullback, buy MSFT. MSFT wins.
computer software/processing
WEAK BUY
WEAK BUY
December 31, 2019
A fine growth by acquisition story, buying in the US. Lots of insider ownership, too. Managers are great growing FSV. He sold his shares when the multiple rose; margins don't get high in this business. This is still a good long-term opportunity. A few weak quarters have made this worth looking at.
Show full opinionHide full opinionA fine growth by acquisition story, buying in the US. Lots of insider ownership, too. Managers are great growing FSV. He sold his shares when the multiple rose; margins don't get high in this business. This is still a good long-term opportunity. A few weak quarters have made this worth looking at.
other services
PARTIAL SELL
PARTIAL SELL
December 31, 2019
Used to own it until the valuation got too high. They've done a great job spinning out the real estate into a royalty stream. But this has gone parabolic this year as its growth has slowed. Take some profits. There's limited growth, but they are benefiting from declining interest rates. This doesn't make the top of his list of income streams. Pays a good dividend. Don't need to sell this, but don't need to buy it either.
Show full opinionHide full opinionUsed to own it until the valuation got too high. They've done a great job spinning out the real estate into a royalty stream. But this has gone parabolic this year as its growth has slowed. Take some profits. There's limited growth, but they are benefiting from declining interest rates. This doesn't make the top of his list of income streams. Pays a good dividend. Don't need to sell this, but don't need to buy it either.
investment companies/funds
DON'T BUY
DON'T BUY
December 31, 2019
CM vs. MFC They were late to get US exposure, which hurt them. Also, there's negativity towards CM's mortgage book. TD and RY remain the top Canadian banks, not CM. TD & RY are investing in tech, the future, which is smart. MFC: The lifecos have done well diversifying into asset management and into Asia. But with low interest rates, pricing insurance gets tougher and limits growth. You own lifecos for Asia and wealth management. Not CM, but buy TD and Royal.
Show full opinionHide full opinionCM vs. MFC They were late to get US exposure, which hurt them. Also, there's negativity towards CM's mortgage book. TD and RY remain the top Canadian banks, not CM. TD & RY are investing in tech, the future, which is smart. MFC: The lifecos have done well diversifying into asset management and into Asia. But with low interest rates, pricing insurance gets tougher and limits growth. You own lifecos for Asia and wealth management. Not CM, but buy TD and Royal.
banks
BUY
BUY
December 31, 2019
MFC vs. CM They were late to get US exposure, which hurt them. Also, there's negativity towards CM's mortgage book. TD and RY remain the top Canadian banks, not CM. TD & RY are investing in tech, the future, which is smart. MFC: The lifecos have done well diversifying into asset management and into Asia. But with low interest rates, pricing insurance gets tougher and limits growth. You own lifecos for Asia and wealth management. Not CM, but buy TD and Royal.
Show full opinionHide full opinionMFC vs. CM They were late to get US exposure, which hurt them. Also, there's negativity towards CM's mortgage book. TD and RY remain the top Canadian banks, not CM. TD & RY are investing in tech, the future, which is smart. MFC: The lifecos have done well diversifying into asset management and into Asia. But with low interest rates, pricing insurance gets tougher and limits growth. You own lifecos for Asia and wealth management. Not CM, but buy TD and Royal.
insurance
DON'T BUY
DON'T BUY
December 31, 2019
A short report recently has pressured shares and are now under 10x earnings, cheap. Their problem is that they were slow getting e-commerce. If you don't have good e-commerce, a store is treading water. But the bad news is already priced into the stock price. He prefers Leon's Furniture for buying the Brick and paying off most of that debt. Good return on capital and huge insider ownership.
Show full opinionHide full opinionA short report recently has pressured shares and are now under 10x earnings, cheap. Their problem is that they were slow getting e-commerce. If you don't have good e-commerce, a store is treading water. But the bad news is already priced into the stock price. He prefers Leon's Furniture for buying the Brick and paying off most of that debt. Good return on capital and huge insider ownership.
specialty stores
BUY
BUY
December 31, 2019
A great Canadian tech story. They acquire businesses with cash then absorb those companies is incredibly accretive, propelling growth. They're a great executor. Also likes Enghouse, a great performer.
Show full opinionHide full opinionA great Canadian tech story. They acquire businesses with cash then absorb those companies is incredibly accretive, propelling growth. They're a great executor. Also likes Enghouse, a great performer.
consulting
DON'T BUY
DON'T BUY
December 31, 2019
Had a good run in mid-2019. They grew international presence with Popeye's and Burger King, a good job. The issue remains Tim Horton's weak same-store sales growth, though QSR is doing well upgrading Horton's stores and expanding food offerings. Another issue remains the franchise owners vs. the corporate head. QSR also trades at a high multiple. Considering buying if this falls $10. Otherwise, don't buy.
Show full opinionHide full opinionHad a good run in mid-2019. They grew international presence with Popeye's and Burger King, a good job. The issue remains Tim Horton's weak same-store sales growth, though QSR is doing well upgrading Horton's stores and expanding food offerings. Another issue remains the franchise owners vs. the corporate head. QSR also trades at a high multiple. Considering buying if this falls $10. Otherwise, don't buy.
food services
PAST TOP PICK
PAST TOP PICK
December 31, 2019
(A Top Pick Nov 28/18, Up 16%) A great way to get exposure to US industrial and e-commerce (Amazon is a big customer). They've done a great job acquiring proprties in Chicago, Milwaukee and Minneapolis, the mid-heartland of American industry. It trades at close to book. Pays 5.5% dividend yield. He continues to buy at these levels.
Show full opinionHide full opinion(A Top Pick Nov 28/18, Up 16%) A great way to get exposure to US industrial and e-commerce (Amazon is a big customer). They've done a great job acquiring proprties in Chicago, Milwaukee and Minneapolis, the mid-heartland of American industry. It trades at close to book. Pays 5.5% dividend yield. He continues to buy at these levels.
PAST TOP PICK
PAST TOP PICK
December 31, 2019
(A Top Pick Nov 28/18, Down 27%) Sold it in June and bought Arc. Liked it because they were exposed to European natural gas prices, and are they're good at growing their dividend. But their multiple got too high. VET remains a good company. The dividend is near 14%, but he thinks the stock will rise if they reduce the dividend.
Show full opinionHide full opinion(A Top Pick Nov 28/18, Down 27%) Sold it in June and bought Arc. Liked it because they were exposed to European natural gas prices, and are they're good at growing their dividend. But their multiple got too high. VET remains a good company. The dividend is near 14%, but he thinks the stock will rise if they reduce the dividend.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 31, 2019
(A Top Pick Nov 28/18, Up 16%) Genworth and Westinghouse have been great investments for them. They're great capital allocators. Still likes it at current prices.
Show full opinionHide full opinion(A Top Pick Nov 28/18, Up 16%) Genworth and Westinghouse have been great investments for them. They're great capital allocators. Still likes it at current prices.
BUY WEAKNESS
BUY WEAKNESS
December 31, 2019
Long-term in a non-registered account One of the better return-on-capital companies in Canada, and historically a strong performer. They've done well diversifying internationally. But CCL will get hit over fears of global growth. Also, a recent bad earnings report hurt the stock. Long-term, this is good to buy, now when the price is depressed.
Show full opinionHide full opinionLong-term in a non-registered account One of the better return-on-capital companies in Canada, and historically a strong performer. They've done well diversifying internationally. But CCL will get hit over fears of global growth. Also, a recent bad earnings report hurt the stock. Long-term, this is good to buy, now when the price is depressed.
packaging/containers
STRONG BUY
STRONG BUY
December 31, 2019
Arc vs. CPG A high-quality energy company. This used to be a $30 stock. A very well-run company, trading at historically low multiples and pays nearly a 7% yield. They operate in a great location, run by fine managers. Not too much debt. This remains a screaming buy at these levels. If there is a lift in oil sentiment, this will easily rise past $10. Better than CPG.
Show full opinionHide full opinionArc vs. CPG A high-quality energy company. This used to be a $30 stock. A very well-run company, trading at historically low multiples and pays nearly a 7% yield. They operate in a great location, run by fine managers. Not too much debt. This remains a screaming buy at these levels. If there is a lift in oil sentiment, this will easily rise past $10. Better than CPG.
oil/gas
BUY WEAKNESS
BUY WEAKNESS
December 31, 2019
Future growth as a long-term hold, despite regulatory risk? It has been volatile and under regulatory microscope, which won't change. But they've had some good quarters and impressive user growth. They still need to monetize Instagram and Whatsapp, which will amount to more revenues. He expects FB to turn more to the payments space. With shares around $200, buy this when FB stumbles under Congresional pressure, not at current levels--the positivity has been priced in. He prefers other tech stocks.
Show full opinionHide full opinionFuture growth as a long-term hold, despite regulatory risk? It has been volatile and under regulatory microscope, which won't change. But they've had some good quarters and impressive user growth. They still need to monetize Instagram and Whatsapp, which will amount to more revenues. He expects FB to turn more to the payments space. With shares around $200, buy this when FB stumbles under Congresional pressure, not at current levels--the positivity has been priced in. He prefers other tech stocks.
BUY
BUY
December 31, 2019
SU vs. CNQ He owns CNQ; with CU, they are the two best-run Canadian oil companies. They've maintained decent share prices as its peers got washed out. SU has benefitted from the diversity of their refining assets when the WTI price differential widened CNQ is a cash-flow machine, decreasing debt and costs. You can own SU or CNQ, not both. CNQ is in a better position of returning shareholder dollars through share buybacks and/or raising the dividend. Caveat: if oil prices rise in 2020, these two giants won't benefit as much as its smaller peers (e.g. WCP) which have fallen further.
Show full opinionHide full opinionSU vs. CNQ He owns CNQ; with CU, they are the two best-run Canadian oil companies. They've maintained decent share prices as its peers got washed out. SU has benefitted from the diversity of their refining assets when the WTI price differential widened CNQ is a cash-flow machine, decreasing debt and costs. You can own SU or CNQ, not both. CNQ is in a better position of returning shareholder dollars through share buybacks and/or raising the dividend. Caveat: if oil prices rise in 2020, these two giants won't benefit as much as its smaller peers (e.g. WCP) which have fallen further.
integrated oils
BUY
BUY
December 31, 2019
vs. Canadian Tire Canadian Tire: A short report recently has pressured shares and are now under 10x earnings, cheap. Their problem is that they were slow getting e-commerce. If you don't have good e-commerce, a store is treading water. But the bad news is already priced into the stock price. He prefers Leon's Furniture for buying the Brick and paying off most of that debt. Good return on capital and huge insider ownership.
Show full opinionHide full opinionvs. Canadian Tire Canadian Tire: A short report recently has pressured shares and are now under 10x earnings, cheap. Their problem is that they were slow getting e-commerce. If you don't have good e-commerce, a store is treading water. But the bad news is already priced into the stock price. He prefers Leon's Furniture for buying the Brick and paying off most of that debt. Good return on capital and huge insider ownership.
specialty stores
DON'T BUY
DON'T BUY
December 31, 2019
He owns no engineering firms. SNC shares have bounced back upon news of a settlement. It has normalized back to $30. It likely won't rise much from here--it has settled. SNC has always traded at a high multiple for a cyclical business. He prefers Aecon, though is trading high as well. The space has run up recently, and these companies will benefit from Canadian infrastructure spending. But the optimism is already priced in.
Show full opinionHide full opinionHe owns no engineering firms. SNC shares have bounced back upon news of a settlement. It has normalized back to $30. It likely won't rise much from here--it has settled. SNC has always traded at a high multiple for a cyclical business. He prefers Aecon, though is trading high as well. The space has run up recently, and these companies will benefit from Canadian infrastructure spending. But the optimism is already priced in.
contractors
DON'T BUY
DON'T BUY
December 31, 2019
They've had a volatile 2019. They did a good job rolling up franchises, but that positive has been priced into the stock. Not a good-growth company; the restaurant space faces wage increases and food inflation.
Show full opinionHide full opinionThey've had a volatile 2019. They did a good job rolling up franchises, but that positive has been priced into the stock. Not a good-growth company; the restaurant space faces wage increases and food inflation.
food services
BUY
BUY
December 31, 2019
Their issue was the money-laundering inquiry in their BC casinos which stopped some good growth. Now, that issue is working its way through the system. The Woodbine Casino remains their jewel, attracting investment. GC offers a great return on capital. You don't need much capital to grow. New locations are very profitable. He owns Brookfield Business Partners which co-financed the Woodbine site.
Show full opinionHide full opinionTheir issue was the money-laundering inquiry in their BC casinos which stopped some good growth. Now, that issue is working its way through the system. The Woodbine Casino remains their jewel, attracting investment. GC offers a great return on capital. You don't need much capital to grow. New locations are very profitable. He owns Brookfield Business Partners which co-financed the Woodbine site.
entertainment services
TOP PICK
TOP PICK
December 31, 2019
Amazon had a record holiday season, which bodes well for CJT when they make a lot of their money in this quarter. Their relationship with Amazon will grow over time. CJT is the perfect proxy for e-commerce in Canada. It's a fine long-term buy even at $100. (Analysts’ price target is $115.91)
Show full opinionHide full opinionAmazon had a record holiday season, which bodes well for CJT when they make a lot of their money in this quarter. Their relationship with Amazon will grow over time. CJT is the perfect proxy for e-commerce in Canada. It's a fine long-term buy even at $100. (Analysts’ price target is $115.91)
Transportation & Environmental Services
TOP PICK
TOP PICK
December 31, 2019
Offers great exposure to US banks, railroads, airlines as well as Apple. A nice collection of cyclicals. They sit on $130 billion in cash, great dry powder. Share have recently broken out. A great long term buy. (Analysts’ price target is $248.75)
Show full opinionHide full opinionOffers great exposure to US banks, railroads, airlines as well as Apple. A nice collection of cyclicals. They sit on $130 billion in cash, great dry powder. Share have recently broken out. A great long term buy. (Analysts’ price target is $248.75)
insurance
TOP PICK
TOP PICK
December 31, 2019
Convertible bonds with a 5.75% coupon They own a great base of real estate. The debt issue is a small piece. The bond is well-covered. MTL.DV-T. You get a 6-year option on the stock within the bond, with a $14 convert price. If oil recovers, these bonds will convert into equity. Until then, collect then. It's stable. Term lasts to Sept. 2020.
Show full opinionHide full opinionConvertible bonds with a 5.75% coupon They own a great base of real estate. The debt issue is a small piece. The bond is well-covered. MTL.DV-T. You get a 6-year option on the stock within the bond, with a $14 convert price. If oil recovers, these bonds will convert into equity. Until then, collect then. It's stable. Term lasts to Sept. 2020.
Transportation
DON'T BUY
DON'T BUY
December 31, 2019
MSFT vs. Intel vs. Facebook Facebook has performed well, but faces long-term regulatory headwinds. They will face more scrutiny. Intel has bigger headwinds reagrding where the technology is heading with microchips. Their legacy hardware chips will be under secular pressure. Don't buy. MSFT's cloud growth is impressive and will continue (he sold his shares already), but its multiple is really high. In the next pullback, buy MSFT. MSFT wins.
Show full opinionHide full opinionMSFT vs. Intel vs. Facebook Facebook has performed well, but faces long-term regulatory headwinds. They will face more scrutiny. Intel has bigger headwinds reagrding where the technology is heading with microchips. Their legacy hardware chips will be under secular pressure. Don't buy. MSFT's cloud growth is impressive and will continue (he sold his shares already), but its multiple is really high. In the next pullback, buy MSFT. MSFT wins.
electrical/electronic
BUY
BUY
December 31, 2019
SU vs. CNQ He owns CNQ; with CU, they are the two best-run Canadian oil companies. They've maintained decent share prices as its peers got washed out. SU has benefitted from the diversity of their refining assets when the WTI price differential widened CNQ is a cash-flow machine, decreasing debt and costs. You can own SU or CNQ, not both. CNQ is in a better position of returning shareholder dollars through share buybacks and/or raising the dividend. Caveat: if oil prices rise in 2020, these two giants won't benefit as much as its smaller peers (e.g. WCP) which have fallen further.
Show full opinionHide full opinionSU vs. CNQ He owns CNQ; with CU, they are the two best-run Canadian oil companies. They've maintained decent share prices as its peers got washed out. SU has benefitted from the diversity of their refining assets when the WTI price differential widened CNQ is a cash-flow machine, decreasing debt and costs. You can own SU or CNQ, not both. CNQ is in a better position of returning shareholder dollars through share buybacks and/or raising the dividend. Caveat: if oil prices rise in 2020, these two giants won't benefit as much as its smaller peers (e.g. WCP) which have fallen further.
oil/gas
N/A
N/A
October 28, 2019
Market. Low interest rates can only do so much to keep markets high. Earnings seasons can be interesting. The big story for the last 9 months has been the pivot of the last 9 months where the US Fed has been supplying liquidity to the markets. Trade issues will not be resolved any time soon. September and October are the two most precarious months of the year and they are almost over. There are a lot of things that are pointing to cloudy skies for 2020 but today the market is comfortable having more liquidity and earnings still being okay.
Show full opinionHide full opinionMarket. Low interest rates can only do so much to keep markets high. Earnings seasons can be interesting. The big story for the last 9 months has been the pivot of the last 9 months where the US Fed has been supplying liquidity to the markets. Trade issues will not be resolved any time soon. September and October are the two most precarious months of the year and they are almost over. There are a lot of things that are pointing to cloudy skies for 2020 but today the market is comfortable having more liquidity and earnings still being okay.
DON'T BUY
DON'T BUY
October 28, 2019
Focused on the western part of the country and which is still going through a difficult economic period of time. It has had a decent couple of years as credit losses have been kept to a decent low. Their traditional business of lending with a flat yield curve is very difficult. He prefers TD-T and RY-T because they are doing the best with regards to investing.
Focused on the western part of the country and which is still going through a difficult economic period of time. It has had a decent couple of years as credit losses have been kept to a decent low. Their traditional business of lending with a flat yield curve is very difficult. He prefers TD-T and RY-T because they are doing the best with regards to investing.
banks
DON'T BUY
DON'T BUY
October 28, 2019
It is trading at a pretty sizeable discount to the price with which Flutter is trying to take them out at. It makes sense to try to put these two together. You are dealing with uncertainty about M&A and regulatory issues.
Show full opinionHide full opinionIt is trading at a pretty sizeable discount to the price with which Flutter is trying to take them out at. It makes sense to try to put these two together. You are dealing with uncertainty about M&A and regulatory issues.
Business Services
DON'T BUY
DON'T BUY
October 28, 2019
Traditionally it has been regarded as more focused on the domestic economy. The reliance on the domestic Canadian mortgage market for growth is not well regarded. It might be okay shorter term but not longer term.
Show full opinionHide full opinionTraditionally it has been regarded as more focused on the domestic economy. The reliance on the domestic Canadian mortgage market for growth is not well regarded. It might be okay shorter term but not longer term.
banks
DON'T BUY
DON'T BUY
October 28, 2019
It has performed quite well this year but was volatile over the last few years. Expectations are high so you need a big surprise beat or some news that is not priced in for it go up. He would not buy right before the quarter. The issue is that there are so few technology companies in Canada, that institutions HAVE to be in it. See his top picks today.
Show full opinionHide full opinionIt has performed quite well this year but was volatile over the last few years. Expectations are high so you need a big surprise beat or some news that is not priced in for it go up. He would not buy right before the quarter. The issue is that there are so few technology companies in Canada, that institutions HAVE to be in it. See his top picks today.
WEAK BUY
WEAK BUY
October 28, 2019
A chip company that performed quite well this year. Longer term investors have to be comfortable with the cyclicality in the space. There is more positive sentiment in the space right now but he likes more consistent earners, although there are arguments for owning some of the US chips.
Show full opinionHide full opinionA chip company that performed quite well this year. Longer term investors have to be comfortable with the cyclicality in the space. There is more positive sentiment in the space right now but he likes more consistent earners, although there are arguments for owning some of the US chips.
computer software/processing
N/A
N/A
October 28, 2019
5G has been in the news for the last number of years. There will definitely be companies that benefit from the adaptation of 5G. BCE-T has been rolling out fiber to the home and will benefit from 5G. AAPL-Q will roll out their 5G phone in the next year or so. The 5G roll out in the US will be slower because of the investment required in rural areas. CSCO-Q will benefit from 5G. They are rolling out more software as a service that connects through 5G networks.
Show full opinionHide full opinion5G has been in the news for the last number of years. There will definitely be companies that benefit from the adaptation of 5G. BCE-T has been rolling out fiber to the home and will benefit from 5G. AAPL-Q will roll out their 5G phone in the next year or so. The 5G roll out in the US will be slower because of the investment required in rural areas. CSCO-Q will benefit from 5G. They are rolling out more software as a service that connects through 5G networks.
BUY
BUY
October 28, 2019
He bought it in the last couple of months. The western Canadian energy space has been decimated and no one wants to own you if you are not in the index. They had a bit of a headwind from nat gas pricing in western Canada. ARX-T is trading where it was in the last '90s. The dividend is sustainable at this level. If you can close your eyes, over time you will be rewarded handsomely. It is close to 10% so you get paid to wait. Great assets and a great management team with a proven ability to develop those assets over a period of time. It is the most hated sector in Canada and can be bought at 30 year lows.
Show full opinionHide full opinionHe bought it in the last couple of months. The western Canadian energy space has been decimated and no one wants to own you if you are not in the index. They had a bit of a headwind from nat gas pricing in western Canada. ARX-T is trading where it was in the last '90s. The dividend is sustainable at this level. If you can close your eyes, over time you will be rewarded handsomely. It is close to 10% so you get paid to wait. Great assets and a great management team with a proven ability to develop those assets over a period of time. It is the most hated sector in Canada and can be bought at 30 year lows.
oil/gas
N/A
N/A
October 28, 2019
There are some sectors where if you want to be invested you have to be in the US. He focuses his technology and healthcare in the US. With the S&P at all time highs, you want to be invested appropriately between Canada and the US and investors should not get caught switching at the wrong time.
Show full opinionHide full opinionThere are some sectors where if you want to be invested you have to be in the US. He focuses his technology and healthcare in the US. With the S&P at all time highs, you want to be invested appropriately between Canada and the US and investors should not get caught switching at the wrong time.
WATCH
WATCH
October 28, 2019
It is his small position in lumber and forest products. You get into these multiyear periods of cyclicality. He thinks you are getting to a bottoming time. In a year to a year and a half you should see a recovery. One of their mills has been on strike for a couple of months and he sees a strong union trying to push for much better bargaining. They have been excluded from the index and that forced some selling. Now is a great time to be looking at these stocks.
Show full opinionHide full opinionIt is his small position in lumber and forest products. You get into these multiyear periods of cyclicality. He thinks you are getting to a bottoming time. In a year to a year and a half you should see a recovery. One of their mills has been on strike for a couple of months and he sees a strong union trying to push for much better bargaining. They have been excluded from the index and that forced some selling. Now is a great time to be looking at these stocks.
west coast forestry
PAST TOP PICK
PAST TOP PICK
October 28, 2019
(A Top Pick Oct 19/18, Down 8%) He doubled up on it earlier in the year and he still likes it. It is a fantastically run business. They had their investor day a couple of weeks ago and they communicated how they are redesigning the business. They are a private equity company. It is selling at a 20% discount to net asset value. This could have been a forth Top Pick.
Show full opinionHide full opinion(A Top Pick Oct 19/18, Down 8%) He doubled up on it earlier in the year and he still likes it. It is a fantastically run business. They had their investor day a couple of weeks ago and they communicated how they are redesigning the business. They are a private equity company. It is selling at a 20% discount to net asset value. This could have been a forth Top Pick.
mngmnt/diversified
PAST TOP PICK
PAST TOP PICK
October 28, 2019
(A Top Pick Oct 19/18, Down 6%) He is now out of it. There was doubt about their ability to sell assets and about their debt load. Longer term, their business is fine. They had to cut the dividend last year. He prefers the infrastructure space right now. This is still a fine company.
Show full opinionHide full opinion(A Top Pick Oct 19/18, Down 6%) He is now out of it. There was doubt about their ability to sell assets and about their debt load. Longer term, their business is fine. They had to cut the dividend last year. He prefers the infrastructure space right now. This is still a fine company.
oil/gas
PAST TOP PICK
PAST TOP PICK
October 28, 2019
(A Top Pick Oct 19/18, Down 40%) They garnered a higher multiple than the rest of the sector because of their European assets. They have transitioned more capital to North American assets. He sold because of its relative valuation and he switched to ARX-T. It has a 13.6% yield.
(A Top Pick Oct 19/18, Down 40%) They garnered a higher multiple than the rest of the sector because of their European assets. They have transitioned more capital to North American assets. He sold because of its relative valuation and he switched to ARX-T. It has a 13.6% yield.
oil/gas
WEAK BUY
WEAK BUY
October 28, 2019
It has been a fantastic global private equity business. They made a huge play at rolling up a lot of these industrial real estate portfolios across the world. They do all kinds of different asset allocations across the world. They announced they will convert from a partnership into a corp. so the share price increased due to anticipation of this being part of an index, thereby making all kinds of institutions need to own it because it is the index. He prefers ONEX-T to BX-N.
It has been a fantastic global private equity business. They made a huge play at rolling up a lot of these industrial real estate portfolios across the world. They do all kinds of different asset allocations across the world. They announced they will convert from a partnership into a corp. so the share price increased due to anticipation of this being part of an index, thereby making all kinds of institutions need to own it because it is the index. He prefers ONEX-T to BX-N.
investment companies/funds
BUY
BUY
October 28, 2019
He bought shares in the last couple of months. A core chunk of it is retail, a core part is office and then there is a third private equity part. The office segment is performing really well but the retail segment has been affected by the forever 21 failure and some others. It is trading at a pretty significant discount to net asset value. It is a great place to be.
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