Chris Blumas
Portfolio manager at at Raymond James Investment Counsel Ltd.
Member since: Dec '19 · 879 Opinions
Rating Card
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| 3.53 | 61 19.68% | 91 29.35% | 50 16.13% | 73 23.55% | 35 11.29% | ||
| 1 Month | 3.97 | 2 2.27% | 35 39.77% | 28 31.82% | 22 25.00% | 1 1.14% | |
| 6 Months | 2.46 | 13 15.66% | 22 26.51% | 8 9.64% | 30 36.14% | 10 12.05% | |
| 12 Months | 4.04 | 22 30.14% | 22 30.14% | 5 6.85% | 12 16.44% | 12 16.44% | |
| 2 Years | 3.66 | 21 38.18% | 8 14.55% | 6 10.91% | 9 16.36% | 11 20.00% | |
| 5 Years | 0 | 3 27.27% | 4 36.36% | 3 27.27% | 0 0.00% | 1 9.09% |
Stock Opinions by Chris Blumas
Today, core US inflation is up which translates to positive news. Tariffs were supposed to impact this July number, but is up only slightly from June. Some research says that a third to two-thirds of the tariff impact is being absorbed by companies instead of being passed onto consumers, such as inventory build-up. But in time, companies will inevitably pass the tariff impact onto consumers. However, credit car delinquencies show consumers are growing strained. We still have to watch the data. It could take up to 12 months before we see the full impact of tariffs onto consumers. The US Fed between announcements issues forward guidance, which is a softer way to make a rate announcement. Trump is strongly pressuring the Fed to cut rates.
The Union Pacific-Norfolk merger in the US more likely to happen under this administration than the last and will create more competition among all railroads, including CN. The industry is attractive, because there are few companies, but the downside is the lack of growth and the rails are economically sensitive. They sold off this year under Trump's tariffs. Sit tight, if you own it. Trades at a reasonably 17x PE. He prefers CP for its network across the US and Canada, but it will take time to return to favour.
Like GS-N, it's the dominant bank in its country, and trades at a premium to peers, but deserves the premium because they've expanded into the lucrative wealth management area. They don't suffer problems in US retail banking like some peers; RY exited that decades ago. The forward PE of 13-14x is slightly higher than historic and this sector, but is justified through earnings growth.
Has done very well since its spin-off years ago. Any insurer can generate earnings. If TSU revives their reserves down the road it will wipe out any earnings they've accumulated and any retained capital in that business. In insurance, Berkshire-Hathaway and Fairfax. Insurance stocks are more expensive, because they are counter-cyclical and the money that's flowing into this space have increased the valuations.
A core holding, though would wait for a pullback to add more. The underlying business is private equity. Given potential changes in 401K plans in the US, there will be more demand for private equity. Large players like this are well-positioned. Has seen strong earnings growth the past year and multiples expansion. This is one of the best compounders.
Pharma is in the penalty box, but medical devices are not (so far). Organic growth in the core business is nearly 10%, strong. They enjoy massive demographic support. The PE is around a low 20x PE. Has strong growth. Wait for a pullback to enter.
Are totally different from MFC and SLF which have businesses in China and India. GWO instead has business in Europe where they can buy attractive companies. Is an income stock. Trades at only 11x PE, with strong growth. A core holding. Pays a dividend around 5%.
The worst-performing infrastructure-pipeline name in the short term. Are some issues with an asset in Canada where the regulated pricing has been set lower. That's holding this stock back. A well-run business with good assets, but has volatility. It has more outlets for growth vs. peers like ENB. Can buy this for the dividend and wait. The PE is low, and will always trade at a discount to peers, because less of its cash flow is regulated.
This type of company is out of his wheelhouse. He looks at cash flow; SHOP's free cash flow is too expensive. SHOP has been growing like gangbusters. He watches it, because it's significant in Canada. The changes in US taxation did not impair SHOP, surprisingly. Their business keeps going very well. Is a momentum name, but growth could slow and the street could focus on its cash flow down the road. The PE is rich.
