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Stock Opinions by Alexander MacDonald

COMMENT

We are now at the tail end of quarterly reports. Sometimes investor sentiment pivots quickly not based on fundamentals as it did last week. The job numbers were a bit disappointing but in isolation were not enough to explain the volatility last week. The low income consumer, especially in the U.S., has been under pressure for some time but he is bullish on the major economies in Canada and the U.S. over the long term. You need a time horizon of 3 to 5 years. He is not super active in AI investing and their general principle is to buy quality companies with good balance sheets at decent valuations. This does not mean deep value companies.

Unknown
Unspecified

They invest the float for insurance companies in a diversified conglomerate of companies including Apple, railways, etc. Buffet likes to buy in times of extreme volatility.

insurance
Unspecified

It is a great operator that is shareholder friendly like many other oil and gas companies. He doesn't own because he is not sure of where oil prices are going. If there is a shift to renewables then less oil will be needed. If oil prices become greatly depressed then maybe it becomes a buy.

oil / gas
Unspecified
Tourmaline Oil Corp

It is good for exposure to the space but again he doesn't like the space so he doesn't own it. It is the largest natural gas dealer in Canada and the market seems to like the acquisition of Crew Energy.

oil / gas
BUY
Alphabet Inc

He likes it and it is a core holding in their technology portfolio. It trades at 20X earnings which is attractive since the multiple is better than many of the other big techs. Open AI and Bing haven't taken search business away from them. He likes the underlying business and the advertising part too.

Technology
COMMENT
Canadian Utilities

It is primarily Alberta focused. He prefers Fortis with a strong Return on Capital. Rates should come down and income names should do better.

electrical / electronic
DON'T BUY

he sold it a year and a half ago - It has too much debt. It has cut its dividend twice in the past year. It is now just a regulated utility after the sale of its renewable power division and some think it was not at a good enough price.

electrical utilities
BUY
Bank of Nova Scotia

It is one of their top three bank holdings and is very international with divisions in Latin America and the U.S. It is good for diversification and getting to an attractive valuation as it tales good steps to improve things. He feels that the market reaction to its $2 billion acquisition was overdone.

banks
COMMENT
It is now called Atkinsrealis group.

It is going through a turn around recently and de-leveraging the balance sheets. Nuclear energy reactors is a pretty exciting part of the business. He prefers WSP with its M&A activity and design component.

contractors
PAST TOP PICK
Chubb Limited
(A Top Pick Aug 14/23, Up 35%)

It is a global company and Berkshire took a position in it a few months ago. Fixed income at lower rates are rolling into fixed income at higher rates.

insurance
PAST TOP PICK
Brookfield Corp
(A Top Pick Aug 14/23, Up 30%)The total return was not shown correctly on the screen and the host said that it was up more than 30% but didn't say specifically how much over.

There was some overhang a year ago because of some office real estate holdings. However Brookfield's office holdings have quality tenants who are not leaving. It has great assets and has diversified into renewables and infrastructure.

investment companies / funds
PAST TOP PICK
Toronto Dominion
(A Top Pick Aug 14/23, Down 4%)

Regarding the money laundering scandal TD has booked $450 million in fines but most think there is more to come. The bigger picture is the growth in Canada by targeting immigrants with new products. It is at a good entry point.

banks
Unspecified
Equitable Group

It is a niche bank that specializes in Alt A lending. It lends a lot to the real estate industry, both personal and commercial, with mortgages on multi-family residential. It is also has an online component. He likes the bigger banks but the smaller ones could grow more.

Financial Services
Unspecified
Boeing

It has been in the headlines a lot and deliveries have been an issue for both Boeing and Airbus. It is hugely capital intensive and this is not their way to play aerospace. He prefers RTX, formerly Raytheon, which makes parts. More are needed for older airplanes since deliveries of new ones are a challenge these days.

Transportation
Unspecified
Airbnb

Although the idea of the business is a great one, regulation is an overhang. It has also been accused of taking residential housing away from people who live locally.

Technology
Showing 1 to 15 of 79 entries