PAST TOP PICK
(A Top Pick Jan 2/09.) Only about 2%-3% in cash now.
SELL
A lot of these products have daily rebalancing. While the concept is great, it is the price path that really impacts you.
TOP PICK
Raise capital to assure their customers they would be around forever. Growth profile and valuation looks quite attractive. 2.6% dividend. Should grow 15%-20% over the next 2 years.
TOP PICK
Single best financial services investment in Canada. Unbelievable franchise. This is based on the consistency of the equity. Every year profits go up by about 25%, year after year. Although it has been flat for the last couple of years the multiple has compressed significantly.
TOP PICK
Most attractive sub sector in financial services right now is anything related to the mortgage lending market. This company provides mortgage insurance. This area is an oligopoly in Canada with CMHC being in the only other player. 3.5% yield and good growth profile.
HOLD
1st or 2nd best managed bank in Canada. (Royal Bank (RY-T) would be the other.) However, this is a well-known fact so the valuation already reflects it. On the five-year view, the stock will deliver very well for you but there are cheaper banks out there. Dividend of about 4.4%.
BUY
Of all the banks, this is the best investment today.
DON'T BUY
He is still not on the bandwagon for this one. Still grinding through its issues. Still have some problems in the US.
DON'T BUY
Interesting company. Lost one of their star managers so there is something wrong at the top. Valuation looks pretty attractive but if you can't be happy with management, you should move on. He prefers Gluskin-Sheff (GS-T).
SELL
He is shorting the stock, betting that it will go lower. Levered with dubious quality assets.
BUY
Would rank this as #2 in terms of attractiveness in Canadian banks. Historically they have always seemed fast and loose with regards to risk but he feels there will be a conception of higher quality banking from now on. 5.4% dividend yield.
BUY
Best managed of financial trusts. Feels distributions will be maintained once they become a dividend paying company. 7.6% yield.
DON'T BUY
Fully valued and he has taken profits recently on this one.
BUY
Interesting company that has been trying to reposition itself for some time. Stock price close to BV. Good quality company with capital market exposure. Under $10 is a good entry point.
BUY
On lifecos, great West life (GWO-T) would be good for the conservative investor who needs more dividend and Manulife for the more aggressive investor looking for capital appreciation. These are the 2 that he would focus on. Almost 5% dividend yield.