Today, Michael Decter commented about whether CUS.TO, CHR.TO, GRT.UN.TO, PGF.TO, MFC.TO, HCG.TO, BB.TO, PKI.TO, BTE.TO, PD.TO, MG.TO, BBD.B.TO, TCW.TO, ATRL.TO, HNU.TO, S.TO, PVE.TO, FTT.TO, CNE.TO, TRP.TO, ATD.B.TO, DH.TO, COS.TO, WPT.TO, REI.UN.TO are stocks to buy or sell.
Holds a lot of the factories that Magna (MG-T) operates out of in North America and Europe. Brought in a professional REIT management team and have started to diversify. Almost no leverage on it. When they leverage up the balance sheet to the same level as other REITs, and do the conversion, they will be able to add a lot of assets and a lot of revenue.
Essentially had a deal with Air Canada, which went to arbitration. Market didn’t think they would continue to pay their dividend. (Current yield of 15.46%.) The initial information on arbitration seems to indicate it favoured Air Canada but it actually gives this company some good margin protection. Thinks they will trim their dividend a little or even maintain it where it is. This is a good period for aviation with loads being quite high and feels the regional collector roots are going to be very strong.
Own a number of chemical plants and he thinks the current share price is more than covered by the plants, which have good upside. The real gem is the work they are doing in the terminaling business. They are going to be taking increasing volumes of oil and putting them from pipelines in Western Canada onto rail cars. Expect they will add $3 a unit of NAV as the business matures. 7.1% yield.
(Market Call Minute.) Likes it but would wait for it to pull back a little.