Today, Veronika Hirsch and Jaime Carrasco commented about whether FNV-T, TOG-T, DDD-N, CAR.UN-T, CNL-T, LUN-T, IMG-T, ABX-T, OBE-T, HRR.UN-T, ATP-T, RDZ-T, TECK.B-T, PPL-T, AEM-T, AQN-T, RBI-T, G-T, PMG-T, NPI-T, MOS-N, SAP-T, ENB-T, CGX-T, S-T, CAE-T, BDGI-T, HNL-T, AC-T, GEI-T, CIX-T, TECK.B-T, DCI-T, GIL-T, CM-T, CEE-T, EMP.A-T, G-T, ACQ-T, AD-T, BYD-T are stocks to buy or sell.
Loves the company. A Canadian company with a global footprint. Have training centers all over the world. Made an acquisition and have been redeploying simulators between different sectors which have caused a problem in earnings last year. Don’t seem to ever be able to translate their success to the bottom line. She would go with Mac Donald Dettwiler (MDA-T) instead.
Thinks Teck Resources (TCK.B-T) assets are way more attractive. Has a new mine in Madagascar that is coming into production, and even that is causing issues because Madagascar is one of those poor countries with very few successful assets and operations. She worries that there will be attacks on it one way or another.
Doesn’t have a huge yield because the stock has done so well. It is in that group of pipelines and utilities where people tend to sell when they need money to deploy into more cyclical and economically sensitive stocks. It will continue to suffer from this. In a trading range. The issue of getting new pipelines in Canada and the US is going to overhang the industry as well. An expensive stock and she would prefer to see you in something else.
She is not in this sector. Who knows how that is going to happen now to the whole issue of Potash (POT-T),. Potash prices are declining. Corn prices have gone down, which is not necessarily good for fertilizer companies. She would stay away from all fertilizer companies until we know what happens in potash.
Economy. Thinks the Fed has lost control of interest rates. The fact that they couldn’t taper with a 3% on a 10 year bond says that the economy is really weak, weaker than what they have been presenting. He is wondering how quickly bond rates will reverse and go back up to 3%. Next time they won’t be able to even cut, they are going to have to increase because, going forward is about controlling the rise of interest rates and they are the buyer of last resort. Also, US$ is extremely weak. In essence, we have massive financial lunacy going on right now because of the money printing and everything else that is going on. They are going to start to lose control. For now, he would be betting against the market going any higher.
Gold. The #1 insurance against financial lunacy is the least owned asset in North America. The Chinese love gold, India loves gold, all the rest of the world loves gold because they are feeling inflation. There has been manipulation in the market, only because you have a massive disconnect between the physical exit of North American gold that is going over to Asia.
Has been a fantastic story off the bottom. Earlier this year they lost one of the contracts for their housing. They are now redeploying the beds and she thinks they are going to be successful. Well managed. This is a long-term Buy.