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Prefers Ford (F-N) because of the better dividend. There was a time when there was a lot of room for the suppliers to gain ground because they were very, very efficient. However, a company like Ford has had to become very efficient on its own. Feels there is good value in Magna. 1.4% dividend yield.
Has owned from time to time. It seems to get away on him to the upside. Has come off a bit. He fundamentally really likes it. In the utility pole business. They do a lot of acquisitions, but they do the outsourcing from the utilities of managing inventories. At these prices, he is going to have another look at this. Dividend yield of 1%.
Trending down and may have something to do with the view that car sales couldn’t get much bigger than they’ve been. Car dealerships are a good thing to own and there are some economies of scale in owning a lot of dealerships. Have had a huge run and there is competition in the field, but there is also big generational change coming. Thinks it has a very good 5 year outlook. If you are buying, pick away at it, such as by thirds.
Had a great run. Trimmed his position at around $7. He was waiting for the catalyst event of them closing the Family Channel, which they did. Likes it long term and if it came off further, he would likely Buy more of it back. Loves where they are positioned. There are only a handful of studios globally that produce content for the children’s segment. Turning into a global business and they are either going to be acquired or are going to be one of the consolidators.
One of the main holdings in his energy infrastructure fund. This company makes the chemicals that make fracing work. Getting good margins and they are growing. Now into the oil sands where they are probably going to be a big player. Had run up to $30, so they split it 3 for 1 and it traded off from $11.50 to around $9. This is a very good entry point.
Has mixed feelings. Had hoped to see a revival in the IPO market and the resource sector, where these mid-tier firms in Canada historically made their money. He would be patient and wouldn’t rush right in. They may have another difficult quarter. Put it on your Watch List and see if you can pick it up after their Q3.
Markets. Feels there is an August phenomena where people want a bit of a pause. We’ve had good runs on both sides of the border, but better in Canada, however that follows a year where the US outperformed Canada. Not so sure it is going to be more pronounced in one market than the other. It may be more pronounced in some sectors than others, where fatigue has set in. He views it as a healthy pause and there is nothing like getting the wall of worry reactivated to make us more confident that we are going up. He likes the earnings stories on the things he owns and the strength in the jobs market on the US side. Feels this phenomenon will be well done by Labour day and we will have a very strong last quarter. We are in a corrective climate and there is some rotation back towards income. The 2nd part of a correction is, where there are opportunities. Feels there are some opportunities where there has been some downward pressure on earnings in really fine companies. There are some other companies that are within striking distance of their all time highs, because the growth is there. He is tending to hold a little more cash and to be a little more cautious, but where there are good earnings growth and where he is confident of the story, he is adding.