Today, Michael Decter and Michael Smedley commented about whether GXE-T, MITL-Q, GSY-T, SUM-T, ATD.B-T, FTS-T, SCC-T, CMI-X, GPS-T, DHX.B-T, ASG-X, GUD-T, SPE-T, WN-T, FR-T, CPHR-Q, SGY-T, KLS-T, BYD-T, NDM-T, LUN-T, HBM-T, PTK-X, DIS-N, CGX-T, EFN-T, CUS-T, PRW-T, ESN-T, CSU-T, E-T, ENT-T, REI.UN-T, CF-T, CEU-T, DHX.B-T, PHM-X, ACQ-T, CCT-T, ALA-T, AFN-T, TA-T, SJ-T, GIL-T, MG-T, SAP-T, VRX-T are stocks to buy or sell.
5% dividend is very good, and that is both the good news and the potential bad news. Very solid company and very well managed. Largely Canada, but have gone in opportunistically into the US. It will be a rock solid investment as long as bond yields are down in the 2%-3% range. Doesn’t feel there are any company risks. Have a great team, great leadership and great properties. You have risks if we have more inflation and people can get a higher return on a bond. This is probably fine for a few years.
The question is can they get more of the top line growth to drop to the bottom line. He is a little uncertain about that. It’s worth keeping a close watch on. It would be more of a Hold than a Buy for him at this level. Eventually they’ll work through this, but doesn’t know that they will do it in one quarter or if it will take several quarters.
Had a soft quarter because there were no blockbusters. Off the back of the quarter, Guardians of the Galaxy blew out the August record for a weekend by almost 50%. Has one of his favourite CEO`s and is extracting more dollar per seat every year. Looking at 2015-2016, there are some familiar names coming such as Star Wars, the Avengers, Fast and Furious, etc. Yield of 3.82%.
Markets. We always get a correction at this time of year. People talk endlessly of a correction coming, but later we will look back and say there was a correction, but you could find a lot of fine stocks and find that they are down 10% to 25% even without bad news. When people talk about a correction, they are talking about some classic doom and gloom, where everything just falls. We haven’t had that and we need a catalyst for that. He has been sitting on what he has, mostly blue chips and dividends.
Have a revolutionary gallium arsenide based substance to replace silicon, and they can put visual and sound on one chip. It will be faster and cheaper. Still in the laboratory phase. His question, if this works do the regular silicon type switch over or not. This is a mad money stock at the moment. Sounds interesting, but don’t go in with everything but the kitchen sink.
Hudbay (HBM-T) or Lundin Mining (LUN-T) for the zinc? He likes them both, and likes very few mid-tier Canadian mining companies. Probably prefers this and the way management is expanding further outside Manitoba. They’ve acquired Augusta in this very depressed market, which was a very interesting thing to do. They now have a great North American asset. The expansion is working.
Hudbay (HBM-T) or Lundin Mining (LUN-T) for the zinc? He likes them both, and likes very few mid-tier Canadian mining companies. Of these two, his preference would probably be Hudbay. This one is a careful company. It just acquired a very interesting, maybe limited life, high quality asset in northern US.
This is one of the greatest copper prospects globally, that has been beset by environmental type problems. Some good bits of action have been coming lately to this company. There is a slow process of trying to break out of this dreadful situation, where Alaska wants it, the population wants it and most of the native population wants it. However, rich men sitting elsewhere, don’t want it. This is one he is being patient with, and you have to have a few of those.