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They struggled the last few years since users have gone to more fresh and healthy food. You are betting on their ability to make the transition. This is the not the first time they have turned the business around. The new CEO is rolling out new innovation. You can buy this and live with it in bad times. Good dividend, good valuation and they are executing a turnaround.
Medical liability space. With Obamacare, there are more and more people accessing healthcare. They are now digesting previous acquisitions which are accretive to earnings. They are cross selling products. You get paid a great dividend and he sees stock price appreciation. You have to be looking more than one year out.
It has struggled this year, down about 25%. He likes what they are doing in terms of a go forward strategy. They plan to open more stores. They are now price matching the prices of on-line retailers. They are getting into the organic side in groceries. They will be taking their customers up the price scale to more expensive products. He is not in a rush to buy this name, however. See how the initiatives play out.
He hasn’t touched gold in any way since 2012. As the world becomes more confident especially because of what is going on in the US, there is less and less reason to own gold. There are easier ways to make money in the market. As interest rates go up in the US it will increase the opportunity cost of owning gold.
6% dividend. It has underperformed. It is down about 20% YTD, but you want to own it. We are starting to see a recovery. They are a globally recognized name in that space. He feels potash prices will go up. He would buy at these prices. AGU-T is the more conservative way to play this space.
(Top Pick Jan 16/15, Up 29.33%) Great returns. Tough to complain about. The largest market share in the diabetes space. Emerging market countries are contracting diabetes at the highest rate but you can’t sell the drugs at the same price and they can go in and cut their prices. He still likes it long term, but it went up in a flat market.
The asset managers as a whole will be very much correlated to the markets. If you have good assets then assets under management grow. They have done well over the last 6 years. Now in 2015, the easy money has been made and volatility is coming back into the picture. You won’t see the same rates of returns in the sector going forward.
Markets. The language the Fed uses is more important than whether they raise rates today. They are ready to raise rates. With 5 years of phenomenal returns, especially in the US, the days of buying a dividend stock and being okay are behind us. He needs to see earnings per share growth, cash flow growth, and low balance sheet debt and their ability to service that debt. Better value is found in the US than Canada.