Today, Christine Poole commented about whether CVS-N, WHR-N, RY-T, VRX-T, ABT-N, ABX-T, CVX-N, GILD-Q, MRU-T, LNR-T, MG-T, BTE-T, HBC-T, F-N, HR.UN-T, CXR-T, TD-T, UTX-N, L-T, GOOG-Q, QSR-T, CCO-T, HCG-T, RTX-N, MBT-T, ECA-T, SU-T, CGX-T, DOL-T, MTY-T are stocks to buy or sell.
The largest theatre operator in Canada. The one thing they cannot control is the type of movies that is going into their theatres. Had a very good past year and there is a good slate coming up. Very good operators and are increasing concession per spend. Also branching out into new areas such as family entertainment centres. Also, slowly increasing their dividend. Dividend yield of 3.1%.
Defence spending has slowly been on the decline, but depending on who is elected in November, defence spending could actually go up. Defence stocks have held in really well, and tend to be very strong cash flow generators. Not inexpensive, so she is not inclined to buy at this point. A slower growth industry.
She doesn’t own any uranium stocks. After the disaster, there was a moratorium on a lot of nuclear plants. It has been very slow to come back on stream. Eventually, for countries like China, nuclear is going to be a source of power for their energy demands. There is no near term catalyst for uranium. If you have a very long-term horizon, you could keep holding it.
(A Top Pick June 9/15. Up 34.74%.) This is a play on the Internet and online advertising. Online advertising still has a very strong secular growth trend. When looking at online advertising globally, only about 35% of the overall budget is allocated, so there is still a potential of growing at double digits.
(A Top Pick June 9/15. Up 11.8%.) Had originally bought this because of the Shoppers acquisition. She likes both industries. In terms of grocery retail, there has been moderating square footage growth. They are now starting to buy back stock and increasing the dividend. Shoppers has about a 30% share in drug retail. They have good locations and it bodes well with the demographics of the aging consumer.
(A Top Pick June 9/15. Down 10.99%.) Has had some difficulty in the past year, but she still likes it. A high quality industrial. They make Otis elevators, Pratt & Whitney engines, Chubb as well as being involved in aerospace parts. She still likes this. A dividend yield of about 2.5%. Well placed in terms of 2 secular growth trends; emerging markets of China and India, as well as the increasing aerospace travel.
Markets. Both US and Canadian markets have had a pretty good run from their lows. TSX was up 20% from January lows, and the US about 16%. It isn’t surprising that we are getting a bit of consolidation or pull back. Markets seem to be wanting to find a reason to pull back, so everyone is focusing on BREXIT, which has been an overhang for the last few days. It looks like a lot of the official agencies are calling for a quicker pass to rebalance supply and demand on oil. If crude hits $50-$60, that may be enough to have some additional supply come on stream in North America. Doesn’t think the Canadian economy will go back into recession, given that the US economy is recovering, and we are their largest trading partner. Banks have had a nice run from the beginning of the year, and are still very well reasonably priced based on historical valuation levels. They are yielding over 4% and are continuing to increase their dividends. Pulling back a bit, so now is a good chance to get in if you don’t have exposure.