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Market. As the US bond yields moved up, people have moved into more cyclical pro-growth sectors. He started looking at energy last year when prices were going down. Any time he sees an area out of favour or depressed, he starts to do his homework. Oil prices have moved up significantly, but some of the Canadian producers’ stock prices have not moved a lot. A lot of that is due to a possible border adjustment tax, and what does the Trump administration really mean for the Canadian energy industry. The market has taken a fairly draconian review, and people are selling first and thinking about the real implications later, which is not the right way to think about it. The comments in the last few days suggest that the outlook for the Canadian industry and the US need for energy and dependence on Canadian oil, particularly heavy oil, is quite high and they want a constructive relationship. He is also starting to look at some of the beat-up names in healthcare.

Over the very long-term, there is still further upside in this. ESPN is a very key asset for them, so there have been concerns on cord cutting. Their parks business is very healthy and continuing to grow. Trading at 18X earnings, so it is not cheap. The earnings growth trajectory for the next couple of years has slowed quite a bit. He would wait for a pullback.

This has an almost monopoly like position in theatres and movie distributions in Canada. Because of that, it gets priced fairly richly. They just had an earnings miss, but there can be revenue volatility from quarter to quarter. You could take a look at some of the US theatre companies which historically have traded at lower valuations.

This company is facing some challenges such as increasing competition from the wireless side. A very competitive business. A lot of the smaller carriers are being fairly aggressive on pricing. He would suggest selling your holdings and try to get in with at least a 10% lower share price.

A brand-new public company in Canada. A franchise model. IPO’d at a very rich price, but has performed well since then. If they are able to increase their unit locations from about 250 today up to 700-800 in the next few years, it would represent one of the faster growing franchise players. He really likes the business and the concept, and it has a lot of opportunity to grow. However, it is trading at a rich valuation.

Just had a move up recently, due to a financing they did a couple of months ago. A really good business. Operating a lot of regional flights that are not so competitive and has a relationship with Air Canada (AC-T). He prefers just playing Air Canada directly, which is very cheap. On a valuation multiple basis, Air Canada would screen cheaper than this one or Westjet (WJA-T).

A very well-run business, particularly after a number of years of underperformance relative to the banks. Lifecos are poised to outperform the Canadian banks as they have a lot of sensitivity to rising interest rates. If you believe we are in a period of reflation and rising interest rates, lifecos are a great way to play that. Also, this company has a great, global footprint.

There is a scarcity value. There are really no other publicly traded self storage businesses in Canada. Over the last few years, the sector has probably been one of the best performing in the US. He likes management and he likes the story. Not cheap, but thinks it will continue to do well and acquire more units.

This has had a nice move over the last year. They’ve shed some non-core assets.

(A Top Pick Jan 28/16. Up 42.92%.) He still really likes this. They are benefiting from the continuing move to craft beer and a lot of the legislative changes that are happening in the Ontario market. Also, beer is now being sold in grocery stores in Ontario.

(A Top Pick Jan 28/16. Up 62.46%.) Still pretty cheap at about 12X earnings. 2% dividend yield. Not expensive, but earnings are going to go up a lot as we see tax cuts and US interest rates moving up.

(A Top Pick Jan 28/16. Up 9%.) Thinks the stock should be a lot higher. They are one of the dominant global players in printing scratch lottery tickets. The industry has grown at about 6%-7% a year over 30 years. Trading at a pretty reasonable valuation.

As US interest rates rise and the net interest margin environment for the banks improve, all banks should do well. This is probably one of the cheaper ones on a valuation basis. They also have a large consumer mortgage business, which they should benefit from going forward.

Because this is a broker/dealer, this is going to be more dependent on the financial markets. Because the financial markets and the US economy is doing well, this one should do well also. He prefers the larger money centred banks with a very large deposit base and consumer lending business. There is nothing wrong with this one, but he would suggest taking some of your money out and moving it into one of the money centred banks.

A little different from some of the other engineering/construction companies that would benefit from infrastructure, because their business is based more on architectural work as opposed to systems design. Good management.