COMMENT

MSFT-Q vs. IBM-N. If she had to choose, her preference would be MSFT-Q because of their cloud business which will grow. IBM has not been able to figure out how to grow their top line. Both have cash overseas and will benefit if there is repatriation of cash policy changes.

PAST TOP PICK

(Top Pick Feb 9/16, Up 20.76%) She still likes it. It has lagged the rally, only up at 4% vs. the market being up 10%. It is the 28th consecutive quarter of organic growth over 20% year over year. That trend of digital advertising is going to continue to grow as only about 35% of advertising budgets are allocated to it. They got a new CFO a couple of years ago who has brought a lot of financial discipline to the company so more growth is dropping to the bottom line. They have been buying back stock even though they don’t yet pay a dividend. They have a lot of cash off shore so policy changes in repatriation of cash will benefit them.

PAST TOP PICK

(Top Pick Feb 9/16, Up 28.27%) She still likes it. It is a play on the US economy. As employment and GDP improve people may spend more on home improvement. With a third of the age group 18-36 still living at home and as the job environment improves they tend to move out into a home of their own. The company is well managed and always increases their dividend. They report later on this month.

PAST TOP PICK

(Top Pick Feb 9/16, Up 8.49%) She still likes it. She bought it for the 3-3.5% yield and capital return of 5-8%. She still likes it. They are the largest theatre operator in Canada with a 77% market share. They can’t control what happens at the box office, but they are really good at things they can control such as concessions spending. They have advertising in their theatres and advertising signage. They also have ‘rec room’ which offers gaming, etc. They are a well managed company and will continue to grow. She will be continuing to hold it.

DON'T BUY

They brought guidance down going forward. They have a key HEP-C drug which is getting competition. They have to figure out a way to grow their pipeline and then their revenue and earnings. She would not be buying it for Pharma exposure. See her top picks and she also likes ABT-N.

BUY ON WEAKNESS

They had a very strong fourth quarter and their guidance for the first quarter of this year because of pre-buying of Iron Ore in the fourth quarter on fears of prices spiking. They had a big run. Iron ore prices are not going to go back to the levels they were before. The zinc outlook is quite favourable. It is now getting back down to levels where she may pick up some more.

BUY ON WEAKNESS

US Banks. They have all done quite well post- the election due to the potential of less regulation. She owns WFC-N. There is nothing wrong with the others, but WFC-N has lagged and was better managed during the financial crisis. JPM-N is the second best one. Wait for a pullback before buying or adding to a position.

DON'T BUY

The whole rental business is going through a difficult period. The popularity of Uber is actually a negative for car rentals. It is quite competitive in terms of pricing. The business is pretty difficult and she would not invest there.

HOLD

She has held it for a number of years. It was always her preferred play in that area. Nutrients should have a good long term demand. But this industry can get quite cyclical because using them can be put off for a number of years. They have a retail operation which cushions them more than POT-T. POT-T is buying them at the trough of the commodity price. (Analysts’ Target: $141.06).

WEAK BUY

She owns ENB-T because it is the bigger company. She likes that company and the Spectra acquisition. There is more growth in ENB-T. ENF-T pays a higher yield. When the Spectra deal closes they are bumping up the dividend.

HOLD

Things are slowly improving post- the election. It is one of the highest quality players in this area.

HOLD

(Market Call Minute) It has done well, but don’t chase it.

DON'T BUY

(Market Call Minute) They are having troubles in the US.

BUY

(Market Call Minute) She likes it and it has a nice yield. It just reported a good quarter.

BUY

(Market Call Minute) Large integrated company paying a nice yield.