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Natural Gas is always a call on the weather. February was the warmest February on record. He thinks Gas will average $3, or no change. Now is a crummy time to own Nat Gas stocks. Until June there is not really a catalyst to get these stocks going.

They are marred with too much debt and can’t grow. They look too unattractive compared to peers, with the worst production forecast and one of the worst balance sheets.

He does not like any of the peers enough to own them. It is going to be another year of pipeline outages in Canada. But if you wanted to own one, this would be it. He recently exited it to put money into service stocks. He has a lot of respect for the management team. It is going to be a bumpy ride to get to is target price.

He would not yet own them. They stubbed their toe on guiding the street late last year. It will be post-Q2 now. If it gets to $20 he would step up, however.

With the freak out by the market about the sell-off in oil. Fracking sand has doubled. The increase in demand will offset any increase in capacity. This one has been hit the hardest of the sand producers. (Analysts’ target: $12.25).

They will now be above the $ billion market cap and it opens up to a lot more buyers and can get index inclusion. In the US we are talking 25% quarter over quarter price increases. (Analysts’ target: $6.50).

They will grow about 3 times that of a Canadian producer. He is getting a 40% growth rate, but paying an inline multiple for it. At $5 billion market cap it has not hit as many radar screens and so is a little bit cheaper. (Analysts’ target: $18.00).

Markets. The budget does not make him change how he wants to allocate capital. This is the second budget in a row they talked about this badly needed commitment to infrastructure, but nothing has happened yet. The government should be careful in the future. There was speculation the government would increase the inclusion rate on capital gains, which they did not. Advisors had been suggesting people crystallize capital gains, but which was unnecessary. Don’t make investment decisions be based on tax and legal speculation.

He is not a fan and prefers PEP-N. KO-N is almost exclusively a soft drink company. Soft drinks are under attack and in decline as people move more and more towards water. He does not care for the outlook. Pepsi gets most of its earnings from food – Lays and Quaker.

He has mixed feelings for both V-N and MA-N. As economies start to do better in the world, use of credit cards will start to pick up. But there is continued pressure on merchant fees and it may get bigger.

US and Canadian financials had a big run and there is profit taking. TD-T was hurt more than others because of the scandal about sales pressures by employees. He would hold off. He only owns BNS-T and the rest of his bank holdings are US banks.

Financials have run in the US because of expectations under Trump of less regulation that will free up capital. Also, there is hope and expectation that the yield curve will steepen. In the near term it looks like we are getting a correction in interest rates. We are close to the end of the 35 year bull market in bonds.

Where to park US cash temporarily. You don’t get paid much for owning US cash.

It has become an interesting stock because they are making a very well timed purchase of shells oil sands assets to become the biggest oil company in Canada. It probably makes it attractive. But in the near term he sees oil going down so there is no reason to put new money into oil stocks.

He likes the growth outlook and they have pledged to increase their dividend every year. The Canadian economy needs pipelines to be done.