N/A

Markets. The central bank of Canada insists the economy of Canada’s is really strong. The US wants to raise rates so there is something to cut later and he thinks it is really the same in Canada. Energy sensitive provinces had somewhat of a rebound. The government is extrapolating out to the end of the year, but now energy prices are going back down. We are the only real petro currency in the world, after Mexico and Norway. The Canadian market is weird compared to the rest of the world. Outside of our biggest sectors, there are world beater mid-sized companies in Canada. A lot gets taken over by bigger entities. Canada is not a sector by sector thing. The good sectors are worth 15% of the index.

DON'T BUY

There are wonderful opportunities in the food business. But this one is in a very competitive environment and he does not own it right now. It does not have a huge competitive advantage. He is in a wait and see mode with respect to Shoppers.

BUY

In a good competitive landscape it is focused on the mattress landscape. Its biggest competitors like Sears, are not having a good time of it. Good advertising and refurbishment of their stores is really helping them. It is one he has owned for several months and will likely to continue to own.

DON'T BUY

It was one of those stocks that just kept getting more and more extended. He exited 2 or 3 years ago. The buffet injection of cash is a good thing. It is a case of how much the culture and the company has to transform. You are also looking at an interesting time in the Canadian housing market.

WATCH

He has no price target. It is another great Canadian healthcare stock that got hammered a short while ago. The reason for the most recent decline is that Central Medical Services has changed how they code some services. This company should eventually be at higher prices, but he wants to see the dust settle.

DON'T BUY

A recommendation for an Index Fund for Oil. Don’t get a leveraged one. He is not that wildly bullish on the price of oil right now. The price of oil is going to bounce around. Rebalancing in a leveraged fund could cause you to lose money even if oil goes up.

COMMENT

PPL-T vs. ENB-T. In the energy space these have been stronger performers overproducers. With interest rates moving higher it will be a mixed blessing for pipelines. Their dividend does not look as attractive, but as interest rates go up so are their allowed rate of return through the regulator. Look for which one has the most consistent track record of dividend increases and the best record of dividend coverage. If it is the same stock for each factor, go with it and if not go with the latter factor.

COMMENT

PPL-T vs. ENB-T. In the energy space these have been stronger performers overproducers. With interest rates moving higher it will be a mixed blessing for pipelines. Their dividend does not look as attractive, but as interest rates go up so are their allowed rate of return through the regulator. Look for which one has the most consistent track record of dividend increases and the best record of dividend coverage. If it is the same stock for each factor, go with it and if not go with the latter factor.

COMMENT

Historically it was the darling. It continued to expand production as energy prices went up. It did a lot of financing to fund its dividend and its expansion program. Then when energy prices came down it did not fare well and later did not recover with the price of energy. He does not know what is going to drive it higher from here.

COMMENT

It is more of a case of what is going on with the Canadian central bank and what the rate increase will mean for the banks. The rate increase is positive for them. They can actually charge more for money, but won’t have to pay any more for it to customers. The prime mortgage rate went up by a quarter of a percent. CWB-T has the biggest net impact from this increase. CM-T will be impacted by rate increases in how they impact the housing market. Weakness in the industry could be an issue for them.

COMMENT

The rate increase will have less of an impact on them than the others. CM-T or NA-T would be two of the top to benefit from the recent rate increase.

DON'T BUY

The runner of the Aeroplan loyalty plan. Whenever a company loses its biggest customer it will impact it. This is not an opportunity to get in.

DON'T BUY

He followed it for 20 years. The company got it right. They saw themselves as not a newspaper company, but as an information company. It has been in a trading range for 15 months, then had a move up. It has a ways to go. It will probably end up breaking out to the upside, but he is unlikely to buy it.

HOLD

A great Canadian momentum story. It has benefited from what is going on in the US, where they finally passed their infrastructure bill.

TOP PICK

Canada is phenomenal in areas we don’t think we are. This one is trading at a big discount to its peers. One of the biggest suppliers to the aerospace and defense industry. We may not be the dominant brand, but we are the brains behind the brands. They are a little bit behind on valuation. (Analysts’ target: $15.50).