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People believe this is going to kill all of retail. They do not yet make a profit. They make amazing sales, but don’t worry about making profits. There was a time when people thought Wal-Mart would take over the world and drive other retailers out of business. Retailers learned how to deal with and compete with Wal-Mart. They adapted their operations. He believes the same thing will happen with AMZN-Q. It will not go away, but not take everything over either.
He owns others instead. It comes down to quality of management and an ill-timed acquisition of John Hancock. It continues to underperform and they may now spin it out or sell it. It continues not to be a good performer. They have hedged away a lot of the benefit they will get from rising bond prices.
He has never owned it because he is one of their best customers. He has been finding that it is difficult to decide what to go and see and sometimes he considers not seeing anything. They cannot pick and choose what to sell. If it is a great movie season they benefit, but if it is bad they suffer. The movies are the tail that wags the dog. He has yet to see where this movie season is going to turn around.
He is not big on TD-T, but prefers BNS-T because it is less exposed to Canada and he likes the emerging markets exposure. He is not that excited about Canadian banks because of the lack of loan growth and the housing question overhanging them. The rising Canadian dollar takes away from the US operations.
(Top Pick Sept. 9/16, Up 6.84%) It went bankrupt during the crisis and was rescued and recapitalized. It is headquartered in Florida and takes retail business, but is mainly a commercial bank. It is dependent on loan growth more than interest rate growth. Loan growth has been a little sluggish, but he feels it will go up. He is putting new clients into it.
(Top Pick Sept. 9/16, Up 0.65%) He bought it when it was about $5 as an income stock. They’re not as big in oil now, but in municipalities. This year it had a slow January. The next two months were so good that they started to build more trucks. Last week it reported excellent results. But a short seller went very vocal. He feels this is a great long term hold.
The world’s largest manufacturer of industrial pumps. It is the third generation of the family that are running it. It has increased its dividend 44 years in a row. What has held it back in the last couple of years is that they move fluids and some of it is oil and the weakness in that industry has hurt them. That part of the business is starting to improve. Their latest quarter was better than expected. This will be a good long term stock to own.
One of the two stocks that has been propelling the Dow. Whether that continues remains to be seen. Defense stocks in general have been doing well and the airline industry around the world has been doing well also. This one has been doing well and he would almost be a seller of it now.
It is the best run railway in North America. They need increasing volumes in products and commodities to move. They have a big exposure to cross boarder business and not so much to commodities. Hopefully NAFTA stays as it is. The dry weather out West could be bad for them. Buy as they sell off.
