Latest Stock Buy or Sell? Make More Informed Decisions!

Market. GE-N announced a dividend cut. It is not the company it was years ago. It was like IBM 25 years ago when they reengineered it. There will be tax loss selling to come and the dividend cut is probably not the first to come. At some point it will probably be a bargain. They won’t rebuild the dividend any time soon. If this goes down to $15 then you are back to an attractive dividend. We are starting to have to deal with BREXIT. It will be disruptive. All trade deals being broken by Trump will be so also. The US is being very disruptive and this will be a negative for the world. Tax reforms in the US: It will be difficult to reconcile the state vs. federal taxs. It will be a disappointing bill that will give you a sell-the-news affect.

SPY-N vs. ZSP-T. They should be identical except ZSP-T trades in Toronto but has exposure to the US$. If the US$ gets stronger it should help the ETF. SPY-N has underperformed dramatically because it is in US$. They would be identical if you converted the dollars. There is foreign tax withholdings of about 30 basis points on SPY-N. ZSP-T gives you a foreign tax withholding also but you get a tax credit.

SPY-N vs. ZSP-T. They should be identical except ZSP-T trades in Toronto but has exposure to the US$. If the US$ gets stronger it should help the ETF. SPY-N has underperformed dramatically because it is in US$. They would be identical if you converted the dollars. There is foreign tax withholdings of about 30 basis points on SPY-N. ZSP-T gives you a foreign tax withholding also but you get a tax credit.

He loves covered call strategies. They are very active managers and he thinks they do a very good job of it. The last few years have been an up market in the healthcare market. XLV-N is the broad US healthcare market. You have a much better return with HHL-T because of the dividend as well. It is a good way to hold healthcare late in the cycle.

Analysts are looking for some upside. He would hit the sell button. He has no direct exposure to the Canadian banks. He thinks we’ll come back to the $62 level. Wait on the sidelines for a correction within the next year. There is nothing wrong with TD-T specifically.

Analysts generally have it as a hold. Telecom is cheap to him. They have been underperforming for almost a year. IYZ-N reflects the telecom sector and he has been buying it. He likes it here and is in an accumulation here. He prefers the ETF to one company. He does not know if VZ-N will be a winner over the boarder sector.

It is trading at double the NAV. He does not know enough about it to say why it is trading at such a premium. It has all the banks and US financials. He thinks there is something wrong here. He would want to do some homework on it.

Educational Segment. Bitcoin: He thinks it is speculative. It is a crypto currency. It is money: a store of value, a unit of account and a medium of exchange (the definition of money). The intrinsic value of Bitcoin is nothing. It is more likely to be zero than anything else. GBTC-N is a fund that trades in Bitcoin as the underlying asset. From a risk perspective, it is the highest risk category you could imagine. GBTC-N trades at a 49% premium to the underlying currency. Expect volatile ups and down. He is negative on the outlook. It could keep going up for years but it is a speculative vehicle and you should leave it alone unless you are a big risk taker as you are not owning the underlying technology. It has no underlying value.

When the economy is strong, cyclical sectors tend to outperform. He thinks we are very late in the economic cycle. It could end any time now. You want to be underweight cyclical late in the cycle. When the market is down and the bad news is priced in, then that is when to overweight these. Don’t add to industrials right now.

Market. He likes stocks that don’t need the markets to go higher in order to provided returns. There is a lot of opportunity to make money in Canada. We have seen a lot of good things happen in the markets. We are piggy backing a little on the things going on in the US markets. We have seen energy markets bounce here in Canada. There are positive signs here in Canada but also things to be concerned about. The US congress and the president may not get a tax deal done. Whether or not there is a hike in rates that will make more difference.

It has been a position of his for some time. But margins are under pressure. They have been increasing their adverting budget. He thinks there will be pressure on margins for some time. He recently sold it. It was a darling for such a long time and it made a high and then made a lower high. There are better opportunities in the Canadian market.

They have totally different management. A good decade ino the past until it was up and trading. There were a lot of industrial companies in Canada in the late ‘90s and early 2000s. You are seeing a resurgence in the industrials. China has been the big importer of industrial steel and they just held a big party conference. It might be that you will see a slowdown in industrial products. There may be pressure from decreasing Chinese orders coming down.

A big international mining company. You have to assume electric cars going forward are all they are hyped up to be. You also have to assume S-T is going to be a major beneficiary. There has been and continues to be stronger demand for base metals that they dig out of the ground all over the world, which provides diversification and they could also be subject to political risk.

They did extraordinarily well coming out of the financial crisis. So much of their direct lending was leveraged to the energy space but now prices are up to $55 for energy so they will not see the large defaults people were afraid of. His preference would be BNS-T. TD-T is probably the best to play the US. They took on a competitive US environment and did very well. No one in the US thinks of it as a Canadian Bank. You are betting on the strength of the US banking system doing well. He prefers BNS-T because of the international exposure.

He does not follow it specially but has owned a number of related companies. MG-T is probably Canada’s best known Auto parts supplier. He thinks it will be as strong if interest rates stay as low as they have been. They are highly leveraged to strength in the stock market.