Today, Michael Simpson, CFA and David Cockfield commented about whether OSB-T, XIC-T, TD-T, HMMJ-T, VRX-T, ENB-T, TECK.B-T, DIS-N, IPL-T, SHOP-T, SLF-T, PPL-T, EMP.A-T, BCE-T, IGM-N, SWK-N, CPG-T, CPX-T, TDG-T, G-T, MFC-T, TCL.A-T, UPS-N, ENF-T, JNJ-N, ALA-T, TRP-T, AD-T, EMP.A-T, SCHL-Q, CSW.A-T, CJR.B-T, LNR-T, AGN-N, SLF-T, MAXR-T, SJR.B-T, LOW-N are stocks to buy or sell.
This is their busy time. It is not as compelling now. Their peak date is in a few days. Their seasonal hiring may be a little bit less this year. They get surges and try to deal with it by charging higher rates. It could lead to higher costs also. Between now and Christmas if there is no bad weather the company could do well. It all has to do with how they deal with the surge in business. At some point Ecommerce growth will slow. At the current valuation it is not as compelling as at lower levels.
Just won a 20 year project n Alberta for a wind project. Some of their assets are being transitioned from coal. He is studying this company because the electricity market in this province will become more robust as coal is taken off line. He is doing more work in it. Electricity prices in the province may recover as they shut down coal.
Former darling of many investors. They still pay a dividend but it was reduced. The company was quite acquisitive over the years. At times they may have grown too fast. They have decent properties. They don’t have the best balance sheet but at these valuations it is cheap. Hang on to it to see if you get a recovery.
Market. The market is sort of trading sideways, but he expects we will still have a US Santa Claus rally. There is nothing wrong with the background, and with the tax bill passing in the US, that will encourage their markets. However, we still have NAFTA hanging over us and low oil prices that are holding our market back. Things are not quite as bad as some equity managers think. There has been a fair migration of funds out of Canada into emerging markets.
This has been a great performer. He's gotten a little worried about it because it has done so well, and has taken some profits here and there. If you want to get into that area in a diversified way, this has all the Fang stocks and has done exceptionally well. The US economy looks in pretty good shape. The industry, as a whole, will continue to do well as long as the US economy is perking along, and will tend to do better than other segments. Not a bad place to put your money, but he wouldn't overweight it at the present. There might be a further correction sometime in January that will offer a better opportunity.
This has been acting quite well recently, and doesn't know if this is a bottom or a top. It’s a good company. They made a mess of their acquisition in Alberta and have a plan to fix things. The multiple is extremely high. There’s been a lot of anticipation that this turnaround is going to happen more quickly than he thinks is possible. Looking into 2018 the stock looks fully priced. He isn’t a fan of the grocery business. Wait to see how well they do in turning things around in Alberta.
They recently raised equity. It gives you a 6.9% dividend rate with modest growth. He’d like to see the government change the rules regarding these equities.