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Watching this with interest. Sold his holdings not too long ago, as it seemed to be drifting down. The Fox acquisition may change the equation. It did very well for him until it started going sideways in the last year or so. The jury is out and we are going to have to wait and see. Thinks they are going to be head to head with Netflix as soon as the dust settles.
Has held this in the past and did very well with it, but wants to be a little more convinced metal prices are really on a discernible uptrend. With the world economic numbers looking better, that is a distinct possibility. Presently it is a bit pricey. To him, it is still in the risk areas that is outside of what he could readily accept.
Are Canadian banks safe? He likes TD (TD-T) for its growing US exposure. Thinks they are going to get better results and the dividends are all safe. Bank of Montréal (BMO-T) is the 3rd on his list that he owns, and they are expanding their US exposure as well. Also has the Bank of Nova Scotia (BNS-T) which gives you an entry into central America and Chile, giving you offshore banking. These would give you a diversification that really reduces the risk in the event the Canadian situation turns a bit sour.
How do you assess the NAFTA agreement if the US pulls out? This is a very political situation. One of the main themes of Pres. Trump was to tear up NAFTA. So far, he’s followed through on just about anything he said he was going to do. Doesn't feel he can tear up NAFTA, but can set the scene if negotiations fail, which he thinks is going to happen. What happens after that is critical. If we pull back to the old Canadian/US free trade deal, we are almost back to square one, i.e., we don't really get hurt that much. From a market standpoint, if NAFTA gets washed out we could see our markets get hit from a psychological standpoint. That would be a buying opportunity, because when the dust settles, Trump's real target is Mexico, not Canada. He can't believe Trump would blow a hole in the US automotive industry just to satisfy a political promise.
Why is there such a disconnect between the flat earnings trend in the last 4 years, the high rising debt levels, and that they have an extremely generous dividend policy? A lot of people are asking the same question. This one is not on his "favourites" list at all. The political situation for this company and TransCanada (TRP-T) is that the politics of the world have become very negative for large pipelines. He thought this company's Northern Gateway was doomed from the start. They are not paying enough attention to the political aspects and the political environment. He would not recommend this.
He’s always very cautious with fallen angels. It almost takes a miracle to bring them back to life. The company has a huge debt. They still have some assets that are worthwhile, but are trying to work their way out of a very difficult situation. A long, hard road ahead before this company gets out of the woods.
Very dubious about the whole marijuana sector. It's an area where you can sort of put your sign up saying we are now in the marijuana business, and away you go. There are some big legitimate companies that are going to do well, but we really don't know exactly how well they are going to do. He is not sure they will be very profitable.
Has been a fan of this bank, particularly with their US expansion, but was disappointed, thinking the US side was not throwing off the kind of returns he originally expected. Recently, the numbers on the Canadian side were indifferent, but very good on the US side. This is a way to buy into the US market. (Analysts' price target is $70.50.)
Oriented strand board. He’s looking for ways to get a piece of the action in US housing, which still has a decade of catching up to do. Their big problem is getting people who know how to nail a board together. The industry is really short of skilled labour, and there is a shortage of new houses and new construction. A company like this, which produces a product very similar to plywood, is very good. Sees a rising dividend in this. Dividend yield of 5.7%. (Analysts' price target is $50.50.)
These are local Alberta pipelines, and not facing the same kind of political headwinds the big pipeline companies seem to be experiencing. Feels the dividend is relatively safe and management is good. Despite problematic oil prices, new capacity continues to come on from the oil sands. If you want to buy for the dividend, it is a good, safe investment. He is not as negative on the oil/gas sector as some people are.