COMMENT

Market. There is stuff to buy and he thinks they have been sitting on too much cash lately. His is putting cash to work in Canada, the US and the UK. In Canada he thinks energy remains in the dumpster. He likes interest sensitive areas like utilities and US telecoms.

BUY

He likes the management and they are in the processes of a major acquisition and will need to divest some of the assets. Organic growth is picking up. Not a cheap stock, but it is reasonable. (Analysts’ price target is $175).

BUY

Do you like the company? He likes the business – it is not cheap on a multiple of free cash. It has become an annuity type investment. It deserves a higher than peer multiple. It is a good business with good cash flow. Yield 2%.

WATCH

The company has a few divisions and their US truck load division has been giving them trouble, but US spot truck rates have been improving. Their contracted business will take a while to improve. The Canadian division is fine. This is a business worth a lot more than the sum of the parts – he thinks they may end up selling parts of the business. Yield 2.8%.

HOLD

Should I add to my position? It trades at a fair price, but comes with a fair amount of debt. They had a good wireless quarter. What could shake things up is if true wireless competition will become real. Yield 5.4%.

COMMENT

Are life insurance companies well positioned for rising interest rates? He leans away from the life companies, because they are complicated businesses. Yes, interest rate increases are helpful. Intact (IFC-T) is a good company with ROEs much better than their competitors. Auto insurance companies will always be required in good and bad times, so he favours this type of insurance company over life companies.

WATCH

The long term outlook is quite solid. They have not handled the minimum wage issue of Tim Hortons. He blames politicians for not seeing this coming. It is a great business with an expanding list of brands. It is not dirt cheap, but if interest rates rise it could face headwinds. Yield 3%. (Analysts’ price target is $90 )

HOLD

Is the dividend safe? He has a lot of respect for the management team and feels the dividend is safe. It has executed well, however, he is careful of the risk of adding more at this price.

COMMENT

Owning Brookfield Infrastructure Partners versus other Brookfield entities. He feels owning the parent (BAM.A-T) is better than the entities as this is where the fees accrue to and where the key decision makers have their capital. (Analysts’ price target is $58.79 )

HOLD

He feels it is a good little company and it holds a small position in one of their funds. They transport cargo overnight in niche markets. They won some key long term contracts and have added to their fleet. It is not a cheap stock. Yield 1.3%.

WATCH

They have an outstanding CEO. The deal with Blackstone at 11.5 EBIDTA was expensive. Long term it will be a volatile stock (especially for the next few months) with the company going through transition. At these prices it is getting more interesting. Yield 3.4%.

COMMENT

He does not know this one well. You need to understand debt, payout ratios and they could have difficulty down the road.

PARTIAL BUY

He feels they are in good markets and management is smart. You have to understand the risks and don’t buy just on yield.

WATCH

He feels it is a well-run company. Customers have to buy their products. The price can get expensive based on earnings multiples, so be careful at this level. (Analysts’ price target is $54.66 )

COMMENT

What vulnerability is there in the food services sector to higher minimum wages? He thinks rising input costs will pressure the bottom line, unless companies have the ability to pass along the costs. Active management can overcome rising costs