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Very well-run bank with US operations. He prefers to buy US banks as opposed to Canadian Banks with US representations. This week three major organizations put up warnings signs about the growing consumer debt and how might affect Banks in the future. Something to worry about.Dividend yield is 3.5%. He prefers Bank of Nova Scotia (BNS-T) for Canadian Bank because of its international exposure.
If you are going to invest new money into the energy area he likes international companies more than Canadian. But Shell is a little different because they made a conscious decision a couple of years ago to become more a natural gas than an oil company. Longer term outlook for Liquified Natural Gas is good. A cyclical name.
This company is the international tobacco company and Altria (MO-N) is the US tobacco company. They split up a couple of years ago and no there is talk about a merger. The growth is not so much in tobacco but fake tobacco. His company doesn’t invest in tobacco stocks because of ethical reasons. He owns it personally actually.
He is a big customer of the company. But the industry is 100% dependent on Hollywood. It has not been a huge box office year. They are taking measures to diversify away but still basically a movie, bum-in-the-seat business and going to have problems until Hollywood come with movies people want to see.
A little bit of a problem company. An acquirer. Big holdings are Tim Hortons and Burger King. They tend to squeeze as much as they can from the franchisees and try to grow sales. They had many problems with Tim Hortons franchisees and that hurt the stock. People are not so much in love with the stock. Valuation was well overdone, and he would worry at this level.
One of the largest semiconductor makers in the world and its specialty is communications semiconductors for cell phones. It was trading very cheap when they bought it in the fall. Good long-term outlook with the advent of 5G. trading at 9 times next years earnings. Dividend yield of 4.1% (Analysts’ price target is $72.38)
A software company. Largest holding at the moment for his client’s portfolios. The stock has been underperforming because large acquisition that made last year that made investors worry that they wouldn’t be able to consolidate them well. But the latest quarter showed that sales and margins are better than expected. Yield of 1.4% (Analysts’ price target is $54.59)
(A Top Pick March 23/17 - Up 2%.) One of the largest fuel distributers. They are in the acquisition business buying some gas stations. They bought recently assets from Chevron including a refinery. The outlook for them is good. Margins are up.