Today, Michael Sprung and Christine Poole commented about whether GD-N, GOOG-Q, CSH.UN-T, VET-T, ALA-T, JNJ-N, RY-T, GIB.A-T, CGX-T, TSLA-Q, ATD.B-T, QSR-T, YUM-N, BNS-T, JPM-N, TD-T, V-N, AQN-T, ENF-T, CCL-N, WFC-N, ECI-T, VET-T, RY-T, GIB.A-T, OBE-T, EMA-T, SU-T, PPL-T, KEY-T, KML-T, CSU-T, MFC-T, BIP.UN-T, PONY-T, CM-T, AD-T, TD-T, ATD.B-T, ENB-T, SOX-T, WN-T, PD-T, SLF-T are stocks to buy or sell.
Today, the market was focussed on Q1 earnings, and the S&P companies are expected to be strong. On the flipside lately have been geopolitical issues or trade wars which could derail markets. Today was positive. Valuations are looking more reasonable. At the end of 2017, valuations were a little high, particularly in the U.S. She has a longer-term view--economies are still improving which is encouraging. She's a long-term investor, not a trader. Sectors like energry prices have risen globally, but not in Canada because of take-away problems. Emerging markets will drive commodoties (i.e. copper, steel). She likes India and China given its per-capita GDP and improving economies long-term.
She owns the parent of Enbridge, instead. The overhang is final approval from Minnesota for Enbridge's U.S.-Canada pipeline; this approval should come by June. Management is confident that the approval will come, which could lift this stock. A plus: fears of interest rate hikes and their effect on interest-sensitive stocks have moderated since the winter. Overall, we need pipelines out west and the Trans Mountain outcome will be important.
She has owned this for a few years and likes it. The penetration of e-payments is high in developed economies, but still low in emerging markets--there's still huge secular growth in e-payments. Visa bought out Visa Europe a year ago and are integrating now. This should improve Visa's margins and profits for the next few years.
Be patient, having fallen from $75 to today's $69/share. The Canadian banking group is down 6% YTD, but this reflects the overall TSX. The banks had a good Q1. She likes TD's U.S. exposure with its good growth. Earnings should be 12% this year. Dividends will grow in line with earnings. Canadian bank valuations are in line with 10-year averages.
SU-T vs. EMA-T. EMA-T has a higher dividend. He thinks there is more capital appreciation potential with SU-T, however.