Sell North American banks and buy foreign ones? She knows North American ones better than the foreign. Also, transparency with the former is stronger. The U.S. banks have led U.S. growth, while only in the past year has Europe been growing. Valuations of Canadian banks are attractive now, and are better regulated than U.S. ones. Canadian ones also maintain their dividends. She prefers North America.
Price has fallen recently. Double-down? Don't sell. It's a general pull-back, though BNS fell more than the other Canadian banks. BNS has a Latin America stake, and those economies can be more volatile. An uncertainty
with this sector is how Canadian housing will unfold. But the Canadian banks enjoyed a strong Q1. She would add to positions here. Also, rising interest rates will benefit the banks.
She has held this for a long time. Cineplex is diversifying away from box office, which still accounts for 50% of its revenues. For example, they are expanding into restaurants in their entertainment centres, and so far that's doing well. Give it time. Today, there are many ways to watch movies, so the theatres have to offer "big" films. Nicer seating and alcohol service help.
(A Past Top Pick on May 16, 2017, Up 9%) She's held this for a long time. It's a Canadian IT company that does outsourcing with long-term contracts--a recurring revenue stream that will protect them if the economy weakens. They are 50% in Europe after an acquisition a few years ago. Margins are back up. They're ready to buy a bigger purchase. They are seeing good organic growth in their vertical markets (i.e. cybersecurity).
(A Past Top Pick on May 16, 2017, Up 6.5%) Still likes it. Valuations for Canadian banks have all come bank after some richness, based on 10-year historical averages. See high earnings growth around 9% for RY. She considers Canadian banks as income stocks. With the current pullback, she sees double-digit total returns for this sector.
(A Past Top Pick on May 16, 2017, Up 6%) Expects tomorrow's Q1 report to be good. They're seeing good growth in their pharmaceutical division. They invest in their pipeline, so there's organic growth; They also make strategic acquisitions, like a Swiss biotech last year that focuses on heart diseases. In the pharma side, their investments are starting to pay off and offsetting some of their drugs going generic. A defensive play with strong financials.
Demographics work in their favour: everyone is getting older so there'll be more demand for assisted-care living. Management is good. Offers a dividend near 4% which will be safe and has been increasing slowly over time. This is a long-term hold; she's held it for five years. The recent pull-back is due to rising interest rates. (Analysts' price target $17.00)
She's held it for a long while. With the recent pullback, valuations are attractive. They will continue to grow 15-20%. There's still growth in their online advertising and Google already hold a large share of digital ads. Regulatory scrutiny in this sector is a risk, yes. (Analysts' price target $1,275.41)