Today, Bruce Campbell (1) and David Cockfield commented about whether XAW-T, XIC-T, VEE-T, BIP.UN-T, WEED-T, SLF-T, CPG-T, BBD.B-T, CAE-T, BCE-T, IGM-N, ZEQ-T, MG-T, NFI-T, SU-T, RY-T, ENB-T, AC-T, CTC-T, LB-T, ENB-T, BNS-T, ATRL-T, MFC-T, POU-T, TD-T, AC-T, CNQ-T, SU-T, AQN-T, PEY-T, MRE-T, EMA-T, WJA-T, CGX-T, CNR-T, BTE-T, DOL-T, PKI-T, ENF-T, ATD.B-T are stocks to buy or sell.
Their U.S. retail side is humming now as that economy picks up. Yesterday, they reported an excellent quarter. Expects a dividend increase this fall, and an overall 7-8% move in the stock price for a low-double-digit return this year, outperforming the market. TD is less exposed to Canadian mortgages than its peers. (Analysts' price target: $83.04)
They get a premium to Western Canadian Select oil for their liquids. They missed their last quarter due to weather and their facilities, which is short-term in nature. So, the stock has pulled back under $15, which is a definite buy. This is midjudged as a gas stock. An energy play. (Analysts' price target: $21.22)
(Past Top Pick on May 15, 2017 Up 9%) Their return for the next 12 months will be higher than 9%. They just settled with provincial governments over the 2012 bribery scandals, though still have to settle federally. Excluding their highway 407 operation, their mulitple is less than 10X earnings. This should trade in the mid-$60s ($55 today).
(Past Top Pick on May 15, 2017, Down 22%) He still holds it. All the bad news is in by now, so it can't get worse. Short-term, ENB's line 3 expansion's plan B has been approved but on June 26, ENB may get approval for it's preferred plan A route which will result in either $4 upside or $2 downside. Wait for an entry point. The current dividend yield of 6.6% is their highest ever.
Three months they stumbled on a Home Capital-like issue with their reporting. In one day, the stock fell from $60 to $55 and has drifted down futher because Canadian banks are out of favour. Under $50, this stock looks cheap. If you can wait a few quarters, this should rise 10%, and in a few years maybe return to the $60s.
Market Outlook. Looking ahead for a positive return for the TSX for the year. 6-7% and half of that dividends so no enthusiastic. The economic background is positive. We haven’t even seen the economic impact of the tax cuts in the US. With the new depreciation rules – writing off everything – would be surprised to see growth below 4%. On NAFT he changes his mind from day to day on what is going to happen. But in North America things are OK. Europe is another story. More concerned about what is going on there. He wouldn’t be surprise if the whole Brexit s turned and the UK decides to stay.
All Canadian banks are good value these days. But there are shorts south of the border. There is some risk in the mortgage portfolio. This one is not his favorite bank mainly because of its limited exposure to the US. Good yield. These are economy stocks. If you believe the economy is going to do OK, they are going to do just fine. Good investment.