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Solid stock for grandkids aged 7 and 2. Bell or a Canadian bank or a Power Financial bond? They just bought TD Bank for a client in a similar situation. For a time horizon of 10-12 years. Canadian banks are relatively stable oligopolies. Dividend yield of 3.5% Buy this instead of a bond, because you can lose money in a rising interest rate environment.
(A Top Pick June 15/17, Up 37%) Transport, test, and treat water. Clients are utilities and commercial companies. A play on in the developed market, where water systems are old and need to be updated. Delayed impact as money is put back into infrastructure. Solid growth in Europe and US. Get 20% revenue from emerging markets, targeting China, India, and Middle East. Would buy on weakness, under $70. Christine’s price target 12 months out is about $80.
(A Top Pick June 15/17, Down 15%) Stock has pulled back for a number of reasons: the Spectra acquisition, need to do asset sales to pay for it, pulled back dividend to 10%. The Line 3 expansion approval in June is the biggest overhang. Yield is over 6%. Market is not going to give Enbridge much credit for Line 3 going through. Trading at a very attractive multiple. Income-sensitive stocks like this one have been hit. If you don’t hold it, buy half a position.
(A Top Pick June 15/17, Down 0.4%) Market is focusing on ESPN losing subscribers. Have introduced their own direct-to-consumer product, so they can pull Netflix content and go directly to the consumer. Other divisions are doing incredibly well -- theme park, movies. Attractive at 14x forward earnings. Expecting earnings growth to come through next year. Lots of confidence in the CEO, having bought Pixar, Marvel and Star Wars.
Hold for another 3-5 years? Has done very well since the crash. Good play on the US economy and consumer, and she is positive on both. You can continue to hold it. Banks should continue to do well, as long as US economy and consumer continue to. At end of June they should hear about capital return and any increase in dividend. Anticipates a dividend raise and share repurchase at that time.
The yield is relatively safe. High dividend at 8.76%. The big overhang is that they’re waiting for approval on their recent acquisition. Need to sell assets to fund this transaction, plus interest rate sensitivity, has contributed to the pullback. Prefers other names in terms of cash flow growth. (Analysts’ price target is about $28.)
Is this a 5-10 year hold? Used to be called Macdonald Detweiller. She sold it a couple of years ago. In a more positive business now. Satellite business is slowing, caused shares to pull back. Now have started to diversify. Not an income stock, yield just over 2%. Reasonably valued. Wait and see. See how digital imaging business integrates in. Will have to monitor trends, not just buy and hold.
Salesforce compared to Facebook and Google? Software company, trades at a high multiple, which is holding her back from buying. It’s more a momentum stock, any stumble and it will pull back. Not similar to Facebook or Google, which are advertising plays on the internet. Great company. Wait for pullback.
Have owned for many years. Well managed company. Recurring revenue stream, long-term contracts, stable cash flows. Relatively mature business, with some acquisitions. Ready for another big acquisition. Decent organic growth vertically. Older systems that CGI is familiar with are not built to accommodate the access that customers demand. Her target price is $85-87. Likes it long term. Keep holding. Doesn’t pay a dividend.
Trim? Outlook for a year? Very well managed. The high valuation has been keeping her away. Have to wait for a stumble or correction. If anything gets above 5-6 %, it’s prudent to sell down to manage risk. The small brands they own have room to grow. As with any stock with a high valuation, could get hit if there’s a stumble.
An income stock. Price is down only because of general distaste for interest sensitive stocks. Earnings are fine. Yield 4.2%. Estimated 6% dividend growth each year till 2021. 50% of its revenue is from the States. Focussing on organic growth, not acquisitions. Dividend growth profile and the yield make it really attractive. (Analysts’ price target is $48.08)
Bought it a couple of years ago. They’d be buyers below $1100. As the leader in search engines, they’re going to garner digital advertising dollars as advertising budgets move from traditional spaces to online. Other divisions have promising businesses, such as the driverless car unit. They’re in a secular growth area. Expecting growth of high teens for the foreseeable future. Managed topline growth of 20% plus despite their size. Brought in more financial discipline, reasonable valuation, lots of cash on balance sheet.