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COMMENT

Market. Have had a little more volatility in markets this year as compared to last year, but seems to be continuing on same trajectory as last year with certain sectors. A marijuana bubble, and now cryptocurrency bubble which seems to be imploding. The old economy has been left behind, especially in Canada. A very sector money flow market right now. Be patient on weak stocks that have great fundamentals. Sees opportunities when some of these bubbles blow up. Feds tightened the yield curve again and thinks there may be 4 tightenings this year, but the economy is still doing well in a low interest rate environment.

Unknown
DON'T BUY

He likes the business but is tricky. It was so hyped at IPO. It is still a very small company. Was predicated on very aggressive growth, but disappointed the street. Should bottom within the next year. Still has some fundamental building to do. Likes business longer term, but at this point is dead money.

food services
BUY

He prefers the US banks to Canadian banks. US economy is stronger than Canadian for next couple of years. American banks are still recovering from 2008/09. US banks are much lower yields compared to Canadian banks but likely will increase. More upside in US banks but US banks will likely be more volatile. Long term, should do well and should benefit with steepening yield curve.

banks
WAIT

One of the real big 3 or 4 companies in video gaming space. Well run company. It is expensive. There are some potential disruptors. This is a growth sector. Electronic Arts is 1 of the leaders. If own, would hold, but the easy money has been made.

computer software / processing
BUY

Testament of how hard it is to break in with large commercial airlines. They have not been able to build critical mass. Last year they were able to become profitable but last few quarters have been losses. Management is confident they will not have to raise equity. On a demonstrator with FedEx and Boeing. They have not yet achieved that really big order. Not likely to go down from here. Believes there is huge upside. Unique technology. All it will take is 1 or 2 airlines adopting this technology.

Transportation
BUY

He doesn’t know how they are going to finance the acquisition. Not likely see a dividend cut. AT&T and Verizon are the 2 wireless leaders in the US. Should be good long term investments but growth has really slowed down in this industry. Prefers Verizon over AT&T. They are good solid steady investments, but are not going to make big capital appreciation.

Telecommunications
PAST TOP PICK

(A Top Pick Sept 27/17, up 39%). Was a hated stock about 5 years ago. Have moved into the cloud business and adapted to the changes in IT. Are in a very strong position. A lot of people still use their products. A lot of stability. Cloud is a growing business and they are a large cap that is experiencing accelerated growth. Expects 10-20% upside in the next year.

computer software / processing