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BUY

One of of three Canadian banks he owns and is long-dominated. It's at a premium valuation now and pays a slightly lower dividend, but this is a good investment long-term. It can withstand shocks to the markets which could happen in the next few years. He's certainly not selling any of his shares.

banks
PARTIAL SELL

It's done very well the past year. If he owned it, he would take some profits. Management has done a superb job.

precious metals
COMMENT

It's done well, though it sells at a premium against its peers at 23x earnings--which always scared him off. But pipeline stocks are highly levered. It's well-run.

pipelines
DON'T BUY

The 5.6% yield is attractive, but he sees limited upside. Great West Life and Investors Group are struggles for them, and those troubles won't go away soon. Besides the yield, is there a reason to own this?

finance / leasing
WAIT

He's long been a fan of this company, but the last year or so has been a rough ride. Some of their partners have redeemed their shares with Alaris, so what will Alaris do next with that cash? At the end of 2017 they made a big investment in the U.S. He believes the 10% dividend will hold, unless there's isn't a big deployment of capital in the next few quarters. Management has been astute, but investors have been impatient and are in a show-me attitude. He'd like to see them make a few solid investments to re-deploy their capital. They have a good network in the U.S. He's been speaking with Alaris.

Financial Services
TOP PICK

It's been lagging its peers, largely because of new management since last fall. New management is putting more pressure of their troubled legacy businesses, namely long-term care in the U.S. They've been expanding aggressively in Asia. More importantly, they're looking at their cost-structure. They're aiming for an efficiency ratio under 50% by 2022, and currently at 55%. This means several billions in cost savings. Alaos, capital will be released from dispositions in the next few years. New management is modernizing this company. There could be some short-term pain, including write-offs, but current prices amount to exceptional value. (Analysts' price target: $29.46)

insurance
TOP PICK

It's one of the better-financed oil companies and a strong balance sheet. It has long-life properties to develop. Pays over 4% yield. (Analysts' price target: $18.03)

oil / gas