WATCH

It is very speculative. It is difficult to make a decision based on fundamentals because it is still changing.

DON'T BUY

In the wireless space it is very CAP-X heavy. With 5-G coming it is a very expensive proposition. He would be shy to own it right now. It has gone sideways for a couple of years.

BUY

Healthcare Sector. He likes the space. It is the highest volatility area he is in. It is a CAP-X heavy space. The landscape can change quickly. There is a lot of opportunity and value in the space, however.

PAST TOP PICK

(A Top Pick May 03'17, Up 9%) It does not get talked about as much as it should. Strong balance sheet. The acquisition caused a bit of a pull back and created a buying opportunity. He is continuing to buy it for new clients. There is lots of upside potential from here.

PAST TOP PICK

(A Top Pick May 03'17, Down 2%) It is off a couple of percent because their last quarter sales were off. They think it is a one off so he is looking for better results in August. They have done a great job of having a presence in the US.

PAST TOP PICK

(A Top Pick May 03'17, Down 4%) It is interest sensitive but dropped less than others. He thinks a lot of it has played itself out and sees this as a good entry point.

TOP PICK

He has held it for a while and it has done very well. Every once in a while you get these entry points. They recently confused the market by buying a software company when they are a chip company. It has been clearer that they have now acquired cash flow, patents and a new platform for M&A. (Analysts’ target: $287.90).

TOP PICK

The PE is still only 8-9 times earnings. He likes the space they are in. They are well positioned in the driver autonomy space. It is at a great valuation. (Analysts’ target: $90.08).

TOP PICK

They are executing well in the US. They are in the early stages. We are in the early stages of enjoying the benefits of their acquisitions. (Analysts’ target: $130.33).

COMMENT

Market. The markets have every reason to sell off from here. Trade tensions are getting entrenched. But markets haven’t sold off as investors believe that something pragmatic is going to come up of all this. Europe seems to be conciliatory. NAFTA seems to be around the corner. Fundamentally you see great earnings, no recession is in sight. Don’t want to be a cheerleader but US markets are going to be higher a year from now. Canadian stocks are at the same level they were at in 2014. They are 2.5 points cheaper than US stocks. Canada is very undervalued, it is going to respond soon.

HOLD

Cheap stock. 6% dividend yield with a 55% payout ratio. They had poor performance. Management if guiding at more outflows. Regulatory concerns have proved to turn out better than many people thought. It is not going to do the heavy lifting for your portfolio but getting your dividend you will be OK.

BUY ON WEAKNESS

He likes this company. They raised their guidance. It is a little pricey. Over time has lots of legs.
(Analysts’ price target is $174.00)

BUY

With a 14.7 PE and an estimated 9.8% free cash-flow yield and growing at 11% it is safe to buy. Not his favorite name in the space. But offers good value. As long as there is sufficient growth the pipelines compensate for the negative impact of interest rates rising.

BUY

He likes it. Pricey relative to its peers. Telco’s are yield sensitive. He expects solid growth. Dividend is safe. Balance sheet is stable. There is still lots of growth in Canada in wireless. He prefers other names in the space that offers better value.

BUY

They are modeling they can grow 15% 2018-2020 compounded annually. Trades at 20 times. A little expensive but the growth is there. He thinks it has legs long term.