He likes these guys. They have a lot of international exposure. Well run operator. 27% production growth. Balance sheet is getting better. 6% dividend yield with an 80% payout ratio. The only problem is that it is expensive relative to its peers. If you believe oil will continue to hold or go up this is a great name to own.
He likes banks in general. If you look at banks, 80% of their return since 2010 have come on the second half of the year. There are signs of stability in Canadian housing markets. This one has better growth prospects than its peers and in line valuations. ROE is the highest its been in 4 years. Relatively drama-free. (Analysts’ price target is $111.26)
They just guided down 35% margins on this quarter. They are probably being conservative. They have 2.2 billion users. A third of the planet. Trading at 17 times 2020 earnings. You have to own this name as long as you believe they can execute. He wrote a put today. Forced himself to own it at 170.00. He thinks there is more growth there.