PAST TOP PICK

(A Top Pick August 3/2017, Up 12%) Still trading at a discount. If I can get 12% out of a bond, why would I buy equity? Less risky to own the bond than the stock. Buying the stock would need the price of oil to go up, guaranteed.

PAST TOP PICK

(A Top Pick August 3/2017, Up 4%) A cult stock. Not that liquid. Great company, along with the Brick. A tough business, but they are the best. Own a ton of real estate under the business, which they will eventually do something with. Hard to buy furniture online, so they have some protection. Earnings next week, he’s assuming decent numbers.

PAST TOP PICK

(A Top Pick August 3/2017, Up 8%) Recently exited and bought JNJ instead. Hurt by own success with drugs that cure. Great for society, but not great for the equity. Waiting for transitional acquisition that’s not coming.

DON'T BUY

Has done fantastically, owning apartment buildings mainly in Ontario. Largest landlord in Toronto region, and benefiting from high rents. Biggest issue is that it’s very expensive, trading about 28x AFFO, compared to most REITs at 16-18x. Large cap spend on older units, but they’re developing so there’s growth. Question as to what new Ontario government will do with rent control.

BUY

Likes it. Core position. Free cash flow yield is about 8%, whereas Telus and Rogers are around 5-6%. Has room to increase dividend. Bell spending millions to get fibre to the home. This is a transitional move that will get market share from the cable companies. Good balance sheet, great management. Trades at lower end of EV to EBITDA. Has underperformed other Telco’s for last 6 months. Best growth profile and best dividend profile.

HOLD

Not a sell, though he owns the bonds. A retail story, but more defensive with liquor, drug, and grocery stores. Higher rates, and did a questionable issuance. Into new green development. Likes the company and its assets. But not the time to own it.

DON'T BUY

Demographically, it’s a theme, but you have to ignore this. Had stayed away because of litigation in the US. Missed earnings. Difficult business because of labour costs, regulations. Other investments make sense and aren’t as complicated. Analysts have downgraded. Trades at an 18x multiple. If you’re going to buy, have to buy it washed out. (Analysts’ price target is $16.65.)

DON'T BUY

Got hurt. Margin compression. In US, it matters what can you get paid from Medicare. Missed numbers last 2 quarters, got clocked, now trying to get back onside. A “show me” stock. Stay away for at least another 6-12 months.

COMMENT

Chart hasn’t moved. Stock is mistreated because not institutionally owned. Management is good, and are upgrading their portfolio. Debt’s in a good position. He doesn’t expect anything more than the yield. Consistent business. Retail/office in Quebec and Ontario, but he can look through this because it’s so cheap.

DON'T BUY

Good for a long term hold? Dividend safe? Yield around 6%. Has always stayed away because lots of moving parts. Just wants them to do something he can understand. Nothing tells him he needs to own it.

TOP PICK

Yes, it’s retail, but best in class. Trades at 15x earnings, which is cheap. Spectacular management. Anchors for Walmart, which is doing well against Amazons of the world. Aggressive development in Toronto. Best tenants and assets. Diversifying and creating more margin. Yield is 5.8%. (Analysts’ price target is $32.61.)

TOP PICK

A restructuring story. Retiring debt so quickly, in 2 years, only the convertibles will be left. Getting a high yield in a less risky way. Doesn’t want to own the stock, just own the debt. Yield is 8%.

TOP PICK

Really great numbers last quarter. Convenience stores are projected to grow 4-5% this year. Good acquirers. Merging with Holiday brand. Margins starting to creep up. Not cheap, but you can run with it for a long time because it’s defensive, and Amazon can’t sell you a chocolate bar with your gas. Yield is 0.7%. (Analysts’ price target is $74.69.)