Today, Peter Hodson commented about whether AVO-T, TV-T, GSY-T, RAY.A-T, TOY-T, COV-X, GIL-T, ECN-T, ZZZ-T, FSV-T, ENF-T, KWH.UN-T, ALA-T, PAT-X, WFG-T, HIVE-X, TCW-T, CWX-T, H-T, OTEX-T, ITC-T, BUS-X, HNL-T, PHO-T, CSU-T, CGX-T are stocks to buy or sell.
Market. He thinks there is too much emphasis on the recent slowing results of some of the monopolistic stocks. He thinks the market should focus on the broader market, which is doing very well right now. Wage inflation should be starting to show at full capacity, but so far companies are not increasing wages and that is why the earnings of the S&P companies is looking so good right now. It is good for workers as there are many more jobs and it is good for companies as their earnings improve.
They have great market share in Canada, but people don’t want to go to movies any more. He views it as a hold for income and does not see the recent down turn as being that negative. They have the capacity to do some more acquisitions to go into the full entertainment space in the US – especially play spaces for adults. He sees this as a weak buy right now.
This company has been competing well through good acquisitions and he thinks it is well managed. Due to a lack of consistency in earnings it tends to keep the valuation multiples pretty low. This last quarter was great and the forecast looks promising. He is watching this closely and thinks it is an acquisition target (but has thought so for 10 years).