Latest Expert Opinions

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COMMENT
COMMENT
August 14, 2018

He loves it. Canada hasn't built any pipelines (recently). The sad thing for us IS that pipelines flow north-east instead of west-east (as Ottawa is talking of stopping oil purchases from Saudi Arabia). Pembina is steady.

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He loves it. Canada hasn't built any pipelines (recently). The sad thing for us IS that pipelines flow north-east instead of west-east (as Ottawa is talking of stopping oil purchases from Saudi Arabia). Pembina is steady.

COMMENT
COMMENT
August 14, 2018

He likes it. Has a $23 target. He prefers gold companies with better leverage like Agnico (he's appreciated better). Still, Goldcorp is solid.

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Goldcorp Inc (G-T)
August 14, 2018

He likes it. Has a $23 target. He prefers gold companies with better leverage like Agnico (he's appreciated better). Still, Goldcorp is solid.

COMMENT
COMMENT
August 14, 2018

The Port of Prince Rupert is the fastest growing port in North America. This is the best way to come from Asia to North America. In addition, grain is coming into Prince Rupert to fill the empty containers for the trip back. The only railroad servicing Prince Rupert is CN. So even though tariffs are having an impact, CN is a big winner here.

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The Port of Prince Rupert is the fastest growing port in North America. This is the best way to come from Asia to North America. In addition, grain is coming into Prince Rupert to fill the empty containers for the trip back. The only railroad servicing Prince Rupert is CN. So even though tariffs are having an impact, CN is a big winner here.

BUY
BUY
August 14, 2018

This is the only Canadian bank he owns. He likes it because (a) it has the least exposure to Canada of the Canadian banks and (b) it is the most international bank, having operations in Latin America and Asia. ScotiaBank has been making acquisitions that use its current capital and will take time to increase its earnings. The market is punishing it over the short term, but these are great long-term acquisitions.

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This is the only Canadian bank he owns. He likes it because (a) it has the least exposure to Canada of the Canadian banks and (b) it is the most international bank, having operations in Latin America and Asia. ScotiaBank has been making acquisitions that use its current capital and will take time to increase its earnings. The market is punishing it over the short term, but these are great long-term acquisitions.

COMMENT
COMMENT
August 14, 2018

He prefers to get US exposure by buying US banks directly. If someone prefers to get US banking exposure while staying in Canada, TD is the right way to go, but he recommends US banks instead.

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Toronto Dominion (TD-T)
August 14, 2018

He prefers to get US exposure by buying US banks directly. If someone prefers to get US banking exposure while staying in Canada, TD is the right way to go, but he recommends US banks instead.

BUY
BUY
August 14, 2018

Life Insurance companies do better when interest rates rise because they reinvest their premiums, mainly in the bond market. Interest rates have not increased as much as he hoped; instead, the yield curve is flattening. He expects interest rates to rise in the future, though, and he owns Sun Life in that expectation. He thinks that over the near term, Sun Life will perform better than the Canadian banks as interest rates move up. Interest rates will rise because the economy is doing better and inflation is coming back, caused by labour shortages and tariffs.

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Life Insurance companies do better when interest rates rise because they reinvest their premiums, mainly in the bond market. Interest rates have not increased as much as he hoped; instead, the yield curve is flattening. He expects interest rates to rise in the future, though, and he owns Sun Life in that expectation. He thinks that over the near term, Sun Life will perform better than the Canadian banks as interest rates move up. Interest rates will rise because the economy is doing better and inflation is coming back, caused by labour shortages and tariffs.

WAIT
WAIT
August 14, 2018

This is a great company, well managed and well positioned in its industry. However, it is in the cross-hairs of Mr. Trump, which has created great uncertainty. The stock has been penalized because of that. Eventually the stock will drop so far that people will have to buy it, but maybe not yet. He doesn’t believe that Trump will put on the 25% tariff barriers but until that is resolved, the Canadian parts manufacturers’ prices will suffer. When it is resolved, these companies will come back, even though it is late in the cycle.

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Magna Int'l. (A) (MG-T)
August 14, 2018

This is a great company, well managed and well positioned in its industry. However, it is in the cross-hairs of Mr. Trump, which has created great uncertainty. The stock has been penalized because of that. Eventually the stock will drop so far that people will have to buy it, but maybe not yet. He doesn’t believe that Trump will put on the 25% tariff barriers but until that is resolved, the Canadian parts manufacturers’ prices will suffer. When it is resolved, these companies will come back, even though it is late in the cycle.