He really likes it at these valuations. It got on a bit of a tare recently. It is well diversified. Auto sales are slowing but they are diversifying their business into areas of the future. It is difficult to find a problem with its valuation. The recent sell off is due to aluminum tariffs. If your outlook is longer than 6 months you should do well.
He would view it as a value trap. The spread is wider than it has been historically. The dividend looks attractive. It has a low PE and a high dividend yield so looks attractive. The issue is how Canadian-centric they are. He worries about investing in a solely Canadian bank relying on the Canadian consumer. They are betting the farm on Canada and the Canadian economy.
(A Top Pick July 7/17, Up 50%) It does not always perform like it has over the last year but it was a value play. It is among the more conservative ways to play the oil space. It is integrated so you have some diversification. It is one of the only commodity names he owns. He liked it on a valuation basis and is continuing to buy it for new clients.
It is one of a handful of superstars that have weathered the storm of AMZN-Q. They are now playing some offense. For the size, they have done a great job of being nimble. Their acquisition has done very well. Same store sales are up. They have strong numbers overall. They are going to remodel their stores and this CAP-X could impair their ability to raise dividends. The tariffs have impeded their sales. Their margins may be squeezed by tariffs. He is not there because of the CAP-X spending planned. The valuation is attractive and there is support at the current price.
They were a paper packaging business that is dying. His hat is off to the team for transitioning it to packaging labels. They have slowly sold off assets from the paper business. He continues to like it although it is not as cheap as it was. It is still fairly cheap, however, at 11 times earnings. Take only a half position to take the rest on weakness. That is what he is doing.
Market. If the US president would be impeached what reaction would we see? Markets do not like uncertainty so if that scenario played out the markets would be uncertain as to who would get in next, etc. The market has had time to digest Trump's approach. The world would not end but there would be meaningful volatility of 5-15% of he was impeached. This is now the longest bull market in history so people are trying to guess when it will end. Going to the sidelines has shown to be risky over the last few years. There is nothing out of the ordinary or a reason to hit the panic button. He gets concerned from a geopolitical perspective that the market is incorrectly balancing the bad with the good. This could lead to a meaningful pull back. You need to look at what you own and decided if you can live with it if we get into a bad market.