Is this a good time to get out of all the pipelines? If oil goes up Canadian Stocks and pipeline companies will do well. We have this problem in Canada that we have this great resource and we cannot move it. It is not an easy problem to solve. But pipelines that have the assets in the ground are more valuable because of this. This is why we own Enbridge (ENB-T).
They own Tim Hortons and Burger King and Popeye’s. These are the guys that own Kraft Heinz Company (KHC-Q) and G3 as well. They are known for cost cutting. Last quarter BK did very well but TH not so much. They have been trying to grow in the US and that has been more challenging that expected. But they are very good operators and he thinks they are going to buy something else.
Own it for a long time. Very cheap. Have great growth prospects. Well capitalized. Trades at 1.1 times book and 10 times next year earnings. Regulation is coming down. Yield of 1.9%. They have a great global franchise. He likes that they are returning a lot of capital to shareholders via buybacks and they are increasing their dividends. (Analysts’ price target is $34.39)
Great Canadian company. California Closets, College Pro Painters are some of their brands. They are also in the property management business. It is a very capital light business with no fixed assets. Generate very high free cash flows. Very good story in the US. The one thing to worry is their labor costs but hey execute extremely well. (Analysts’ price target is $109.26)
They didn’t have a great quarter. The wholesale business was down whereas retail was higher. In the US it is doing exceptionally well. Investment Banking is doing very well also but they are not huge in this area. But the stock has been doing very well for a long time.