COMMENT

They are well positioned, owning pipelines and other midstream operations. The company also made an acquisition that will provide future growth. It offers an attractive yield.

COMMENT

She owns the parent, Brookfield Asset Management, rather than this subsidiary. BPY just bought General Growth Properties, which is the second-largest mall operator/owner in the US. BAM owns about 60% of BPY. She thinks this is a good long-term play with very experienced management. The company’s investments are global, with 60% of property in the US and the rest elsewhere. The company owns a variety of types of real estate, not just malls. GGP shareholders will get a combination of cash and Brookfield stock. If enough of them sell the stock, this will depress share prices. BPY’s plan for GGP is to redevelop the malls, to introduce condo’s and apartments, movie theaters, fitness centers, and other lifestyle properties to use the space that is being freed up by the departures of some large retailers. BPY is experienced in this type of development. It pays a strong dividend, 6.3%. It is a business that is good to own for the long term. She chooses to own it via the parent company rather than directly. Yield 6.3%.

DON'T BUY

The are focused on multi-family buildings in Western Canada (60% Alberta, 10% Saskatchewan). The stock has appreciated significantly over the past year, reflecting the improvement in the Alberta economy. They are now offering smaller move-in incentives because demand has improved. Over the long run, what will drive this stock will be the economy of Alberta, and so an investor should buy the stock (or not) based on their opinion of the Alberta economy’s future. The company is well-managed but its yield is only about 2%. She sees the stock as fully valued, with a yield that is too low for an income investor. Yield 2%.

PAST TOP PICK

(A Top Pick September 12, 2017. Up 24%). This is a large US industrial company with 4 divisions. Pratt Whitney makes the engines for several types of aircraft. They are ramping up on a new engine and probably have the manufacturing problems behind them. They also own Otis Elevator, an Aerospace division and a division that makes climate controls. They are well-positioned for increased urbanization and for air travel. They have a recurring revenue stream from the service contract attached to their original equipment contract. Recurring revenue accounts for 40 to 45% of their overall revenue, making the business less cyclical than other industrials. They are growing through another acquisition (Rockwell Collins) and have raised their guidance in the first and second quarter. She sees this as a high-quality large-cap industrial company.

PAST TOP PICK

(A Top Pick September 12, 2017. Up 17%). This is an alternative asset manager. Their focus is on buying hard assets including real property, infrastructure, and renewables, They also have a private equity arm. This (alternative asset management) is a growing category with a lot of interest from other groups such as pension fund managers. They raised funds recently and have a lot of liquidity to invest. Senior management also owns their equity.

PAST TOP PICK

(A Top Pick September 12, 2017. Up 23%). This is now trading at record levels even though the bank itself has not done that well this year. The stock was knocked down in the summer because of sales practice issues but has fully recovered. It has led the big 6 banks this year. She likes the growth arising out of the US exposure and considers the 4% yield a good yield. The company increases earnings at the level of earnings growth. She expects 15% earnings growth this year, which suggests a likely rise of 15% in the dividend. Next year, as US growth moderates, she expects growth to slow to the single digit level. This is not the type buy in her current stock universe, but she still recommends buying it on a pullback. Yield just under 4%.

DON'T BUY

He's known them for a decade. He's not excited about the semi space NOW and this is not his favourite name here. He's slightly negative about it.

BUY ON WEAKNESS

They started offering software as a service very early and have done very well. There are high expectations built into the stock price and she would not buy at this level. It is very richly valued but it is on her watchlist when there is a broad pullback in the market.

DON'T BUY

U.S. interest rates are rising, so European rates will follow--this will benefit financials with higher profits. He owns some European banks. There is upside with Lloyds. It has cleaned up its mess. If you're underwater here, you will be fine in the long run. You can buy it now and hold it.

WAIT

In the space of digital advertising, she owns Alphabet rather than Facebook. The valuation of Facebook has contracted recently, making it appear cheaper, but she is waiting, probably for a year, to see the cost and effects of new government regulations.

COMMENT

In the space of digital advertising, she owns Alphabet rather than Facebook. Alphabet is not being hit with as much regulatory interest as Facebook at this point, and it provides a very popular service, the leading search engine, that integrates naturally with the advertising.

HOLD

She has been a long-term holder of the company. It is diversifying its revenue stream. Theater is currently about 75% of their revenues, but management expects that over time the other activities will account for about 2⁄3 of revenues. This will take time, and she is giving management time to execute on their strategy. Yield 5.4%.

WAIT

She doesn’t own any auto parts companies and sees the recent price declines as a direct reflection of the NAFTA uncertainty. If she was going to buy in this sector, she would look first at Magna, which is diversifying into the EU. She will wait until after there is clarity about NAFTA, even though that clarity will cause prices to rise (if the news is good) before she buys the stock.

COMMENT

This offers international exposure to infrastructure assets. Brookfield buys the assets and offers a high yield that arises out of the income stream that it receives from them..

DON'T BUY

This offers industrial exposure to international infrastructure. Rather than owning the asset (as Brookfield does), WSP builds it. She prefers WSP to SNC-Lavalin because its income is services related and it doesn’t have the cost-overrun risk that SNC has because of its fixed price bids. She would not buy WSP at this level because it has had a good run and is fully valued.