COMMENT

He hopes Canada will catch up to the U.S. by year's end. The market could easily rally. Canadian stocks look cheap, but it's hard to find anything to buy. Netflix's big spike didn't set the other FANGs on fire and will probably stay this way. There's now a dichotomy amongst the FANG stocks, acting individually. In the U.S. we won't see clarity until the U.S. midterms. Cannabis was legalized today in Canada, so the market will now expect real numbers--growth, earnings, sales--to justify those high stock prices.

BUY

Good balance sheet, well-positioned and growing dividends. Doesn't know if crude by rails will surprise earnings, though it's a tailwind.

BUY

He likes the European banks, and this one's in the U.K. Rising rates are a tailwind. They're years ahead of their European peers.

BUY

The worst of the sector, but he bought some yesterday. Their earnings are good and he expects a rate hike next week to boost all Canadian banks. Buy now when it's down. It's an emerging market play, and EM is out of favour, which is a
buying opportunity. Pays a 4.7% dividend.

COMMENT

They've put their troubles behind them. Can't predict their near future, but in a year or two there could be a tailwind for commodity prices. They are getting earnings from some of their earnings now which is reducing their debt.

COMMENT

Market. His was the first open-ended mutual fund focusing in cannabis. People are trying to be more proactive on their health care and don’t want to visit the doctor as much. They look at cannabis as a medication and his fund is focused 50-60% Canadian cannabis companies with the rest focused on alternative medicine companies. He holds about 18-20% in cash in the fund presently to take advantage of any short-term sell off in the sector.

COMMENT

Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T) The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility near Edmonton, but he wonders if the growth will be staged and may be slower than people expect. Canopy also has an advantage given its size of existing product inventory.

COMMENT

Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T). The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility near Edmonton, but he wonders if the growth will be staged and may be slower than people expect. Canopy also has an advantage given its size of existing product inventory.

COMMENT

Early Advantage for Canadian Marijuana. It is important for Canadians to understand that Canada is the first G7 country to legalize marijuana. Internationally, medical use marijuana can be shipped across borders, creating a great advantage for Canadian companies. He sees an early leader advantage to Canada for international trade. There are 40 countries around the world, representing over 1 billion people, who can legally use marijuana for medical use. He cautions domestic use in Canada may develop slower than people expect due to slow start to the number of legal outlets.

DON'T BUY

Enbridge scares him: heavy debt. Sure, they're selling off assets as they restructure, but they're also hiking the dividend--is that a good idea? Good managers though, top of the line. Interest rates will rise and that's a headwind considering their debt. 6.4% dividend.

HOLD

This is a company based in Uruguay, which also has a legal standing. Aurora has recently made a friendly takeover bid that has been accepted by both boards. This allows access to global distribution for Aurora.

WATCH

This company helps to study the human digestive science behind the use of cannabis oils. He sees it as wait and see to watch if they can develop the technology.

BUY

A billion dollar market cap that trades on 12 times earnings – low for this space, which can see 30 times earnings. It has lower cost production in Quebec and good labour rates. They sell a spray oil that is innovative, which provides for faster onset – and has been award winning. They have a joint venture with Molson-Coors.

BUY

This company is involved in mobility (wheelchairs, etc.) and he sees them having very positive tail winds. They have a very good profit margin and a recent acquisition is viewed as being synergistic.

HOLD

The company came out with very strong earnings – 12% growth y-o-y. Despite the run in share prices currently, he thinks there is still lots of runway. The companies touches on so many aspects of public health in the US and suggests politicians will avoid public cuts in spending going forward. He sees their growth continuing. Yield 1.3%.