PAST TOP PICK

(Past Top Pick Nov.1, 2017, Down 14%) A long-term stock for him. They've done well expanding into the U.S. It has sold off because utilities are interest-rate sensitiive, and their guidance has called for lower dividend growth from 8% to 5%--and this is a dividend stock. Not oversold. He continues to buy this.

COMMENT

STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet, but will.

BUY

STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet, but will.

TOP PICK

It's the top-performing Canadian utility yet little known. Has momentum. You're paid a safe, big dividend pl;us modest price growth. It plays into the carbon tax. CPS's assets are gas, wind and solar which are higher-cost commodities to produce, so the carbon tax will hit traditional forms of energy and benefit CPX. He sees a 2-3% upside plus dividend. Pays over a 6% dividend.

TOP PICK

They've been beaten up after a big U.S. acquisition where they took over $1 billion in debt which the market did not like. TCL, though, has done successful acquisitions over the years. They were a printing business, but then sold those assets and smartly reinvested in labels. It takes time for the market to digest their large acqusition, but the U.S. business is similar to TCL's business here, so TCL knows that space well. He's confident it will work. Trading at 8x P/E.

TOP PICK

A pure play wireless name. We're doing more and more on our smartphones, which means data charges are rising. He sees continued growth. He's long held Telus. Telus is at the end of a capex cycle, spending money on 4G networks. So, there'll be money leftover to pay back shareholders through dividend growth.

COMMENT

Market. The fact that the Central Banks are raising interest rates is causing lots of volatility in the markets. More in the US than in Canada. Household debt is extremely high in Canada. If the US economy starts to slow down the Fed will change plans, otherwise they would stick to the trajectory that is now. He doesn’t see a recession in the US for at least a couple of years. Canada is probably more likely given the household debt situation and the Energy sector. But he doesn’t fear that scenario now as interest rates are still at relatively low levels.

BUY ON WEAKNESS

He likes the company. Has owned stock of it in the past. Overvalued now trading at 12 times EBITDA. Excellent Management team at execution. He would look at it if it comes back at 10 times EBITDA.

COMMENT

What is best to hold now, perpetual preferred shares or rate resets? Very much depends on your outlook for interest rates and the quality of the preferred shares. He sees them lifting another 1% - 1.25% from here, so he prefers the resets. He suggests having the near duration resets and a few perpetuals. It is a timing game. Tricky.

COMMENT

What bond do you recommend for a person that wants to deploy cash? The bond market is tricky in a rising interest rate environment. You should stay short duration in this situation. It depends also on what type of risk you want to take.

BUY ON WEAKNESS

Financial investments can do well in a raising interest rate environment. He likes Pram Watsa. He would look closely at the valuation. He likes the theme.

BUY

He likes the space. He likes the company. He thinks you can buy CVS through Aetna Inc. (AET-N) at a 3-4% discount as both are going to merge soon and it has been approved.

BUY ON WEAKNESS

He is looking at the name more closely. It is on the leading edge of technology and cloud. He likes it. Doesn’t look too expensive.

BUY ON WEAKNESS

They are overleveraged. They spun out their utilities becoming a pure play on the midstream space. he thinks they will right size the dividend yield.

BUY ON WEAKNESS

He likes the rail. He is interested in this pullback as they were a little overvalued. The bigger play here is them going to grain shippers and other long-term contracts leveraging on the current crude contracts.