COMMENT

The Bank of Canada just raised interest rates and said that the global economic outlook is okay. But high debt loads are a concern here and everywhere. Emerging markets are having trouble repaying their debts (especially in US
dollars). We're getting to the end of the cycle, so let's hope that the result isn't as damaging as the collapse 10 years ago. That said, cycles may be getting longer; in the early years of this recovering it didn't even feel like a recovery. The
higher U.S. dollar creates stresses around the world. This is a time to be cautious in the market.

DON'T BUY

He's wary of uranium, difficult to determine supply and demand given the politics. Uranium prices have been struggling for years. Pays a small dividend and yield. The stock price won't rise for a long time.

DON'T BUY

Highly volatile in the past year. They had to give away or sell the C Series, despite expectations for high demand. BBD has always been difficult to understand given THAT their transportation division suffers many negatives (i.e. long-delayed Toronto streetcars) as well as positives. He owns CAE instead.

PARTIAL BUY

Yes, the Canadian banks have dropped in the past month, given rising interest rate fears, but he would hold on for the long-term. Compared to a decade ago, the banks are well-capitalized. Yes, fintech could disrupt the banking industry, but the banks are aggressive in exploring this area. RY's dividend is safe. RY's ROE may slip a bit, but it's still generous. If anything, buy instead of selling RY and Canadian banks.

DON'T BUY

They once had a good balance between utilities and non, but they just spun out their utilities. Also, they're fairly levered. Will they get a negative credit re-rating? And the dividend is a worrysome 10%. Look elsewhere in this space and be wary of ALA.

BUY

MFC has often been his top pick. For lifecos operating in the U.S. there are accouting issues between Canada and America in how they account for reserves. There is embedded value in MFC's long-term care assets that aren't reflected in the stock price. Now is a buying opportunity. He expects their next report to be fine.

HOLD

A few decades ago, Sherritt was well-run and diversified. But to clean up their balance sheet, they went became a smaller-capitalized company in the sector. It's not cheap, and it's also more speculative than other mining companies. Consider a small holding in your overall portfolio or hold onto it if you already own it.

WEAK BUY

All Canadian banks have seen a pullback, which is a buying opportunity. Other banks pay more yield than TD, whose valuation is slightly higher. Buy the best valuation when you enter a Canadian bank stock. But he wouldn't be worried owning TD now.

PAST TOP PICK

(Past Top Pick Sept. 13, 2017, 0% return) A diversified company. They've made large acquisitions in U.S. power. He still likes it and owns it. True, utilities are exposed to interest rate rises, but he has faith in Fortis' management. He likes their U.S. exposure.

COMMENT

He would do more homework on this. It used to be a stellar Canadian REIT, but their main investments, commercial properties, have been hit by technological disruptions. They are now moving into residential properties, which is good.
Well-managed and pays a good dividend yield below 6%. They manage their balance sheet well. Could be quite an interesting investment.

DON'T BUY

A stock price can pull back for many reasons: the market itself or your initial analysis was wrong. It happens to everyone. When to cut your losses? What are the prospects of this company going forward vs. other investments. Westshre had a good last quarter, but they are volatile. They are exposed on the west coat to coal shipping. Pays a modest 2.6% dividend. He has no plans to buy it. He doesn't know if it has downside risk, but its upside is limited.

DON'T BUY

They've had issues with mortgages in the past two years. Pays a generous dividend. Is a smaller Canadian bank. But when he consider banks, he doesn't look at LB, especially now during rising interest rates.

BUY

It's badly lagging the other Canadian banks. It's been oversold to the point of being highly attractive. Good 4.8% yield and PB value. Yes, they are exposed to Latin America, but BNS is making a lot of effort in fintech and wealth
management through the Jarislowsky purchase. Now, BNS is a buying opportunity.

HOLD

The pipelines have all been hit, because of problems in building them in Canada. These companies are also highly levered, thus sensitive to interest rate hikes. IPL's dividend is safe. They have other assets they are building and so these will add more revenues. This is one of the few pipelines he owns. Hold onto this and reap the dividend. This is a long-term prospect.

PAST TOP PICK

(Past Top Pick Sept. 13, 2017, Up 4%) He's expecting a lot more from this company. It's been in the woodshed for a while, falling to around $15 from the high-$20's. Investors are regaining their confidence in ALA who had trouble with some companies they invested in. They have since resolved that and cut loose those troubled companies. So, how will they now deploy their capital? Lately, AD they have been some good deployments. AD is on its way to recovery and he sees significant capital appreciation coming.