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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.
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.
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.
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.
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.
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.
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.
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.
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 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.
