Government commented that Canada is operating at near capacity? Economy is not yet firing on all cylinders. We are seeing some economic growth but not as strong as it should be. Seems to be a tale of 2 countries between the east and the west provinces. With respect to energy, we are over supplied and cannot get our product to market. He would look at companies that have some refinery capacity in the energy sector. He would just have a small or building position in the energy sector.
One of the world’s largest beverage makers. Is a high risk stock. Probably has about as good a chart you can have. Just seems to be in a sidewise consolidation pattern right now. With respect to their Canopy investment, the marijuana space has dropped significantly and this will impact the share price of Constellation.
One of the few tech names in Canada that is a good name to own. There is a lot of uncertainty. I think you will continue to see a lot of volatility. Over the last while it has been marijuana based and their system has held up well for the demand. He is looking at US companies in the teck sector such as Apple or Microsoft. He would look elsewhere in this space.
They did a spinoff of some of their Canadian assets to pay off some of their debt. Dividend payout is high but not inconceivable that it can stay there. If they did cut the dividend, it would not be a major cut. He likes the company. There is some upside potential. There are safer names in the utility space. This is a high leveraged utility name.
Another tough day today. They purchased some assets from Sparton and the market has penalized them for that. The sector as a whole is getting beaten up. It is a good company. If you are looking for income, you probably don’t want to look at the energy sector. If you have a time horizon of a couple of years, should be good but there could still be some price decrease.
CNR vs CPR. He likes both CNR and CPR. They are bell weathers on the Canadian economy. There are high barriers to entry. It is an oligopoly between the 2 names. You can buy now and likely see double digit increase. With the recent pullback, a good entry point.