WAIT
Privacy issues and spending increases have dragged down this stock. Instagram and Whatsapp are doing well and are offsetting weakness in FB. She won't step into this yet, and will see what happens with it in 2019.
COMMENT
The trade war and the pace of US interest rate raises are key worries. The latter will continue because the U.S. economy is growing and healthy with unemployment at a 50-year low. It's difficult to determine what'll happen in the US-China trade war. In the Q4, though, US companies are starting to see pressure on costs (transportation, wages), so will this slow corporate growth? Tax cuts, that have helped corporations, will moderate next year. Earnings will continue though. We are at the latter part of the cycle, but she doesn't see a pending recession. Trade wars are not good for economies; they increase costs and inflation. In turn, the Fed could raise rates even faster.
BUY
It's executed on its plan to sell assets to reduce debt after an acquisition last year. They've streamlined corporate structure and, importantly, they got approval for line 3 in the U.S. This much-needed pipeline in western Canada will come online in the second half of 2019. This will be good for their future growth. Safe dividend that they can grow. She'd buy it here.
COMMENT
Why such a big decline? It's on her radar. High valuation, but good managers. They grow by acquisition (small processed meat-makers). Their latest pullback was a result of the stock getting ahead of itself. They just had a conference that all that investors should listen to. Margins were lower (higher transportation costs) so they revised guidance. Are these costs temporary or get resolved? Is growth slowly only temporarily?
BUY
It was nice to see its recent pick-up. It's doing well in this defensive environment. It will increase its dividend 6-8% in coming years. Pays a yield of over 4%. A good, long-term income stock that'll do well when the market/economy slows.
TOP PICK
A nice income stock. 90% of revenue is from the U.S. and report in USD. 70% of its operations are regulated, so cash flows are stable. The rest are renewable power generation operations under long-term agreements. They pay a 4.9% yield that they can increase 10% annually to 2021. You need a dividend-grower in this environment. (Analysts’ price target is $15.16)
TOP PICK
They've done better than their peers. Likes their 30% exposure to the U.S. where the economy is doing better than ours. Trades at a discount to historical valuations at a current 11x. Pays a 3.7% yield. Earnings will grow 15% . TD's payout ratio is 42%. Dividends will increase in mid-high-single digits in coming years. Seasonally, banks do well this quarter. (Analysts’ price target is $85.67)
TOP PICK
After watching it, she bought it during the recent pullback under $103. They're transitioning their Office business into a subscriber-based business. Then, there's Windows. The last third is their Cloud business, which is well-positioned, just behind Amazon. They have a global business. Companies are comfortable with Microsoft so there's security and confidence in MSFT. The Cloud has a lot of room to grow. Boasts a strong balance sheet and a stable, recurring revenue stream. Strong balance sheet; they are net cash positive, actually. They don't need the debt markets to finance growth. (Analysts’ price target is $125.69)
COMMENT

All lifecos have underperformed. GWL has great assets in Canada, but Putnam Investments in the U.S. has been a drag on them. That said, lifecos are steady and will benefit from rising interest rates. She prefers others in this space.

COMMENT
Volatility continued today as oil plunged today. Corrections are normal. History tells us that we get one every two years. This year has been particularly volatile, because we've had two corrections in one year. Before that we had years of every little, which was not normal. We have to be patient (but not stubborn), and have a long-term discipline. With U.S. Presidents, there are always issues. Companies are the slaves of earnings--remember that. With dramatic rising earnings with an up-and-down market, to him, spells rising value in the market. He's a half-glass full guy. Be patient and diversified. And when you're wrong, can the confidence to make a move (i.e. sell a stock you own).
DON'T BUY
They make household products like Arm & Hammer. They've grown organically half to 66% of their growth rate, and have made tuck-in acquisitions to boost that rate. Trades at a high-20s multiple which is too high for a consumer products company with their growth limited. Instead, look at Helen of Troy (HELE-Q) who distribute Revlon, Sunbeam and Dr. Scholl's and are trading at half the CHD multiple with the same growth rate.
BUY
Tremendous opportunity here. Investors feared that Amazon would crush this sector, but this won't happen. They will merge with insurer Aetna soon which will me them more vertical altogether. CVS has 10,000 locations in the U.S., and 70% of Americans live near one. Most medical issues are minor and chronic, but health costs in the U.S. are expensive. So, going to a CVS instead is a lot cheaper. CVS is inexpensive with a lot of room to run.
BUY
Visa vs. Mastercard He's owned both. Look at how much each card is international and domestic? Visa is a little more international, a market that's a bigger piece of the pie. The average European uses cash much more often than plastic, so this is a big opportunity for Visa. Also, Visa is 60% debit, which he thinks will become more normal than credit cards, so this is another growth area. This sector is doing well. Visa is bigger than all its peers combined. Did 1.9 trillion transactions last year--huge. So, he prefers Visa, but the overall sentiment is positive for Mastercard too.
DON'T BUY
You think you want to own this because they are ubiquitous, but Amazon doesn't offer enough information for investors. Look at other tech companies like Apple, Intel, Google or Facebook--lots of choice. Their growth is impressive, but not enough info.
BUY
Volatile and leveraged. Also very acquisitive, which maybe why it's under pressure. But now is an opportunity to buy this. He likes URI. Good fundamentals and pricing is firm.