WEAK BUY
Great managers who have built the business over the years. But they face the macro issue of Netflix. Now we see PE compression on high-growth stocks. Their opportunities to grow revenue, like adding games and offering wine, is good. But they depend on the quality of the movies. Long-term you will do well with this.
DON'T BUY
The issue with CPG is that Canada is a high-cost oil producer, but CPG is producer of marginal oils, which is even worse. Also, they have lots of leverage. The low price of oil is killing them. If the price of oil shot up to $100, CPG would be the stock to own because it'll rocket, but he doesn't see this happening. He wouldn't own this or any energy stocks.
BUY
His largest holding among Canadian banks. A class act. Well-managed. Well-positioned in the U.S. They just need to find more lending opportunities. They will continue to do very well.
COMMENT
American banks He doesn't and wouldn't buy them. Why? He's a long-term investor. Citibank and JP Morgan have gone bankrupt in the past, while the Canadians have sailed through.
BUY ON WEAKNESS
They have 130 million users, and there are 1.2 billion cable connections worldwide, so they have room to expand. They have a high PE, so even a little bad news will push this stock down. He owns this for the long term.
PAST TOP PICK
(A Top Pick Dec 11/17, Up 30%) They'd been struggling for years, but developed a bunch of new drugs. He thinks this will rise a lot higher.
PAST TOP PICK
(A Top Pick Dec 11/17, Up 21%) Pays over 7% dividend. This stock could really go. They own little surgical hospitals and outpatient clinics. They have a deal where doctors own the real estate and manage, while they share in the profits with DR. A very good model
PAST TOP PICK
(A Top Pick Dec 11/17, Up 12%) They'll raise their big dividend. You're buying at the bottom now, but be patient for it to rise.
BUY
Canada's most successful software company. They sell mainly to businesses. They continue to make acquisitions. Well-run, with a CEO who believes he can triple the company.
HOLD
They support the infrastucture of western oil/gas companies. But because of low oil prices, the oil/gas companies are selling their assets to companies like Keyera. As smaller oil/gas companies go bankrupt, KEY won't get paid. Pays a solid 6.1% dividend. A solid hold.
COMMENT
Visa vs. Mastercard He owns Mastercard which has done better than Visa. But both companies are great. Pick one. But you're paying for the growth rate (they are expensive). Trading at 31x earnings. Be careful of sudden drops in stock price.
BUY
Visa vs. Mastercard He owns Mastercard which has done better than Visa. But both companies are great. Pick one. But you're paying for the growth rate (they are expensive). Trading at 31x earnings. Be careful of sudden drops in stock price.
DON'T BUY
A political mess. A typical utility with a 3.5% dividend that should grow. But with high electricity rates in Ontario, no he wouldn't touch this.
COMMENT
He likes Canadian banks. NA has done very well. Good management. NA is heavily exposed to Canada, so he prefers TD or BMO because of their US exposure.
COMMENT
Recent scare of shrinking growth. You're fine buying it here. DOL can increase product prices a few dollars. But this will be a rough ride.