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Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Robert Lauzon and Paul Gardner, CFA commented about whether BCE.TO, Y.TO, WIR.UN.TO, BNS.TO, ATD.TO, VET.TO, TD.TO, BTE.TO, ALA.TO, CUF.UN.TO, ENB.TO, IPL.TO, CHP.UN.TO, TOY.TO, CGX.TO, KO, FTS.TO, HNL.TO, BIR.TO, CVS, WCP.TO, SLF.TO, FRU.TO, BNP.PA, PFE, BMY, MSFT are stocks to buy or sell.
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BUY
[Caller wanted a 10 year opinion] It's a tough call. He does not know where this industry will be in 10 years. It finally cracked over the last 12 months because less and less people go to the movies. It snowballed because streaming went to a scale where the family might just want to stay in and watch their mobile devices. It has finally hit their business model. They are doing gaming now. It might do well over the next year. They could get taken out. The stock moves on content so it depends on how good the movie slate is this season.
other services
COMMENT
Market Outlook - The Equity market is on sale. Earnings are very consistent. Even in Canada Earnings surprised more n the upside than the downside. The trillion dollar question is when the equity market goes up. The gap in Earning Yield vs 30-yr Government Bonds is bribing you to buy equities. In the Corporate Bond market his fund is invested in the short term side of the yield curve. Bonds lead and credit spreads are an indication of where Equities are going.
Paul Gardner, CFAUnknown
BUY
It is on sale. The dividend is stable. Main pipeline out of Fort McMurray. There is a scarcity of assets they have which makes it valuable. They made some acquisitions that they didn't over paid for them. Balance sheet is good. They have had it for several years now.
Paul Gardner, CFAOwned
oil pipelines
BUY
A large position for his clients. It has been thrown to the wolves as the Street didn't believe they could sell assets to rationalize their balance sheet, but they did it. It trades cheap. One of their thesis is that Bank of Canada and the Fed is going to slow down on their hikes as the global economy is going to decelerate. In this scenario utilities outperform. The Spectra asset is gassy. With 6-7% dividend yield all you need is 4-5% growth to get a 10-12% return.
Paul Gardner, CFAOwned
oilgas pipelines
COMMENT
With rising rate environment how REITs are going to do? - At his firm believe that normalization is happening. We are getting there. They think that inflation is not an issue given the massive dislocation in global market through AI, disruption of technologies, etc. He believes that there is always this inflation fear that is not going to happen. As a result interest rates are going to stabilize and the sector is going to go up.
PAST TOP PICK
(A Top Pick Sep 13/17, Up 8%) This is about the 6.625% 2021 Bond - They have owned it since 2016 when the last oil crisis happened. Since it merged with another company it is a lot less risky. better coverage ratio. Sometimes they prefer to have the bond with an equity-like return.
Paul Gardner, CFAOwned
oilgas
PAST TOP PICK
(A Top Pick Sep 13/17, Up 11%) 55% of their revenue is coming from the US. Has owned this since 2004 when started his firm. He would be surprised if they ever get out of TD. It is cheap-ish relatively to where it has historically been valued.
Paul Gardner, CFAOwned
banks
BUY
Great company. They own a lot of oil based on Brent as opposed to Canadian Discount. Their cash flow multiple is cheap. They are being thrown with the sector. Oil has sold off also. When it comes up, this stock will pop. The Federal Government is talking now with the Alberta Government to buy freight cars to move oil. This would be basically a quasi-pipeline. It will help on the differential on a shorter time period than when the pipelines are built, which is probably 2-3 years out.
Paul Gardner, CFAOwned
oilgas
BUY
They made two massive acquisitions in the US. Two earnings seasons ago they missed it and that affected the stock but that is over. He thinks it is a fantastic business. Great margins. Trading at 14 times next year earnings which is not expensive.
Paul Gardner, CFAOwned
food stores
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