HOLD
They have had disclosure issues on some mortgages and the share price has been under pressure as a result. He prefers the larger premium banks. They have a reasonable yield and multiples.
BUY
They have recently taken profit. He still likes it and may consider getting back in. There are headwinds with slower iPhone sales, but there is no other big cap that offers the same growth potential. He wonders if growth in emerging markets potentially being for lower cost phones.
DON'T BUY
He looked at it a year ago while it was going through re-structuring. He thinks it still has not fully bottomed in price. They are now selling parts of the business to pay down debt and funding costs may be going up. About 40% of their business is in turbine power business and that may be slowing down.
HOLD
He sold this about 2 years ago. As the US housing market recovered this had done well. Now that US housing is slowing and US interest rates may be near 5-6%, he thinks this could further impact demand. He likes the yield and thinks it would continue to be a hold. (Analysts’ price target is $13.86)
HOLD
A record Black Friday and strong Cyber Monday. This is not a valuation they could justify owning now at. They are expanding into many markets, but the multiples are just too high.
DON'T BUY
The integration of WGL and concerns over funding costs were overshadowed by a weak quarterly earnings report. They sold out at $18.25. They own good quality assets, but financing costs and concerns over higher interest rates is casting doubt out the dividend being maintained. Their risk management would not allow them to enter into this.
HOLD
He owns it and believes the market over-punished it for the recent missed earnings. He still likes it and is closing to adding more to their position. Yield 6%. (Analysts’ price target is $39.67)
BUY
He likes the asset management model going forward. They have a great reputation for running their business. It would be highly leveraged to the US market. He would prefer to own the parent company (BX-N), who is less levered to European assets.
HOLD
This company has gone through a lot of changes. A good business, but trades at very expensive multiples. He would diversify into something more reasonably priced.
DON'T BUY
They did a recent transaction to add to their US business. Management tried to right size the ship, but their long term return on capital is not as good as others. He would not call it the highest quality in the space.
HOLD
He likes this and thinks they have great assets in South America and are not exposed to the Canadian differential market. A high quality name.
WATCH
He has owned Franco-Nevada historically instead. This is getting back to more attractive multiples and would be a good investment if you believed commodity prices were going higher.
TOP PICK
A great way for Canadians to get exposure in the US sector. They continue to make good acquisition in the US. It trades very close to net asset value. Yield 6%. (Analysts’ price target is $15.01)
TOP PICK
Their investor day yesterday was impressive. They are very well diversified into European assets and Brent pricing. Yield 8.5%. (Analysts’ price target is $51.29)
TOP PICK
A well-run company and a top quality asset management company. They have made acquisitions all over the world. They are in the business and industrial services spaces. Yield 0.7%. (Analysts’ price target is $64.92)