BUY
The third largest waste company in North America. They have great franchises in the western US. They also have an oil service company. They have a good history of dividend increases.
BUY
He had an issue with their agreement with Air Canada being renegotiated but this time it was more beneficial to Chorus. He thinks it will do well.
BUY
Apartments in Southern Ontario and Montreal. They had a good 2018. The fundamentals for apartments are quite good. There is a lot of immigration into Southern Ontario. 67% payout ratio. Expect dividend increases in coming years. They will not do as well in 2019 as 2018.
WATCH
It is a great model because of the annual membership fee. There is not a lot of competition with on-line. The time to buy was December. If it checked back a bit he would add it to portfolios.
WATCH
It is the 9th or 10th largest bank in the US. They are more retail focused in the US. They have a stake in Ameritrade. Earnings coming up should be fairly robust.
BUY
Pipeline assets and they are building a PDH plant in Alberta. It is a big capital project. He would buy it here. They may do a preferred or equity issue later in the year. The yield is a reflection of what happened in December. There is not a lot of international investors buying energy names. He thinks they will continue to pay the dividend.
BUY ON WEAKNESS
He likes it. They are a leader with operations in Central America. They now have a contract with Wal-Mart. He likes it and if the market gets nervous this where participants will go.
DON'T BUY
It was one of the original restaurant royalty income companies. They have expanded quite rapidly. Their same store sales growth has been slowing and their payout ratio is slightly over 100%. He prefers to own the whole company and see it reinvesting in the business.
DON'T BUY
Fertilizer & grass seed. There is more demand in the spring and summer. They supply the Cannabis industry. It has had a run-up. He only looks at it for its traditional businesses. He prefers more stability in the cash flow.
WATCH
It dropped because Husky dropped their bid for the company. Can MEG make it on its own or are there other potential buyers – he would not hold his breath. It will continue to de-lever and become more attractive in the marketplace. Another potential bidder may not have to be in a hurry to buy it.
DON'T BUY
They buy operating businesses. They have a large portfolio. He would prefer to have a closer look at their companies and because there are so many he shies away from it.
WATCH
They have a Caterpillar franchise out west and are in Latin America. They have a facility where they remanufacture Caterpillar parts. If you think there are legs left in the mining cycle you could add to it.
PAST TOP PICK
(A Top Pick Dec 15/18, Down 5%) They are expanding insurance operations in Asia. They have excess capital of $2.3 billion. They could do an acquisition or buy back shares. Extremely well run so he continues to like it and hold it.
PAST TOP PICK
(A Top Pick Dec 15/18, Down 20%) Tariffs on steel and aluminum worked against them. They were set back by the closing of all the Sears stores. They raised their dividends for 50 years. 14.5 times earnings. A good company and he is sticking with it.
PAST TOP PICK
(A Top Pick Dec 15/18, Down 8%) He sold in the $1.90 range. There is talk of them spinning out their cosmetic division but it has not happened yet. He could get back into it. He was unfortunate trading this.