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HOLD
Great Canadian success story. Very big pullback, which is not uncommon in the Canadian market. Last quarter earnings disappointed, but this is transitory. Have done a very good job managing this type of pressure. Don't be concerned about the pullback. Hold if you own, but he wouldn't rush out to buy more. Cost pressures will take a bit of time to work through. Yield is 2.42%.
food processing
HOLD
COMMENT
Canadian vs. US banks. Economic growth is one of the most important things for banks, both US and Canada. Growth is greater in the US, and will be for the foreseeable future. Banks also react to interest rates. When interest rates increase, profits should expand as well. Outlook for financial services in US is pretty good.
PAST TOP PICK
(A Top Pick Sep 10/18, Down 9%) Added more on the way down. A core holding. Sold off because last quarter wasn't great. Concern about the refining unit. Pretty good bounce off the bottom. Still volatility on the refinery side, but the other 90% of the company is executing extremely well. True great Canadian growth company, so no reason to abandon it here.
merchandising
lodging
PAST TOP PICK
(A Top Pick Sep 10/18, Down 22%) Brookfield has the Midas touch. It's a private equity type vehicle. You put it aside, and in the tough times you have to remember not to sell it. Lots of leverage involved, so when markets go down, value of the underlying assets goes down. A good stable of companies. Just buy and hold.
0
COMMENT
Centres on the outlook for gold and gold producers. It's been an abandoned sector, but the fundamentals are pointing higher. US dollar has rolled over, starting to see inflation in the US, and it's held in well while markets have gone higher. There's been a move in the commodity in the last 6-8 weeks. Producers in this ETF benefit from higher gold prices. Most people recommend you own some gold, too risky not to own any. Gradual move higher, rather than spikes, and that's positive for the group.
E.T.F.'s
BUY
Long history in Canada. Very sensitive to the economic cycle. Now that recession has been put off, it's at a better entry level. Has been a very expensive stock. New management made complementary, but expensive, acquisitions. Given the pullback, he'd be inclined to buy. Well run, and deserves its high multiple. In choppy markets, it will be one of the first to sell off.
misc industrial products
COMMENT
New Year's rally, too good to be true? Throw out January and December, and pretend we're at the end of November. We have a mid-teens multiple, Fed is supportive of higher equities, strong earnings, and economic activity is still pretty strong. An environment where stocks should be expensive, but they're not. Multiple expansion could give 10% lift, and we'll see 5-6% earnings growth. If market pulls back, use it as a buying opportunity, but be aware of China concerns and Trump's involvement.
HOLD
One of his favourites. Not cheap. Had a great year. Defensible business model. Tremendous moat, so they can trade at a higher multiple, which they will continue to execute on. Will continue to justify the multiple. There will be new competitors, but doesn't think this will impair its margins or growth profile.
Transportation & Environmental Services
COMMENT
TFSA investments. A tax shelter. You want to put in the most tax egregious instruments. So, interest, dividends, not so much capital gains. High yielding instruments. Avoid the home run stocks, because you could lose it all and your tax loss is stuck in the TFSA. Fairly safe things with big yields such as banks, utilties, pipelines.
