N/A
Market. The bounce of the recent lows is a whole combination of factors. The market over reacted in December. There was fear that the Fed would continue to raise rates and that triggered a sell off. That reversed itself in January but where do we go from here? There is a lot of skepticism to this rally so there is a lot of money on the sidelines. The Fed got scared and rate hikes are probably off the table for the near term. He is skeptical of the durability of the rally but the risks are measurable to him.
BUY

Forestry stocks have had a rough ride in the last 6 months. They turned first before the market. They have now gotten quite cheap. It is quiet cheap here and the balance sheet is fine. Their yield is good and quite well supported. It is a small long for him.

BUY
He likes it. They had a good report recently. Valuation is solid. He finds all the early movers in tech are reasonably priced. This one has good price momentum and he likes it.
N/A
ETFs. There is no regard for what the valuation is of the companies – what you are paying for it. ETF selling probably accelerated the selloff in the December.
SELL
They had an earnings miss. Every couple of quarters they are up or down a lot. He is short. It has poor price momentum. It is not cheap enough to buy. The business is choppy and unstable.
BUY
All the pipelines corrected as there was a fear of rising rates. Earlier this year it became not a short. A long term investor can hold this. Their payout ratio is a little stretched. It is not the cheapest company. But you can't go wrong long term.
COMMENT
He likes health care. It is a more defensive sector. This is not the best of bread on all metrics. They have a great balance sheet and they pay a good yield. They are not compelling, however.
BUY
He likes it. He holds it. It has good price momentum. It is still reasonably priced. They are a solid operator and know how to drive prices lower. 18% return on equity and 20% price to earnings. Recent quarter was neither a beat nor a miss. The payout is low.
COMMENT
He likes REITs overall. REITs picked up in Q4. This one is stable but it is not the cheapest. He prefers others. It has a good yield but you can get better. He is neutral.
COMMENT
FTS-T vs. Utilities vs. Telecoms. It is an easy choice to Telcos. They are both regulated. Both steady state, stable businesses. BCE-T vs. FTS-T. He is long BCE-T. It is has good valuation here. 16 PE. FTS-T has 13 times. You should do better in Telecoms. T-T is warnings of implications f the Chinese telecom is banned from Canada.
BUY
FTS-T vs. Utilities vs. Telecoms. It is an easy choice to Telcos. They are both regulated. Both steady state, stable businesses. BCE-T vs. FTS-T. He is long BCE-T. It is has good valuation here. 16 PE. FTS-T has 13 times. You should do better in Telecoms. T-T is warnings of implications f the Chinese telecom is banned from Canada.
COMMENT
FTS-T vs. Utilities vs. Telecoms. It is an easy choice to Telcos. They are both regulated. Both steady state, stable businesses. BCE-T vs. FTS-T. He is long BCE-T. It is has good valuation here. 16 PE. FTS-T has 13 times. You should do better in Telecoms. T-T is warnings of implications f the Chinese telecom is banned from Canada.
DON'T BUY
BIP.UN-T vs. BPY-T. He prefers BPY-T. BIP.UN-T is too expensive for him. A good yield but a big payout. It is not where he would look in the REIT-like space. BPY-T is undervalued. It is a growth by acquisition strategy.
BUY
BIP.UN-T vs. BPY-T. He prefers BPY-T. BIP.UN-T is too expensive for him. A good yield but a big payout. It is not where he would look in the REIT-like space. BPY-T is undervalued. It is a growth by acquisition strategy.
PAST TOP PICK
(A Top Pick Jan 18/18, Down 6%) Nothing has really shaken his conviction on it. Price momentum has been the knock on it recently. It is really cheap and a best in class auto parts company. 23% return on equity. They have a solid balance sheet. They are right as an activist target. He likes it. It is a solid holding.