COMMENT

What drives the price of gold? That's the most perplexing question he is asked about investments. He doesn't know the answer, but he owns gold and FNV-T, though the miners, which are risky. Gold moves inversely to the USD, so gold it's currently stuck at present levels. He's constructive on gold because the Fed has pivoted away from being hawkish, so interest rates won't rise and nor will the greenback.

COMMENT

General thoughts on preferred shares? Yes, he uses them, viewing them as alt-fixed income, meaning they're not as secure as a corporate bond, but they offer higher income prospects because they pay dividends, not coupons and so are better-tax in taxable accounts. But each preferred share has its pros and cons, and they are not deeply liquid, so the institutional money isn't there. They can be very over- and under-valued. But he buys-and-holds preferreds for the income.

COMMENT
Market Outlook. He thinks world growth is looking like 3.3% in 2019, but there are still a lot of clouds on the horizon -- including traded wars with China. But he thinks this topic will be dealt with positively in the coming months. He thinks US housing is improving too. Oil has moved back to $64 and the oil stocks and service stocks are gaining momentum.
DON'T BUY
It pays 82% of free cash flow. Sales are down 7% on the year and it trades at 13 times earnings. It holds a lot of debt at 16 times earnings. He would look elsewhere. Yield 6.9%.
SELL
He has followed this for a long time. It extracts protein from blood plasma and a drug that treats inflammation. They have added massive debt -- about $250 billion. He thinks there will be dramatic issues ahead and it will not end well for common shareholders.
PARTIAL BUY
This cemetery business operator has a modest dividend but only a 28% payout ratio. Margins appear to be tightening. Earnings forecasts have been reduced in the last 90 days. It is a candidate for purchase. Yield 1.8%.
WATCH
The company uses hydrogen for injection to diesel engines. They announced a recent trial in India. He is waiting to see the results over the next few weeks. Their system records CO2 emission savings which is beneficial.
BUY
They have a system that is push to talk radios. They also have an opportunity with US first responders. He thinks they may have qualified for several carriers in the US. Very good prospects.
PARTIAL BUY
Seadoo margins seem to be tightening. The PE is only 11 times. Free cash flow is strong. However, with their products being recreational based, it is highly dependent on the well the economy does. A reasonable buying prospect.
BUY
They do marijuana drying. They can reduce the drying time required before extraction and processing. There is a shortage of this technology, so they are in a great location.
COMMENT
BPY.UN vs BIP.UN? BPY.UN is highly rated and earnings estimates have been rising with a yield 6.2% with a 50% payout ratio. BIP-UN has a lower ranking in his system with a 4.9% and a payout around 50%. Earnings growth has been revised down lately. Both are huge an have access to credit if needed. He would prefer BPY-UN.
COMMENT
BPY.UN vs BIP.UN? BPY.UN is highly rated and earnings estimates have been rising with a yield 6.2% with a 50% payout ratio. BIP-UN has a lower ranking in his system with a 4.9% and a payout around 50%. Earnings growth has been revised down lately. Both are huge an have access to credit if needed. He would prefer BPY-UN.
PAST TOP PICK
(A Top Pick Jul 24/18, Up 8%) He continues to rank it highly although he no longer owns it.
PAST TOP PICK
(A Top Pick Jul 24/18, Up 15%) With a large movement of commodities in North America, this has done well. There is a big push in Canada to haul oil by rail for the next couple of years.
PAST TOP PICK
(A Top Pick Jul 24/18, Up 15%) They are doing well in a tight competitive space and a candidate for purchase again. He does not own it today.