A weak regional bank plagued with operational problems. It won't match the dividend growth of the big banks. This has "value trap" written all over it. Buy one of the big 5 instead.
Trading at 11.5x earnings, close to all-time lows. His concern is that it's a highly discretionary, big-ticket purchase and we're not late in the cycle. They make ski-do's and other big-ticket toys. So, what happens to these products (and their demand) in a weak economy? One good change is that they have installed a new chairman. However, they have some operations in Mexico, which is a risk in this era (Trump's pro-America, anti-Mexico rhetoric),.
He sold it last fall because the auto cycle is maturing (sales have peaked in North America where Magna has one-third of its business), and Magna was having trouble with a joint venture in China where it's hard to enforce contracts. True, the stock has bounced back since he sold last fall, but he'd still be out.
They've grown a lot of acquisition in the past 10 years. The last one was synergistic, but ENB took on too much debt, so they've had to divest some operations. Share price is stagnant, though the dividend continues to grow. After two years of deleveraging--and building the Minnesota pipeline--ENB will be in much better shape. So, buy it now.
It's a great operator and acquirer of businesses. Caveat: Their latest purchase, of Innovia, has been pressured by soaring commodity prices ( if the resin that appears on the fancy plastic on Canadian bank notes).
He has long owned it though he had to wait a while to see the price rise. Good organic growth through digital loyalty programs, gas margins and other methods. He'd buy it today, because he expects it to rise to $90 then $100 and at some time expand into China and surpass 7-11.
A great operator, though he prefers QSR-T which is more diversified. What's ignited investors is their plant protein line of burgers. They're doing something right.
This is going to 0. The assets are stranded in Cuba. Trump has opened the door to litigation. They have a terrible mine in Madagascar. Sell it, run away.
Also a past top pick today. Management has succeeded in shifting its revenue mix from 32% new product and service revenues to more than 50% today to reduce cyclicality. The stock has been a victim of overblown recession fears, and problems in their South American unit, though today they reported that as fixed. They boast 13% ROE and 6% dividend growth rate. (Analysts’ price target is $28.43)
Has an 18% market share in Canada for P&C insurance, the biggest. They recently dipped into America with an acquisition. They boast a 9% compund growth rate in earnings. (Analysts’ price target is $117.54)
It's a play on underbanked territories (Latin America and parts of Asia). Boasts a 6% compound growth rate, a 14% discount to its 10-year average; 9.7x earnings. Now is a good entry point for a laggard Canadian bank. (Analysts’ price target is $79.17)