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HOLD
Sold it in April last year at $49 as their reported earnings were significant below street consensus. The stock has come down quite a lot. It has a nice yield. He thinks it is going to be kind of dead money in terms of capital appreciation for 12 - 18 months. The UK purchase is transformational for them and it is good financially. The dividend is safe.
Automotive
PAST TOP PICK
(A Top Pick Jun 28/18, Down 19%) He has been disappointed. They don't have control over oil price. operationally they have grown their earnings 2% YoY and production is up 11% YoY. Their refineries are running very well. Great operator. 40 years + reserves. Best of breed integrated oil company.
integrated oils
PAST TOP PICK
BUY
Forecasting commodities prices is very difficult. Copper in particular which is one if the main metals that this company produces has been low. If we get a soft landing then copper demand should pick up. China has been a bigger consumer and that demand is going to be there even at a lower growing pace. They are involved in many projects that will increase production in the future. The stock has been choppy as they had a sort of a Board coup with an activist investor being involved. Longer term the stock price will follow the fundamentals.
precious metals
DON'T BUY
It has a strong position but in an industry that is in a secular decline. In the US we are seeing the same. The box office is not growing so they need to increase the ancillary revenues. He likes the strategy of the rec room and increase sales in liquor and pop corn. Still not enough for him to be a sleep well at night stock. (Analysts’ price target is $31.05)
other services
TOP PICK
Largest bank in Canada and largest company in Canada and one of the ten largest banks in the world. Well diversified. Core part of their portfolio. Well governed oligopoly. It operates the leading wealth management business in the country. They are leaders in digital and AI. Dividend yield is 4% and grows at a 7% clip a year. Very comfortable buying it now. (Analysts’ price target is $111.21)
banks
TOP PICK
It has been a ten-bagger since the IPO. Had a couple of tough quarters in the last year. A new addition in their portfolio. 1,200 stores in Canada. They are excellent at logistics, procurement and merchandising. They have a joint-venture in Central America with an option to take control of Dollar City next year. A good entry point. (Analysts’ price target is $44.67)
Consumer Products
TOP PICK
