DON'T BUY
They have done extremely well over the last few years. Their US expansion has gone beyond their expectations. He would look more at CM-T or BNS-T. Any of the big banks are relatively safe places to be. You could buy more of the higher yielding ones.
DON'T BUY
He admires BAM.A-T and their holdings. If you are reaching for yield you may look more for BPY.UN-T than BAM.A-T. We are seeing cap rates at relatively low levels, meaning properties they are buying are expensive. He would not look at this one within the group.
DON'T BUY
Their earnings missed in the most recent quarter. Their balance sheet within the industry is okay but is there any catalyst to see them go up in price significantly. There are other places he would invest such as ECA-T or ARX-T.
TOP PICK
The insurance companies are a fairly defensive position to be in. They have significant excess capital. In the most recent quarter there was new business strain, which leads to profitability later on. This is a reasonable investment to make. (Analysts’ price target is $56.45)
TOP PICK
They have been undergoing a fair amount of change. Their bakery business is a tiny part of their business but is getting the most focus when people look at them. They have been undergoing a dramatic shift over the last couple of years, rationalizing product lines and building new facilities. He thinks we will see an improvement in profitability. From time to time they have modest dividend increases. He would prefer it a little under $100. (Analysts’ price target is $113.83)
TOP PICK
There is friction with two US projects, but it is noise in the current environment. They have consistently raised their dividends. You can buy this today with a 6.5% yield and they will be in a position to continue increasing it over the next few years at least. If we had a better environment in Canada for pipelines it would boost this one as well as the other pipelines. (Analysts’ price target is $55.09)
COMMENT
All eyes on the U.S. Fed now, and it's likely they will cut rates at the end of July then sometime later. It's accomodating for stock markets which make him quite optimistic about the markets. The markets are still trading at reasonable multiples in New York as well as Toronto....Apple remains good value. He's still consolidating core, defensive names and it's working well for him. He predicts that Trump will hold the US-China trade deal through the 2020 campaign, so buckle up. This will drag on long after the G20 Summit.
DON'T BUY
It's under heavy pressure from an overhang from the resources slump and, before, the steel tarffis. There are better opportunities elsewhere.
DON'T BUY
It's more weighted to oil, and pays a strong 6% yield. He is light in oil producers now, only 3-5% of his holdings. He doesn't know RDS that well. Oil overall is in decline; there's a perfect storm in oil (Venezuela) and yet oil is not surging higher. RDS itself is a reasonably good company. If you are bullish oil, hold and wait.
DON'T BUY
Is it real estate reflected in its current price? The pharmacy retail space has come off a lot due to disruption. In this space, he bought Walmart instead; they do everything better yet cheaper. Disruption will make it harder for WBA to compete. The real estate is not valued in, but nothing tells him that it should either. Pharmacy retail is another industry under scrutiny, and he feels Walmart will prevail.
BUY
It benefits from Huawei's woes. He likes CSCO. It pays a small dividend.
COMMENT
He likes the midstreams. IPL used to be his biggest oil stock until they started buying storage tanks abroad which he felt distracted from their core business. He didn't like that they went outside Canada to ramp up their earnings. IPL pays an 8.6% dividend which is safe, because they have long-term take-or-pay contracts. He may re-buy this later.
PAST TOP PICK
(A Top Pick Mar 06/19, Up 13%) Also a top pick.
PAST TOP PICK
(A Top Pick Mar 06/19, Up 7%) He likes the Brookfield family. Brookfield takes care of funding, having investors for global investments. He likes that they're investing in India infrastructure. They can go anywhere in the world and buy strategic assets like water treatment and transmission lines is unparalleled. It continues to do well. Good managers.
PAST TOP PICK
(A Top Pick Mar 06/19, Up 4%) Still likes it. It's doing well. Pays in USD. He likes the management team. He's concentrated in industrials, especially in Canada, as well as the U.S.