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COMMENT
Market Outlook Earnings are always what drives the market. Q1 earnings dropped over the year and only 38% of companies reporting beat estimates. The sectors of growth are limited making growth slow going forward. Companies will get through it, but the short to mid-term outlook will face head winds. Real estate may plod along, but will not likely be a growth sector. Tech is the most promising, but it is so thin with opportunities in Canada.
Unknown
HOLD
Involved in sports gambling. They made an acquisition that gave them a foot hold into Europe and eventually into the US. Strategically they are setting themselves up well. They will figure things out. It is trading below book value.
Business Services
HOLD
He likes this well managed company. They typically acquire companies at good valuations and expand the margins. They say the acquisition pipeline still has great opportunities. They just completed a $200 million bought deal. Some of their margins have tightened, which has impacted their share price recently.
food processing
DON'T BUY
The name doesn't excite him much. They own 50% of Hiram Walker distillery, but nothing that is going to grow their top line. There are better names out there. Yield 4.9%
breweries / beverages
WATCH
They make bandage products. They are developing new products all the time. A big contract in the Middle East is creating a chunky quarter result and raising concerns about Saudi Arabia geopolitics. Over the next six months revenues should increase so you want to watch for a while.
medical services
HOLD
Lumber company with a good dividend and low payout ratio of 70%. The dividend looks safe. He does not expect a lot of capital returns. There are some cyclical risks with housing markets. There are 45% owned by Brookfield. A good income holding. Yield 6%
east coast forestry
HOLD
It trades at low earnings multiple, which is typical for a cyclical trucking company. They consistently do share buybacks and dividend increases. It may go sideways for a short term, but he sees good US opportunities as long as the economy keeps chugging along.
Transportation