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COMMENT
They are investing in Alpine Credit, who are doing well and who they are getting involved in for their own succession planning purposes. He would not consider AD-T low risk or defensive. They are medium to higher risk. Their valuation is not very related to where interest rates go.
Financial Services
DON'T BUY
PAST TOP PICK
(A Top Pick Dec 10/18, Up 3%) He was saved by the dividend. It has not participated in the rally because it had a weak first half. They were all transitory issues. The main attraction is the Heartland Petrochemical Complex coming online in 2021. It should add 30% value to the company with no stock dilution expected.
oil pipelines
PAST TOP PICK
(A Top Pick Dec 10/18, Up 16%) He has owned it for 6 years. It was growing 20% and trading at 15 times. Since then it has gone up about 7% a year but the earnings per share have gone up 17% per year. It is still expected to grow at 20% this year and next even though trading at 7 times earnings.
Financial Services
DON'T BUY
There used to be profit expectations but then they had the worst quarter at the beginning of this year. They have run out of the full tax credits in the US. There are a lot of other competing electric cars coming on the market and they get tax credits. The playing field is more level in Canada.
Consumer Products
COMMENT
DON'T BUY
The future for them is focusing on their rec-room. Their menu boards have expanded into subway in the US. They are growing there. He has always thought the stock was overpriced because investors were chasing yield. After a weak first quarter, numbers were not that great. They pay out a lot of their cash flow. The movie theatre industry is not dead.
other services
