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COMMENT
Market Outlook All of Europe, Germany in particular, is looking soggy as exports dry up. US manufacturing is also slowing. We not facing recession just yet, however. Employment figures are showing a big division between service and manufacturing jobs -- service jobs outnumbering manufacturing by 10:1. The service sector is still growing, but wage growth is decelerating. He didn't think today's job numbers were disappointing as the jobs increased by 45,000 over the month. He is watching a US steel story. Tariff increases have led to farmers cutting back plantings, which has led to a slowdown in farm equipment purchases. You have to be aware of the unintended consequences.
Unknown
COMMENT
His favorite US bank. Go big or go home. The best managed and smartest commercial bank. There is room to raise the dividend, although it is in the late part of the cycle. He is not seeing significant loan losses. A solidly capitalized bank making the dividend safer today.
Financial Services
HOLD
One of the three big bond rating services in the US. As such they have great pricing power and customers have to use you. When a bond gets rolled over, MCO-N will re-rate it. A great company with a great moat to protect it. He is happy to continue to hold it.
Financial Services
HOLD
One of the pioneers in integrated circuits. They are benefiting from the use of their circuits in almost all consumer and commercial products. A well run company. The dividend should be sustainable and able to grow. More of an income stock than a growth stock now however. Yield 2.8%
electrical / electronic
DON'T BUY
They have a number of huge problems, including the threat of class-action litigation and official prosecution. The contracting business does not seem to be able to make money. The assets are worth more than $16 per share. The issue becomes what is your appetite to accept other people's problems. He does not know if this is the time to buy. It could be the falling knife. He is nervous about it and is not buying.
contractors
DON'T BUY
The last garment business standing in Canada. Their success depends on the ability to move goods across the border. He always thought this was a story that was not going to come to a good end. Shipping from lower cost producers is just too prohibitive. He does not own it and does not see the value proposition.
clothing stores
HOLD
He likes them and owns it for clients. If you want to move things by rail there are only two companies -- the definition of an oligopoly with strong price control. The threat of an oncoming recession only offsets some of the need to move commodities. He thinks it will do just fine as a hold.
Transportation