DON'T BUY
There's too much debt and not enough growth to pay it off. The stock has sold off as their generic products face new competition.
DON'T BUY

He avoids Chinese companies--heard too many horror stories. Google is growing faster than Baidu, and he prefers Google if you want an internet stock.

TOP PICK

He prefers it to Visa, though both are fine. MA boasts more growth. Both dominate payments. Despite new, smart e-payment companies, customers still need a card like MA--cards won't go away soon. For MA, he forecasts 10-12% annual revenue growth for the next 2-3 years and strong free cash flow, growing earnings at 30x 2020's revenues. Chip away at this when you can, because this doesn't pullback much. (Analysts’ price target is $309.22)

TOP PICK

The most hated stock on the S&P. IBM is doing a lot of things right. It trades much lower vs. its peers, so it doesn't take a lot to get a 20-30% return out of it. The bar is set so low. The EPS is around 10-11x. They just closed on the Red Hat cloud deal. Revenue growth is 2-3% annual, but they are cutting out big-revenue, but low-margin contracts which should improve their bottom line. Red Hat's CEO could be the next IBM head, which is a plus. (Analysts’ price target is $154.76)

TOP PICK
Advertisers are roaring back after they realize that they still need TV exposure. Corus sold off hard after Shaw sold its stake, but that was down to CRTC rules. Corus trades at a cheap 20% free cash flow yield. He expects good numbers from Friday's earnings report. (Analysts’ price target is $8.32)
COMMENT
He's not investing in resources now, doesn't see the upside. There's been a pullback in tech names like Uber, Lyft and Shopify, which is the first crack in these names. Maybe this is temporary or long-term. He still likes tech. He believes that Trump wants a deal ahead of the next election which will benefit his campaign, but China isn't playing along. This makes it tough to invest in tech hardware which is seeing volatility. Trump has until Q1 2020 to sign the deal or else he loses business confidence. This is the most-anticipated recession; the market has been talking about one for 18 months. But investors are well-positioned with REITs, staples and utilities are hitting new highs.
BUY

One of his favourite tech names that well generate a lot of free cash flow into 2021 like Microsoft. They're reinvesting aggressively, pushing into delivery through the Prime program that they're also pushing with success. All tech has come under pressure and there have been allegations of poorly paying their workers; they've raised their minimum wage to $15/hour, but under tough working conditions. Plus, there's regulatory scrutiny over them using data from third-party vendors. But he consider this short-term noise.

COMMENT
Yields 8%, which is good for a pipeline given an uncertain pipeline backdrop. Their propane facility will come online in 2-3 years which will drive this stock, maybe up 30% for their cash flow and that should raise their dividend. It's on his radar.
DON'T BUY

His weed exposure is through Constellation Brands which owns Canopy--this is less risky than owning cannabis stocks. The valuation on the entire sector rose way too high in 2017-8. Now, the industry is feeling growing pains, with unexpected surprises in working with governments. Generally sin stocks do well long term, but the next year or two will be challenging.

COMMENT
Is the yield safe? Pays 7.9%. One of his few oil stocks. We're at the bottom of the oil cycle, though who knows for how long? CJ has a low decline rate and are buying back lots of share. The yield is safe at current oil prices and will move up or down with oil prices.
DON'T BUY
Steel has been hit hard the past month with a poor outlook. He prefers Stelco in this space. Stelco is well-run, not American and trading at a low valuation. Stelco is in great shape since emerging from bankruptcy.
BUY
Asking about US Steel He prefers Stelco in this space. Stelco is well-run, not American and trading at a low valuation. Stelco is in great shape since emerging from bankruptcy.
COMMENT
He's not overly concerned with the current sell-off. Sit back and relax a bit. Markets have been sideways for 18 months, actually. It's still a bull market. Underneath this mess, we've had three mini-recessions in the past decade. Unemployment remains at all-time lines and productivity is still good. Investors are scared, not putting money to work. The markets are 2-3% below all-time highs. People are overreacting. He's holding more cash than usual at 15%. He won't turn bearish until American and Chinese consumer numbers turn negative. The big money now is to sit on your hands--be patient, not bearish.
PARTIAL BUY
Always happens in a US election cycle with candidates threatening to restrict health pricing, but this time investors are overreacting. UNH is a good buy. He'll buy it if there is a positive trend in this. Start building a position now.
BUY
Considering the Ameritrade zero commission controversy TD is a buying opportunity and it has been unfairly punished by this issue. He's underweight Canadian banks, so he missed their big move in September. TD is one of his favourites in this sector.