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DON'T BUY
Pays a good yield, but there isn't much growth. She wants utilities for the yields but also cash flow growth. The Ontario government still owns 47% of this company so it's possible they could sell down and get involved in the company's operations.
electrical utilities
COMMENT
She's done very well with it. Litigation about opiates is the overhang, and just got a negative ruling on their anti-psychotic drug. Their drugs are doing well, but there are a lot of negative headlines. They may continue selling off troublesome drugs. They remain very profitable but also volatile.
biotechnology / pharmaceutical
BUY on WEAKNESS
All utilities have done well in 2019 and renewables will continue to grow. BEP also has global presence. Wait for a pullback to get in.
Utilities
DON'T BUY
Outlook depends on global growth which as been decelerating. Teck is paying off its debt though. She holds very few cyclicals, including mining. She won't touch base metals until the global economy improves. We're late in the cycle.
Mining
COMMENT
Metro vs. Empire She owns Loblaw instead. The sector is defensive, so it's done well this year. She likes Shoppers Drug Mart, hence Loblaw, for its cross-selling via their Optimum rewards card. She prefers Metro of the two, but thinks Loblaw is better.
food stores
BUY
They are in defence and business jets. They're not recession-proof, but their customers are rich who will continue to buy in a recession. The price is attractive now. Trades at a low 15x forward earnings.
transportation equip & components
BUY on WEAKNESS
Very well-run, but too expensive now. When the valuation lowers, she will consider it.
other services