Advertising
BUY on WEAKNESS
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
consulting
COMMENT
She owns Visa instead; it has a stronger growth outlook, especially in Europe. AmEx provides the credit when you use their card whereas Visa and Mastercard provide just the transaction as a bank offers that credit, so the business dynamics are different. She prefers the asset-lite model because it offers higher returns.
investment companies / funds
COMMENT
Why has it dipped lately? Not sure. Could be a wider market sell-off or profit-taking. WSP is the best in this space. The stock has done quite well. Maybe buy it on weakness.
Business Services
DON'T BUY
She's never been interested in this; not a strong growth name and it's in a competitive space. There are better growth names in secular growth industries. Doesn't know why it pulled back lately.
clothing stores
BUY on WEAKNESS
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
consulting
WATCH
They have a great portfolio of high-end cosmetics. The PE is a high 32x. They do well in China. It's on her watch list. If the valuation declines, she'll consider it.
Consumer Products
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 here, but thinks Loblaw is better.
food stores