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BUY on WEAKNESS
The U.S. banks have had a big rally with the Fed's cutting interest rates. They are a bit pricy right now. They've been buying back shares and they have had little growth.
banks
BUY
An Indian bank tied into the Indian government. They carry a AAA rate. They are trading flat this year. They have held up well compared to others in the field.
banks
COMMENT
In the last quarter, their revenues were up 1% but missed their earnings by 20%. When you are in the manufacturing sector, it's a capital intensive business. Then, you have to continue to borrow or continue to grow. Their acquisition hasn't been the best.
Automotive
BUY
A good shelter during a macro economic slump. He would stick to this more than its subsidiaries to avoid corollary risk.
management / diversified
TOP PICK
An aerospace manufacturing company. Their parts have never been involved in any crashes. They grow their dividends at roughly 20%. He's happy to own it and hold for the next 10-20 years.
transportation equip & components
TOP PICK
A software company that provides software for utilities and telecommunications. They are also in the video equipment business too. It's a steady income stock so it is protection against market downturn. It has performed much better than the market.
computer software / processing
TOP PICK
They've done well in Quebec, Ontario and Europe. A good allocator of capital. They're thinking of maybe going into Mexico. A good non-correlated asset relative to manufacturing and industrials if we go into recession. It should hold up well.
food stores