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COMMENT
Market Outlook He thinks that sometime before the next Presidential election there will be a US-China trade deal. He is interested in what he sees as the market moving away from momentum into value stocks -- financials and industrials. Markets outside of the US are improving, including Europe, emerging markets and Canada. He sees valuations in Europe and Japan now being of much better value -- stocks in the US are not cheap. It may be time for more active management, as the US indices may not reflect what is going on globally. He has deployed some of his cash holdings recently and is looking to buy value when the opportunity presents itself.
DON'T BUY
He has been negative about cannabis stocks from day one. Yes, he missed the speculative run up, but he has avoided the down run as well. The sector is still in the first inning -- it is too early to know who will be the dominant players. Other sin stock sectors, like tobacco and alcohol, there are only a few large key players. When he can predict sales, earnings, cash flows then he will be willing to invest. The short term outlook looks scary as locked-in stock will be flooding the market soon. The hype is just too much. Stay away.
agriculture
COMMENT
Westjet purchase? The purchase of on airline has always been a goal of Onex -- especially in the duopoly in Canada. Onex is largely a private equity company and sometimes accused of putting management ahead of shareholder needs. He worries a little about the valuation that private equity companies are carrying their investments at.
mngmnt
diversified
HOLD
For some of his income focused accounts he holds VET. He thinks the dividend is safe. He still believes in management. There have been some operational issues, but overall they seem to be doing well. He was concerned about their acquisition of Saskatchewan assets a year ago -- increasing in Canada was going away from their foreign asset strategy. Yield 14%
oil
gas
RISKY
He used to own this. It is mostly a BC natural gas producer. Natural gas prices have been depressed and a lack of northern BC pipeline access has been shown in the stock price. He likes the management team, but the fundamentals are still a concern. Lately natural gas prices have been improving, but he wants to hold it long term. Maybe its a better short term trade. When LNG gets going on the west coast it will benefit.
oil
gas
WATCH
They bought a fake meat investment. They were also hurt on the Chinese tariffs on pork and beef. Investors hopes in fake meat seem to be disappearing. Like cannabis, this is the first inning of new market forming. We just don't know who will be the winners. China has made positive moves on taking more Canadian pork.
food processing
PAST TOP PICK
(A Top Pick Nov 08/18, Up 5%) He bought this as the company has been under pressure following issues with their customers. They finally hired a new CEO, who was accepted by the market. There have been growth constraints placed on them by regulators and now they seem to be getting their act together. It is starting to follow the other US banks. He is happy to continue to hold.
banks
PAST TOP PICK
(A Top Pick Nov 08/18, Up 39%) It is a specialty semi-conductor manufacturer for factory automation and automobiles. They were subject to a takeover bid at $120. The Chinese government did not allow the deal to go through, which caused the stock to plunge below $80 -- it seemed like a smart play to buy when a big player was willing to pay much more. He is happy to continue to hold.
INDUSTRIAL PRODUCTS
HOLD
He has owned this a long time. It is in the hydro-vac business. They have moved into the US and diversified into utility work. There is a major short seller. What has hurt it lately is they did not meet recent earnings expectations. He thinks it is over done to the downside. He still would own it.
oil
gas
