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COMMENT
September outlook. September is a seasonally weak month on average. -0.9% is the historic average for the TSX. Market sentiment seems there is a risk off atmosphere. There is political risk with an election up coming. With the back to school season and delta circulating, there are reasons. You can still buy into weakness. Still bullish moving forward.
BUY ON WEAKNESS
Holds some for their income portfolio. Was the biggest contributor for their performance last year. A secular growth potential story. A consistent performer and the pullback is buyable. The pullback is due to exposure and earnings disappointments due to storms in Texas. Likes the geographic exposure with roots in Canada. Clean natural gas, long tenure and great allocators of capital. 3% yield and has been a good capital appreciator.
Utilities
BUY ON WEAKNESS
Canada's largest printing and packaging operation. EPS was .51 cents. A bit of a disappointment. They benefitted from the emergency wage subsidy. Right now, they are facing difficult comparison to last year, especially with currency conversion with the Canadian dollar coming back to strength. Yields 4%. Has M&A optionality. Has re-rating potential as their packaging business grows. This pullback is a buying opportunity.
publishing
printing
BUY
Went public last year and is up over 500%. Pretty impactful name on the TSX. Does not own it but no qualms in taking a position with a higher risk tolerance. Does payment gateway and technology that targets fast growing verticals like crypto and gaming. A global business that is out of Montreal with a large addressable market. Have made 7 acquisitions to fill tech gaps. Processes $22B across various platforms in the latest quarter. Trades at 80x earnings, so expensive. Reminds him of different segments of Shopify. A long growth story.
Technology
BUY
Does not think there is a risk of a dividend cut. Assets being held include aviation in remote northern communities, industrial businesses and they keep adding to it. It is a junior, private equity arm. An acquisitive player. Yield is competitive and it should grow. Good company, good management team with good operating strategy.
Transportation & Environmental Services
DON'T BUY
Does not have exposure to lumber producers. With commodity producers, need to look at commodity prices. Probably has peaked. It was a one time surge for detached new homes and renovation products. This is not a slope change, but a one time blip. Lumber, unlike oil and gold, is renewable resource. We are seeing a supply response.
west coast forestry
WAIT
A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in retail. It is a good thing but it incurs opportunity cost for other, cheaper cyclical players. Will revisit later in the cycle.
Consumer Products
COMMENT
Bitcoin versus Gold. Does gold remain at these levels, or will certain categories and sectors come back? In an inflationary environment, gold will be preferable to him to bitcoin. It has a proven record of holding value. He would prefer Ethereum over Bitcoin since it enables processing payments and settlements.
SELL ON STRENGTH
Has had a 900% return since the IPO. Thinking always about risk management and weighting. If the allocation is getting to an uncomfortable level, would take some profits. Diversify elsewhere, since the stock can have some fits. Would not commit fresh dollars to it. Profits are not in sight yet.
Technology
