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COMMENT
The Liberals' plan to tax financial companies and impact on shareholders. The banks are insurers are a key part of Canadian investor portfolios. If the plan happens, these companies will manage this tax in the end. These companies make a lot of money, though the tax is not a good capital markets development.
PAST TOP PICK
(A Top Pick Sep 15/20, Up 8%) She'd buy it here. 90% of their earnings come from the US. Pays a nice nearly 4% dividend and should grow 10% this year and continue to grow in coming years through a capital program. They've struck deals with Chevron and JPMorgan to reduce their carbon footprint.
electrical utilities
PAST TOP PICK
(A Top Pick Sep 15/20, Up 15%) She's owned this for years and continues to buy this diversified healthcare name. Pharmaceuticals account for roughly 50% of revenue. They continually reinvest in their R&D. Many products are #1 in their categories. Boasts a rare triple-A balance sheet and pays a 2.6% dividend that they've increased for 59 years.
biotechnology
pharmaceutical
PAST TOP PICK
(A Top Pick Sep 15/20, Up 31%) The gains are surprising. They've invested in long term areas, namely e-commerce. Costs to protect employees from Covid will roll off. Shoppers during Covid flocked to the top supermarkets, though are now returning to the discount chains, which Loblaw also owns. She's waiting for a pullback to add more shares. Loblaw is expanding into primary care health clinics and expanding into e-health, both of which are good.
food stores
HOLD
They merged with United Technologies, so half their business is defence and half commercial aerospace (including Pratt-Whitney engines). The overhang comes in international air travel; so far there's really only domestic travel. For this to happen, vaccine rates must increase to allow cross-border travel. Vaccine passports help. When planes don't fly, they don't need service on planes which benefits Raytheon. The stock is expensive now, but she will hold onto it. International travel will increase their revenues, but won't bounce back perhaps till 2023-4. Their defence business remains steady. RTX is in strong shape, so it can weather this period.
Defense
TOP PICK
She likes it for their 1 billion customer base. Apple will benefit from the 5G upgrade cycle; we're in the early innings of this. This afternoon, Apple will launch another upgraded, 5G phone. They've transitioned well from hardware (computers, phones) to services on a reliable subscription basis which now account for a third of their gross profits. Nice recurring revenues streams in Apple cloud and Apple music, and their wearables business has done very well, including the Apple Watch. Her three young adult daughters own the Watch, iPhone and Mac Pro, so Apple products resonate with a young demographic. Long growth to come. (Analysts’ price target is $165.82)
electrical
electronic
BUY
They make dental products. She likes the dental industry for its secular growth, specifically from aging demographics (a desire to keep your teeth longer which feeds the implant business), and a low penetration rate in developing markets. 22% of their revenues come from emerging markets, plus 50% from North America. There's a lot of room for NVST to grow and they have a broad product offering, supplying 90% of the equipment of what a dentist needs. They lead in many product categories. They just launched the Sparks clear dental liner which is enjoying strong growth int he U.S., the first innovation in years. They're #1 in the implant business. (Analysts’ price target is $51.75)
Healthcare
