WEAK BUY
Manulife vs. Canadian Tire as a dividend play He nearly made MFC a top pick today. He'd certainly buy. They just hiked their dividend and in the US they offloaded a lot of long-term risk. He through the market would have been more positive about the latter. Pays a 5.5% dividend now. Catalysts are head driven by new managers. He prefers MFC over Canadian Tire which faces rising input costs, lots of competition and weaker management. That said, CT is a decent investment.
BUY
The stock came off because their backlog has been weaker than expected, and the cost overruns of their coastal gaslink. Their future is strong. Well-run and pays a good dividend, but shares will be lumpy and cyclical. You'll be fine buying at the bottom and holding long term.
BUY ON WEAKNESS
It's too cyclical for him. He likes the company. He'd buy this if this fell to the low-$20s or teens, which is not now.
COMMENT
WTI price outlook At $80 the oil market was priced for perfection. Demand will decline even if a variant impacts it. Even if we shut down all OECD jet fuel demand, crude oil would only drop 2% in demand. The oil stocks have not come off that much. Until we see more weakness, these stocks are a solid hold. Would buy oil stocks on weakness.
DON'T BUY
They've done a good job with the dividend, but it's highly cyclical. He can't square their supply chain issues with the a huge surge to buy cars; historically a surge is followed by soft car demand for the next 3-4 years which he sees this happening. Can Magna navigate that drop? Buy this when the sector bottoms, but we're not there yet.
WATCH
It's very hard to make nuclear investment which lasts 50-100 years when government policy can change in 5-10. He feels nuclear will be a growing part of power demand, because there's not enough green energy to offset carbon power. CCO is up on uranium prices climbing. Watch, but don't buy this. It pays only a modest dividend, and shares have doubled this year. Watch.
TOP PICK
Just bought it. Well-run. They do laundry for hotels and hospitals. They lost the latter during the early days of Covid, but the latter they recouped and it's contracted long-term with inflation protection. He likes this medium/long-term. A small company,so it can be a takeover candidate. Pays a 3.5% dividend. Stable. (Analysts’ price target is $51.79)
TOP PICK
The oil producers haven't come off. What hurts the stock more is the uncertainty over the CEO transition. Pembina misstepped in recent years with their PHP facility getting mothballed. But they have an extension natural gas network in western Canada and are doing a carbon capture project with TC Energy. Pays a 6.5% dividend with some growth. (Analysts’ price target is $43.87)
TOP PICK
It's getting too cheap to ignore. Supply chain issues and lower guidance have pressured the stock, but everybody is suffering the former. Before that, they did an equity issue to shore up their balance sheet; the market didn't like that. NFI is the only North American producer of green-power buses while transit companies are under pressure to green their fleet, and the costs of running those fleets is positive. The secular trends favour NFI long term. (Analysts’ price target is $29.20)
DON'T BUY
FSZ vs. ZWU Both pay around an 8% dividend, which at that level it's probably not pure dividend you're getting on a long-term basis. About 6.5% is the limit for a sustainable dividend level. Plus, you get worries about the future of hydrocarbon demand. He himself doesn't see this, but it's a scenario to consider. Both FSZ and ZWU, you're getting some of your capital back to fund their dividends--this is not sustainable. ZWU has underperformed the equal-weight bank ETF since inception. So, the covered call portion isn't adding value, but is an additional-fee generator. He's rather buy the underlying stocks. Fiera has done a ton of purchases, not all of them cheap or good. Their wealth management business has been positive in the last 18 months, but you risk a market correction and a major re-pricing of assets, more so than any Canadian bank.
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly This specialty home decor retailer, who has benefitted through the pandemic as lockdowns, is reiterated as a TOP PICK. It reports on earnings this week, so we will recommend a tight stop -- trailing up from $17 $19. It continues to trade at good value compared to its peers (9x earnings compared to peers at 18x). We also like that they have been building up cash reserves, while buying back stock. We continue to see upside potential towards $36 -- upside potential over 65%. Yield 0% (Analysts’ price target is $36.33)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate MFC, a Canadian based financial and wealth services provider, as a TOP PICK. It pays a strong dividend backed by a payout ratio of 33% of cash flow. It trades only 7x current earnings, compared to peers at 12x, and it is valued right near book value. We recommend trailing up the previously recommended stop (from $17) to $21 looking to achieve $30 -- over 29% upside. Yield 4.7% (Analysts’ price target is $30.00)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate DRVN as a TOP PICK. The company operates 4300 auto service centers in the US and 14 other countries, and services over 50 million cars annually, generating over $1 billion in revenues each year. Auto maintenance demand continues to jump during the pandemic. We like that the company is using cash reserves to pay down debt. We recommend keeping the stop at $27, looking to achieve $42.50 -- upside potential over 35%. Yield 0% (Analysts’ price target is $42.12)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 24/20, Up 9.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AP.UN has triggered its stop at $41.50. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 30/21, Down 13.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WOOF has triggered its stop at $18.50. To remain disciplined, we recommend covering the position at this time. Combined with our previous buy recommendation, this will result in a net investment loss of 13.9%. We will look for better opportunities.