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VAGUE
Great-West Lifeco, Manulife and Sunlife are all great companies. He prefers Manulife which is trading at a discount.
Financial Services
BUY
It has sold off with the market and is down 27-28% year-to-date. As a tech company it is more infra-structure and service focused than advertising like Google and Facebook. It is already embedded in millions of companies around the world and allows migration to the cloud.
computer software / processing
COMMENT
It hasn't grown much. Canadian oil and gas companies are growing faster so are preferable.
integrated oils
TOP PICK
It is the 6th largest bank in Canada and smaller than the other five. It is the number one bank in share price appreciation, grows its dividends and has a higher profitability level. It is mostly in Canada and has a good presence in Quebec. There is less competition in Canada than in the U.S. Also there is a higher dividend yield because of the lower valuation and it can buy back more stock. Buy 7, Hold 4, Sell 2. (Analysts’ price target is $104.85)
banks
TOP PICK
Its revenue in 2020 was down over 90% and is down now only 9%. It is oversold and back at the 2020 price but doing much better than 2020. It is also de-leveraging. There is tight capacity as well as pent-up demand for the airline industry. Buy 12, Hold 5, Sell 0. (Analysts’ price target is $29.13)
Transportation
TOP PICK
Natural gas is at a 14 year high and oil is at an 8 year high while ESI is only at 3 1/2 year high. There is going to be demand for oil and gas for years to come and drillers will be beneficiaries. It is over-leveraged but has greater upside over other drillers when things work out. Also Murray Edwards owns 20% and his access to capital is pretty sufficient. Buy 7, Hold 2 Sell 0 (Analysts’ price target is $6.00)
oil / gas