COMMENT
US vs. Canadian banks. He's not rushing to buy the Canadian banks, he's underweight. There's not a lot of short-term recovery, as tailwinds of the last 2 years are going to disappear. Risk to earnings growth, mainly because slowing economy and capital markets will increase loan loss provisions. Dividends are still safe. He favours BNS and CM in Canada. He's leaning more toward the US banks like C, JPM, and non-bank financials like AXP.
Unknown
HOLD
The highs we saw in May might end up being the highs of the cycle. Cheap now. Generating gobs of cash and giving it to shareholders. Not a long-term growth position at this point. He hasn't added to the sector since mid-June.
oil / gas
HOLD
On his radar, as it's off 75% from the peak. Likes the business long term. Lots of cost issues on currency, components, and demand. Bounced on earnings, still troubles ahead. Fundamentals from its days of trading high are probably still intact.
Automotive
PAST TOP PICK
(A Top Pick Aug 23/21, Down 19%) Slowdown in the auto sector went on longer. Still likes it and the valuation, added recently. Last quarter wasn't bad. Chip shortage is easing.
metal fabricators
PAST TOP PICK
(A Top Pick Aug 23/21, Down 45%) Better than 20% annual cashflow growth over the next 4 years. Sector has fallen out of favour. Not well followed. Tax-loss selling. In prime position for space travel. Good balance sheet. Likes prospects.
electrical / electronic
PAST TOP PICK
(A Top Pick Aug 23/21, Up 120%) The only thing that's worked this past year has been energy. VII Generations acquisition was well timed. Go-to player in nat gas and light oil. Getting later in the cycle, still a decent play. Generating great cash.
oil / gas
WEAK BUY
CCO vs. NXE He'd lean towards CCO, go-to name, largest producer in the world. The large players attract more international interest. NXE is a small cap, it may not get as much interest, and so the valuation may not get as high. CCO valuation is a bit extended. Outlook for uranium is positive. He'd look at the Sprott U.UN, which is a direct play on uranium prices, rather than the producers.
integrated mines