COMMENT
Canadian banks.

The market doesn't like banks right now. If the economy slows down, what will that do to loan losses? Earnings start tomorrow, might be all right as the economy hasn't rolled over yet. He'd be a bit concerned going forward. He's underweight banks right now. Lower end of valuation range, decent dividends, but earnings growth will be challenged in the short term. His order would be TD, CM, and then BMO.

SELL

Strong production growth. Hasn't seen as much takeover activity in the Mexican market where this one is. Likes the cashflow generation. He took profits.

DON'T BUY
QSR vs. BCE

He'd take BCE in a heartbeat from a safety aspect. Better yield, cheaper valuation, growth is tied to the economy. QSR has done a good job with its divisions, though Tim's has been a challenge. Profits are now being squeezed pretty dramatically. He's nervous on consumer stocks.

WEAK BUY

Dividend safe at this point. Looks like it's getting over mistakes of past like bad acquisitions. Sold ancillary assets. Dreadful stock over a number of years. Not much downside left. Still, he prefers Canadian to US telcos.

COMMENT
US vs. Canadian telcos.

He prefers Canadian to US telcos for better growth, valuations, and yield.

COMMENT
Rotate between MEG and BIR?

Makes sense. MEG is a pure oil play with long-life reserves, and BIR is more levered to natural gas. You're adding a new level of risk to switch back and forth. The risk is you do it at the wrong time and end up losing. The volatility is beautiful on the upside, but kills you on the downside. Instead, buy ARX with decent nat gas, and a light oil play since they bought Seven Generations, and production growth. Then you don't have to make the decisions about moving back and forth. 

COMMENT
Rotate between BIR and MEG?

Makes sense. MEG is a pure oil play with long-life reserves, and BIR is more levered to natural gas. You're adding a new level of risk to switch back and forth. The risk is you do it at the wrong time and end up losing. The volatility is beautiful on the upside, but kills you on the downside. Instead, buy ARX with decent nat gas, and a light oil play since they bought Seven Generations, and production growth. Then you don't have to make the decisions about moving back and forth. 

BUY

Decent nat gas, with a light oil play since they bought Seven Generations, and production growth. Then you don't have to make the decisions about moving back and forth between oil and natural gas.

COMMENT
Renewable power.

None of these businesses are under pressure on the dividends, but it's the valuations. Everybody wants to be in renewables over fossil fuels, and he gets this over the long term. The problem is when renewables were trading at 15-18x operating cashflow, and then suddenly the oil stocks are trading at 3-4x operating cashflow, it's hard to do that shift. Some money has been moving out of renewables and into conventional oil and gas production, strictly on a valuation basis. When the valuation multiples come down, names like RNW, BLX, NPI will come down to 10-11x range, which is cheaper than they were though more expensive than traditional fossil fuels. BEP.UN is probably the most expensive of the group. He likes them for growth and ESG reasons, but hasn't made the switch. He's getting closer to it. Once he did make the switch, BLX and NPI would be the first names on his list.

WATCH

None of the renewable businesses are under pressure on the dividends, but it's the valuations. He likes them for growth and ESG reasons, but hasn't made the switch. Once he did make the switch, BLX would be one of the first names on his list.

WATCH

None of the renewable businesses are under pressure on the dividends, but it's the valuations. He likes them for growth and ESG reasons, but hasn't made the switch. Once he did make the switch, NPI would be one of the first names on his list.

BUY ON WEAKNESS

He's buying. Hard to resist a stock that's trading at 3-3.5x operating cashflow when they're starting to pay down debt, return cash to shareholders, and unwind mistakes of the past decade. Risk is oil prices collapsing, but he's not really worried about that despite a slowdown, as there are still lots of supply issues.

TOP PICK

It's scary when an equity guy comes on with a bond ETF idea. He's more comfortable with the bond market as a safer bet this year. Interest rate impact will feel its way into the economy at some point this year. Rates will stay higher for longer, but the curve inverts a bit more, and a rally at the longer end of the curve will benefit the bond market. In a weaker environment, that will help. Very safe, very liquid. Great hedge to your portfolio.

TOP PICK

USD weakening, especially if interest rates peak, should benefit gold. Gold stocks are trading at multi-decade lows. The ETF avoids taking on geopolitical or individual mining risk. There's more growth here than in the larger players, plus more potential for takeout activity.

TOP PICK

Found new religion in terms of paying down debt. Better growth assets and more light oil assets. Returning money to shareholders. Growth, low valuation, leveraged to oil, more shareholder friendly. No dividend.

(Analysts’ price target is $8.32)