Today, Alexander MacDonald and Jim Cramer - Mad Money commented about whether BABA-N, MAIN-N, AMAT-Q, ALB-N, SN-N, O-N, SWK-N, FERG-N, BLDR-Q, WY-N, CLF-N, ULTA-Q, INTC-Q, CMG-N, BIP-N, DIS-N, MCD-N, T-N, QCOM-Q, NTR-T, CAE-T, CP-T, ENB-T, ABNB-Q, BA-N, EQB-T, TD-T, BN-T, CB-N, ATRL-T, BNS-T, AQN-T, CU-T, GOOG-Q, TOU-T, CNQ-T, BRK.B-N are stocks to buy or sell.
It has been in the headlines a lot and deliveries have been an issue for both Boeing and Airbus. It is hugely capital intensive and this is not their way to play aerospace. He prefers RTX, formerly Raytheon, which makes parts. More are needed for older airplanes since deliveries of new ones are a challenge these days.
This is another example of an oligarchy. He holds CN and not CP because its price is elevated compared to CN. There are some issues lately with labour for both railways. However railways are a good long term holding since we need them to move products across North America and they are cheaper than trucking.
The wireline business is more difficult to build out and AT&T has a big presence in that area in the U.S He prefers Canada over the U.S. which is more competitive. He prefers BCE which already has a large wireline footprint and can bundle it with wireless. BCE raised its dividend by 3% a while ago and he has concerns over the payout ratio being more than 100%. However he thinks the dividend is sustainable.
He added at $250 a month ago. With inflation the lower income population shifted more to eating at home and away from fast food restaurants. McDonalds is now moving to more value priced deals and encouraging people to shift to digital offerings, apps, to increase the use of a loyalty program. McDonalds has a unique business model in that it owns the land that the franchises sit on. 40% of its revenue comes from rent from the franchises. Buy 28 Hold 13 Sell 0
(Analysts’ price target is $295.39)The parks business didn't live up to expectations with the lower income consumer in the U.S. not visiting as much as in the past. However the streaming business turned profitable in the last quarter. The CEO is shifting to quality over quantity in the streaming business. Hopefully there will be fewer hurdles going forward. Buy 33 Hold 10 Sell 1
(Analysts’ price target is $110.18)It is in their income portfolio. Data Centre future projects are up 15% a year and it has been successful at raising capital over the long term. The infrastructure business is a big growth area for them and lower interest rates are good for accelerating this type of project. The long term target ROC is 12 to 15% but lately it has been exceeding that with a 15 to 18% ROC. Pays a 5.5% dividend. Buy 10 Hold 2 Sell 0
(Analysts’ price target is $38.08)
There was some overhang a year ago because of some office real estate holdings. However Brookfield's office holdings have quality tenants who are not leaving. It has great assets and has diversified into renewables and infrastructure.