Today, Andrew Pyle commented about whether MSFT-NE, MCDS-NE, XHAK-T, DOL-T, DG-N, CCL-N, EMA-T, SPB-T, BIR-T, BYD-T, QSR-T, BCE-T, BEP.UN-T, PFE-N, AND-T, RCI.B-T, MRU-T, ARMH-OTC, AQN-T, TOU-T, CNQ-T, CRR.UN-T, LNR-T, TRP-T, ENB-T, CU-T, UBER-N, CPX-T, NPI-T, NVDA-Q are stocks to buy or sell.
Rough waters, has not been an easy hold. Pressured by interest rates, dividend cut. A lot of negatives baked into the price. He looks at it from time to time for his clean energy portfolio, but isn't quite there yet. More interesting at these lower valuations. Doesn't consider takeover potential as a rationale for long-term investing.
Future is good. It and other telcos have been a painful hold this year. Most buy it for the extremely strong dividend, and that's sound. Rough waters, but we're coming out of it. Competition aspects that have dragged down telcos are coming to an end. Medium-term outlook still positive. He's been adding exposure on weakness.
Large cap, blue chip. Strong balance sheet with strong penetration in the market. Though no dividend is 100% guaranteed "safe", he wouldn't stay up at night worrying about this one.
Have to be careful in the discretionary space. Canada has had rate cuts and will have more by year's end, and the question is have we caught it soon enough to prevent demand decay in the consumer space. If we haven't, consumer discretionary is going to be pressured.
In the case of a MCD or QSR, we shouldn't see that same sensitivity to economic growth. He's not saying we're in the all-clear, but if we do get rate cuts to the extent that the market thinks we are, those recessionary or negative growth fears start to wane. Which means we can look at the consumer space a bit more positively.
With rates moving lower, we should be looking at utilities in general. In terms of LNG demand strengthening over time, he likes names like ENB and TRP. They're large, with sustainable dividend growth.