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Very volatile and cyclical, which she tends not to invest in. In a downturn, these companies can really lose money. Not a long-term growth company. Recent pop may be anticipation of US rate cuts benefiting home sales. Secular housing shortage in both Canada and US.

A very hot sector right now. Tech companies building data centres are entering long-term contracts for power. This technology is still relatively new; nothing online yet in NA, only 1 in China and 1 in Russia. At least 5-10 years before production comes on.

BEP.UN has Westinghouse, which services the nuclear industry. That's her exposure. Stocks have had such a huge run, a lot of expectations are built in, so this is not the time to chase. 

Fears that alternative assets would suffer with higher rates have not materialized. Large, global scale, good at fundraising, very good track record of performance. Has done well, but no need to sell. Alternative assets are a growing market.

Nice run, but still likes it. Quarterly results very strong. Company's seeing softness on the Canadian side. Very strong growth in the US. Opening new stores; upping marketing spend to facilitate that, and some investors didn't approve so stock pulled back. Long-term growth profile in place. Areas of growth further out include beyond NA and e-commerce.

Good products, good reputation. Good long-term investment in the medical device area. If you own it, keep holding. Her exposure to the space is via ABT and JNJ.

Dividend is attractive and sustainable, likely to be increased every year. Now just natural gas after spinning off oil pipelines. Cashflows are pretty defensible.

Based in Winnipeg, yet 90% of business comes from US. Pulled back, though always priced at a premium, so valuation is not strikingly attractive. Seeing less traffic due to mild weather and a weaker economy. Needs to renegotiate insurance contracts for increased labour costs. Providing more in-house services, which requires more up-front investment. On her radar.

Attractive entry point. Defensive and recurring revenue stream, as contracts tend to be quite long-term. Half IT outsourcing, and half consulting. Consulting has slowed due to macro uncertainty, but some of that's probably stabilized and we should start seeing growth. No dividend.

HQ in Montreal, but Canada accounts for only 15-20% of its business. US and UK each account for about 1/3. Very global. Very disciplined acquirers. Balance sheet strong, generates free cashflow. Organic growth should start to improve, and so M&A will swing to the upside as well.

Largest industrial gas company in the world, estimated 30% market share. Competitive advantage is density of network and proximity to customers. Long-term, take-or-pay contracts, a guaranteed return. Supplies the healthcare, semiconductor, and green energy industries. 

Should do well in any sort of economic environment. Tends to grow earnings even in a recession. Well managed. She expects earnings to grow in range of 10%. Yield is 1.1%.

At the bottom of the Mag 7 on price appreciation, up only 11% this year. Stock's done nothing since last reporting in July. Growth of cloud computing was at low end of expectations, and guidance was also slightly lower. No one likes a company that trades at 30x PE to miss consensus expectations. Company sees growth picking up in back half of next year. Capital spending increased 25% this year as they build out data centres for AI; slated to increase again next year. Being put in penalty box until they can show profitable growth. 

A core tech name. Recurring revenue. If growth doesn't materialize, the market will demand that it cut back. It just means they'll have more cashflow from its high operating margins. Strong balance sheet. Good entry point. Yield is 0.8%.

A bit of revenue on the miss side, a bit better on EPS though mixed among sectors. The next 2 weeks are pretty key. The US election is 15 days away, and the bulk of the S&P reports in the next 2 weeks. For more, see today's Educational Segment.

If you look at what's priced into the swaps market, virtual certainty on a 50 bps cut. The way the CAD is trading, you'd argue that there's a bit more weakness to go. Not great for the snowbirds looking to buy USD to go south, as the CAD doesn't go a long way in buying US dollars.

A 75 bps cut is a discussion point. But how fast do they need to cut, and is inflation under control? In the US, that economy has proven to be a lot more resilient and robust than here in Canada. On a relative basis, you could argue for more easing in Canada. But if the Fed is going to slow down, and the BOC is going to accelerate, then the CAD has a date with $1.40-1.45, as the currency is where the interest rate differential really manifests. So he'd be surprised by 75.

It's never "completely different this time", history rhymes. We will mean-revert at some point, some crisis. The last one was Covid, which was a shock; we mean-reverted, and it lasted a few weeks until they threw money at it. To think that that's always going to happen is probably a truth to count on, except that every time fiscal/debt/deficit all get a little bit worse.

So it's not different this time, but fixing things by throwing $$ at the problem has always seemed to work. When does a mean-reversion happen, and how long does it stay? Will we go through a period of really undervalued markets? For that to happen, we'd need inflation to be sticky. That puts the cost of money higher and takes all the leverage out of the system. Not unlike what we started to see in 2022, when the Fed was raising rates. We found out that the Fed had to pivot and cut rates, and inflation didn't come back under control.

If we were to see persistent inflation, that's when valuations would have to get cut and cut on a more permanent basis. That's more the debate, rather than all these financial ratios. For example, you could argue that, because technology is so much a bigger part of the market, it deserves a higher multiple than we've seen historically.

Difference between today and the dot.com bubble is that the vast majority of companies back then didn't have the revenues or growth that the leaders today have to drive markets with real earnings. There are things that are very different today from past cycles. Doesn't mean we shouldn't look at any of those metrics, but they're almost impossible to time as a way to think about your portfolio.

Doesn't use it himself. It should use similar strategies as ZMMK, but he'd have to do some research on it. Does deliver a slightly higher return than ZMMK. Stay tuned to X, and he will send out something when he knows more. 

He sees about $3 EPS, which at $46 per share, comes to a bit over 15x trailing PE. Looking forward, earnings growth isn't going to be very good. Is it worth the value it's trading at today? For the dividend, yes, as long as they can maintain it. Not a growth company, so should trade at a lower multiple than the market. You could make the argument that it should trade where the banks do, around 12-13x. They'd be equivalents, so it's pretty much around fair value at this point.

But the discussion point right now is that if they're borrowing money to pay the dividend, then at some point, a dividend cut is likely. For a long-term dividend payer in Canada, that's the challenge right now.