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It has recently come off with plans to expand in Calgary so there are cost headwinds to 2027. Valuation is quite high. It is expanding in other countries, eg. Latin America, so there is good growth ahead.
The question also included his cash position. They are fully invested but will probably take some profits in January.
The question was on what sectors to look at in 2025 as well as stocks to consider. You have to be wary of a correction after the big run-up. In a down year stocks that often do the best are the ones that were already lagging. He is looking for companies that have not performed this year. He isn't picking a sector - all sectors have had a decent lift. Look at it company by company and their special situations.
A lot rides on the sustainability of the dividend. 10 1/2% is very attractive for a blue chip Canadian company and should support the stock, but there is downside if they cut the dividend. Interest rate cuts should also help. The P/E's of Canadian telecom companies are higher than around the world and there are higher payout ratios.
It should have done better since it beat expectations and raised guidance. Next year's expectations are not in the double digit range. Earnings are 6 to 6 1/2 X which make it attractive to hold or buy. He has reduced their holdings from overweight to neutral weight. They plan to introduce a share buyback.
The total return includes a big dividend. It has rallied on interest rate cuts and has also benefited from the euphoria around data centres which consume a lot of power. The main source of immediate energy needs over the next ten years is natural gas since nuclear and renewables will take time to build out.
It has taken one step forward and two steps backward for some time. The insurance business and pharmacy stores are holding it back. Only 75% of its stores are profitable. There are offers from Walmart and others to provide same day delivery services and this takes business away from CVS.
It has been doing well and growing rides by 20% for the last six quarters. With car ownership, especially new cars, becoming more unaffordable as well well as traffic trends and parking expenses, it is almost better to take an Uber. They are keeping their prices constant. Valuation is a little high so consider it in a market pullback. They are looking closely at it.