Today, Jordan Zinberg and Jordan Zinberg commented about whether SHLE-T, MEQ-T, GSY-T, DCM-T, TCL.A-T, QIPT-X, CVX-X, TFII-T, MTL-T, SIS-T, EQB-T, ARE-T, PNP-T, RCI.B-T, PRL-T, FAR-T, PAY-T, XX-X, STC-T, TSU-T, LMN-X, HBFG-CSE, ZDC-X, AFN-T, BDT-T, E-T, MCB-T are stocks to buy or sell.
Nice thing about Canadian market structure is that it's an oligopoly with essentially 3 big players -- RCI.B, Telus, and BCE -- and they all compete for market share. Smaller names have not been able to erode market share from the big 3. These names are good for letting you sleep at night.
Lots of technical change happening such as how phones are being used by the younger generation. If you want to get more into the technology side of telecom, there are more interesting places to go than just those big players. For instance, STC for more growth.
Tariffs shouldn't have any impact at all on this domestic lender. Raises $$ in the GIC market and lends it out. Very high quality. He has other first choices, but if he was going to own another, this would probably be it. Very steady performer, well run, but ROC at 15% is a bit lower than he likes.
See his Top Picks.
Specialized, more durable concrete. Story makes sense, but the numbers aren't there. Company's been around a long time, but sales haven't grown that much. If the product is revolutionary, why aren't more people using it? Companies with sub-$100M market caps have to be really, really good to justify an investment.
CEO is a really good operator, but stock just doesn't seem to get any love. Numbers have been OK, but not any really great growth. Looks good on EBITDA (due to equipment depreciation), but not on earnings. Takeout rumours always swirl but he won't buy on that basis alone, praying for a takout, if the fundamentals aren't there.
The trend of keeping people out of hospitals sounds good, but he's a numbers guy and it doesn't have the growth he wants.
Current valuation finally lets him present it as a Top Pick idea. Expanding into credit cards. Sold off last year on CEO stepping down, but former (and excellent) CEO is helping in the interim. Balance sheet in great shape. Grows 20% a year, year in and year out. Trades at 7x PE, almost a distressed multiple, great entry point. Yield is 2.7%.
(Analysts’ price target is $235.53)
In a sweet spot right now. Rents are going up quite a bit (12% YOY), as there's no rent control in many western Canadian provinces, yet vacancies are down substantially. Stellar results last quarter. Sold off with rest of REITs, yet it's not a REIT.
Typically trades at a premium to NAV, but today it's at a discount. Extremely well run, haven't raised a dollar of equity in 20 years. Compounded annually at 18% for 20 years. Yield is 1%.
(Analysts’ price target is $226.00)
Biggest position in his fund. Can't say enough positive things about it. Not as cheap as it was, has gone from 3x PE to 10x PE. Growing 30-40% a year. Still likes it.