BUY
Long-term hold for teenager's TFSA?

Good idea. Together, CP and CNR have a duopoloy within Canada plus operations in the US. Rails have not performed that well this past year. Company guiding to high-single to double-digit topline growth. Tariffs won't impact directly, but risk is that economic slowdown would affect volumes. Trading ~18x forward PE, and wide discount to CP.

HOLD
Rails long-term for teenager's TFSA?

Good idea. She owns CNR. Together, CP and CNR have a duopoloy within Canada plus operations in the US. Rails have not performed that well this past year. Tariffs won't impact directly, but risk is that economic slowdown would affect volumes. CNR trades ~18x forward PE, and wide discount to CP, so she'd pick CNR.

SELL
Sell, and switch to PPL?

She doesn't own any producers, and she owns PPL, so she likes that idea.

BUY

Energy infrastructure names provide good income flow. Less influenced by direction of commodity prices. Long-term contracts. Well positioned to benefit from increased nat gas production. Defensive. Yield is just under 6%; dividend increased consistently, and that should continue.

BUY ON WEAKNESS

Good growth in Asia. Asset management becoming a more important part of the business for all lifecos. Probably trading at higher end of historical levels. More room to go. Solid holding as long as it continues to execute. Yield is relatively attractive, increases over time.

COMMENT
HQ moving to US.

Indicated a move of head office to US, but doesn't have to do with tariffs. They're global, yet Canada provides only a small percentage of earnings. Management believes a move would encourage more US-based indices to include it, thereby broadening its potential shareholder base.

COMMENT
HQ relocating to US.

70% of revenue base is located outside Canada, so makes some sense. As well, once you become a US company you're no longer subject to Trump's tariffs. Not great for corporate Canada.

COMMENT
US money-centre banks' pullback today foretelling recession?

Could be just because they've done so well. Valuations are stretched to the higher end. Might also be uncertainty as to impact of tariffs. She read an article about some companies waiting for IPOs, as they're unsure how receptive capital markets will be. One-year returns are up 40-50+%. Nice rally post-election on promises of less regulation. 

HOLD

With the money laundering scandal, she trimmed. Still has US operations, so will benefit from capital markets activity. Can focus on its Canadian operations. Kept it because of its very attractive valuation and yield. Can still grow in other areas; US retail represents only 25% of earnings. Very strong balance sheet, can use it to buy back stock.

WATCH

On her watchlist. Have to have a very long-term view on uranium to buy this name. Long-term contracts, which don't reflect uranium spot price. Nuclear resurgence, positive on the sector. Price still ahead of itself. She has indirect exposure through BIP.UN, which co-owns Westinghouse with CCO.

SELL
Price almost down to purchase price; hold for the dividend?

The Firefly acquisition made her sell the whole position; US market is very competitive, plus this will require capex. Balance sheet very levered. Yield is over 12%; market anticipates a dividend cut, and wants them to so they can move on. Dividend under ongoing review by the board. Any cut might see further drop in the stock, and you can reassess the company and its valuation at that time. 

Better income stocks to own out there. When you buy for income, you want good coverage, visibility, and increases. This name doesn't provide any of that.

PAST TOP PICK
(A Top Pick Jan 22/24, Up 63%)

US economy did better last year than expected. Waiting for a pullback to add new client money. Best-in-class US bank. Very strong balance sheet and management team.

PAST TOP PICK
(A Top Pick Jan 22/24, Up 49%)

Stock uplift partially due to engine defect costs being on track. Defense segment benefiting from geopolitical tensions and improving Covid-era supply issues. Record backlog. She'd buy here.

PAST TOP PICK
(A Top Pick Jan 22/24, Up 33%)

Canadian-based, but less than 20% of revenue from Canada. Attractive and achievable 3-year targets to grow margins, earnings, revenue base, and free cashflow. Strong demand for services. Not exposed to tariffs. Very strong balance sheet to take advantage of M&A opportunities. She'd buy here.

HOLD

New CEO refocusing on domestic operations and on growing deposit base as a source of funding. Will take time, but doable. Attractive valuation, in lower range amongst peers. Nice dividend.

Better to not hold only 1 bank; also consider RY, which is her favourite.