COMMENT

He doesn't follow it that well. Although quantum computing is quite far off AI will continue to grow the need for data centres so more energy will be needed. Therefore CEG should do well.

Unspecified

The issue was in the U.S. resulting in a big fine but that is now out of the way. TD now has an opportunity to get rid of businesses not giving a good rate of return and an opportunity to do a better job than other banks. It has more exposure to the retail side. Also volatility helps investment banking. TD is under the microscope.

COMMENT

It is going through a very big re-structuring but he's not sure what they want to do, They have a big franchise in Asia and the UK. They sold the Canadian side of the business to Royal Bank which did well with it.

COMMENT

Nuclear power is a way forward and there is a case for smaller nuclear power plants. He doesn't like cyclical stocks but Cameco is in a bit of a sweet spot. Lots of power will be needed for AI data centres.

Unspecified

He owns Novo but Eli Lilly is a great company in the sweet spot of an obesity drug and other drugs as well. It has done well for the last little while. Manufacturing drugs is not easy and takes lots of time from approval to production. It is a huge franchise and can grow quite a lot.

PAST TOP PICK
(A Top Pick Dec 28/23, Up 31%)

It produces medical devices which is a good business to be in. The aging population needs their products and there is a backlog from Covid. Their products change the quality of life and reduce hospital stays to a couple of days. 71% of its business comes from the U.S. and there is lots of growth internationally.

PAST TOP PICK
(A Top Pick Dec 28/23, Up 35%)

There is lots of growth internationally. The banks take on the risks in using the cards. It has become too big but that can change. The loyalty programs really help in the credit card business but there is a possibility that they may not be used as much in the future.

PAST TOP PICK
(A Top Pick Dec 28/23, Up 53%)

It is a framing business for eye wear. People need more glasses due to so much computer use which can affect the eyes. Also includes frames for fashionable sunglasses etc. There is lots of growth.

BUY

He has owned it for a long time. There is a lot of overhang on the stock due to the attempt to buy the Seven Eleven chain. Investors wonder what happens next since it didn't go through. It is incredibly well run and rationalizes their acquisitions. It is ahead of the curve in several ways.

Unspecified

He owns both this and Manulife. Rates going up have helped a lot. They are working on improving the U.S. side which wasn't going well. The Canadian side is doing well.

BUY

He has owned this for a long time. The issue is partly AI and worries about how it can use AI effectively. Also its $80 billion in capital expenditures. This can hurt margins and free cash flow but Capex is coming down. It is big on the institutional side and we should see the value of that next year.

BUY

It has been a very good year so far but people are worried about tariffs and unpredictability. However pipelines are safer with regard to tariffs. Pipelines find it difficult to do business in Canada with limited growth due to regulations but they do better in the U.S.

BUY

Its main business is a great one and they have sold off their non-core assets. At 23X earnings it trades at a premium to the sector. The buying of the Kansas City line gives them a franchise from Canada to Mexico. It is good to buy for the long term as well as CN Rail.

TOP PICK

It is the largest player in the search business and has several other businesses such as YouTube and a self-driving division. In digital advertising it has 30% of a $400 billion market which is continually growing. Its monetization of advertising doesn't get enough credit. It is a big spender on the cloud and AI. It has tons of free cash flow and no debt giving it one of the best balance sheets in the world. It is trading at 20X which is less than the market, is undervalued, and can continue to grow in the double digits for the next several years.       Buy 19  Hold 1  Sell 0

(Analysts’ price target is $221.75)
TOP PICK

It is the largest player in obesity drugs which includes Ozempic. A large percentage of the population in North America are overweight and this condition causes chronic diseases. Therefore obesity drugs help to bring down costs to treat these chronic diseases. The stock price  has fallen because of an over-reaction to an announcement. It is a great franchise and has other businesses. The NOVO foundation owns the majority of shares and can't be taken over.         Buy 7  Hold 4  Sell 1

(Analysts’ price target is $110.23)