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The Canadian election results were not surprising, given the polls, so the TSX isn't reacting much today. Trump will announce changes to car tariffs today: well, Trump changes everyday and he puts little faith in what Trump says. His bark is bigger than his bite--he will keep backtracking, because business leader, bond traders and former business partners will keep pushing back. No one but his own administration agrees with this trade war. He's done lasting damage to relationships and economies, but mostly to the US itself. He's created animosity towards the US with his hostile words and tariff threats, and other countries have retaliated with tariffs, boycotting US products, cancelling travel plans while big investors are selling US stocks and bonds. It's immeasurable the damage he's caused on the US as a global leader in politics, economics and the social sphere. Former allies are already seeking other trading partners. You can't trust anything Trump says. Canada: A Liberal minority is good, because it will force the Liberals to come much closer to the centre and find unity with all Canada and void polarisation that has hurt America. All Canadian parties and provinces will work together to strengthen Canada, like removing interprovincial barriers and approve projects faster. We have the right man to head the country (Carney) with his experience--the right guy at the right time, and Canada voted for the person, not the party.
A wonderful performer in recent years. Not just the TSX, but they have businesses around the world like trading platforms and economic data/analytics, based on subscriptions, so lots of recurring revenues. Their results may move a little due to trading volumes and new listings, but TMX is so diversified that enjoy recurring high margins. The stock has been on a tear, and not cheap now. One of the best companies in Canada.
Canadian wine has big tailwinds, including Premier Ford's cash rebate that began last year which is putting cash into Ontario wineries. Also, retail outlets in Ontario are opening up. Volumes are surging. The Buy Canadian movement has a lesser impact. Removing interprovincial barriers will help. Many tailwinds now and this will raise DWS profits. One day, DWS will be privatized.
Notoriously volatile. BYL has had a rough ride in recent years, but has fixed their balance sheet after selling their money-losing mobile business based in Korea. Are now focused on embedded antennas, infrastructure and satcom. They just announced a big stadium deal in South American for their wireless antennas, in which they are world leaders. Margins are increasing and the outlook is good. Expects them to be bought out in the next few years.
They dominate US market share in electronic toll roads, and lead in weight-in-motion in trucks. This space is getting more technology driven. They had low-margin contracts a few years ago, but those are turning around, so we will see wider margins. Recent quarters are guiding towards that under new management. They have bought back shares. Is a good time to buy.
An excellent tech company, one of the few tech stocks up this year because their products are in demand now. Margins are already improving. Will announce a new CEO soon which will be another catalyst. They have the best technology but sales execution was weak, but they can fix this. Is a takeover target in coming years. Volatile, though. It moves a lot. He buys below $160-170.
It got very overvalued during the pandemic hype, but this has since normalized. However, systems sales are still growing as they open 40-45 new stores annually. The market remains underserved outside cities. A cap-lite model, generating 22% EBITDA margins, and over 20% ROIC. Strong free cash flow. A great time to buy at 16x PE. Is recession-proof. Likely a takeover candidate.
At the time, there were huge announcements coming, and there was a huge order backlog. Is the only pure-play space tech stock in the world. The space economy is booming and they are perfectly positioned. Are famous for their robotics (Canadarm). The backlog has jumped from $3 billion to $5 billion, and recently raised guidance by 40% revenue and EBITDA growth. Trades at a discount to its US peers.
Canada's leading renewable energy company. Are strong in Quebec, US and France in wind, but solar and energy storage are growing. Recommended it because all utilities were beaten down. It hit $36 before Trump was elected. However, energy demand is increasing. BLX has fine free cash flow generation and a pipeline that will double capacity in coming years. Revenues and EBITDA will jump 25% this year. Trading at historically low valuations.
It was a darling, a great business years ago that generated tons of free cash flow. He once owned it. Then, it was supposed to be bought, but bad luck saw Covid hit and the deal died. Great management and still a good business that generates cash, but times have changed--there are many streaming services. They are paying down debt, which is a little high.
Can't tell what the impact of a trade war will be; they receive a lot of Asian goods. Also, this is consumer-dependent which is a risk. They are selling Helly Hanson at a profit and will reinvest funds in tech. They're buying back shares. Not a bad business and are profitable, but will never have a high PE, currently in their historic range. More of a trade, not a long-term buy.
Buy at this level or definitely hold on. He owns Quebecor and this. Like this. Well-managed. They were early investing in their infrastructure, and that capex cycle is coming down. This generate lots of free cash flow to increase their dividend each year (unlike BCE or Rogers). Telus has undervalued assets including in the health space, tech and real estate; can monetize these. Pays a great yield.
