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We think it has the potential to bounce, and it is now trading at very cheap multiples of 12.6X forward earnings. But, the AI situation is evolving, and it is not quite clear how large the potential disruption to its business could be, but we are seeing a lot of captiulation across software names. We feel if manage executes well here, and software names begin to demonstrate their internal AI tools are creating value, then we feel that it could eventually re-rate. Forward earnings growth is expected to be in the low double-digit range, and analyst estimate trends are mostly flat.
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AGI next reports Feb 18; in the Q3, EPS of 37c beat estimates of 36c; revenue of $462M missed estimates by 7%. EBITDA of $283.5M missed estimates by 7%. Of course, since then the price of gold has soared, and AGI has further earnings leverage. Last week it did release Q4 production numners, which did miss estimates. However, the miss was largely due to a seismic event and weather issues. We would not consider it too serious and the stock decline likely reflects the situation well. We think the stock is interesting and buyable at current levels and would consider a 'more conservative' play for the sector. The company remains debt-free with with more than $200M net cash.
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Even with a 70% (!) YTD gain, memory is proving to be crucical for AI and most companies have sold out production for some time. SNDK still is only at 30X earnings and we think it remains buyable, considering EPS is expected to more than double this year.
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The largest headwind today is geo-political. Trump is now using tariffs as a threat to those who oppose his takeover of Greenland. This is creating volatility in Europe. However he is aware of the markets and the US economy.The Mexican, Canadian and US trade agreement comes up for review in July. It is vital and many corporations want to see it stay. Mark Carney is encouraging infrastructure spending and opening up trade links with countries other than the US, including China. This should stimulate business activity in Canada.

It is a high quality diversified industrial conglomerate. Will spin out the aerospace division. Some of its businesses are short cycle and therefore more economically sensitive. The automation side looks interesting - wait for it to develop. The M&A strategy might be on hold. There is a stock split.

She likes the sector - it is a growing industry and this makes it a great long term hold. They make and sell engines but it is the aftermarket with its service component which gives it recurring and higher margins. Maintenance is lucrative, She has another company in the space but if owned then continue to hold or you could add on a pullback.

It was a top pick two months ago and she has added more since. They are investing a lot of money into their network, building more passes, etc. They are ready for volumes to pick up and there is room for the Canadian economy to do better. It is attractively valued.

It is one of three Canadian banks they own. There have been problems in the past with money laundering but they have sold off some non-core assets and focused on Canada. They are trading now at 14 X and growing earnings at 6%. They're also buying back stock. She has trimmed a bit but still holds and thinks they are well positioned.

The valuation of the Canadian banks are at their high end. but they are solid and offer attractive dividends. National Bank is more Quebec focused but they bought Canadian Western Bank which expands their focus. It still needs to integrate this big acquisition. It is a long term hold for income.

The question was on the debt of the US. and if they're using the right type of stimulus. The debt in GDP in the US is increasing but this is happening all over the world. There is concern longer term but debt provides positive short term stimulus with incentives to business. Watch for the 10 year treasury yields going up and bond yields rising since this would be a headwind for stocks.

The question was about the potential still being there for gold to rise. No one knows where gold is going. It has had a huge run but she wouldn't chase it. Because of its momentum wait for at least a 10% drop before buying. Producers are affected  by the direction in the price of gold. She doesn't own gold in her portfolio.

It over-earned during Covid which was not sustainable. It is trying to make up for lost revenue now. It is a high quality company but needs a near term catalyst. Its pipeline investments will take a while. Dividend yield is attractive. Look for more attractive health care companies with both dividend and growth opportunities.

There were previous concerns over AI affecting its search business but AI has actually been helping its search business. Its latest version of Gemini has had very good reviews. It had a very strong quarter and the cloud business is growing rapidly. Also the ad business is growing in double digits and You Tube is doing very well. She has taken some profits because it is her largest tech holding.

It is a global casualty insurance company. Its premiums more than pay for claims and operating costs. With its premiums it has developed a good portfolio in investment grade bonds and is very profitable. She sees it as a defensive financial stock. It is very good at client servicing.

She really likes it and would add. Although based in Montreal only 15% of revenue comes from Canada. Its business is very global. It has grown organically and though M&A. A couple of acquisitions have grown its power and energy vertical which is good for the demand from data centres. It is now the largest engineering, design and services company in the US. It focuses on engineering and doesn't get into construction.