Latest Stock Buy or Sell?
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Today, Paul Gardner, CFA commented about whether BA-T, BB-T, MFC-T, BMO-T, TD-T, REI.UN-T, COS-T, POT-T, HR.UN-T, RY-T, T-T, BPO-T, GE-N, BEI.UN-T, BCE-T are stocks to buy or sell.

TOP PICK
BCE Inc.
Bell Canada Bonds 4.64% maturing 2016. These bonds are lagging and should trade much more expensive in the next 2 months.
telephone utilities
TOP PICK
Boardwalk REIT
One of the few REITs that reissued guidance that funds from operations (FFO) is solid. Apartment buildings out west won't necessarily hurt you. Great management and they get funding through CMHC. As the interest rate market gets lower, they go lower to so the spreads haven't blown out on them for funding.
property mngmnt / investment
TOP PICK
General Electric
GE Capital Bonds 5.37% maturing in 2037. Usually you don't want to lend to anybody for more than 5 to 7 years but this is extraordinary. Gives you about 383 basis points over long Canada. Rated AAA, the highest bond rating possible. When the world becomes normal, spreads will come right in and you'll get a massive gain.
electrical / electronic
PAST TOP PICK
(A Top Pick Dec 28/07. Down 53%.) Sold out at around $10-$11. Replaced their real estate with unsecured bonds.
property mngmnt / investment
PAST TOP PICK
(A Top Pick Dec 28/07. Down 5%.) GMAC Canada 5.10% maturing April 30,2009. Much better shape than GM US. Thinks he will get paid at maturity.
Unknown
PAST TOP PICK
(A Top Pick Dec 28/07. No change.) National Bank 4.70% maturing Nov 2/2020. Well-capitalized bank.
Unknown
COMMENT
Telus Corp
Disappointing guidance as they lowered wireless growth for Q4 of 08. This put pressure on the stock. Looking at this vs. BCE (BCE-T) he doesn't think BCE could have a strategic plan in place yet. They are more concerned about cutting costs and catching up to the telcos. Telus wireless could be more vulnerable because Vancouver and Calgary are suffering most of the slowdown in commodities and real estate but it is still a stable cash flow business. Both have to spend on GSM technology to compete with Rogers (RCI.B-T).
telephone utilities
COMMENT
Royal Bank
One of the premier banks globally. The whole Canadian banking sector will have headwinds going forward. Still worthwhile to own banks but doesn't think it's going to go anywhere.
banks
COMMENT
Hit hard partially because of the Bow building in Calgary. In this environment, you have to look for the strongest balance sheets. The feeling is that REITs will not be able to grow distributions.
property mngmnt / investment
WEAK BUY
PotashCorp
Hard company to figure out. Problem is what the contracts are being set at and what they are getting paid for on fertilizer. Fertilizer is a very important commodity in that it doubles the yield. Farmers are finding it difficult to get credit to buy. Could go lower.
integrated mines
COMMENT
Canadian Oil Sands
To make oil sands worthwhile you need at least $75 a barrel for oil.
oil / gas
COMMENT
Largest real estate owner in outlet malls. A lot of staples in their property. Funding costs are getting lower. Doesn't expect distributions will grow as much as they expected. This will create some pressure on the stock.
property mngmnt / investment
COMMENT
Toronto Dominion
Thinks it is the best in class in the banking sector. Have a very vibrant retail space and the retail-banking arm is doing quite well. Commerce Bank acquisition is a fantastic franchise in the US and they have immunized as much risk as possible in their mortgage book. Bank is conservative, well run and well capitalized.
banks
COMMENT
Bank of Montreal
Had higher credit provisions with its Harris Bank exposure in the US. As much as he likes Canadian banks, he doesn't think they are going to go anywhere in the near or medium term. He likes a couple of other banks better than this one.
banks
BUY
Manulife Financial
(Market Call Minute.) Cheap at 1.5X Book. Well-capitalized. Ratio is above 225%, which is the standard. Does well on its life insurance side.
insurance