Any credit event or risk of a credit event will trigger a market pull back. It is most applicable when you are evaluating companies with a lot of debt. He gravitates to companies with very strong balance sheets, often debt free. Reasonably bullish on equities. There are risks, but equities are not particularly expensive and interest rates are low.
Problem with any Spanish bank is with the outlook on their economy the prospects are low. Many European banks would have to re-finance through private parties if interest rates increase, unlike Canadian banks.
US banks: are less expensive than Canadian. But the valuation is probably appropriate. Watch out because they raised so much equity there is a possibility of dividend increases this year and that could be a catalyst for stock price increases. Prefers Canadian Banks and thinks everyone should own one.
India vs. China this year: The dominant theme is the efforts to curb inflation in both countries. Both countries have political risks. He doesn’t own their stocks at this point. Would wait for a pull back in those two markets before buying their stocks. If they ‘blow’ the control over their economies, money will move to the Americas and your investments there will benefit.
Benefiting from a two year period when they transitioned from a higher growth to a lower growth that focuses on excellence. They are just starting increased earnings.
Converted from trust. Least risky of today’s picks. 70% market share in Canada. 5.5% dividend with growth on top of it. They will thrive after conversion from a trust. 3D is a huge tail wind for them. Concession sales are doing quite well. Showing opera and NHL playoffs in their theaters.
(Top Pick Jan 26/09, Down 3.11) So big that you never get unambiguously good or bad results – one area will do well while another has trouble. Continues to grow at a good clip. No reason it could not double in next 2-3 years.
Largest bank in Brazil. Well run organization with strong balance sheet. Descent entry price. Dividend yield is relatively low. Deposit base and loan book are growing at 16% per year instead of our 5%. Risk is deterioration in the economy. One of the best managed banks in the emerging markets.