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Today, Norman Levine commented about whether OSB-T, HON-N, TD-T, BCE-T, COST-Q, GRC-N, BMO-T, OTEX-T, RET.A-T, BBT-N, ENB-T, ATRL-T, CNR-T, V-N, CVE-T, CSW.A-T, MSI-T, CGX-T, KNEBV-HEL, RECP-T, ARX-T are stocks to buy or sell.

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A Comment -- General Comments From an Expert

Market. The TSX hitting a high is a relative thing compared to the rest of the world. Weed stocks are not stocks he has invested in for his clients because it is a business that is in its infancy in Canada. No one knows what it will look like in 2, 5 or 10 years. He does not know who the survivors will be, the winners, etc. Lots of money managers have not invested in these stocks. Most companies are getting in the beginning into the medical marijuana business. It is not based on science like regular drugs. There is not a good substitute to use as a bind placebo. You don’t know how much of the product will come from private grow-ops where it is not taxed.

Unknown
PAST TOP PICK
Arc Resources Ltd

(A Top Pick Feb 10/17, Down 26%) He tax loss sold it and then bought it back yesterday. It is a good energy company with an excellent balance sheet and excellent properties. No one cared about energy this year and it was out of favour. Canadian Natural Gas prices were quite poor this year. The worst is behind it, however.

oil / gas
PAST TOP PICK

(A Top Pick Feb 10/17, Up 2%) It got hurt because same store sales had gone down. They have been refreshing some of their older restaurants. It is excellent value here.

food services
PAST TOP PICK

(A Top Pick Feb 10/17, Up 15%) New construction and maintenance of elevators and escalators. New construction has largely been in Asia but Maintenance is very profitable. He continues to like it.

INDUSTRIAL PRODUCTS
DON'T BUY
Cineplex Inc

His problem with it is that they have no control over their product. It will take time for them to diversify away from movies. He has a problem dealing with machines to go see a movie. He needs a human interaction. He thinks it may come back to bite them at some point. If you think it will be a great Hollywood season then you might want to buy it.

other services
BUY
Morneau Shepell Inc

It has been a favourite for him for some time. He bought it for income but it is providing some growth as well. They are overdue to raise their dividend but they are using their cash to grow. He does not mind that. He is buying for new clients. It’s a little rich but he is still buying it because there are some onetime items and the PE ratio is not too bad.

Business Services
WATCH

He has been watching it. It is Canadian. It is confined to the Canadian market and so not participating as much. It is a worldwide company.

breweries / beverages
DON'T BUY
Cenovus Energy

When they made their big acquisition he wondered what they were doing. They destroyed their balance sheet. It’s becoming a show me stock. There are better quality names to choose from.

oil / gas
DON'T BUY
Visa Inc.

He does not own this or MA-N. They have been a play on consumer spending around the world and have done well. These are not value stocks and he is a value investor. It is a growth investment.

other services
BUY

He likes the railways. This is the one he owns. It is a direct play on the economy.

Transportation
TOP PICK

One of the largest engineering and construction companies in the world. Its history is construction with engineering being a part of it. There is less construction cost overrun risk to it. There will be some headline risk due to their having to pay a fine in the future on old news. There are lots of infrastructure projects on the horizon. (Analysts’ target: $69.00).

contractors
TOP PICK
Enbridge

People love to hate it. The biggest pipeline company in North America. Most of its distribution had been oil but an auction this year made it bigger in Gas. They are selling some assets they bought to bring down the debt. Line 3 is in bad need for replacement into the US and if that goes ahead it will be good for the stock. (Analysts’ target: $60.00).

oil / gas pipelines
TOP PICK
BB&T Corp.

A consumer bank making money both in spread and on loan growth. It will benefit from US tax law changes.

Financial Services
RISKY

A large mall based women’s apparel retailer. It is a well run company but they had to endure a band environment as a retailer. They carry a lot of cash in investments and it serves as downside protection. If you think you saw the worst in retail investing then it may be a speculative buy.

clothing stores
BUY
Open Text

A software stock that had been left behind because of a couple of acquisitions. It is up nicely today because of a surprise announcement that it will be added to the TSX-60 index. Historically these stocks go up a couple more percent and stay there after being added to the TSX-60.

computer software / processing