Today, John O'Connell, CFA commented about whether BIP.UN-T, CNQ-T, META-Q, MSFT-Q, V-N, T-T, BAM.A-T, COST-Q, QSR-T, SU-T, ACN-N, RTX-N, FDX-N, BRK.A-N, BCE-T, BDK-N, KEL-T, RY-T, DIS-N, BABA-N are stocks to buy or sell.
Among the Canadians, RY, TD and NB are trading at small premiums to book value. These are solid choices with decent loan books. Canadian consumers have heavy debt and that is a problem, and this risk will rise as this slowdown continues. Can the banks long-term sustain their dividends? The banks are allowing customers to defer some payments, though, so they are "team players" but long-term there is a concern.
(A Top Pick May 13/19, Down 34%) They just completed the UTX merger. It's struggling a little, but its defence business will support the dividend. Management has always been highly regarded. The Boeing Max problems don't help. He will hold onto this and remains confident. The stock price reflects current problems, but positive surprises and the good management will deliver satisfactory revenues.
BAM vs. BIP For income, buy BIP; for capital appreciation, BAM. Both are well-run. BAM is the parent company and is one of the biggest asset managers in the world. BAM is solid and will be hunting for properties in this pullback; they are skilled investors. It's trading at a discount to NAV which means some downside protection It's a little difficult to understand all of BAM's moving parts and its reliance on various financing vehicles. (BPY is struggling, but will be a drag on BAM.) BIP and BAM will be fine long-term.