Summary BIP adheres to BAM’s 5 core principles and employs a capital recycling program in which it rotates its investment from mature assets with lower IRR potential to new opportunities in which it can generate superior returns. BIP’s capital allocation model has three priorities of which the 3rd is to distribute ~60 – 65% of [...]
Summary The BAM group of companies held their Investor Day on September 26th. BPY, the real estate arm within the BAM group of companies, operates and develops one of the largest portfolios of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage, student housing and manufactured housing assets. What sets BPY apart from most members [...]
Summary After the market closed on September 25th, NKE reported Q1 FY2019 results and its share price pulled back ~4% in afterhours trading. The share price rebounded to close down only 1.25% on September 26th. The Federal Reserve increased rates 25 basis points on September 26th and a further increase is anticipated in December. If [...]
Summary Korn/Ferry released Q1 results on September 6 and reported a loss of $0.70/share. This included a one-time $106.6 million trade name write-off which management had communicated in June 2018. Other than the one-time write-off, results were positive and I view the price plunge has having brought shares into fair value territory. I view KFY [...]
Summary Thermo Fisher has a dominant position in the Medical Laboratories and Research segment of the healthcare industry with annual revenues of ~$23B. It has an industry-leading presence in high-growth / emerging markets; ~21% of its annual revenue is derived from these markets. There is the possibility that the Chinese government could ramp up their [...]
Summary A comparison of the 5, 10, 15, and 20 year returns for the Big 5 Canadian banks shows a clear winner. The banks which have had significant US exposure for several years have fared much better than those which do not or which have only recently entered the US market. Despite the various headwinds/uncertainties [...]
Summary Constellation Brands is awaiting regulatory approvals to increase its ownership in Canopy Growth to 38% from ~10% in an effort to capitalize on opportunities in the cannabis industry. The cannabis industry is Canada is undergoing a significant transformation and other major liquor companies are / will enter this space. I am reluctant to invest [...]
Summary HRL is transitioning from low margin commodity related businesses to higher margin branded value added products. Brands with a long history in North American markets are being well received in international markets. HRL is one of a handful of companies which has increased its dividend for 50+ consecutive years. The dividend yield is low [...]
Summary This high quality Canadian insurance company has grown successfully through multiple acquisitions and is now one of Canada’s largest P&C insurance companies (~17% market share). Growth opportunities in Canada are limited in that the top 5 P&C insurers in Canada have a 48% market share. In 2017, it expanded into the US market but [...]
Summary Cisco has shifted to more of a software and subscription-based offerings is resulting in more revenue predictability. It has an extremely strong balance sheet and generates significant FCF on an annual basis. An investment in Cisco offers investors the opportunity to have exposure to the technology sector without having to assume the potential of [...]
