Summary BK is one of the 10 largest asset managers in the world on the basis of assets under management (AUM). Technology spend is significant in order to remain at the forefront of the industry. This makes it difficult for smaller competitors to compete directly with BK in certain lines of business. BK’s earnings should [...]
Summary Becton Dickinson closed the acquisition of CR Bard on December 29, 2017 thus resulting in projected FY2018 annual revenue of ~$16B versus ~$12B in FY2017. The company’s risk profile has changed dramatically as a result of the debt taken on to acquire CareFusion and CR Bard. Debt is now non-investment grade-speculative and lower medium [...]
Summary Honeywell is a high quality company worthy of holding as a long-term investment even though it does not have an impeccable dividend history. Honeywell will be spinning off two segments of its business before the end of 2018. Studies suggest spin-offs perform well but that investors must stay the course over the long haul [...]
Summary BMO released its Q4 and FY2017 results on December 5, 2017 to mixed reaction from Bay Street analysts. Results were negatively impacted by a $0.112B charge related the hurricanes in the Gulf of Mexico area. BMO has a US presence which needs to be beefed up. “Bolt-on” acquisitions are more likely given that reasonably [...]
Summary TD is akin to some of my grade school classmates who consistently generated B+/A- grades versus my grades which were a different letter of the alphabet. TD shareholders should give thanks to former TD executives who had the foresight to acquire Canada Trust in 2000 and 2 US banks (Banknorth in 2005 and Commerce [...]
Summary BNS recently reported strong FY2017 results which coincided with a recommendation by PAA Research that investors short the Canadian banks. BNS generates 50+% of its revenue from Canada but its international operations are in 4 key countries where the GDP growth outlook is superior to that for Canada and the US. BNS continues to [...]
Summary While CM recently reported solid FY2017 results, its higher exposure to the heavily indebted Canadian consumer relative to its peers does make it more vulnerable to an economic slowdown. PAA Research in the US recently released a report suggesting that CM faces headwinds which will likely result in a 30 – 40% pullback in [...]
Summary RY recently reported solid FY2017 results. It does, however, face headwinds which may result in slower growth in 2018. PAA Research in the US recently released a report suggesting that RY faces headwinds which will likely result in a 30 – 40% pullback in its stock price with the potential for a 50% correction. [...]
Summary HRL recently reported its FY2017 results and also announced its 52nd consecutive increase to its annual dividend. Challenges persist in a couple of HRL’s divisions but its diversified portfolio of products and geographic presence mitigates some of the volatility. Growth by acquisition continues with 2 acquisitions completed subsequent to July 2017 and another expected [...]
Summary SJM recently reported Q2 results reflecting a marginal deterioration in adjusted gross profit margin and adjusted operating income margin relative to Q2 2017. Adjusted EPS revised downward for the second time subsequent to the release of FY adjusted EPS in June 2017 but FCF forecast remains consistent at $0.775B. SJM has a 4 pronged [...]