Michael Sprung Top Picks BNN Market Call – Feburary 21, 2018

TOP PICKS:

Bank of Nova Scotia, BNS-T, Owned by clients and personally, Last Purchase September 16, 2016 $69.85
The Bank of Nova Scotia is the most international of the Canadian banks with branches in the Caribbean, Central and South America. Loan growth in the Latin American markets has been robust. While exposed to Mexico (6% of profits), the future of NAFTA could be of some concern but to date there has not been any apparent deterioration in credit quality. Overall, we anticipate that International and Canadian Banking results will demonstrate positive trends when BNS reports results on February 27. The current yield of 4.1% is attractive as are the relative valuation parameters to its peers.

Michael Sprung’s Top Picks – BNN Market Call, Feb. 21, 2018

BCE Inc., BCE-T, Owned personally and by clients, Last purchase February 13, 2018 $56.24
BCE Inc. is Canada’s largest communications company. The company’s dominant infrastructure build provides some competitive advantage over its primary competitors. However, changes in technology and the competitive landscape will require large ongoing capital outlays. In the wireline business, BCE is leading in its quest to bring fibre to the home that will provide superior internet and related services. The wireless busines remains competitive promotions are expected to continue but BCE retains the largest market share. The media business remains challenging. In the current environment, we antcipate that BCE will more than hold its own position in the competitive landscape and the current yield of 5.1% is attractive given the likelyhood of future dividend increases.

Enbridge Inc., ENB-T, Owned by clients, Last Purchase November 16, 2017 $44.72
Enbridge Inc. is a leading energy generation, distribution and transportation company in the US and Canada. Its pipeline network includes the Canadian Mainline system, regional oil sands pipelines and natural gas pipelines.

The company also owns and operates a regulated natural gas utility and Canada’s largest natural gas distribution company. Additionally, Enbridge generates renewable and alternative energy with 2,000 megawatts of capacity. While rising interest rates and concerns about funding have constrained stock performance recently, free cash flow and an objective of raising the dividend by by 10% annually through 2020 will be reflected in future share performance. Enbridge has a project backlog of $22 billion that will benefit future cash flows. Non-core asset sales of a $3 billion this year and a further $7 billion later will be supportive of their capital plan . The recent pullback in the share price has resulted in a current attractive yield of 6.2%

Outlook:

In the last month, we have witnessed the return of some volatility in the global stock markets. While valuations have corrcted somewhat, They are still above their longer term norms. To date, there have not been any notable downward revisions in global economic growth over 2018. However, ten years is an exceedingly long time for an economic expansion to continue without a slowdown or recession. During any expansion, there are always elements in the economy that accumulate until things come to a breaking point.

All of the same geopolitical concerns stemming from Washington, North Korea, the Middle East and elsewhere remain. NAFTA negotiations drag forward with little progress in eveidence.

All of these factors lead us to continue exercising caution and prudence in the current environment.

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The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Michael Sprung Top Stock Picks Canada on BNN’s Market Call, June 7, 2017

Contrary to the negative views expressed by the media, US investors have continued to embrace the policies of the Trump administration as evidenced by the markets advance. This enthusiasm has been most evident in the larger capitalized companies that would stand to benefit the most from lesser regulation and lower taxes. The Canadian markets have been less robust despite some positive economic indications that the Canadian economy has exhibited some positive growth of late in GDP that has been greater than that of the US. A lot of the Canadian media has caused concerns over the housing situation in Vancouver and Toronto as well as speculating on the uncertainties in renegotiating the NAFTA agreement. The European economies have also exhibited some positive trends despite some political disruptions, as have a number of the Asian economies.

Michael Sprung, Top Picks, Scotiabank, Canadian Natural, Hudbay Minerals

Michael Sprung's Top Picks: Scotiabank, Canadian Natural, Hudbay Minerals

The markets have generally been in an uptrend since the financial crisis ten years ago. Valuations are stretched but positive earnings surprises have kept the trend intact for the time being. It has been a slow, tepid cyclical recovery that is often typical following a financial crisis. A wane in investors' confidence over the Trump administration's ability to deliver its agenda could have a negative impact on current valuations.

Politics and economic cycles are often out of sync. The politics of populism are not as accommodating to the concepts of free trade and globalization that have sown the seeds of the current recovery, yet those very politicians may point to the recovery and take credit where none is due. In fact, they may sow the seeds of the next downturn. However, economic forces tend to prevail over the longer term and investors should be prepared to take advantage of dislocations in the interim.


Top Stock Picks Canada.


Bank of Nova Scotia, BNS-T, Owned personally and by clients. Last purchase Sept. 16, 2016 $69.85

The Bank of Nova Scotia is the most international of the Canadian banks with branches in the Caribbean, Central and South America. In the most recent quarter, record Global Banking and Capital Markets earnings reflected the benefits of management's investments in operational efficiencies and technology over the last few years. BNS has one of the strongest capital bases of the large banks. The stock currently yields 4.0%.

Canadian Natural Resources Ltd., CNQ-T, Owned by clients, Last   Purchase August 26,2015 $25.54

Canadian Natural resources is one of Canada's leading senior producers of oil and gas. CNQ is one of the best managed and best capitalized companies in the energy sector. As such, CNQ has weathered the seismic swings in energy prices and has been in a position to take advantage of opportunities. The recent purchase of a large working interest in the Athabasca Oil Sands Project will decrease the overall production decline rate and add to earnings. The dividend yield is 2.8%.

HudBay Minerals Inc., HBM-T, Owned personally and by clients, Last purchase April 7, 2016 $4.24

HudBay Minerals is one of Canada's leading producers of zinc, copper and precious metals with operations in Canada, Peru and the US. Constancia has made progress addressing some equipment issues. The expected ramp up of base metal production at Lalor with a mine plan for the gold zone resources and permitting later in the year for Rosemont will provide positive catalysts going forward.

You can view this and Michael's past appearences on Market Call here>>

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We believe that clients gain from our focus on the long-term fundamentals and not chasing short-term trends. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.  

Top Stock Picks — BNN Market Call

Top Stock Picks:

Bank of Nova Scotia, BNS-T, Owned by clients and personally, Last Purchase March 4 2016 $58.75

The Bank of Nova Scotia is the most international of the Canadian banks with branches in the Caribbean, Central and South America. In the most recent quarter, provisions for credit losses were up substantially, particularly with respect to the energy sector. Given BNS’s presence in markets with large commodity exposures, its premium valuation has fallen to a level investors should find more compelling. The dividend yield is now greater than 4.5%

Vermillion Energy Inc., VET-T, Owned by clients, Last Purchase March 24 2016 $43.31

Vermillion Energy has interests in oil and gas producing properties in Western Canada, France, Germany, the Netherlands and Australia as well as a substantial non-operated interest in the Corrib natural gas field off the northwest coast of Ireland. Vermillion is well managed with a solid balance sheet. At today’s commodity prices, Vermillion generates free cash flow that supports the current yield of 6%. Its geographically diversified operations should contribute to a growing production profile over the next few years.

Fortis Inc., FTS-T, Owned by clients, Last Purchase March 24 2016 $40.08

Fortis is the largest investor owned gas and electric distribution utility in Canada with operations in the US and Belize. Over the next few years, Fortis is expected to significantly increase its rate base. Two years ago, Fortis completed a transformational acquisition of UNS in Arizona. This year, the Company is engaged in another major acquisition of ITC Holdings Corp., the largest independent fully-regulated electric transmission company in the US for $11.3 billion. This will be another transformational exercise that will enhance regulatory diversity and significantly increase the geographic footprint of operations and create opportunities to enhance shareholder value.

Michael Sprung BNN Market Call Interview Market Outlook Top Stock Picks

Michael Sprung BNN Market Call Interview: Outlook and Top Stock Picks

Outlook:

North American markets have continued to advance thus far in the year at an erratic and slow pace. It is as if investors are climbing an ever steeper wall of worry as the year advances despite some positive economic news. Housing and automobile sales have proved resilient as the employment picture in the US has improved. Yet, after significant recovery since the 2008 financial crisis, investors are focusing more and more on the potential negatives on the horizon. In particular, a great deal of concern has been centered on the Federal Reserve’s intentions to either raise interest rates or leave them at the current historically low levels. In this regard, the authorities face a conundrum. Raising rates would send a signal that the economy is strong enough to contemplate a normalization of the rate structure. On the other hand, the tepid pace of the recovery with the substantial increases in debt levels (largely enticed by low interest rates), combined with the very strong current value of the US dollar, creates the fear that any increase in rates could stall the economy.

In addition, a growing political backlash against globilization and free trade is evident in both Europe and the US. More immediate concerns are also growing over the implications of a possible Brexit (Britain leaving the European Union) that will be decided in a referendum in two weeks time. In Asia, massive debt levels within the shadow banking system in China are also making investors nervous. The fact that Japan deferred a sales tax increase also indicates that that economy continues to languish.

After a number of years of expansion fueled by debt, we could be entering a period of deleveraging that will stall global economic growth for a period and potentially caused markets to decline and volatility to increase. Investors should be prepared to take advantage in these circumstances to invest in well financed, well managed companies.

You can view Michael’s past interviews here>>

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Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>

We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Bank of Nova Scotia announces $375-million digital transformation

Bank of Nova Scotia (TSE:BNS, Mkt cap 73.43B, P/E 10.92, Div/yield 0.72/4.59, EPS 5.75, Shares 1.20B) announced that it will incur a $375-million pre-tax restructuring charge in the second quarter as it goes about executing a digital transformation of its organization, the Financial Post reports.

Bank of Nova Scotia $375-million digital transformation

Bank of Nova Scotia announces $375-million digital transformation

The cost of digitizing processes is one that all banks are having to absorb, with customers seeking out more ways to bank online and through mobile devices.

Scotiabank has decided that it is its turn to restructure its existing business in line with digital trends, the effects of which will be felt in the second quarter’s earnings report.

The charge will amount to 22¢ per share ($275 million after tax) and is mostly likely to be felt in the Canadian banking business, according to analysts.

Scotia would not be drawn on the exact details of the charge, explaining that it will do so when it it releases financial results for the second quarter on May 31.

Canada’s third-largest bank announced a similar pre-tax charge of $148-million in the fourth quarter of fiscal 2014.

The latest charge fits with Scotia’s recent strategy of hiring people with digital expertise. However, in order to keep an even balance, others have seen their position eliminated.

While Scotia would not disclose the number of people to have lost their jobs as part of the reshuffle, the latest round of cuts are understood to have affected as many as 60 brokers in the bank’s wealth management division.

“We are making some changes to better align all of our wealth management services and operate more efficiently in each of our markets,” Scotiabank spokesperson Heather Armstrong said in an email.

The Bank of Nova Scotia, also known as Scotiabank, is a Canadian diversified financial institution, based in Toronto. The Bank offered a range of financial services, including retail, commercial, corporate and investment banking to more than 21 million customers in more than 55 countries around the world. Scotiabank has 4 business segements: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. The Canadian Banking segment provided a range of banking and investing services to more than 7.7 million customers across Canada, through a network of 1,190 branches, 3,869 automated banking machine (ABMs), as well as telephone, Internet banking and third-party channels. International Banking includes Scotiabank’s retail and commercial banking operations in more than 55 countries outside Canada. Global Wealth Management (GWM) consists of wealth management insurance and Global Transaction Banking businesses. More from Reuters

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We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Scotiabank raises dividend following profit jump in Q1

Scotiabank, formally known as the Bank of Nova Scotia (TSE:BNS, Mkt cap 70.05B, P/E 10.13, Div/yield 0.70/4.88, EPS 5.67, Shares 1.20B) is Canada’s third-largest lender by assets. Today Scotiabank raised its quarterly dividend 2.9% to 72 cents a share after posting a 5% jump in fiscal first-quarter profit, the Financial Post reports.

Net income for the period ended Jan. 31 climbed to $1.81 billion, or $1.43 a share, from $1.73 billion, or $1.35, 12 months previous, the Toronto-based bank revealed in a statement.

Scotiabank raised quarterly dividend

Scotiabank raised its quarterly dividend 2.9% to 72 cents a share after posting a 5% jump in fiscal first-quarter profit

Adjusted to exclude items, Scotiabank said it earned $1.44 a share, surpassing the $1.42 average estimate of 15 analysts surveyed by Bloomberg.

“We delivered strong earnings to start 2016 with solid top line growth in both our Canadian banking and our international- banking businesses,” Chief Executive Officer Brian Porter said in the statement. “Mexico, Peru, Chile and Colombia continued to deliver robust loan, deposit and fee growth.”

Loan-loss provisions, or money the bank sets aside to cover bad loans, rose to $539 million from $463 million a year earlier. Scotiabank said the increase was, in part, due to higher provisions in the oil and gas sector.

The performance of Canada’s big banks in the first fiscal quarter of the year has been decidedly mixed. Last week, the country’s largest lender by assets, Royal Bank of Canada, reported flat results that fell short of analyst expectations, with returns diminished by the fallout from lower oil prices.

Toronto-Dominion Bank, second-largest by assets, also fell short of analysts’ expectations. Meanwhile, Bank of Montreal and Canadian Imperial Bank, fourth and fifth in size respectively, posted higher-than-expected earnings.

Scotiabank said earnings in its Canadian banking operations rose 7% to $875 million in Q1, while international banking earnings rose 21% toC$505 million. Global banking and markets results fell 9% due, in part, to higher loan-loss provisions.

“The Bank’s diversified business model has delivered growth despite continued volatility in the markets and some moderation in select areas of our operations,” Ported added.

The Bank of Nova Scotia, also known as Scotiabank, is a Canadian diversified financial institution, based in Toronto. The Bank offered a range of financial services, including retail, commercial, corporate and investment banking to more than 21 million customers in more than 55 countries around the world. Scotiabank has 4 business segements: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. The Canadian Banking segment provided a range of banking and investing services to more than 7.7 million customers across Canada, through a network of 1,190 branches, 3,869 automated banking machine (ABMs), as well as telephone, Internet banking and third-party channels. International Banking includes Scotiabank’s retail and commercial banking operations in more than 55 countries outside Canada. Global Wealth Management (GWM) consists of wealth management insurance and Global Transaction Banking businesses. More from Reuters

What is Successful Investing? Learn more here>>

We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Market Outlook & Top Picks – BNN Market Call Tonight, Feb. 4, 2016

BNN Market Call Tonight – Market Outlook

Investors’ concerns came to the forefront during the first month of 2016 as many of the global stock markets posted negative returns. Fears of slowing economic activity precipitated much of this sell-off as indications of weaker conditions in China and more countries adopting negative interest rate policies (notably Japan), less than anticipated economic indications from the US and a technical recession in Canada appeared to corroborate this negative sentiment.

In this environment, industries are transitioning as many companies face economic hardship. Within the energy and metals markets, producers have cut back capital expenditures, reduced expenses and lowered or eliminated dividends to a significant degree. Consolidation is beginning to occur within these industries along with increasing asset dispositions at distressed prices. Fiscal realities will eventually cause Saudi Arabia and other large oil producing nations to come to terms with continuing to feed oversupply while running massive budgetary deficits. These actions will serve to re-balance supply/demand factors along with the reduced supply stemming from the lower level of capital expenditures.

As we enter the next reporting period, the effects of the strong US dollar will be reflected in the profitability of US companies doing business abroad. Margins will also come under pressure as wage demands increase while low inflation undermines the ability to increase prices, especially with growing substitution from countries with weaker currencies. Business leaders will be prompted to devote more capital to research and development to regain longer-term competitive advantage.

In Canada, the effects of the downturn in the energy and mining sectors are still reverberating throughout the economy. We have seen a pull back in the prices of securities in the financial, consumer discretionary and other sectors that could be further impacted by the fallout. Some relief was evident from the neutral stance of the energy royalty review announced by the Alberta government in the face of current conditions. We can only hope that the federal and other provincial governments will exercise similar restraint. At the federal level, we enter this period in a strong fiscal position.Canadian industry should derive some benefit from the weak Canadian dollar to the extent that they export products and services.

During this time of transformation, investors have the opportunity to reposition their portfolios and invest in those companies with the financial and managerial wherewithal to take advantage of current conditions and prosper.

Michael Sprung BNN Market Call Interview Market Outlook Top Picks

Michael Sprung BNN Market Call Interview: Market Outlook and Top Picks

BNN Market Call Tonight – Top Picks:

Bank of Nova Scotia, BNS-T, Owned personally and by clients, Last Purchase December 23, 2015 $57.16

The Bank of Nova Scotia is the most international of the Canadian banks with branches in the Caribbean, Central and South America. The Canadian banks have been impacted by the recent volatility in the markets. BNS is now selling at levels that long term investors should find attractive as the premium valuation has fallen. The dividend yield is now greater than 5%

ARC Resources Ltd, ARX-T, Owned by clients, Last Purchase December 17, 2015 $15.95

ARC Resources Ltd. is a Canada-based oil and gas company. The company’’s business activities include the exploration, development and production of crude oil, natural gas and natural gas liquids in five core areas across western Canada. The Company is also engaged in the Sunrise gas plant construction. Its operations are focused in five core areas across western Canada. ARC Resources has a strong balance sheet. The shares currently yield 6.6%.

HudBay Minerals Inc., HBM-T, Owned Personally and by Clients, Last Purchase December 23 2015 $5.71

HudBay Minerals is one of Canada’s leading producers of zinc, copper and precious metals with operations in Canada, Peru and the US. Constancia, a major copper-molybdenum-silver mine in Peru, has been ramping up production over 2015. It is expected that recoveries will improve as mill throughput and head grades have exceeded expectations. With other projects coming on stream over the next few years, we anticipate that valuation levels will increase.

What is Successful Investing? Learn more here>>

Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>

We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Bank of Nova Scotia sets lofty growth targets for Pacific Alliance

Canada’s third-largest bank, Bank of Nova Scotia (TSE:BNS, Mkt cap 64.11B, P/E 9.39, Div/yield 0.70/5.26, EPS 5.67, Shares 1.20B) has set double-digit growth targets in four Pacific Alliance countries, the Financial Post reports.

Bank of Nova Scotia Pacific Alliance

Bank of Nova Scotia sets lofty growth targets for Pacific Alliance

The lofty growth objectives for Mexico, Chile, Colombia and Peru are at odds with recent market volatility and low oil and commodity prices.

Dieter Jentsch, group head of international banking at Bank Nova Scotia, said the optimistic outlook of central bankers in those countries played a large part in the bank setting the targets.

“Our growth rates are in line with what the central banks are forecasting. It has moderated from historical growth, but is at levels that will allow us to operate pretty successfully,” Jentsch said.

Scotia forecasts that it earnings from Peru will increase by 10 to 12%, despite it – like Chile – being exposed to mining and commodity prices.

“It does have a large mining industry, but this year’s GDP will be enhanced by 100 to 140 basis points, notwithstanding the reduction in commodity prices, because they have three large mines coming on production and the costs of production are low,” Jentsch said last week during a conference call with the media.

He highlighted how Scotia has long had a presence in the Pacific Alliance countries, allowing it to build established partnerships and processes as a means to help the bank “flag” potential risks.

Jentsch stressed that the job of the bank is not to avoid risk but to manage risk, claiming that “we have the proper risk appetite and systems in place to be very effective and successful.”

He suggested that the single biggest opportunity for Scotia lies in Mexico, due to its large economy and a banking penetration of less than 40%.

The Bank of Nova Scotia, also known as Scotiabank, is a Canadian diversified financial institution, based in Toronto. The Bank offered a range of financial services, including retail, commercial, corporate and investment banking to more than 21 million customers in more than 55 countries around the world. Scotiabank has 4 business segements: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. The Canadian Banking segment provided a range of banking and investing services to more than 7.7 million customers across Canada, through a network of 1,190 branches, 3,869 automated banking machine (ABMs), as well as telephone, Internet banking and third-party channels. International Banking includes Scotiabank’s retail and commercial banking operations in more than 55 countries outside Canada. Global Wealth Management (GWM) consists of wealth management insurance and Global Transaction Banking businesses. More from Reuters »

What is Successful Investing? Learn more here>>

Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>

We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

BNN Market Call Interview: Market Outlook and Top Picks

Market Call Outlook

Investors’ concerns have been evident as the volatility of the global markets has increased over the recent past. Those concerns have been exacerbated by intense coverage by the media of the many global calamities that are ongoing. New shocks to the market have appeared as investors’ attention is shifted between the ongoing debt problems in the European Union, mass emigration from unstable regimes in the Middle East across the Mediterranean, the sudden decline in the Chinese market with implications of a slowing domestic economy, ongoing fears of Russian hegemony in the Ukraine, territorial conflicts in the South China Sea, etc. Nearer to home, the Canadian economy continues to adjust to the impact of fallen commodity prices, particularly energy, and the subsequent ripple effects throughout the economy. Investors have also been captivated by trepidation and uncertainty as to the effect that a raise in interest rates may have on the currently more robust US economy, when and if such a rate hike occurs.

Given that until recently, the markets have exhibited little sign a correction since the financial crisis of 2008, we believe that the current volatility is a natural outcome of wavering economic conditions in conjunction with the unsettling geopolitical issues. Arguably, valuations had become a little rich and we are now going through an adjustment that is a natural phenominom of market cycles. These adjustments are rarely smooth or quick.

It is during these periods that investors should be seeking opportunities in companies that ultimately benefit from the calamity caused by current conditions and in fact prosper from their ability to take advantage of their weakened competitors.

Michael Sprung Interviewed by Mark Bunting on BNN

Market Call Top Picks

Bank of Nova Scotia

The Bank of Nova Scotia (TSE:BNS, Mkt cap 71.13B, P/E 11.07, Div/yield 0.70/4.75, EPS 5.32, Shares1.21B) is the most international of the Canadian banks with branches in the Caribbean, Central and South America. The Canadian banks have been impacted by the recent volatility in the markets. BNS is now selling at levels that long term investors should find attractive as the premium valuation has fallen. The dividend yield is now 4.7%.

Canadian Natural Resources

Canadian Natural Resources Limited (TSE:CNQ, Mkt cap 31.26B, P/E 19.85, Div/yield 0.23/3.22, EPS 1.44, Shares 1.09B) is one of Canada’s leading senior producers of oil and gas. In the current environment, investors should be positioning their exposure in the energy sector to the stronger, better managed firms that have the wherewithal to survive through the downturn and take advantage as weaker companies are forced to dispose of assets or sell at bargain prices. CNQ has an enviable balance sheet and extremely well regarded management. The recent falloff of the stock price presents a good place to establish an initial position in this company.

HudBay Minerals Inc.

HudBay Minerals Inc.(TSE:HBM, Mkt cap 1.49B, P/E 52.67, Div/yield 0.01/0.32, EPS 0.12, Shares 235.23M) is one of Canada’s leading producers of zinc, copper and precious metals with operations in Canada, Peru and the US. Constancia, a major copper-molybdenum-silver mine in Peru, will be is currently ramping up production. HudBay has a number of projects coming on stream over the next few years, we anticipate that valuation levels will increase.

What is Successful Investing? Learn more here>>

Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>

We believe that clients gain from our focus on the long-term fundamentals and not chasing short-term trends. Like to learn more? Please contact us here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.