investment management

In response to the COVID-19 coronavirus outbreak, these four fast-food operators have closed their dine-in areas. However, they continue to serve customers with take-out and drive-thru facilities. Recent investments in their home-delivery operations have proven timely, as those upgrades are now helping them cope as more people eat at home.


We feel that all four will rebound quickly in the next few months once they resume normal operations....

MAPLE LEAF FOODS INC. $21 (www.mapleleaffoods.com) is still a hold. The processed-meat producer continues to invest heavily in the fast-growing meat substitute market to add value for investors. Annual sales of those products rose 27.3% to $176.4 million in 2019....

Despite the problems that most brick-and-mortar retailers face, Canadian Tire continues to thrive for its investors. That’s partly because the company has successfully diversified beyond its main stores. What’s more, a new plan to improve its efficiency will free up cash for new investments in its online operations—and your dividends.


CANADIAN TIRE CORP....

NUTRIEN LTD. $44 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares o/s: 572.9 million; Market cap: $25.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.9%; TSINetwork Rating: Average; www.nutrien.com) is world’s largest producer of agricultural fertilizers, shipping about 27 million tonnes annually....

SNC-LAVALIN GROUP INC. $27 is still a hold. The engineering company (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 175.6 million; Market cap: $4.7 billion; Price-to-sales ratio: 0.5; Divd. yield: 0.3%; TSINetwork Rating: Average; www.snclavalin.com) is following a new strategy that mainly involves exiting lump-sum, turnkey construction projects that expose investors to the added risk of cost overruns....

Interest rate cuts in Canada and the U.S., along with coronavirus fears, will continue to hurt the performance of Great-West’s investment portfolio. The insurer relies on strong returns on those investments to help pay future claims. On the other hand, low rates should increase demand for IGM’s mutual funds....

To protect investor value, in the past few years Transcontinental has shifted its focus to packaging and away from its cyclical commercial printing business. That cuts your risk. In fact, the company is so confident about that move and its future it has just raised your dividend.


TRANSCONTINENTAL INC....

ANDREW PELLER LTD. (A shares) is still a buy. The company (Toronto symbols ADW.A $7.98 and ADW.B $8.00; Income Portfolio, Consumer sector; Shares outstanding: 44.2 million; Market cap: $352.7 million; Price-to-sales ratio: 0.9; Dividend yield: 1.8%; www.andrewpeller.com) is Canada’s second-largest wine producer, after Arterra Wines.


In its fiscal 2020 third quarter, ended December 31, 2019, Peller’s sales dipped 1.5%, to $101.6 million from $103.2 million a year earlier....

We’re promoting four stocks from our Power Growth Investor newsletter to our Successful Investor Aggressive Growth Portfolio. The move reflects their now-large market caps and their established dividend histories. That means they now warrant your consideration.


While they remain riskier than many of our TSI recommendations, these four are leaders in their fields and are using acquisitions to stay on top....

Stock prices have dropped sharply in anticipation of a much wider spread of the coronavirus, and the deep economic setback that could result from its spread. That could happen—no one can predict the future. However, most sharp market downturns are temporary. Due to modern medicine and technology, the coronavirus impact is unlikely to get so big that it brings on a long-lasting stock-market decline.


Our advice is that if your stock holdings made sense for you a few weeks ago, in light of your investment goals, financial circumstances and temperament, then you should hang on to them.


You should also continue to follow our three-pronged Successful Investor strategy: Invest mainly in established companies; spread your money out across the five main economic sectors; and downplay or avoid stocks that are in the broker/media limelight.


If you follow our three guidelines, you have a framework for making investment decisions and diversifying; that strategy also reduces the temptation you may feel (especially at times like this) to trade impulsively).


In this issue, we continue to recommend investors stick with high-quality stocks, such as TC Energy and Canadian Tire....