merger

We continue to recommend that most Canadian investors hold at least two or three of Canada’s Big Five banks (TD Bank, Bank of Nova Scotia, CIBC, Bank of Montreal and Royal Bank). That’s mainly because of their importance to the Canadian economy, plus their long history of dividend increases.

I asked our Successful Investor research department to draw up this Inner Circle Spotlight report on TD Bank....

In early September this year, a friend emailed to ask, “Hey Pat, any ideas re: how I can get smarter re: SPACs in Canada and how they vary from the U.S. versions?”

I wrote back, “I can’t imagine a situation where I’d buy or recommend a SPAC, U.S. or Canadian....

CANON INC. ADRs $20 (www.canon.com) is a hold. The company’s sales in the third quarter of 2020 fell 11.1%, to $7.16 billion from $8.05 billion a year earlier. That’s mainly because the shutdown of offices due to COVID-19 hurt demand for its printers, copiers and other office equipment....

A wide variety of random factors—from weather patterns and crop prices to politically motivated tariffs—affect fertilizer demand and prices. However, Nutrien’s unique business model combines the production of bulk fertilizer with the retail sale of agricultural products to farmers....

Thomson continues to unlock value for our readers. Savings from the upcoming merger of its Refinitiv financial information business with the London Stock Exchange will spur its earnings and give it more cash for dividends. The company’s remaining tax and legal businesses should also benefit as businesses deal with COVID-19 tax changes.


THOMSON REUTERS CORP....

Even with the economic disruption brought on by COVID-19, we like the long-term prospects for investors in TD Bank. This Candian big bank is as well prepared—and well capitalized—to handle the current shock as it was during the 2008-2009 financial crisis. We still see TD Bank as a top pick, especially given its expanding and profitable U.S....

QUAKER CHEMICAL CORP. $249 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.8 million; Market cap: $4.4 billion; Price-to-sales ratio: 4.4; Dividend yield: 0.6%; TSINetwork Rating: Average; www.quakerchem.com) completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

Takeovers are a great way for companies to enter new markets and add value. We like Visa’s takeover of a small fintech company, but anti-trust regulators could kill the deal. Another deal to acquire railroad operator Kansas City Southern would also likely face regulatory hurdles.


VISA INC....

The price for West Texas Intermediate crude oil fell to a negative $37 U.S. a barrel in April 2020 as the COVID-19 pandemic, combined with a lack of storage space, triggered a massive sell-off of oil futures contracts. Prices have since recovered to around $42 U.S.


However, oil demand remains vulnerable as the second wave of COVID-19 could lead to more lockdowns....

We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your overall portfolio. The four oil producers we analyze below still have substantial reserves; they’re also doing a good job of cutting their costs. That puts them in a strong position to increase profits as the global economy recovers from COVID-19.


SUNCOR ENERGY INC....