Cardinal Update – December 2017
RESEARCH PROCESS IN FOCUS: ENBRIDGE – Enbridge (ENB) shares have underperformed this year. The shares have declined by 12%, while the TSX is up 5%. Shares were as low as $44, but have shown recent strength at $49.50/sh. after some company announcements including a 10% dividend increase for 2018. We continue to see excellent value in ENB in its ability to support and raise its dividend, which is yielding over 5%. Our confidence is driven by our assessment of three perceived issues as well as our evaluation of the strength of ENB’s business model.
COMPANY FOCUS: SIMON PROPERTY GROUP – Simon Property Group (“Simon”) is the world’s largest retail real estate investment trust (“REIT”) with ownership of properties including the Premium Outlets and Mills branded centers, and iconic shopping centers such as The Forum Shops at Caesars.
Click here to read more: Cardinal Update – December 2017
DM Newsletter – December 2017
Including Risk in the Definition of Performance – When reviewing portfolio performance, investors often want to know how they’ve done vs. other available options, which might include comparisons against widely accepted benchmarks, other money managers, or even different asset classes. What is often left out of such cursory analysis, however, is risk and how much of it was borne to achieve realized returns. Unfortunately, risk can be a difficult attribute to quantify ahead of time and is often only fully appreciated after the fact, when damage has already been done.
Click here to read more: DM-Monthly-Report-Dec-17
Cardinal Update – November 2017
RESEARCH PROCESS IN FOCUS: IDEA GENERATION – In our regular correspondence, we tend to discuss why we bought, sold, or continue to hold stocks in the portfolio. This month, we thought it would be interesting to describe the process in how we actually come up with these ideas.
The first step is identifying the stocks we wish to research further. There is no magic formula here and we believe that the wider you cast your net, the more fish you’ll catch. Thus, we read a wide assortment of company financial reports and we also read broadly: newspapers, magazines, books, and trade journals……
COMPANY FOCUS: INTACT FINANCIAL – A year following our initial purchase of Intact Financial, we are happy with the share price performance (up approximately 12%) and take this as an opportunity to review the thesis……
Click here to read more: Cardinal Update – November 2017
DM Newsletter – November 2017
A RARE GREEN SHOOT ON THE SCORCHED EARTH OF RETAIL – We live in a period of rapid change. The same forces that have brought us previously unimagined technologies and conveniences, however, have also wreaked agonizing upheaval on certain parts of the economy. Perhaps nowhere has this dislocation been levelled with as much swiftness and ferocity as in the retail sector, where companies struggle to maintain relevancy and, in many cases, outright survival in the face of the “Amazon-ing” of their industry. One-time cornerstones like Sears Canada and Toys R Us have recently filed for bankruptcy, while outlets such as Foot Locker, Kmart, and Staples are either closing stores in multiples, selling off real estate, or paddling furiously against the unrelenting tsunami of competition.
Click here to read more: DM-Monthly-Report-Nov-17
