Can the Shark Tank Make These 3 Canadian Stocks Great Again?

Kevin O'Leary hopes for a "Shark Tank" versus "The Apprentice" showdown

Source: Jonathan Denney Via Unsplash

If you thought the political climate was already bizarre with President Donald Trump, you may want to hold on tight. Big-league investor Kevin O’Leary is more commonly known as “Mr. Wonderful” on ABC’s hit show Shark Tank. But if he has his way — and really, anything is possible at this point — he will be known as Mr. Prime Minister.

That’s right — Kevin O’Leary has just gotten bit by the political bug. He will be campaigning for the leadership role of Canada’s Conservative Party until 2019. That’s when our neighbors up north will host the general election. If all goes well for him, O’Leary will wade out of the “Shark Tank” and into the prime minister’s office located in the Langevin Block.

This development has liberals and political establishment figures all up in arms. First it was The Apprentice. Now, it’s Shark Tank. And while it’s true that Kevin O’Leary is a far less known commodity, it’s the inspired audacity of Donald Trump that has many people worried.

The similarities are uncanny. Trump ran on the conservative Republican ticket. Kevin O’Leary is doing the equivalent. Both are deflecting criticisms of lacking political experience by articulating their business executorial acumen. Obviously, Trump leveraged his celebrity status from The Apprentice. O’Leary is expected to do the same with Shark Tank.

But here’s where it really gets tricky. For the first time in the modern American era, a presidential candidate was successful in their bid despite openly criticizing our international partners. For his part, Kevin O’Leary showed no fear in blasting Canada’s policy of importing oil from Saudi Arabia, which he said “beat women with sticks.”

It’s that type of candor that, even if there was validity to the argument, horrified much of the American electorate. Oddly, this hubris may now be blasé. If so, expect a lot of fireworks in future episodes of Shark Tank as the left brace themselves.

This isn’t unsubstantiated anxiety. Donald Trump was successful in the “bigliest” of ways because he pounded the economic message. Kevin O’Leary has the same potential. That would certainly appeal to Canadian stocks, many of which could use a boost. Since collapsing in the spring of 2015, Canadian stocks have rebounded to pre-crisis levels. Now, they’re looking to tack on real, net gains.

Here are three Canadian stocks that Kevin O’Leary hopes to make great again!

Canadian Stocks Looking for a Shark Tank Rally: Suncor Energy (SU)

Canadian Stocks Looking for a Shark Tank Rally: Suncor Energy (SU)

If there was one name among Canadian stocks that desperately needed strong political leadership, it would be Suncor Energy Inc. (USA) (NYSE:SU). SU isn’t just the northern version of Exxon Mobil Corporation (NYSE:XOM) or Chevron Corporation (NYSE:CVX). In terms of total revenue, SU is the biggest company in the entire country. You can bet that they’re looking for a Shark Tank rally.

Of course, Mr. Wonderful would love to give it to them.

Although Kevin O’Leary largely spoke in generalities in his interview with CNBC regarding his political aspirations, he made it clear that he wanted the support of Suncor. Citing Canada’s long, trusted relationship with the U.S., O’Leary stated that there should be nothing holding back joint projects like the Keystone pipeline.

There was a time when courting “Big Oil” was anathema to a political career. Now, not only is this apparently standard protocol, but the relationship is encouraged to go deeper. You only need to look at President Trump’s appointment of Rex Tillerson as secretary of state to see the connection. O’Leary’s plan to make Canadian stocks great again will primarily go through SU — and they couldn’t be happier.

So ignore the bumps on the current road. If O’Leary snags the prime minister’s office, Suncor will be one of the biggest beneficiaries.

Canadian Stocks Looking for a Shark Tank Rally: Potash Corporation (POT)

Canadian Stocks Looking for a Shark Tank Rally: Potash Corporation (POT)Nope, I’m not talking about that kind of “pot.” Potash Corporation of Saskatchewan (USA) (NYSE:POT), though, is actually a very relevant company for the “legalization” community. As one of the biggest producers of primary crop nutrients — examples include potash, nitrogen and phosphate — POT is an indispensable component of the North American food supply. And we all know the insane hunger that can result from *ahem* herbal solutions.

All joking aside, POT is a critical name, and not just for Canadian stocks. American population growth — while slow — is still on the upswing. People are living longer, more productive lives. Also, the impact of immigration on the labor force means that there are more mouths to feed than ever. Without companies like POT, there just wouldn’t be a viable means to fulfill all the demand.

POT is also an area where Shark Tank investor Kevin O’Leary has significant leverage against his Apprentice “rival.” Donald Trump’s tough immigration policies exacerbate an already depressed environment for American farmers. What will happen when Americans want to eat again? They’ll turn to Canadian stocks like POT, whose shareholders will love the business.

Maybe this whole Shark Tank run isn’t as crazy as people think it is!

Canadian Stocks Looking for a Shark Tank Rally: Goldcorp (GG)

Canadian Stocks Looking for a Shark Tank Rally: Goldcorp (GG)Among Canadian stocks and in general, Goldcorp Inc. (USA) (NYSE:GG) is ideologically an awkward investment at this juncture in history.

Let me explain. Donald Trump captivated his core audience by harping on his outsider image. He’s the guy that’s going to “drain the swamp” because he doesn’t have at least a moral conflict of interest.

Gold, and gold miners like GG, likewise are “outsider investments.” People invest in gold for a variety of reasons, but its most ardent supporters believe gold to be a hedge against financial tyranny. GG and its sort are producers of gold, and thus are one of the “good guys.” However, what happens when gold bugs get their candidate of choice into office? Is there still a reason to hedge?

Judging by the Dow Jones Industrial Average’s failure to crack the 20,000 point barrier, the answer is a resounding yes! Gold prices have been surging in recent weeks, and that’s a major tailwind for GG stock. Another point of bullish confirmation is the fact that Goldcorp is one of the strongest Canadian stocks. Although the year is young, GG stock is up an astounding 18%-plus.

Considering the long-term losses that Goldcorp has suffered, a Shark Tank rally would be just what the doctor ordered!

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/shark-tank-canadian-stocks-su-gg-pot/.

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