John Zechner, chairman and founder of investment firm J. Zechner Associates, weighed in on Canadian stocks that could be at risk under U.S. President Donald Trump’s “America First” policy.  

He told BNN that he remains skeptical of any potential good news already factored into stock prices and thinks some of  Trump’s election promises to do with U.S. job growth and trade will be difficult to implement.

Gildan Activewear:

Montreal-based clothing manufacturer Gildan Activewear (GIL.TO) could be at risk if the Trump Administration imposes a border adjustment tax, according to Zechner.

“Good growth story but the multiple has come down recently. Clearly, they would be massively hurt by any type of border tax,” Zechner said of the company that has operations in Mexico.

Magna International or Martinrea International

Zechner shared the same sentiment for auto parts suppliers Magna (MG.TO) and Martinrea (MRE.TO), which both also have large operations in Mexico.  

“If you get a border adjustment tax, it’s going to hit these guys [garbled quote] will be hit dramatically,” he said.

Alimentation Couche-Tard:

Alimentation Couche-Tard (ATDb.TO), a big gasoline retailer, could suffer if any major energy policy changes occur, Zechner said.  

“Couche-Tard is at risk with any changes in energy policy in the U.S. as the margins in their retail gasoline business is extremely low,” Zechner said. “Any negative impact from planned policy changes has the potential to put further pressure on margins.”

He added that there’s a risk gasoline prices could rise if refinery rules change and could hurt Couche-Tard if the company can’t pass that cost onto consumers.