| TOP PICK | | Phoenix Technology Income Fund | PHX.UN-T | 14.750 | Their technology and directional drilling capabilities allows companies to access prospects economically. Average ROE is 29% over the last 5 years. Just raised their distribution 31%. Try to get this in the $12 to $12.50 range. | 2008-04-23 | |
| TOP PICK | | Quadra Mining Ltd | QUA-T | 24.000 | Copper is the metal that he has the most constructive view on. There hasn't been a proper supply side response and demand continues to grow. This one is based in the US, so does not have political risks. Has gold as a by-product. | 2008-04-23 | |
| Comment | | Baffinland Iron Mines Corp. | BIM-T | 3.170 | Iron ore is a very hot commodity. This company has an enormous world-class resource in Nunavut. Looking for a plan to develop this property. Have raised $198 million. Should see some feasibility results in the next quarter. Have a challenge to build a 145 km rail line over 200 segments of water as well as permafrost. Interesting. | 2008-04-23 | |
| HOLD | | San Gold Corporation | SGR-X | 1.300 | Thinks that gold stocks overall are going to be pulling back for the next 3 to 6 months. Continuing to find high-grade zones. Have very good analogues to the Red Lake Camp for Goldcorp (G-T) so you may see some weakness. | 2008-04-23 | |
| HOLD | | Gold Eagle Mines Ltd. | GEA-T | 8.550 | Have very good analogues to the Red Lake Camp for Goldcorp (G-T). Thinks that gold stocks overall are going to be pulling back for the next 3 to 6 months so there may be some weakness. | 2008-04-23 | |
| DON'T BUY | | Breakwater Resources | BWR-T | 0.900 | Likes the long-term prospects. Have some great assets with high leverage to zinc prices. In the next 6 months he is not expecting a lot from zinc prices as there has been some supply side response and he would prefer copper. | 2008-04-23 | |
| DON'T BUY | | AltiusMinerals Corp | ALS-T | 13.560 | A holding company for investments on the Come by Chance refinery. Also have a significant investment in Aurora Energy (AXU-T), which has had a moratorium by the Inuit's on it. | 2008-04-23 | |
| DON'T BUY | | Enablence Technologies Inc. | ENA-X | 1.400 | Able to integrate a lot of optical components onto one chip solution at very low cost. Acquiring Wave7 Optics, which potentially puts them in competition with their customers. Not sure this is going to be a successful move. Trading at 64X 09 earnings, so it is not cheap. Speculative. Below $1 would be an interesting entry point. | 2008-04-23 | |
| BUY on WEAKNESS | | Bankers Petroleum | BNK-T | 1.640 | Looking at developing some Eastern European plays. Management team is proven. A little over extended in the short run, but he is watching. Look for entry points in the $1.25/$1.35 range. | 2008-04-23 | |
| DON'T BUY | | Timminco Ltd. | TIM-T | 21.600 | A controversial stock. Have yet to deliver a full quarter of production with their new high-grade silicon process. Analysts haven't had a lot of access to see if their process is real. Fully priced. | 2008-04-23 | |
| BUY | | Axia NetMedia | AXX-T | 2.800 | Bit of a telecom play as well as a infrastructure play. Built a fibre-optic IP network in Alberta called the SuperNet with a 10-year guaranteed Alberta government contract. Guarantees $38 million in revenue per year and they can also do some other value added services and resell to other people which generates about $.25 to $.30 in earnings. Have also gone into areas where services are needed for rural fibre optic solutions. Also looking into Australia and Singapore. Has been oversold. | 2008-02-06 | |
| BUY on WEAKNESS | | Red Back Mining Inc | RBI-T | 7.900 | Sold some of his holdings at around $8.60 expecting golds to have a bit of a pullback, which is what is happening right now. Would buy in the low $7.00's. They've had great exploration results on their main property in Ghana. Their Tasiest mine in Mauritania is getting up to speed and their underground deposit is going to be producing by 4th quarter. | 2008-02-06 | |
| Comment | | Gennum | GND-T | 10.480 | Specialty semiconductor manufacturer. Struggled for the last few years. Just did a major restructuring on 3 areas 1) video transport 2) data communications and 3) image processors. Just reported an OK quarter. Expenses were a little heavy and Cdn$ impacted them. He's a growth manager and has not seen it in this company yet. | 2008-02-06 | |
| BUY | | IBI Income Fund | IBG.UN-T | 20.700 | (Ed. BNN screen showed IBI Corp (IBI-X), a gold company, but is obviously wrong.)Professional services and consulting engineering firm, very much tied to global infrastructure such as urban development, transportation, systems design etc. Very high EBITDA margins. Like this whole area. Cheap relative to competitors. | 2008-02-06 | |
| STRONG BUY | | Sandvine Corp. | SVC-T | 3.760 | Internet traffic cop. Great company. Technology market has had some struggles in the last few months. Guided lower in December, which caught everyone by surprise. A lot of cable and DSL companies need this technology. Announced some very significant contracts on the wireless front, a new market area for them. | 2008-02-06 | |
| STRONG BUY | | San Gold Corporation | SGR-X | 1.370 | 2 mines running and a 3rd one coming on board. Exploration success that they are having a spectacular. Very close to Gold Corp. (G-T) main asset. | 2008-02-06 | |
| TOP PICK | | Cervus LP | CVL.UN-X | 19.400 | A consolidator of John Deere dealerships, J. P. Construction Equipment and Bobcat in Western Canada. Acquiring at 3X to 4X pre-tax earnings. Many owners are getting older with no exit strategy. Larger operating organization gives better synergies, buying power and natural operating leverage. At 9.2X earnings, with growth rates accelerating north of 20% and a 6% distribution, it presents a great opportunity. | 2008-02-06 | |
| TOP PICK | | Iteration Energy | ITX-T | 5.690 | Natural gas. There is a major draw down on Canadian inventory supplies by the US because LNG imports from Europe have dropped off. Natural gas prices look like they are having an upward tendency. Even if they don't, this company should do well. | 2008-02-06 | |
| DON'T BUY | | Eldorado Gold | ELD-T | 6.100 | Really likes their assets and the management team but their problem in Turkey is a real risk. The negotiations could drag on and on. | 2008-02-06 | |
| TOP PICK | | Katanga Mining Ltd. | KAT-T | 16.930 | Very constructive on copper. Based in the Congo, which has the best global copper resources. Recently was the subject of a hostile takeover, the stock spiked and then fell back to $12 after the offer failed. Recently a merger with Nikanor Mining. By 2011 this will become the world's 4th largest copper producer and the world's largest cobalt producer. Combined, it will be worth $23. | 2007-12-12 | |
| TOP PICK | | Red Back Mining Inc | RBI-T | 6.380 | A 2-project company. Recently purchased a gold mine in Mauritania. This is the one of the Lundin (LUN-T) companies. Finding a lot of high-grade deposits in Uganda. Thinks they can do about $.50 on a cash flow basis next year. | 2007-12-12 | |
| Comment | | Points International Ltd. | PTS-T | 3.880 | An exchange for N.A. loyalty points program. Have recently been signing contracts and has done incredibly well lately. At these levels he would have to do some evaluations. Has a high growth profile. | 2007-12-12 | |
| BUY on WEAKNESS | | Arise Technologies Corporation | APV-T | 2.080 | Solar space and alternative energies. Recently raised some money and in the process of building a solar cell plant in Germany to be opened in the middle of 08. Also have technology to give solar cells 18% efficiencies versus the current standard of 15%. Solar silicon can be a risk for them. He has tended to stick with bigger companies and hydropower and LED technology. Too expensive for him. | 2007-12-12 | |
| STRONG BUY | | San Gold Corporation | SGR-X | 1.360 | Gold producer. A favourite of his company’s precious metal specialist. Under recognized by the market. 80 kilometres away from the Red Lake camp, one of the most prolific gold camps in the world. Have been discovering more gold in the area. Expect they will ramp production over the next couple of years. | 2007-12-12 | |
| HOLD | | Petrolifera Petroleum Ltd. | PDP-T | 10.300 | Have been having some interesting discoveries in Argentina. Struggled this year because of lower success in exploration and Argentina legislative issues towards oil/gas. Prefers others such as Oilexco (OIL-T), Pan Orient (POE-X) and TriStar Oil (TOG-T). | 2007-12-12 | |
| DON'T BUY | | Royal Laser | RLC-T | 0.640 | 2 business, Venture Steel, a steel distribution company and a fabrication business for retail and automotive. Has struggled with low utilization levels of its capacity and has taken on an inordinate amount of debt. End market demand is also weaker. Fairly valued. | 2007-12-12 | |
| WEAK BUY | | Global Railway Industries | GBI-T | 4.590 | Plays on the infrastructure/capital-spending theme that will drive a lot of stocks over the next 5 years. Buying small private businesses such as train brakes, undercarriages, doors, etc. for rails. Thin margins but they seem to be doing OK. Prefers Greenbriar (GBX-N). Rails have been under spending on capital and this has to be resolved in the next few years. | 2007-12-12 | |
| DON'T BUY | | Angiotech Pharmaceuticals | ANP-T | 8.580 | Have been a lot of concerns on their stent products. As a result of this, they acquired a company that would give them revenue and earnings in the event the stents were pulled. Still a lot of risks. | 2007-02-06 | |
| BUY | | Theratechnologies Inc | TH-T | 8.470 | Phase 3 shoed their drug did not have side effects. This resulted in a large move in the stock price. Now doing a financing, which will be a net positive for the stock. Could be a takeout or could be a partnership. | 2007-02-06 | |
| BUY | | Dynatec Corp. | DY-T | 2.120 | Likes what they were able to accomplish in bringing a partner on board to develop the Ambatovy project. A reasonably high grade deposit. | 2007-02-06 | |
| TOP PICK | | Com Dev International Ltd. | CDV-T | 6.170 | The last satellite cycle ended in 1997 sell a new cycle is starting. These are generally 3 to 7 years long. | 2007-02-06 | |
| TOP PICK | | Sceptre Investment Council Ltd | SZ-T | 10.790 | Have put up some very good numbers over the last few years. Strong management. The most recent quarter showed a 43% earnings growth and expects they can grow 35%-40% this year, followed by 20%. | 2007-02-06 | |
| TOP PICK | | Toromont Industries | TIH-T | 24.630 | Has the ability to sustain itself after the business cycle, because of its presence in Ontario. Expects government will spend a great deal on infrastructure. | 2007-02-06 | |
| DON'T BUY | | March Networks Corp | MN-T | 11.210 | Has been a disappointment with its loss of the Wal-Mart contract. Doesn't have as much software as a component of their business as other companies. Very good technology. | 2007-02-06 | |
| Comment | | Falcon Oil & Gas | FO-X | 2.750 | Natural gas play in Hungary. Resource is speculated at 55 trillion cubic feet. The risk is how deep the resource is as well as the economics of extraction. If they can succeed, the stock will be a massive home run, but there are a lot of execution risks. | 2007-02-06 | |
| DON'T BUY | | Feel Good Cars | ZNN-X | 2.880 | Electric cars. The real story is the batteries that are in the car. They can be charged in 3 minutes. This company has an exclusive license for the battery up to 45 kg units. Alternative energy space is an interesting one, but you should only bet on what already works. | 2007-02-06 | |
| BUY | | Linear Gold Corp. | LRR-T | 4.800 | Certain exploration gold stocks could have a very good year. This one fell off the map until about 3 or 4 months ago. Mexico project is going to be a good mineable resource. Good potential. | 2007-02-06 | |
| BUY | | Plutonic Power Corp. | PCC-T | 3.810 | Basically doing spillway hydro projects. Has a lot of potential. | 2007-02-06 | |
| HOLD | | Imaging Dynamics Company | IDL-T | 2.410 | Electronic imaging system. A lot of hospitals have not upgraded their systems in years. This company has had some issues with execution. Technology is sound and they have good development group and will probably find their way back, but he needs to see proof. | 2007-02-06 | |
| DON'T BUY | | Wi-Lan Inc. | WIN-T | 6.500 | Patents not only cover wireless space but also broadband over power lines space. This is potentially a large opportunity. Signed a very high profile agreement with Nokia (NOK-N). Stock is a little ahead of itself. | 2007-02-06 | |
| BUY on WEAKNESS | | Stella-Jones Inc. | SJ-T | 31.980 | Make telephone poles and rare road ties. Strong customer base making them the dominant player. A boring old business that does its job very well. Good and consistent earnings growth. Would be a good buy on any pullbacks. | 2007-02-06 | |
| BUY | | Clarke Inc. | CKI-T | 14.540 | Buying out of favour businesses that they feel have an intrinsic value. An interesting portfolio play that has broadened them beyond the original trucking business. Good management. | 2007-02-06 | |
| BUY | | FNX Mining Company | FNX-T | 17.030 | Sudbury basin has one of the most prolific nickel assets in the world. This company has the ability to continue to discover veins along the footwall zone. Have had good success, but are just getting started. | 2007-02-06 | |
| BUY | | Mag Silver Corp | MAG-T | 8.350 | He likes silver. This company has a very high-grade silver prospect. Expects to see the stock go higher. | 2007-02-06 | |
| WAIT | | LionOre Mining International | LIM-T | 13.100 | Had some issues last year with their Tati mine with production shortfalls. Recently sold his holdings. Feels that nickel has gone little too far, too fast and is expecting a pullback. Would buy in the $10-$11 range. | 2007-02-06 | |
| BUY | | Equinox MineralsLtd. | EQN-T | 1.740 | Feels that copper has been oversold and we are in a secular uptrend for commodities. Equinox Minerals (EQN-T) and Tenke Mining (TNK-T) are 2 of the most interesting copper development plays globally. This one has massive resources in Zambia. | 2007-02-06 | |
| BUY | | Tenke Mining Corp. | TNK-T | 14.940 | Feels that copper has been oversold. We are in a secular uptrend for commodities. Equinox Minerals (EQN-T) and Tenke Mining (TNK-T) are 2 of the most interesting copper development plays globally. | 2007-02-06 | |
| DON'T BUY | | Certicom | CIC-T | 5.680 | The frustration for this company has always been how are they going to translate a very brilliant encryption algorithm into revenues and profits. Most of the revenue has been generated through toolkits. They may have missed their window. | 2007-02-06 | |
| DON'T BUY | | Saxon Energy Services | SES-T | 4.110 | Very high quality management. Unfortunately, they got caught in a downdraft in the energy services market and were not able to do all the acquisitions they were hoping for. Would prefer a lower price. | 2007-02-06 | |
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