STOCKCHASE

Southern Pacific Resource

0.020

Markets. All the macroeconomic data coming out now is starting to really question a lot of investors’ thoughts as to how well the recovery is occurring. A lot of the macroeconomic data is starting to slow and valuations are starting to get a little stretched. However, North America is looking pretty good.

2012-05-02

Comment

Chorus Aviation Inc

CHR.B-T

3.050

This is the old Jazz income trust. Has done very well from an income perspective but it is associated with Air Canada and currently is going through a struggle with renegotiating their contract with them. Thinks the 19.5% yield is sustainable but depends on how the end-of-the-year contract with Air Canada gets resolved.

2012-05-02

WATCH

Bell Aliant

BA-T

26.500

Good for long-term hold in an RRSP? Primarily landline and long distance wireline business, which is a declining and maturing business. Investing in growth, primarily in the Internet ITPV, which is very positive. Stock got hit, largely because of an expectation of a dividend reduction. Has a number of options. Could 1.) raise capital, 2.) cut growth capital, which he doesn't expect or 3.) readjust the dividend rate. Current dividend of 7.2%. If you buy, keep an eye on it.

2012-05-02

TOP PICK

STP-T

1.700

Unique story. A junior oil sands play with a producing asset and a near term project that is going to be in production. Producing about 5,000 barrels a day and thinks they can double production this year. Could be well north of $2.

2012-05-02

PAST TOP PICK

Secure Energy Services

SES-T

7.930

(A Top Pick June 3/11. Down 9.62%.) Still likes the business. Still a Buy.

2012-05-02

WEAK BUY

Poseidon Concepts

PSN-T

12.890

They create tanks to hold frac fluids. Have very high margins and it doesn't cost a lot to manufacture the tanks. The issue here is that it is not a defensible business. Expects that margins will come down as competition increases. Over time, the 8.3% dividend will have to be readjusted. Be cautious.

2012-05-02

HOLD

Enbridge

ENB-T

36.800

Great company and he has been buying it along the way here. If you like oil exposure it is a great company to own – pipeline, strong, steady cash flows. Growth profile is strong (10% growth through to 2015) due to cap-x spending. Just increased its dividend. Good solid management team. It’s hard to convince investors to get in at this level because it has had such a good run.

2012-01-11

PAST TOP PICK

50.140

(Top Pick Feb 16/11, Up 48.13%)

2012-01-11

BUY

Noranda Income Fund

NIF.UN-T

5.830

Large zinc processing company in Canada. 50% of zinc is used for galvanized metal, such as nails. Low cost facility in Quebec, close to US market. Earns money through processing agreement, which generates 80% of earnings. This removes commodity risk. A risk is what happens in 2017 when the agreement runs out.

2012-01-11

WEAK BUY

Provident Energy Ltd

PVE-T (DEAD)

10.030

A great company and business, and he likes the space. It is a mid-stream play on oil. It should do quite well here. There is good strong growth in cash flow and a relatively low payout ratio. Caution would be that the space has had a good run.

2012-01-11

DON'T BUY

Crescent Point Energy Corp

11.580

Fixed price contracts on residential energy. Very good growth in cash flows and dividend has been strong. Is cautious after the 20% rise in share price off $10. We had warm weather and should impact JE’s results. Also payout ratio is quite high. Thinks they can meet the dividend but it will limit their ability to make acquisitions. Also 25% of contracts will roll off in next few years to lower gas prices and this will impact margins.

2012-01-11

TOP PICK

CPG-T

45.700

Prefers oil to nat. gas. This is a more oily play. 85% exposure to oil. They have been water flooding a serious of its wells to increase their reserves and slow down the decline rates. 2012 will be a big year for their water flooding results. Investors are not aware of the full impact it could have. 10%+ increase in cash flow, reserves are going up and a hansom dividend.

2012-01-11

WAIT

CML Healthcare

CLC-T

10.200

Recession-proof business. Lab testing, ultra sound. One of its growth strategies was to enter the US, which they have now sold. Be cautious. Canadian operations are doing ok but the company recently resigned a funding agreement with the ministry of health and it is more stringent this time. Management might have a tough time maintaining margins. Payout ratio is about 90%. CEO seat has been vacant for about 7 months. It is hard to know the growth strategy going forward and you should wait until that is straightened out.

2012-01-11

N/A

0.020

Markets: Last year there was a big debt downgrade and Europe is a mess, but people don’t care and the US is considered a safe haven, still, for money. It’s hard to see how deflation would creep into the system in a significant way. China has a good and swift ability to correct the economy when they want to. If it does slow down, the government will quickly come in and see that it continues on a strong foot. Income is going to continue to be a big focus in the markets this year. Stocks that can show growth in cash and dividends will be the focus.

2012-01-11

TOP PICK

0.020

99 Cents Only Stores 11% Bond 2019: A lot of investors will think Dollarama or Dollar General, but this is different. Only in Southern California and Texas. 50% of store sells groceries and other consumables. He saw the stores and was quite surprised to see produce. Bonds have good asset coverage and could see growth profiling in the credit going forward.

2012-01-11

PAST TOP PICK

2.620

(Top Pick Feb 16/11, Down 46.94%)

2012-01-11

BUY

Canexus Corp

CUS-T

7.000

Going forward he sees significant growth in cash flows and payout ratio is very reason. Investors will be well rewarded in 2012.

2012-01-11

TOP PICK

Horizon North Logistics

HNL-T

4.940

Oil at about $100 a barrel and he likes oil plays. This is a great way to get exposure to oil sands and rising oil prices. They manufacture beds and camps to oil sands majors. The number of beds needed is about 50% to meet demand and they have about 6000 beds. Likes their good, contracted, stable cash flows that will growth by 20% this year. Dividend with relatively low payout ratio and thinks dividends will increase in the future. It should do well in 2012.

2012-01-11

PAST TOP PICK

Progressive Waste Solutions Inc

18.960

(Top Pick Feb 16/11, Up 1.12%)

2012-01-11

BUY on WEAKNESS

Poseidon Concepts

PSN-T

13.310

Margins in the 85% range and paying a dividend. Going forward more competition will enter the space. Margins will eventually come down due to competition. Likes it here and is buying it on dips.

2012-01-11

BUY

Amaya Gaming Group Inc.

AYA-X

2.700

Has fallen under the radar of a lot of investors. Think of them as a technology provider for the gaming industry. Focusing on less developed countries. Margins are better in these countries. Number of well known industry people on their board. Now trying to add content through acquisition. He participated in convertible bond issue.

2012-01-11

BUY

BCE Inc.

BCE-T

38.820

Has held in nicely during the market selloff. Feels it is a flight to quality and safety. Strong dividend. One of the better telcos in Canada.

2011-10-07

TOP PICK

BIN-T

22.050

Very stable business. Waste collections and transfer agents for industrial and commercial customers across North America. Good, strong cash flow generator. Looking for 4%-5% growth.

2011-10-07

BUY

Davis + Henderson

DH-T

16.020

Cheque writing company. Very good company and very strong cash flow. Have expanded into the US. For income focused investors, this would be a very good buy. Dividend is reasonably well covered.

2011-10-07

PAST TOP PICK

44.650

(A Top Pick Feb 16/11. Up 31.32%.)

2011-10-07

BUY

Ag Growth International Inc

10.650

Very good business and very strong cash flow generator. Investors are probably concerned about attrition rates in US in housing. Just came out with the convertible bond, which might have put pressure on the stock. Company announced that the distribution of $1.74 is safe.

2011-10-07

BUY

Suncor Energy Inc

SU-T

28.070

A “go to” name in energy in Canada. Investors have punished the big liquid energy names a little harder. With the current oil prices, it can fund all of its CapX projects through internally generated cash flows and still have $9-$10 billion liquidity.

2011-10-07

TOP PICK

Trican Well Service Ltd.

TCW-T

15.920

This is a play on increased horizontal drilling. Horizontal drilling has increased from about 50% a few years ago to about 75% now. Well contracted through 2013.

2011-10-07

BUY

Cineplex Inc

CGX-T

24.930

Should see some good growth going forward. Revenues should pick up nicely with some of their premium offerings. Rent out facilities in off-hours for viewing sporting events. Also there is a great slate of movies coming out.

2011-10-07

BUY

AFN-T

32.060

Great company. Best known as a manufacturer of grain augurs. Has come under pressure recently. USDA recently revised their corn estimates downwards along with the estimated yields. Fantastic management that is focused on growth. Looks well covered with a low payout ratio. Expects a couple quarters of choppiness.

2011-10-07

PAST TOP PICK

2.710

(A Top Pick Feb 16/11. Down 46.94%.) Sold his holdings before the big drop.

2011-10-07

BUY

Wajax Corp

WJX-T

30.990

Equipment distribution. Has dropped off because of concerns of heightened competition from US players moving in. A large part of this is overdone and more than reflected in the stock price. Good dividend.

2011-10-07

BUY

Canexus Corp

CUS-T

5.420

Sodium chlorate and chlor alkaline business. Great business with some good growth prospects. Looking for significant growth in cash flows in a few years. Illiquid stock. Very healthy distribution that is well covered.

2011-10-07

PAST TOP PICK

Progressive Waste Solutions Inc

18.790

(A Top Pick Feb 16/11. Up 0.42%.)

2011-10-07

TOP PICK

CenturyLink Inc

CTL-N

32.790

3rd largest telecom provider in US. Fixed line, broad band and data storage. Made 3 big acquisitions over the last 2 years. Great cash flow generator. 9% dividend.

2011-10-07

BUY

BIN-T

19.770

Garbage landfill sites and transfer sites. Likes this space and thinks there are good opportunities. Solid management. Had a Q2 miss on their earnings and a change in CEOs creating a sell off in the stock. Great opportunity for very sustainable yields.

2011-08-16

BUY

Davis + Henderson

DH-T

19.230

Dominant cheque printer. Has expanded into the US. Manageable payout ratio and the dividend looks safe. Very attractive for income investors.

2011-08-16

BUY

Dollarma Inc.

DOL-T

31.950

Thinks there is good money to be made in the Dollar stores. Modest dividend of about 1% on a payout ratio of about 18%. Good value.

2011-08-16

PAST TOP PICK

44.400

(A Top Pick Feb 16/11. Up 27.67%.)

2011-08-16

DON'T BUY

Research In Motion

RIM-T

26.480

His concern would be if they could compete enough on the innovation and product launch fronts. Very competitive industry.

2011-08-16

BUY

13.310

Good company with sound management. Predictable cash flows and a stable dividend. Feels the business is maturing here and encountering a number of challenges as it expands its operations into the US. Moving from high-margin residential contracts to high volume, low margin commercial contracts. Very solid dividend. Not a lot of capital appreciation.

2011-08-16

TOP PICK

Suncor Energy Inc

SU-T

31.890

Likes energy and continually looks for ways to get cheap exposure. Has been punished significantly. Very cheap at this price. Oil Sands assets of about $30 NAV and conventional gas of about $8 NAV. Yield of about 1.4%.

2011-08-16

Comment

0.020

Getting more and more challenging to find decent growth in income stocks. With the Fed committing to keeping interest rates low for the next 2 years, dividend yields on a lot of stocks are starting to look very attractive. These are companies that should be able to grow their payout ratios over the next few years. Raising dividends is very important rather than paying out a one-time dividend.

2011-08-16

Comment

0.020

REITs. What happens if property values fall? REITs sold off quite hard in the last sell off but probably because investors were looking for liquidity. Right now this market offers some tremendous opportunities. There should be a good few years in this space.

2011-08-16

DON'T BUY

Telefonica S.A.

TEF-N

20.730

Spanish telecommunications company. A lot of exposure in Europe but it's growth markets are in Latin America. Attractive dividend yield of about 10% but he is concerned about its sustainability. Missed on their quarterly numbers and management guided limited growth for the balance of the year. Would prefer CenturyLink (CTL-N).

2011-08-16

PAST TOP PICK

3.880

(A Top Pick Feb 16/11. Down 22.32%.) Wet spring so breakup was extended so they missed on their Q2 numbers. Sold his holdings because he saw better opportunities elsewhere.

2011-08-16

TOP PICK

Canexus Corp

CUS-T

6.410

Produces sodium chlorate, a bleaching agent for the paper industry and chloral kali. Has invested significantly in its plans over the years and this is now coming to fruition. Expecting a 20% growth in cash flows over the next year. 8.7% yield.

2011-08-16

PAST TOP PICK

WesterneOne Equity Income Fund

19.240

(A Top Pick Feb 16/11. Up 5.55%.) Sees very good growth in Latin America. Feels there are good growth opportunities in the cinema this year. Very respectable dividend.

2011-08-16

BUY

CenturyLink Inc

CTL-N

34.380

Rural telecom company. Acquired assets that allowed it to get into the urban areas and data storage. About 8.5% yield.

2011-08-16

Comment

WEQ.UN-T

6.100

Small construction services renting construction equipment. Recently did a game changer acquisition of a company that manufactured modular buildings. Has some good growth prospects. Good yield of 9.5%. One concern is its leverage, which is a little higher than he would like. A better way to play this is through its cash flow debentures. He owns the convertible bond.

2011-08-16

TOP PICK

Gibson Energy

GEI-T

16.770

Midstream oil/gas provider including terminals, pipelines and trucking. Tremendous growth opportunities. About 5.5% dividend.

2011-08-16

BUY

Canadian Pacific Rail

CP-T

60.360

Expecting significant growth and significant growth in cash flows in the railroad industry in the next few years. With high fuel costs, they will steal share from the trucking industry.

2011-06-03

BUY

Fortis Inc.

FTS-T

32.940

Good utility company. Assets in Canada and Caribbean and recently moved into Vermont. 95% of its revenues are contracted on regulated assets. Not a bad company to own and the 3.5% dividend is very safe.

2011-06-03

DON'T BUY

General Motors Corporation

GM-N

29.120

Very positive on the automotive sector in general. Doesn’t like these equities and would prefer to play it with their convertible preferreds, which pay 4.75%. Expecting volatility in the auto industry in the next little while.

2011-06-03

PAST TOP PICK

41.590

(A Top Pick Feb 16/11. Up 18.3%.) Provide condensate into the oil sands.

2011-06-03

TOP PICK

Pembina Pipeline Corp

PPL-T

24.630

8.75% convertible preferred shares. Utility with stable cash flows. Recently made an acquisition in the UK making them one of the largest electrical distribution companies there. 75% of cash flow is coming from regulated assets.

2011-06-03

Comment

Archer Daniels Midland Company

14.550

Energy marketing. Great management. Solid company and good steady cash flow. Business is now maturing a little and running into a few challenges as it expands into the US. Payout ratio is very manageable. Don’t expect a lot of capital appreciation. 8.5% yield is stable.

2011-06-03

Comment

Superior Plus Corp

SPB-T

11.440

Main business is propane and heating oil distribution in Canada and the US. Q1 earnings were pretty good but the balance sheet is still very stretched and payout ratio is higher than he likes. Yield of 10.5% is very good, but doesn’t expect much capital appreciation.

2011-06-03

DON'T BUY

Yellow Media Inc

YLO-T

3.820

Still some downside risk. Management just reiterated that the asset sale is going to go through and that the dividend is safe but it is a declining business. All depends on can they turn around the on line media. The preferred shares might be an attractive way to play it.

2011-06-03

BUY

ADM-N

30.390

One of the leading global grain producers, storage and traders. Great company but a lot of analysts have trouble on how to properly predict earnings. He believes in the long term story on agriculture and this is an excellent way to play it.

2011-06-03

TOP PICK

Coach Inc

COH-N

61.010

Purses and accessories. Sees good growth in the luxury end of the market. Should have some very good growth prospects in North America. The real kicker is the Chinese growth where they have about 55 stores and want to add another 25. 1.5% dividend.

2011-06-03

DON'T BUY

Armtec Infrastructure

ARF-T

13.480

Manufacturer of piping for culverts, noise barriers and concrete bridges. Feels the balance sheet is a little stretched. Has grown significantly over the years but has layered on a lot of debt and they are paying out significant cash.

2011-06-03

Comment

0.020

Economic data in the last few months has been weaker and the misses have been larger and larger. Employment numbers are not good and it looks like we are entering a period of softness. Also, US quantitative easing is ending at the end of June. Expect the market will end the year higher but not significantly.

2011-06-03

PAST TOP PICK

4.670

(A Top Pick Feb 16/11. Down 9.92%.)

2011-06-03

PAST TOP PICK

Chemtrade Logisitics Inc.

20.080

(A Top Pick Feb 16/11. Up 9.3%.) Movie chain in US and Brazil.

2011-06-03

BUY

Cerf Inc.

CFL-X

2.750

Main business is renting out equipment (Bobcats, heaters, etc.) to construction and oil sands industries. Making acquisitions and broadening out its product line. 8% yield.

2011-06-03

TOP PICK

Secure Energy Services

SES-T

8.700

Energy services. A play on increased drilling activity in western Canada. Sees some really good growth.

2011-06-03

BUY

CHE.UN-T

14.680

Sulfur processing and distribution. Good company and solid management. Decent dividend and expect there will be growth as well.

2011-02-16

BUY

Canadian Pacific Rail

CP-T

67.470

Had a great year in 2010 on the back of continued volume strength in the resource sector. Expects volumes to continue, especially in the coal and potash. Management is focused on reducing costs and upgrading margins. Expecting more upside than on Canadian National (CNR-T).

2011-02-16

TOP PICK

Potash Corp of Saskatchewan

35.150

Mid-stream natural gas operator. A variety of different businesses, but the one that he is most excited about is the condensate business. Great way to play increased activity in the oil sands. Condensate is what they use to mix with heavy oil to dilute it so it can flow in the pipeline. Good stable growth company.

2011-02-16

HOLD

POT-T

61.050

Recently did a 3 for 1 stock split. Market leader in fertilizer. Still significant room to grow.

2011-02-16

BUY

Archer Daniels Midland Company

14.600

Energy marketing in both Canada and US. Good solid business. Generates a tremendous amount of cash. Dividend of $1.60 looks very sustainable. Low payout ratio. Growth may be limited. Had quite a sell off after reporting results last week.

2011-02-16

DON'T BUY

Superior Plus Corp

SPB-T

12.350

Leading propane and heating oil distributor in North America. A little cautious on this name. Has reduced guidance over a number of quarters. Payout ratio is over 100%. Questions if the dividend needs to be readjusted. About 13% yield.

2011-02-16

HOLD

Yellow Media Inc

YLO-T

5.690

Very solid business and generates a tremendous amount of cash flow. Had lackluster results but feels the dividend is very sustainable. Low payout ratio. As long as small businesses are not growing, they will continue to be challenged.

2011-02-16

BUY

ADM-N

37.120

One of the best agricultural/grain processing companies. Buy grain globally, process it and then sell it. Strong business in high fructose corn syrup. Expect sugar prices will increase so corn syrup is a good substitute. $40 longer term.

2011-02-16

TOP PICK

5.240

Intermediate oil/natural gas liquids player in the Peace River/Arch area in Alberta. Missed street expectations in the past but is now starting to focus on higher returns natural gas plays. Looking for significant upside. Very cheap.

2011-02-16

HOLD

Bell Aliant

BA-T

26.660

Regional Telecom provider in Eastern Canada. Recent report was within expectations, but nothing stellar. Dividends look reasonably safe. Low payout ratio.

2011-02-16

TOP PICK