STOCKCHASE

0.020

Thinks the Precision Drilling conversion to a corporation makes a lot of sense. The drillers had a little experiment in converting to the income trust structure and done simply for a multiple premium, but in the longer run it makes a lot more sense for them to be a common share format. Change to an income trust was the right thing to do at the time. Bond spreads have really widened out in the last little bit, but he has migrated half of the bonds over to bank loans.

2010-02-12

BUY

Just Energy Income Fund

JE.UN-T

14.300

The company is doing the right thing to convert to the common share format before the December 31 deadline. Their competitors, especially in the US have fallen on hard times and as such you should see much better growth, especially out of their US division. Distribution is sustainable, but he thinks a cut would be appropriate, but not a negative.

2010-02-12

BUY

0.020

H & R REIT Bond – 7 Years. They do a good job of matching the assets to the bonds. The tenants in their buildings are long-term tenants. He wouldn’t recommend a bond from a hotel REIT because the tenancy is for over night.

2010-02-12

BUY

Westshore Terminals Inc.

WTE.UN-T

14.920

Good quality infrastructure play. Should gut the distribution 30-40% during conversion.

2010-02-12

BUY

11.450

There is some inherent, stable growth. It is external management but there are clauses to protect investors.

2010-02-12

SELL

Fort Chicago Energy Partners

0.020

CIBC Tier one bond 10%. Good certainty that the bond will get called so then you loose the extra value the bond has gained. It is less attractive than a year ago.

2010-02-12

WAIT

Daylight Energy Trust

DAY.UN-T

11.270

Just completed acquisition of High Pine. They are now considering a conversion to a common share format. You can’t consider this until they vote on it. Hold if you have it.

2010-02-12

BUY

Allied Properties REIT

AP.UN-T

19.080

CEO will be aggressive in growing the company over the next years.

2010-02-12

BUY

FCE.UN-T

10.210

Things are looking good for them. It looks more like a sustainable bond.

2010-02-12

TOP PICK

21.560

It remains run by one of the smartest management teams out there. They have great properties. It’s an unconventional gas play. An above average growth pattern. Commodity prices are the biggest risk.

2010-02-12

TOP PICK

Bonavista Energy Trust

BNP.UN-T

24.180

Solid management team. Very, very good set of assets. Above average growth trajectory. They are getting involved with unconventional plays, which is a risk.

2010-02-12

TOP PICK

5.670

He likes it when the analysts collectively hate something. It is a simple business that is tied to the growth of our economy. As the Canadian economy does better, this stock will benefit. Online business is being ignored too much and it is growing at 20%. Yield will be cut when they convert. Distribution will drop to $0.65 and the extra capital will be used to pay down debt.

2010-02-12

PAST TOP PICK

Cineplex Galaxy Income Fund

0.020

Bonds of Opti-Canada. 8.25% Dec 15/2014 (Top Pick Apr 27/09, Up 69%)

2010-02-12

PAST TOP PICK

Yellow Pages Preferred B

YPG.B-T

0.000

(Top Pick Apr 27/09, Up 58.7%) Sold to buy the common.

2010-02-12

PAST TOP PICK

CGX.UN-T

18.130

(Top Pick Apr 27/09, Up 30.32%)

2010-02-12

TOP PICK

Brookfield Infrastructure LP

BIP-N

15.830

About 73% of cash flow comes from regulated revenue streams. 6.7% dividend yield.

2009-11-20

TOP PICK

Dollar General Corp.

DG-N

23.210

10.625% Bonds due July 15/15. One of the largest heavy discount US retailers. No sales over $10. Because of the recession, same-store sales have been fantastic and growing about 8%-10%.

2009-11-20

TOP PICK

Dollarma Inc.

DOL-T

20.200

Discount retailer where you can buy anything under $10. Growing their store base by about 10% and same-store sales.

2009-11-20

PAST TOP PICK

H&R Real Estate Inv Trust

HR.UN-T

13.580

(A Top Pick Dec 8/08. Up 62.69%.)

2009-11-20

PAST TOP PICK

Grou[e Aeroplan Inc

AER-T

10.250

(A Top Pick Dec 8/08. Up 31.93%.)

2009-11-20

PAST TOP PICK

YPG Holdings

YPG.PR.A-T

23.250

(A Top Pick Dec 8/08. Sold at $22 so he was Up 31.3%.)

2009-11-20

DON'T BUY

Brick Group Income Fund

BRK.UN-T

1.380

Appliance/furniture retailer. Sales have fallen. Had more liquidity pumped into it, primarily from Fairfax Financial (FFH-T) including a recent $25 million line of credit giving more breathing space. Housing starts/recovery in Canada seems to go against what is happening in the US, which gives him pause.

2009-11-20

BUY

Keyera Facilities Income Fund

10.590

Possibly will be able to retain distributions after 2011.

2009-11-20

BUY

KEY.UN-T

22.790

Possibly will be able to retain distributions after 2011.

2009-11-20

BUY

Superior Plus Corp

SPB-T

12.820

Almost 13% dividend, which should be sustainable.

2009-11-20

Comment

Canfor Pulp Income Fund

CFX.UN-T

6.960

49.8% stake in 3 pulp mills in BC. Stronger pulp prices for the last 6 to 9 months have helped them. Thinks that trend will continue. Conservative payout ratio at about 70%.

2009-11-20

SELL

Student Transport of America Ltd.

STB-T

4.360

Had several issues in the past dealing with debt but have recently resolved some of that. Worries about some of the US states that have laid off 53,000 teachers. Cutbacks could also occur in bussing.

2009-11-20

DON'T BUY

Liquor Stores Income Fund

LIQ.UN-T

15.090

Have a more aggressive payout policy so he is a little concerned about post-2011. Also concerned about the Alberta economy, which is 70% natural gas and is still very weak. Also making acquisitions in the US.

2009-11-20

TOP PICK

Crescent Point Energy Corp

CPG-T

31.800

(A Top Pick Aug 7/08. Down 6.3.) Converted from an income trust to a Corp and pays a dividend. Likes the play in the Bakken oilfields Southeast Saskatchewan. Positive on oil and thinks it could average $80 in 2010.

2009-07-13

TOP PICK

Macys Inc. (formerly Federated Department Stores)

M-N

10.650

7% US$ bond maturing Feb 15/28 and currently yielding 11%+. Seeing a trend in the US where online sales are up (about 12%) as well as same-store sales growth for companies like this.

2009-07-13

TOP PICK

Cineplex Galaxy Income Fund

CGX.UN-T

16.490

Great management team. Benefited from a great slate of movies in the first half of 2009 with another strong slate coming in the 2nd half. People are returning to movies versus going on luxury vacations, buying new cars, etc. 7.6% yield should be safe.

2009-07-13

PAST TOP PICK

Newport Partners Income Fund

NPF.UN-T

0.190

(A Top Pick Aug 7/08.) 7% bonds maturing Dec 31/12. Started seeing serious deterioration in the businesses underlying the company and sold the bonds quite some time ago.

2009-07-13

PAST TOP PICK

Forbes Energy Services

FRB-T

0.900

(A Top Pick Aug 7/08. Down 85%.) He sold his equity holdings but bought the high yield bonds and gets about 20% yield. Not much debt and have almost 100 rigs to back up the debt. $2.75 in 12 months is not too far off.

2009-07-13

HOLD

Liquor Stores Income Fund

16.050

50/50 split between oil and gas Very solid management team. Good quality suite of assets. Dominant swing factor for them are holdings in the Montney region, particularly Dawson Creek. Natural gas prices are hovering around $2.50. Not economical for them but does not detract from the longer-term value. Could be some short-term volatility.

2009-07-13

WATCH

Altus Group Income Fund

AIF.UN-T

7.400

Very good management team. Big swing factor for them is the decreased activity in real estate, particularly commercial. Starting to see signs that commercial real estate developers are trying to spend more money. Expect they will do quite well in the longer run on the rebound. Doesn't think yield of 16% will be cut but there is the potential. Quarterly results are due August 11 so see what they say about coming quarters.

2009-07-13

HOLD

Peyto Energy Trust

PEY.UN-T

8.180

More weighted to natural gas. With natural gas prices hovering around $2.50 it is somewhat problematic for them. Have a very good property in Sundance and this is what you need to stick with in times of volatile commodity prices.

2009-07-13

BUY

NAL Oil & Gas Trust

NAE.UN-T

9.350

Slightly more weighted to natural gas. Very decent hedge book. Sold forward much of their natural gas for 2009 and part of 2010. Also sold forward much of their oil. This should help them maintain their distributions for the rest of 2009 at least. 11.75% distribution.

2009-07-13

HOLD

LIQ.UN-T

11.750

Trades at a slight premium to some of its peers in the US but do have a tax-free distribution until 2011. Has been a beneficiary of Alberta's threat to raise alcohol taxes as people rushed out to buy. Government has repealed this tax, which will benefit them in the long run. Once they are taxable in 2011 13.75% distributions will probably come under fire at about 20%.

2009-07-13

Comment

A&W Revenue Royalties Income Fund

AW.UN-T

13.840

Has done very well as people have reduced spending and doing more shopping in malls. This is a royalty trust structure and will be very taxable in 2011. 15% distribution.

2009-07-13

HOLD

Retrocom Mid-Market REIT

RMM.UN-T

2.310

(Market Call Minute.) Interesting things happening.

2009-07-13

WATCH

Extendicare REIT

EXE.UN-T

5.700

Companies that are currently structured as REITs will have to come under tighter guidelines to continue to qualify. Business that is held under the REIT unit structure has to be passive in nature so it is a long that borderline. Watch to see what management does.

2009-07-13

WATCH

Chartwell Seniors housing

CSH.UN-T

5.360

2009-07-13

Comment

Jazz Air Income Fund

JAZ.UN-T

3.220

31% distribution indicates market is expecting a cut. Has a CPA agreement with Air Canada that provides them with a minimum amount of block hours. Amounts to about an 85% payout ratio so there is not much danger of a cut. Starting to look better as unions have ratified an agreement allowing Air Canada to operate outside of bankruptcy proceedings. Have also renegotiated bank lines. Starting to look at this and may Buy shortly.

2009-07-13

BUY

Canadian Real Estate Investment

REF.UN-T

23.620

One of the higher quality REITs. Much of their refinancing risks have passed through. Will qualify as a flow-through entity post Jan 1/11. 5.8% distribution.

2009-07-13

BUY

Daylight Energy Trust

DAY.UN-T

7.670

One of the more exciting oil/gas trusts. Production profile going forward unfortunately is more related to natural gas but they have been very successful through the drill bit.

2009-07-13

BUY

Second Cup Royalty Income Fund

4.920

Preferred their preferred shares YPG.A-T or YPG.B-T but is now starting to reverse these trades and go back to the trust units at under $5. Would like more clarification by management on future plans come 2011 and what their real sustainable dividend will be.

2009-07-13

Comment

SCU.UN-T

4.750

Most restaurant royalty trusts are going to become quite taxable in 2011. This one has reorganized to a more operating status as opposed to a pure royalty trust. Gives them a little more flexibility and could also make them a little less taxable versus some of their peers.

2009-07-13

Comment

Consumers Waterheater Fund

CWI.UN-T

6.100

Price has come down as investors risk appetite has dropped. Net attrition rates have been picking up as housing starts in Ontario have trailed off so new water heaters and rentals are down. However, new home starts are starting to look more positive. 21.7% yield.

2009-07-13

HOLD

Morneau Sobeco Income Fund

MSI.UN-T

9.050

Good strong management. Very active in pension consulting so are benefiting from bad times. Also moving towards employment consulting and benefiting from layoffs. 10.5% yield.

2009-07-13

SELL

Holloway Lodging REIT

HLR.UN-T

0.760

(Market Call Minute.) Tough times in the lodging space.

2009-07-13

BUY

Pengrowth Energy Trust

PGF.UN-T

8.350

(Market Call Minute.) Good suite of properties. New good management.

2009-07-13

HOLD

Avenir Diversified Income Trust

AVF.UN-T

3.750

(Market Call Minute.) Has been moving to have many of its businesses sold off but are still in progress.

2009-07-13

SELL

Artis Real Estate Investment Trust

AX.UN-T

7.460

(Market Call Minute.) A lot of exposure to the Calgary office space.

2009-07-13

BUY

H&R Real Estate Inv Trust

HR.UN-T

11.120

(Market Call Minute.) Good price.

2009-07-13

Comment

A&W Revenue Royalties Income Fund

0.020

No opinion on Swine flu as we have to wait and see how dramatic the spread of it is. Doesn’t think recession in Canada will be that deep. We may see a downturn in commercial real estate in IS. Retail malls will not be hit as hard as commercial real estate.

2009-04-27

BUY

AW.UN-T

13.400

Reit Fund, a little different structure than other income trusts. A&W restaurants. Protein and wheat prices have moved down so A&W prospects are improving. 18 months until cut in distributions

2009-04-27

Comment

Extendicare REIT

EXE.UN-T

4.910

Had a rough time recently. Good operator in what is a diversified industry. Watch out for the currency hit as well as funding from Us Medicare.

2009-04-27

VAGUE

Avenir Diversified Income Trust

5.860

Fallen quite dramatically. Many US counterparts have gone under. But has a well over 90% market share here. Concerns are that as economy slows, they will be affected. Larger ads might be taken to half a page and so on. Is a very good reflection on where the Canadian economy is. You can never say never regarding a distribution cut. 81% payout ratio.

2009-04-27

WAIT

Precision Drilling Corp.

PD.UN-T

5.400

Recently did a very significant financing with Alberta. Much better shape than 3 months ago

2009-04-27

BUY

NAL Oil & Gas Trust

NAE.UN-T

8.500

Hedge book will help them into 2010. Trades at a discount. Will do something in the next 12 months.

2009-04-27

VAGUE

Zargon Energy Trust

ZAR.UN-T

16.040

Recently made an acquisition (masters), which was a cheap acquisition. Payout ratio in this environment is safe.

2009-04-27

WAIT

AVF.UN-T

3.370

Began life as an oil and gas trust and then acquired financial services, but then sold it. Company has some cash on board. Has not been enough guidance from management. High distribution. Cautious on natural gas income trusts.

2009-04-27

BUY

Consumers Waterheater Fund

CWI.UN-T

7.570

Safety of distribution depends on how people buy new water heaters vs. renting. Reliance Energy just did a bond issue. So credit markets are staring to loosen up here.

2009-04-27

BUY

7.700

One of the more asset rich income trusts so management team will find ways to protect the taxable income. Buy for distribution and growth.

2009-04-27

WAIT

Brick Group Income Fund

BRK.UN-T

1.290

Not had a good time of it in the last 6 months. People stopped buying furniture. Canada’s housing market is lagging the US. Thinks it will be weak for the next 12 months. Housing market will turn around before the 2011 conversion for taxation. Will be along road for furniture retailers to recover. Sell or wait 2 years.

2009-04-27

TOP PICK

Cineplex Galaxy Income Fund

0.020

Bonds of Opti-Canada. 8.25% Dec 15/2014, Now seeing 22% yield.

2009-04-27

TOP PICK

CGX.UN-T

14.810

8-1/2% yield, strong slate of movies this summer.

2009-04-27

PAST TOP PICK

Crescent Point Energy Corp

15.570

(Top Pick Apr 16/08, Down 35.75% including distribution) Long-term play – gas will be cheap all summer. Wait to buy

2009-04-27

BUY

Altagas Services

ALA.UN-T

14.620

(Market Call Minute) 50% exposure to power/50% exposure to gas.

2009-04-27

BUY

CPG-T

28.530

(Market Call Minute) One of the best oil and gas dividend paying companies out there. It converted from an income trust.

2009-04-27

DON'T BUY

Penn West Energy Trust

PWT.UN-T

13.600

(Market Call Minute) Hold or you are better off buying some one like a Crescent Point.

2009-04-27

BUY

Canadian Apartment Properties

CAR.UN-T

12.500

(Market Call Minute) Good steady eddy way to go.

2009-04-27

BUY

Pizza Pizza Royalty Income Fund

PZA.UN-T

6.750

(Market Call Minute) Protein, cheese and wheat prices all came down. Economy slowly recovering.

2009-04-27

BUY

Chartwell Seniors housing

CSH.UN-T

4.300

(Market Call Minute) New Management – likes it.

2009-04-27

TOP PICK

Yellow Pages Preferred B

YPG.B-T

0.000

Series 2 preferred shares 17%, $25 in 2016. See comments on YLO.UN: Many US counterparts have gone under. But has a well over 90% market share here. Concerns are that as economy slows, they will be affected. Larger ads might be taken to half a page and so on. Is a very good reflection on where the Canadian economy is.

2009-04-27

BUY

RioCan Real Estate Investment

REI.UN-T

14.550

One of largest operators of Canadian REITs. Should be bouncing off a bottom here. Potentially worried about distribution, depending on increasing vacancy rates. Not worried short term.

2009-04-27

BUY

Canadian Oil Sands Trust

COS.UN-T

26.650

Obama looking at increasing taxes paid by companies that are creating more carbon emissions. This would impact oil coming from Canadian oil sands. However there are lots of other markets. Oil is the safer play. COS.UN is a pure oil play, vs. BNP.UN

2009-04-27

DON'T BUY

Bonavista Energy Trust

BNP.UN-T

18.780

Obama looking at increasing taxes paid by companies that are creating more carbon emissions. This would impact oil coming from Canadian oil sands. However there are other places that will take the markets such as China. Oil is the safer play. COS.UN is a pure oil play, vs. BNP.UN. We expect softness in Gas.

2009-04-27

PAST TOP PICK

Calloway REIT

CWT.UN-T

10.800

(Top Pick Apr 16/08, Down 42.17%) Have pushed aside some of their refinancing risk. Buy.

2009-04-27

BUY

Davis & Henderson Income Fund

DHF.UN-T

13.910

(Market Call Minute) Going to do some good things with their cash flow going forward. Good stead-eddy company.

2009-04-27

PAST TOP PICK

Ag Growth International Inc

AFN-T

25.800

(Top Pick Apr 16/08, Down 8.45%) Came down in light of fact that fertilizer prices and agriculture plays grew weaker. Taking advantage of carry forward tax breaks. Converted to Corporation

2009-04-27

TOP PICK

H&R Real Estate Inv Trust

HR.UN-T

6.750

Took on a tremendous risk building the Bow tower in Calgary. Risk outlook is going to get much better. Wonderful contract of 25 years with price escalators and a solid client, Encana (ECA-T). Looking forward, construction and financing costs will be moving into their favour.

2008-12-08

TOP PICK

Grou[e Aeroplan Inc

AER-T

17.000

Will generate $1.40 to $1.50 in cash next year. Only trading at around 5 X cash flow. 6.6% yield. During tougher economic times, people will be utilizing points more and more. This will increase the revenue stream.

2008-12-08

TOP PICK

YPG Holdings

YPG.PR.A-T

16.750

Has fallen from its $25 issue price to about $15.50 giving it an approximate 20% yield. Has a higher priority to cash flow than the trust units (YLO.UN-T).

2008-12-08

PAST TOP PICK

Crescent Point Energy Corp

CPG-T

20.810

(Past Top Pick Jan 21/08. Up 1%.) One of the bigger operators in the Bakken light oil play. Very cheap. A Buy.

2008-12-08

PAST TOP PICK

Rogers Communcations (B)

RCI.B-T

35.030

(Past Top Pick Jan 21/08. Down 4%.) Very good value here. Trading at about 5 X cash flow. Dividend is safe and feels they will continue to buy back their own stock.

2008-12-08

PAST TOP PICK

Premium Brands Holdings Corp

6.530

(Past Top Pick Jan 21/08. Down 38%.) Probably suffering more from the slowing Canadian economy, which affects their top line sales numbers. Trading well below fair value. He transferred his trust holdings into Yellow Pages preferred shares. (See Top Picks.)

2008-12-08

BUY

PBH-T

7.000

Operates in the lower and costs of the food distribution business. Will probably do better now that cereal, grain prices, protein, etc. have been cut by about 50% lately. Should be able to expand their cash profit margins. 16% distribution should be safe.

2008-12-08

Comment

Just Energy Income Fund

JE.UN-T

6.700

Has been suffering a little because of flat sales over the last couple of quarters. Will probably do better in 2009 because of reduced labour costs, less competition and a lower Cdn$. They may be able to make some accretive acquisitions over the next 12 months.

2008-12-08

BUY

RioCan Real Estate Investment

REI.UN-T

14.010

Shouldn't do too badly owning this one. Canada's largest publicly traded retail operator. During these tougher times, this is the type of REIT you want to go to.

2008-12-08

BUY

Boardwalk REIT

BEI.UN-T

22.400

Apartments, particularly in western Canada. Very solid management team. Shouldn't do too badly owning this one.

2008-12-08

BUY

Bell Aliant

BA.UN-T

22.500

Operational focus is Northern Ontario and Northern Quebec. A rural landscape where there is not as much competition.

2008-12-08

BUY

17.150

Any call on any of the oil/gas trusts will be very dependent on your outlook for the price of energy. This has one of the best management teams. Very solid balance sheet. Very good quality name. A cheap way to play the Montney exposure.

2008-12-08

BUY