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| Charles Lannon of Toron Capital Markets |
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| DON'T BUY | Boeing | BA-N | 75.220 | Gets about half its revenue from commercial and about half from defence. Thinks outlook for defence spending is potentially at risk as governments try to get some of their spending under control. | 2012-02-02 | ||
| DON'T BUY | BP PLC | BP-N | 45.530 | (Market Call Minute.) Broadly speaking, he does like the super majors. Great resource bases and stocks are not that expensive. Attractive dividend yields. This one seems to go from one operational issue to another so this would not be his preferred name. | 2012-02-02 | ||
| DON'T BUY | Cameco Corporation | CCO-T | 23.570 | Doesn't own any uranium stocks. Doesn't see huge capacity for nuclear energy coming on anytime soon. Commodities are the most cyclical and volatile of stocks. | 2012-02-02 | ||
| DON'T BUY | Cemex SA | CX-N | 7.860 | Sold his holdings in 2008. Cement industry is very fragmented. Debt level is enormous. When US housing recovers, this stock will do very, very well. | 2012-02-02 | ||
| BUY | Diageo PLC | DEO-N | 90.590 | (Market Call Minute.) Likes at these levels. Organic growth has really accelerated. Good core holding. | 2012-02-02 | ||
| DON'T BUY | Kinross Gold | K-T | 11.330 | One of the more controversial gold stocks. Bulls point to the potential of the asset base and Bears point to the checkered track record of bringing assets into production. He likes diversity of operations, low-cost structure, low geopolitical risks and a really sound operating track record. This company has the first 2 but not the last 2. Would prefer Goldcorp (G-T), Barrick (ABX-T) and Yamana (YRI-T) in that order. | 2012-02-02 | ||
| BUY | Luxottica | LUX-N | 33.250 | Integrated eyeglass company. Manufacture for a whole host of brands, some of which they wholly own. They also retail. Well-run company. Gets far more of its revenue from the US than it does from Europe. Should be able to grow its earnings at high single-digit/low double-digit for many years to come. | 2012-02-02 | ||
| PAST TOP PICK | 3M Co. | MMM-N | 87.430 | (A Top Pick Feb 23/11. Down 1.23%.) Still one of the preeminent American industrial companies. Still likes. | 2012-02-02 | ||
| BUY | Oracle | ORCL-Q | 28.810 | (Market Call Minute.) Great company. Solid position in databases. Not as much growth as you would see in an Apple (AAPL-Q) or Qualcom (QCOM-Q) a good solid holding. | 2012-02-02 | ||
| HOLD | Starbucks | SBUX-Q | 47.660 | One of the great things about them is the way they expand internationally. In non-American markets, they get the franchisees to do the slog of building the company out but retain the right to buy them out at 5-6 times cash flow, which is a very low price. Doesn't own because the barriers to entry in his industry are almost nonexistent. | 2012-02-02 | ||
| PAST TOP PICK | Smith & Nephew PLC | SNN-N | 50.600 | (A Top Pick Feb 23/11. Down 10.95%.) Medical devices. Just reported strong numbers. Volumes in replacement knees has suffered because of the economy but still likes this long-term because of demographic tailwinds. Strong possibility it will get taken out in 3-4 years by one of its competitors. | 2012-02-02 | ||
| PAST TOP PICK | Thomson Reuters Corp | TRI-T | 27.260 | (A Top Pick Feb 23/11. Down 26.5%.) Huge management changes in this company in the last year. Dividend is secure and he would like to give management 2-3 quarters for some kind of evidence of a turnaround. | 2012-02-02 | ||
| BUY | Taiwan Semiconductor MFG. | TSM-N | 13.910 | They are a foundry so do very little design of integrated semiconductors but do a lot of manufacturing. A big client of theirs is Qualcom (QCOM-Q). They are a direct beneficiary of the rise of mobile computer devices, smart phones and tablets. Very well-positioned. Huge technological leader. | 2012-02-02 | ||
| DON'T BUY | Vodafone Group PLC | VOD-Q | 27.230 | An interesting telco. European in origin but has some emerging market exposure but is usually the 2nd, 3rd or 4th in emerging markets. Payout ratio is very high at roughly 90%. Given the regulatory environment in Europe, he would think the dividend is at risk. | 2012-02-02 | ||
| Comment | Barclays Bank PLC | BCS-N | 14.420 | (Doesn't own equity but owns a number of their fixed instruments.) With its geographic exposure, it doesn't have a huge opportunity to organically grow its deposit base. Prefers Standard Chartered Bank (STAN-LSE). You might use this as a trade, but not a long-term hold. | 2012-02-02 | ||
| TOP PICK | CML Healthcare | CLC-T | 10.600 | Laboratory testing and medical imaging. Took a lot of risk out of their business by getting rid of their US assets. Attractive yield. | 2012-02-02 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Comment Investing. European Central Bank is providing extended long-term financing to a whole host of European private sector banks has taken the Armageddon off the table for a little bit. A whole host of data points, such as data from the US and China, are generally positive. Propensity for headline risks will continue to come out of Europe. Greece, Italy, Spain, etc. have huge bond refinancing that will be occurring on almost a weekly or biweekly basis. Investors can take advantage of this if they have a very good sense of what they deem to be quality in the market and work hard to put a price tag on it. | 2012-02-02 | ||
| BUY | ABB Ltd. | ABB-N | 21.670 | Super high quality company. Prefers Schneider of France because they have a slightly better presence in emerging markets but nothing wrong with this company. | 2012-02-02 | ||
| TOP PICK | Royal Dutch Shell PLC (A) | RDS.A-N | 71.740 | Too many Canadian oil/gas royalty trusts have too much debt. Also too many with bases that are long in the tooth and dividends that are going to be unsustainable in the low gas price environment. This company just reported with so-so results. Production was good. Refining was weak. Very modest increase in the dividends but he feels the 4.7% dividend will continue to grow. | 2012-02-02 | ||
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| BUY | ArcelorMittal | MT-N | 21.310 | Steel stocks were amongst the very worst performing last year. Probably a good opportunity here where good quality steel companies are trading as low as 4X cash flow. Because of high fixed costs, they will never command huge multiples. If you own, there will probably be a holding period of about 2 years with a fair amount of volatility. | 2012-02-02 | ||
| Comment | Lloyds TSB Group PLC | LYG-N | 2.020 | Shifting to a US bank? This bank is a huge favourite of deep value investors because the balance sheet is not that bad a shape. Opportunity for volume growth is very poor. With US banks, there will be a fair number of headlines where stress tests are going to come due in March. You might consider US Bancorp (USB-N). | 2012-02-02 | ||
| DON'T BUY | Tata Motors Ltd. | TTM-N | 24.980 | (Market Call Minute.) Still too early for Indian equities. Wants to see more evidence that inflation there is under control and that short-term interest rates will cease going up. | 2012-02-02 | ||
| DON'T BUY | Veolia Environnement | VE-N | 12.120 | Really suffers by virtue of being a European large-cap. Because of the debt level and high dividend payout ratio, there is some concern as to whether or not the dividend is sustainable. Too early to get into this name. | 2012-02-02 | ||
| DON'T BUY | British American Tobacco | BTI-A | 94.160 | Very large tobacco company. Very popular because it has a growing business in emerging markets. He has never been comfortable with litigation risks that tobacco companies face. Also many governments will be putting through austerity programs and excise taxes on this industry will be going up. Starting to see price competition. 3.84% dividend. | 2012-02-02 | ||
| DON'T BUY | Telecom Italia SPA | TI-N | 10.270 | (Market Call Minute.) Really tough regulatory climate. Feels the dividend is really at risk. | 2012-02-02 | ||
| TOP PICK | Giant Manufacturing | 9921-TW | 0.000 | (Taiwan exchange.) Huge insider ownership. Largest bicycle manufacturer globally with a 12% market share. Attractive top line growth, largely as they expand into mainland China and sell a very large number of e- bikes (electric). Should be able to grow at a low double-digit growth for many years. Pristine balance sheet. | 2012-02-02 | ||
| Comment | Apple | AAPL-Q | 377.410 | Pretty inexpensive but it has a couple of problems. For the stock to go up just 10%, it needs 36 billion of new investment to go into it. | 2011-11-17 | ||
| HOLD | Agrium | AGU-T | 72.260 | Thinks highly of the company and the business mix. Resource stocks are high beta stocks and the data on this one is around 1.4. This means that on days where there is a lot of fear, this one is going to be off substantially. Over the medium and long-term, agriculture will still be very important. | 2011-11-17 | ||
| BUY | Bank of Nova Scotia | BNS-T | 49.320 | One of the great things it has going for it is a vision for global growth, primarily Latin America. Very well run and a very strong credit culture. One of the lowest cost structures of any Canadian bank. | 2011-11-17 | ||
| Comment | General Electric | GE-N | 15.640 | Very high quality company that can be had at a very good price but it is so large, it is growth challenged. Doesn't own the stocks but owns many of their fixed income instruments. | 2011-11-17 | ||
| HOLD | IBM | IBM-N | 185.730 | Really strong company. There is a long laundry list of very high quality tech companies with very sound balance sheets that are selling at deep, deep discounts. Organic growth rate is probably only 3%-4% but continues to return a lot of cash to shareholders. | 2011-11-17 | ||
| HOLD | Kinross Gold | K-T | 13.430 | Poor performer due to concerns about project execution. On balance, it has good projects and the stock should be able to recover eventually. (Would prefer Goldcorp (G-T) and Newmont (NEM-N).) | 2011-11-17 | ||
| DON'T BUY | Morgan Stanley | MS-N | 14.130 | Has very little idea what their exposure is to the sovereign bonds, to the CDS’s on those bonds or European bank bonds. Because of this, he would not be a buyer. | 2011-11-17 | ||
| Comment | Newmont Mining (US) | NEM-N | 66.240 | Have a newish CEO who has been credited with improving the operational execution. It also brought on some Asian/Pacific assets to complement their core Nevada assets. Has also benefit because of being one of the few large and liquid gold equities available. Prefers Goldcorp (G-T), which is more expensive but has better growth prospects. | 2011-11-17 | ||
| BUY | Power Corp | POW-T | 22.750 | He owns Power Financial (PWF-T) instead, which is the same thing without a couple of Québec-based media assets. Derives about 2/3 of its profits from Great West (GWO-T).) Lifecos have suffered from market volatility a decline in interest rates. Any 3 of these companies offer strong total return potential over 3-5 years. | 2011-11-17 | ||
| DON'T BUY | Royal Bank | RY-T | 43.950 | Investors are not buying into their plans of increasing the business mix from capital markets activity, which can be a high return activity but very volatile. | 2011-11-17 | ||
| DON'T BUY | Suncor Energy Inc | SU-T | 31.820 | Very deep and diversified resource base, excellent management and excellent operations but does not have a low-cost structure. Low by oil sands standards but high by global standards. | 2011-11-17 | ||
| HOLD | Toronto Dominion | TD-T | 70.570 | High-quality bank. Feels it is worth $78-$80 per share. However, the stock can continue to be hit with volatility. | 2011-11-17 | ||
| BUY | A T & T US | T-N | 28.610 | Have a 6% dividend which is very secure and is about 175 basis points more than their 10 year bonds.. | 2011-11-17 | ||
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| HOLD | Vodafone Group PLC | VOD-Q | 27.310 | Well run and the 3.6% dividend is safe. Dividend will grow in time along with its modest earnings growth. You need to be patient with this. | 2011-11-17 | ||
| PAST TOP PICK | Walgreen Co | WAG-N | 32.280 | (A Top Pick Jan 6/11. Down 18.21%.) Picked a fight with Express Scripts (ESRX-Q) with very low prospects of winning. Will be re-examining this one. | 2011-11-17 | ||
| HOLD | Total SA | TOT-N | 49.720 | Has really suffered as the crisis of confidence has gone on in Europe. Very well run and has decent production prospects. Its performance in the near-term will be driven by the price of oil. (See Top Picks.) | 2011-11-17 | ||
| PAST TOP PICK | Cineplex Inc | CGX-T | 24.980 | (A Top Pick Jan 6/11. Up 14.71%.) Really good job of getting more revenues from advertising and alternative programming. Also have the concession mix right. Still a Buy. | 2011-11-17 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | There are 2 opposing influences going on in the market. One is the confidence crisis in Europe and the other is the US which refuses to fall into a recession. Data in retail sales, housing starts, etc. seems to be somewhat better than expected. Feels 2012-2013 will be years of modest economic growth. | 2011-11-17 | ||
| DON'T BUY | Telefonica S.A. | TEF-N | 18.520 | Recently sold his positions. Currently yield of about 13% and feels the market is pricing in a dividend cut. Pretty obvious the company can’t support current dividends. Expects dividend cut of 50% in 2013. Also Brazilian mobile penetration has gone through 100%. | 2011-11-17 | ||
| TOP PICK | Royal Dutch Shell PLC (A) | RDS.A-N | 69.460 | 4.8% dividend yield. Decades long resource base. Having just completed a huge CapX build out prospects for significant dividend growth and buybacks are very strong going forward. | 2011-11-17 | ||
| TOP PICK | Genivar Inc | GNV-T | 24.250 | Likes the engineering services space generally. Does no construction, just design work. Very strong insider ownership. 6.2% dividend yield is very attractive. Expect they will continue to grow earnings out at a high single digit or low double digit rate over the next few years. | 2011-11-17 | ||
| SELL | Lloyds TSB Group PLC | LYG-N | 1.580 | Was forced into a marriage that it didn't want during the financial crisis of 08-09. Raised a ton of equity. Operationally, it is turning the corner and the British economy is stabilizing. It is now a favourite of deep value investors. If you own, consider switching to Standard Chartered Bank (London Stock Exchange). | 2011-11-17 | ||
| DON'T BUY | Banco Santander SA | STD-N | 7.340 | The largest Spanish bank with significant holdings in Britain and Brazil. Have a lot of real estate on the books that they cannot dispose off that was confiscated from developers. BV is probably overstated. Have not fully marked down their Spanish government debt holdings. | 2011-11-17 | ||
| PAST TOP PICK | Itau Unibanco Holding S.A. | ITUB-N | 17.380 | (A Top Pick Jan 6/11. Down 24.9%.) Largest private sector bank in Brazil. Continues to grow at a nice clip. Competent that it will be twice as large in assets and earnings in about 4 years. | 2011-11-17 | ||
| TOP PICK | Honda | 7267-TYO | 0.000 | Tokyo exchange. Probably undervalued by 30%-40%. Tsunami/flooding have cut into production. Over 50% market share globally in motorcycles with a very profitable financing division. Very efficient because they only have 4 platforms and the vehicle fleet is being replenished. | 2011-11-17 | ||
| PAST TOP PICK | Cisco | CSCO-Q | 15.330 | (Top pick Aug 10/10, Down 37.01%) He sold in January. It became obvious that management could not grow the company as they predicted. | 2011-09-22 | ||
| DON'T BUY | Encana Corp | ECA-T | 20.830 | Not his favourite name in the energy space. He thought the decision to split up the company a while back was a bad one and it turns out he was correct. Supply/demand dynamics are not favourable. Prefers Vermillion and Freehold. | 2011-09-22 | ||
| DON'T BUY | General Electric | GE-N | 15.040 | Owns a number in that space, but not this one. He has fixed income instruments from them. Reasonably well run company. Concerns are that it is a huge company and their lending business that investors don’t have an appetite for. | 2011-09-22 | ||
| BUY | Goldcorp Inc | G-T | 49.100 | Likes it. Stock has its critics. This is a part of the market where you should never hesitate to pay up for quality. Good operational job. Commodities don’t give you a cash flow on a regular basis. | 2011-09-22 | ||
| PAST TOP PICK | Johnson & Johnson | JNJ-N | 61.920 | (Top pick Aug 10/10, Up 8.12%) Health care should be at the top of the list now. | 2011-09-22 | ||
| TOP PICK | North West Company | NWC-T | 19.410 | Can grow despite adverse economic conditions. Stores across northern Canada. Dividend is attractive and they can grow that over time. Margins are larger than average for grocery. | 2011-09-22 | ||
| PAST TOP PICK | Power Financial Corp | PWF-T | 24.420 | (Top pick Aug 10/10, Down 10.08%) Down because interest rates will stay low for the longer term. If economy does normalize, then this one will benefit from rising interest rates. We will be in a better position in 6 months. 6% dividend. | 2011-09-22 | ||
| DON'T BUY | Siemens | SI-N | 89.290 | Largest conglomerate in Germany. There are great opportunities to pick up opportunities like this with the recent sell off. They are going to have to work hard in the upcoming cycle to grow. Smaller companies can do this more easily. ABB, Snider are good examples. | 2011-09-22 | ||
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| DON'T BUY | Suncor Energy Inc | SU-T | 26.210 | Go with a longer time buy horizon, say 4-5 months. Dollar cost average. You might also want to look at others outside of the oil sands. Not his first choice. Try Royal Dutch. | 2011-09-22 | ||
| DON'T BUY | Teck Resources Ltd. (B) | TCK.B-T | 31.750 | If economy continues to slow, base metals are going to be the most vulnerable. This is not his favourite name in the space. Prefers BHP. The demand is going to be there but he thinks you should think of switching. | 2011-09-22 | ||
| TOP PICK | Taiwan Semiconductor MFG. | TSM-N | 11.520 | Contract manufacturer for chips. 4.3% dividend. Expect a nice catalyst this year that they will take over from Samsung to manufacture Apple product chips. | 2011-09-22 | ||
| BUY | Vodafone Group PLC | VOD-Q | 24.580 | 5.5% dividend yield that is quite secure. Verizon and emerging markets. Not a ton of growth in the telecom space. | 2011-09-22 | ||
| DON'T BUY | Uranium One Inc. | UUU-T | 2.290 | He sold it in ’06. Don’t be afraid to pay for quality and for a tier 1 asset. Financing is going to become increasingly hard for them to come by. | 2011-09-22 | ||
| BUY | Total SA | TOT-N | 41.270 | Hurt but the fact that it is one of the largest stocks on the French index so is subject to shorting. Dividend is very secure. Prefers Royal Dutch Shell. Ease into it. | 2011-09-22 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | GOLD sell off: You need to realize that comedies are the most volatile asset class. Juniors are just another layer of volatility. It can be purchased on margin and we saw people going to cash quickly today because of margin. People parking money have to do it in the US treasuring market and this explains the strength of the US dollar. | 2011-09-22 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets: Panic selling was going on. A multitude of fears. Default by Greek government and fears around recovery in the US. The expectation that markets are always going to be rational is not valid. The market is starting to price in a US recession. If growth is merely lousy, then stocks are relatively cheap. This level should hold fundamentally, but there isn’t a lot of concern for fundamentals. Market is driven by fear. We could see short-term volatility. | 2011-09-22 | ||
| DON'T BUY | Baidu.com | BIDU-Q | 123.180 | When you look at emerging markets, you want to see a clear alignment of interests via insider ownership. You want consistent dividends. This one does not do that. Growth stocks are something you rent for while. You don’t want to rent this one. | 2011-09-22 | ||
| DON'T BUY | Tata Motors Ltd. | TTM-N | 14.890 | Many emerging markets corrected, but India has not. Market is overvalued across the board. This one is included in that. | 2011-09-22 | ||
| TOP PICK | Standard Chartered Bank | STAN-LSE | 0.001 | Chinese bank with volume growth. Attractive entry point 6% dividend and thinks it will double over the next 5 years. | 2011-09-22 | ||
| DON'T BUY | Banco Santander SA | STD-N | 7.380 | The bank will survive if Spain defaults on its debt. Largest bank in Spain. They are carrying their real estate assets at a high price. | 2011-09-22 | ||
| DON'T BUY | Bank of Ireland (Gov & Co) | IRE-N | 0.965 | On the brink of insolvency. If you buy this you are speculating on a bailout. Irish economy won't allow them to grow loans on the books. | 2011-09-22 | ||
| DON'T BUY | ARM Holdings PLC | ARMH-Q | 26.510 | Darling of European tech stocks. Famous in Apple products. They are a designer, not a manufacturer. 55 times earnings, so they are not in favour if it. | 2011-09-22 | ||
| PAST TOP PICK | Cisco | CSCO-Q | 15.920 | (A Top Pick Aug 10/10. Down 33.45%.) Sold his holdings at around $19.50. | 2011-08-11 | ||
| TOP PICK | Cominar Real Estate Inv Tr | CUF.UN-T | 21.550 | US announcement of prolonged interest rates was a huge favor to the REIT section, and all high yielding equities. This is the pick up litter. Close to 7% dividend yield. Management owns 20%. Very well run. | 2011-08-11 | ||
| DON'T BUY | ING Groep NV | ING-N | 8.470 | Got an $8 billion injection from the Dutch government to stay solvent. Have been shedding insurance assets globally as well as some of the banking assets. You would be better served with a more cash flow oriented brand of investing. There will be a lot of volatility over the near-term. | 2011-08-11 | ||
| PAST TOP PICK | Johnson & Johnson | JNJ-N | 63.440 | (A Top Pick Aug 10/10. Up 8.52%.) Dividend is now approaching 4%. Still a Buy. | 2011-08-11 | ||
| Comment | Proctor & Gamble | PG-N | 60.450 | This is the sort of stock that is poised to do well in this kind of market. He doesn't care for it, because it is so big it is growth challenged. A good alternative might be Unilever (UL-N). | 2011-08-11 | ||
| PAST TOP PICK | Power Financial Corp | PWF-T | 27.080 | (A Top Pick Aug 10/10. Down 1.43%.) | 2011-08-11 | ||
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| TOP PICK | Smith & Nephew PLC | SNN-N | 0.010 | (London Stock exchange.) Medical devices. This sort of business that can continue to grow a respective of the economy. Good price. | 2011-08-11 | ||
| TOP PICK | A T & T US | T-N | 28.440 | Telcos, globally, will continue to do well. This company has a very attractive catalyst if the T Mobile merger gets consummated. It will raise profitability significantly over a 2-3 year time frame. 6.2% dividend. | 2011-08-11 | ||
| DON'T BUY | Sino-Forest Corp | TRE-T | 6.580 | This is currently just a gamble and not investing. They never had a long track record of dividends. Business model was not easy to understand. | 2011-08-11 | ||
| Comment | Freeport McMoran Copper & Gold | FCX-N | 45.820 | Gold is a good diversifier and plays a role in any good equity portfolio but be cautious and don't have too much exposure. He prizes geopolitical stability and certainty so prefers something like Barrick (ABX-T) instead of this company. | 2011-08-11 | ||
| BUY | BHP Billiton Ltd. | BHP-N | 80.040 | Generates billions of free cash flow was a great organic growth opportunity in green field operations. A dodgy M&A track record but the core metals it is involved in all have positive supply/demand dynamics. | 2011-08-11 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets are in a crisis of confidence. He continues to put strong emphasis on asset class diversification in equity and bonds so there is as much cash flow coming in as possible and when markets drop-off like this, there is more cash to reinvest in high-quality assets. | 2011-08-11 | ||
| BUY | Sanofi-Aventis | SNY-N | 32.870 | One of the largest and most popular drug companies in Europe. Has a strong product profile. French stocks, merely by their association, have been really hammered. Good stable business that will do well, irrespective of economic conditions. Good entry point. | 2011-08-11 | ||
| DON'T BUY | Lloyds TSB Group PLC | LYG-N | 2.120 | This is a favourite stock of deep value investors because it has a forced marriage that is part of the banking crisis of 2007-2008 in Britain. Proponents point to formalized earnings levels that are healthy. A better alternative would be Standard Chartered, which is on the London exchange. | 2011-08-11 | ||
| PARTIAL SELL | Tata Motors Ltd. | TTM-N | 18.420 | Prospects are pretty bright over the long-term. Near term, he expects the price to stay low. Interest rates in India continue to climb, which makes it more and more difficult for stocks to do well. One of the few emerging markets that are still overvalued. A very promising 3-5 year outlook but wait until India's interest rate cycle has peaked and market returns to normal price/earnings multiples. If you own, consider taking some money off the table. | 2011-08-11 | ||
| DON'T BUY | Petromanas Energy Inc. | PMI-X | 0.195 | He prefers equities that have dividends. In this sort of turmoil, it will be difficult for juniors to do well. Access to equity financing will become a lot more difficult to come by. | 2011-08-11 | ||
| DON'T BUY | Barrick Gold | ABX-T | 42.300 | Fantastic management and great cost structure. Cheapest gold stock out there. Suffers from being so large. Thought their acquisition of the copper play was bizarre. Expect it will continue to under perform. | 2011-06-13 | ||
| Comment | Agrium | AGU-T | 82.550 | Probably the best run, large cap agriculture company in Canada. | 2011-06-13 | ||
| Comment | Bank of America | BAC-N | 10.970 | (Caller would like to write covered calls.) Covered call writing success is largely tied to levels of volatility and this strategy is not as successful as it was years ago. | 2011-06-13 | ||
| PAST TOP PICK | Cisco | CSCO-Q | 15.060 | (A Top Pick Apr 29/10. Down 44.55%.) Sold at just under $20 in February. | 2011-06-13 | ||
| SELL | Cisco | CSCO-Q | 15.060 | Sell this and move into Intel (INTC-Q) or Microsoft (MSFT-Q) or hold? Going to companies with strong balance sheets, lots of cash and no debt is a good tactic. Intel is a good choice. | 2011-06-13 | ||
| TOP PICK | Diageo PLC | DEO-N | 82.860 | Liquors sales. One of the best organic growth rates of any consumers staples company. Good management. 3.2% dividend. | 2011-06-13 | ||
| Comment | Fortis Inc. | FTS-T | 31.710 | Well-run company and attractive dividend yield. Fairly priced at this time. Decent dividend. Would prefer Trans Canada (TRP-T), which will benefit from all their recent capital spending. | 2011-06-13 | ||
| DON'T BUY | Manulife Financial | MFC-T | 15.900 | Increasing hedging to reduce quarterly earnings fluctuations in the equity market and is the reason for the volatility. Owns their fixed income instruments instead, which are safer. Globally, insurers are quite cheap now because of investors concerns on real estate holdings. Would prefer Power Financial (PWF-T), which owns Great West Life (GWO-T). | 2011-06-13 | ||
| DON'T BUY | Open Text | OTC-T | 57.060 | Software solutions. Well run but doesn’t have a great growth trajectory and doesn’t pay dividends. | 2011-06-13 | ||
| PAST TOP PICK | Power Financial Corp | PWF-T | 29.030 | (A Top Pick Apr 29/10. Down 1.3%.) Gets about 2/3rds of its profit from Great West Life (GWO-T) and about 1/4 from Investors Group (IGM-T). Good dividend of about 5% and dividend growth going forward. | 2011-06-13 | ||
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| Comment | Research In Motion | RIM-T | 35.340 | Trading at about 7 or 8 times earnings. US market share continues to fall and they lag Apple (AAPL-Q) and androids. Too competitive a market for him. Would really look at it in the mid-$30s. | 2011-06-13 |
