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| Christine Poole of GlobeInvest Capital Management |
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| PAST TOP PICK | Boeing | BA-N | 75.460 | (A Top Pick Feb 14/11. Up 6.05%.) | 2012-02-08 | ||
| DON'T BUY | Bombardier Inc (B) | BBD.B-T | 4.820 | Half of this is transportation such as big railcars and a lot of this business is in Europe. Also this tends to be lower margin. The other half is aerospace for business jets and commercial jets. There hasn't been enough C series orders coming through. Like to see more orders coming through. | 2012-02-08 | ||
| Comment | Cameco Corporation | CCO-T | 23.080 | She is waiting. Demand for uranium has lessened. If you have a long time frame of 10 years plus, it would be a good hold. | 2012-02-08 | ||
| WAIT | Canadian Natural Rsrcs | CNQ-T | 37.920 | Has pulled back because of the shutdown of Horizon for some unplanned maintenance. Company hasn't said much about this. They are a great operator and this problem will be resolved. They do have natural gas properties that they could focus on it that environment changed. | 2012-02-08 | ||
| TOP PICK | Canadian National R.R. | CNR-T | 78.210 | Best run railroad company in North America. Doesn't expect any pressure from Canadian Pacific (CP-T) which will be focusing on internal operating metrics. Expects CN to continue improving their operating ratio, which is currently under 64%. Always increases its dividend. Trading at a discount to CP. | 2012-02-08 | ||
| TOP PICK | CGI Group (A) | GIB.A-T | 20.290 | About 70% of revenue is from outsourcing and 30% is systems integration and project work, which tends to be a bit more cyclical. Outsourcing is very defensive because you typically have long term contracts and very good visibility. Just reported an excellent quarter in bookings. Backlog is over $13 billion. Stock pulled back a little because of fears of weaker orders from US government. Trading at about 12.2X forward earnings. Have consistently brought back stock. | 2012-02-08 | ||
| PAST TOP PICK | General Motors Corporation | GM-N | 25.750 | (A Top Pick Feb 14/11. Down 27.24%.) Sold this in December for tax loss. | 2012-02-08 | ||
| TOP PICK | H&R Real Estate Inv Trust | HR.UN-T | 23.390 | The Bow in Calgary is essentially almost complete and should have full occupancy by year-end. Save, defensive, high-quality REIT. Over 98% occupancy so has good earnings visibility and she knows that 4.7% distributions will be increasing as occupancy ramps up. | 2012-02-08 | ||
| BUY on WEAKNESS | Inter Pipeline Fund | IPL.UN-T | 18.590 | Bought some of this when it pulled back below $18. Would wait for it to pull back again before buying. Great dividend yield support. Recently closed on their acquisition of the Danish storage terminal. | 2012-02-08 | ||
| BUY | Power Financial Corp | PWF-T | 27.140 | Slightly higher yield than banks in excess of 5%. Own Great West Life (GWO-T) and Investors Group. Great West is arguably the highest quality in terms of conservatism and has been less impacted by market sensitivities than its peers. | 2012-02-08 | ||
| DON'T BUY | Rona Inc | RON-T | 9.260 | Home retailers have generally not done too well because of the soft housing market. Sells a lot of seasonal products and we haven't had a lot of winter this year. Will likely not be reporting a very strong result. Prefers other areas of the market. | 2012-02-08 | ||
| BUY | Teck Resources Ltd. (B) | TCK.B-T | 40.750 | Likes this one longer-term. Tends to be volatile on economic news because it produces commodities, particularly coal, iron ore and zinc. Would buy it here for a long-term play on China. | 2012-02-08 | ||
| PAST TOP PICK | Chartwell Seniors housing | CSH.UN-T | 8.800 | (A Top Pick Feb 14/11. Up 9.04%.) | 2012-02-08 | ||
| BUY | Unilever PLC | UL-N | 32.210 | Did very well last year as a defensive play as it is a huge consumers’ product company. Has pulled back along with other defensive names. Just reported their quarter and there was some margin pressures. Almost 64% of revenues are from developing markets. | 2012-02-08 | ||
| BUY | Brookfield Asset Management (A) | BAM.A-T | 31.430 | This is the one that she would buy if wanting to own one of the Brookfield companies. This has so many operating subs beneath them and may typically hold the majority interest in them. | 2012-02-08 | ||
| BUY | Agrium | AGU-T | 73.100 | Links agriculture in general. Delayed fertilizer buying has created a bit of uncertainty but in the long-term, she likes the fundamentals and its positioning, particularly nitrogen with this access to low-cost gas in North America. | 2012-01-05 | ||
| PAST TOP PICK | Boeing | BA-N | 73.530 | (A Top Pick Dec 20/10. Up 20.41%.) Have a very large backlog, primarily in the commercial aerospace. They've just started delivering their 787’s and she expects that to run. Despite the fact that they have a lot of orders for the 787’s, she expects it will get a lot of orders for the 737’s this year. | 2012-01-05 | ||
| Comment | BCE Inc. | BCE-T | 42.450 | Telecom stocks have all performed quite well this last year. Thinks this is investors seeking yield and stability of earnings. Current price is over her current target price. | 2012-01-05 | ||
| DON'T BUY | Corning Inc | GLW-N | 13.280 | Has been beaten down. They have lowered guidance of late. They provide the glass for LTD TV’s and there is an oversupply due to a weak consumer environment globally. | 2012-01-05 | ||
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| TOP PICK | Goldcorp Inc | G-T | 45.950 | The pullback in gold prices represents a good opportunity for investors to have gold exposure. This is a large tier 1 producer at about 2.5 million ounces which could grow to 4 million by 2015. They are in lower risk regions globally. Low-cost producer. | 2012-01-05 | ||
| Comment | Great West Lifeco | GWO-T | 20.890 | Has not done well, like all of the lifecos in Canada. This is because of a concern on interest rates. Their earnings are probably the most stable of all the lifecos. Their dividend is safe. | 2012-01-05 | ||
| Comment | Manulife Financial | MFC-T | 11.420 | If you have a 3-5 year timeframe and you are generally positive on equity markets, then this is probably a decent level. Stock is suffering from mistakes of the past. Decent yield at just over 4%. | 2012-01-05 | ||
| PAST TOP PICK | Newalta Corp | NAL-T | 12.830 | (A Top Pick Dec 20/10. Up 10.44%.) Sold her holdings in June. | 2012-01-05 | ||
| BUY | Potash Corp of Saskatchewan | POT-T | 43.960 | Just recently announced they were shutting down 2 of their Saskatchewan mines for 6-8 weeks. This reflects the fact that they will produce to supply to keep the market in balance. Near-term we are seeing delayed demand for potash. Company thinks the market will be quite tight for 2012 with a pretty good selling season into the spring. In the long term, farm economics remains quite positive. | 2012-01-05 | ||
| DON'T BUY | Rogers Communcations (B) | RCI.B-T | 39.320 | Range bound between $35 and $40. Good yield play for income investors at 3.8%. Doesn't like telecom in general because it is too competitive right now. Very strong balance sheet and generating strong cash flow. | 2012-01-05 | ||
| PAST TOP PICK | Royal Bank | RY-T | 52.340 | (A Top Pick Dec 20/10. Up 8.41%.) Still likes. | 2012-01-05 | ||
| BUY | Suncor Energy Inc | SU-T | 31.460 | Likes oil sands so this would be a good investment. Feels oil prices will remain in the $90-$110 range. Well-managed. | 2012-01-05 | ||
| Comment | Thomson Reuters Corp | TRI-T | 27.450 | Stock price has done very poorly but she feels the dividend is sustainable. They sell “need to know” and “must have” information to the financial and professional industries. Their end market, the financial industry, has not recovered from the recession, which has hurt their business. Feels the dividend is safe but the stock price may be stalled until there is more clarity as to what they're going to do going forward. | 2012-01-05 | ||
| TOP PICK | Cineplex Inc | CGX-T | 25.250 | Likes the 5% + yield. Leading operator of theatre chains in Canada with about a 7% share. They have benefited from the advent of 3-D films. Have been very efficient in increasing their operations in terms of concession spending, which is highly profitable. Have also found alternative sources of revenues for their theatres. | 2012-01-05 | ||
| TOP PICK | International Flavors & Fragrances | IFF-N | 52.900 | Provide flavourings, scents and tastes to consumer packaged companies. 2nd leading operator in the US with a 17% market share. About 40% of their goods are for emerging markets. | 2012-01-05 | ||
| BUY | Canadian Natural Rsrcs | CNQ-T | 37.840 | Likes their mix of the land inventories and what they produce. Focusing on oil right now because they're negative on natural gas for the next few years. Very good guardians of capital. Will be spending $7 million next year on their Horizons project in the oil sands. Well-managed. | 2011-12-01 | ||
| Comment | Encana Corp | ECA-T | 20.300 | Very leveraged to natural gas. They have decided to focus more on liquid rich natural gas but a little late in the game. She would prefer Crescent Point (CPG-T) Arc Resources (ARX-T) or Bonavista (BNP-T) which gives you between 5% and 6%. | 2011-12-01 | ||
| HOLD | Manulife Financial | MFC-T | 10.930 | If the current rally continues, this company will more than fully participate. Wouldn't commit new money to it but would continue to hold it. Prefers the Canadian banks against the lifecos. | 2011-12-01 | ||
| HOLD | Research In Motion | RIM-T | 18.810 | Wouldn't sell it down here but also wouldn’t commit additional capital. There is a floor on the price and she thinks we are near it. Very competitive space. Launched new phones and results will show up when they report their last quarter. | 2011-12-01 | ||
| TOP PICK | Shawcor Ltd. (A) | SCL.A-T | 26.830 | The leader in the pipe coating services with about 25%-30% global share. Recently had some contract wins which will boost their backlog quite a bit and increase their earnings visibility going forward. | 2011-12-01 | ||
| BUY | SNC-Lavalin Group Inc. | SNC-T | 49.950 | Half the revenues come from outside of Canada. Involved in a lot of infrastructure in Africa and the Middle East. Have been making a few acquisitions in the water and wastewater areas. | 2011-12-01 | ||
| BUY | Teck Resources Ltd. (B) | TCK.B-T | 37.650 | Share price suffered quite a bit as the Chinese economy has been slowing. The Chinese government is now focused on getting their economy growing again, which is a positive for resource stocks. Very attractively priced. | 2011-12-01 | ||
| PAST TOP PICK | Trans Canada Corp | TRP-T | 43.050 | (A Top Pick Nov 29/10. Up 21.68%.) Sold her holdings a couple of months ago. | 2011-12-01 | ||
| PAST TOP PICK | United Technologies | UTX-N | 76.580 | (A Top Pick Nov 29/10. Up 4.31%.) | 2011-12-01 | ||
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| Comment | Crescent Point Energy Corp | CPG-T | 44.080 | They balance their cash flow they generate from operations between CapX and dividends. If crude oil stays up the dividend is definitely safe. Also, they can go forward or backward to keep that dividend database. | 2011-12-01 | ||
| TOP PICK | Chartwell Seniors housing | CSH.UN-T | 8.040 | Good yield at just under 7%. Also likes the demographics of their business. Penetration rate in Canada and the US is quite low. Refocusing their US strategy by selling some non-core assets and reinvesting in the 4 core states they want to be in. | 2011-12-01 | ||
| PAST TOP PICK | Unilever PLC | UL-N | 33.140 | (A Top Pick Nov 29/10. Up 22.81%.) Half their sales are to emerging markets. | 2011-12-01 | ||
| Comment | Tim Hortons | THI-T | 51.860 | Even though classified as a consumer discretionary stock, she would consider it as a staples stock. Very well run. Growth outlook in Canada is not that great so looking to expand slowly into the US. If this rally continues, this stock may lag. She would prefer Yum! Brands (YUM-N), which is getting their growth from emerging markets. | 2011-12-01 | ||
| DON'T BUY | PetroBakken Energy | PBN-T | 9.960 | Has badly underperformed all of the other energy names and she does not know why. Have a convertible bond coming due next year also. | 2011-12-01 | ||
| TOP PICK | International Flavors & Fragrances | IFF-N | 53.800 | Provide fragrance and flavour to packaged consumer good companies. The top 4 players have about a 70% share of this on a global basis. This one is the #2 player. Their customers are focusing on the emerging markets. | 2011-12-01 | ||
| BUY | Agrium | AGU-T | 75.200 | Likes it. Long-term fundamentals are good. Longer term it is very positive. Likes their mix. | 2011-10-12 | ||
| DON'T BUY | Bank of America | BAC-N | 6.580 | Not interested in US financials or banks. It would be a gamble or a trade. You won't get Warren Buffet’s terms. Lot of debt on the balance sheet. Not written off all that they need to. No dividend any time soon. | 2011-10-12 | ||
| BUY | Bank of Montreal | BMO-T | 58.750 | One of the higher yield in the group. Nearly 4.8%. Increased presence in US will give them more scale. Tends to trade at a lower valuation. | 2011-10-12 | ||
| WEAK BUY | Deere & Co. | DE-N | 71.050 | About 2/3rds North America but slowly increasing exposure to emerging markets. Long-term play in Ag and descent. She prefers nutrient space. Deer has 15% revenues in forestry and construction, which has not recovered from recession. More cyclical than nutrient space. | 2011-10-12 | ||
| HOLD | Encana Corp | ECA-T | 20.780 | Nat Gas and share price suffered with softness in Nat Gas prices. Dividend is safe because they have a good hedging program to protect their dividend. They are more conservative on the forecast for Nat Gas over the next few years. Thinks this is the floor for gas. Have a large inventory of properties and could sell off some properties. Descent long-term hold. Could be dead money for a while. | 2011-10-12 | ||
| PAST TOP PICK | Goldcorp Inc | G-T | 48.650 | (Top Pick Oct 25/10, Up 14%) went up with the gold price, although did lag. Likes gold longer term. As gold price has pulled back a bit it is a good time to pick up more. | 2011-10-12 | ||
| PAST TOP PICK | Hewlett-Packard Co | HPQ-N | 25.870 | (Top Pick Oct 25/10, Down 38.89%) The board has to decide what they want to do. New CEO did run Ebay but it is not a hardware company. Investor sentiment is very negative. She thinks it is over done and so continues to hold it. Have re-occurring revenue stream for their printer and service business. They just have to demonstrate they have a clear strategy in place and then execute on it. | 2011-10-12 | ||
| DON'T BUY | Kraft Foods Inc | KFT-N | 34.600 | Bought Cadbury to increase exposure to emerging markets. Not attracted to this one. Prefers Pepsi. | 2011-10-12 | ||
| SELL ON STRENGTH | Manulife Financial | MFC-T | 12.850 | If you have a very long time frame, 5+ years, it is a descent long-term hold. Dividend will likely not increase. If this market rally is sustainable, then this one will participate. Then you could sell it. | 2011-10-12 | ||
| DON'T BUY | Pfizer Inc | PFE-N | 18.820 | Suffering from loosing their patent on lipitor. Will be a pullback on earnings. Trying to reassess their businesses and potentially spinning some off. Not a big fan of large cap Pharma. Prefers diversified health care companies like Abbot. | 2011-10-12 | ||
| BUY | RioCan Real Estate Investment | REI.UN-T | 25.200 | High quality REIT, around for a long time. Yield not one of the highest. Well run company. She likes it and was looking at REIT sector again. | 2011-10-12 | ||
| HOLD | Research In Motion | RIM-T | 24.270 | Probably pretty good support at these levels given the service revenue they get. They will watch it for a few more months. Thinks they are doing relatively well. New phones at a trade show later this month. | 2011-10-12 | ||
| PAST TOP PICK | Shawcor Ltd. (A) | SCL.A-T | 22.930 | (Top Pick Oct 25/10, Down 22.30%) Remains positive on this one. Some projects have been delayed. Just released that they won a big project. More announcements expected by end of year. | 2011-10-12 | ||
| BUY | Toronto Dominion | TD-T | 75.200 | One of 3 they hold and she would buy here. Yield is lower that the group. Very good retail franchise. Also likes RY and BMO | 2011-10-12 | ||
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| BUY | Teck Resources Ltd. (B) | TCK.B-T | 36.030 | Attractive level to come in. Copper prices have come back. Economic concerns have caused all base metal stocks to pull back. Coal and copper primarily. She had a good long-term outlook one these as China will need them. | 2011-10-12 | ||
| DON'T BUY | Talisman Energy | TLM-T | 12.790 | Had new management about 2 years ago and refocused gas plays from conventional to unconventional. All large cap energy suffered but they lowered production guidance twice this year so bring ability to execute into question. She might look at it again. | 2011-10-12 | ||
| Comment | Trans Canada Corp | TRP-T | 41.400 | Keystone will be approved, but if it doesn’t the stock will come off. Just sold a few weeks ago. Has done well in this pullback but it reached her target price. She is seeing a lot of local and environmental backlash regarding the pipeline. Have to negotiate new tolls next year and she doesn’t know how that will play out. | 2011-10-12 | ||
| TOP PICK | United Technologies | UTX-N | 74.240 | Diversified industrial company. Otis Elevators, Pratt and Whitney, Carrier, HVAC. High quality company. Acquired Goodrich recently. | 2011-10-12 | ||
| TOP PICK | Chartwell Seniors housing | CSH.UN-T | 7.060 | Operator of seniors housing – 25% in US, rest in Canada. 7.5% yield. People are aging. 5% of individuals in Canada live in seniors housing. Many seniors waited until after recession to sell house and move into senior’s residence so occupancy is increasing. | 2011-10-12 | ||
| DON'T BUY | Transocean Inc. | RIG-N | 49.050 | Sold around $72. Price never recovered. Demand / supply is still rather soft. Some headline risk with lawsuits. | 2011-10-12 | ||
| BUY | Unilever PLC | UL-N | 32.150 | Would still buy at these levels. Over half revenues from emerging markets. Pretty attractive yield. Relative discount to piers. Getting into person care that gets a larger multiple. Great long-term investment. | 2011-10-12 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Recent craziness is up and that is good. If we get increased clarity that EU has a plan to deal with the crisis, that maybe this rally is sustainable. If companies confirm there is continued profit growth that could be a catalyst for stocks to continue going up. Investor confidence has to be restored. Economic data from US confirms we will not go into a double dip. Clients’ cash levels are still relatively high but they have done some buying. | 2011-10-12 | ||
| SELL | Ag Growth International Inc | AFN-T | 33.700 | Owned in the past. Small grain handling equipment. Benefit from increased harvesting. Good export business. Felt their clients had made a lot of money with this. Would buy close to $30 | 2011-10-12 | ||
| SELL | Daylight Energy Ltd | DAY-T (Dead) | 9.710 | Long time shareholders but she sold yesterday. Felt the price being paid was fair. Not anticipating another buyer. | 2011-10-12 | ||
| TOP PICK | Yum! Brands | YUM-N | 51.030 | Company reported earnings last week and it got below $50 she picked it up and would do so here also. Experiencing higher coasts in labour and food costs and phasing in increases. Consumers are making more money in their markets and middle class is emerging.. | 2011-10-12 | ||
| Comment | PetroBakken Energy | PBN-T | 8.010 | Has looked at it in the past. Have not been able to deliver on production targets. She wants to talk to management before making a decision to buy. | 2011-10-12 | ||
| DON'T BUY | Carnival Corp. | CCL-N | 32.950 | Cruise lines. Hasn't looked at this closely in the last few months. Fuel is a large component of their operating costs. A consumer discretionary type name so Cruise line stocks have not done that well in general. Consumer spending will be muted. | 2011-09-14 | ||
| Comment | Cisco | CSCO-Q | 16.330 | Multiple has contracted to about 9X forward earnings and have reset their earnings and revenue growth targets to more realistic levels. Experiencing more competition in their router space. Their big end markets are governments and telecom carriers, which are both showing weakness. Expects the stock has bottomed and longer-term demand for products could improve. Have a lot of cash. | 2011-09-14 | ||
| PAST TOP PICK | Hewlett-Packard Co | HPQ-N | 22.930 | (A Top Pick Sept 27/10. Down 44.26%.) Consumer demand for PCs has been very weak. Have decided to re-examine the PC business. Wants to give it more time to see what happens. | 2011-09-14 | ||
| HOLD | Kinross Gold | K-T | 16.720 | Gold equities have lagged the gold price but expect they will play catch up. Large cap golds are trying to grow their production, and if they can’t do it organically they have to make acquisitions. This one acquired Redback Mining so they now have an inventory of projects to work on. | 2011-09-14 | ||
| DON'T BUY | L-3 Communications Holdings | LLL-N | 65.210 | Definitely a growth stock and have very good store potential in the US.Managed their business very well and made a lot of money but stock trades at a huge multiple, about 50X forward earnings. Too expensive for her. If they stumble in any way, there will be a big correction in the stock. | 2011-09-14 | ||
| Comment | Manitoba Telecom Services | MBT-T | 32.330 | Thinks the dividend is safe as their earnings and cash flow cover it. They offer consumer wire line and wireless services in Manitoba. Doesn't see a lot of growth. Yield of over 5%. | 2011-09-14 | ||
| TOP PICK | Royal Bank | RY-T | 45.990 | (A Top Pick Sept 27/10. Down 9.37%.)Has been a laggard among Canadian banks, primarily because of the volatility in their trading revenue. Their domestic franchise is very strong and posted pretty good earnings. Wealth management, long-term, is the right direction as demographics favour this. Yield of about 4.7%. | 2011-09-14 | ||
| TOP PICK | Shawcor Ltd. (A) | SCL.A-T | 26.020 | (A Top Pick Sept 27/10. Down 7.82%.) | 2011-09-14 | ||
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| TOP PICK | SNC-Lavalin Group Inc. | SNC-T | 49.310 | Engineering/construction including power plants, environmental, bridges. About half their revenues are outside of Canada. Libya hurt them in the first couple of quarters but expects they will go back in. Well managed. About 2% yield. Backlog of about $9.3 billion. | 2011-09-14 | ||
| DON'T BUY | Teva Pharmaceutical | TEVA-Q | 38.330 | The largest generic drug producer but also have a branded division. There is concern that there will be increasing competition. As well, expect there will be increasing pressure for any industry that is being reimbursed by governments, especially the US. As the market improves, this stock should lift from here but longer-term, she wouldn't be a buyer. | 2011-09-14 | ||
| BUY | United Technologies | UTX-N | 73.680 | Very high quality, diversified, industrial company. Divisions include Pratt & Whitney aircraft engines, Otis elevators, Carrier heating and ventilation. About 40% of their revenues are after market in servicing, so in an economic downturn, there is more cushion for them. Have grown earnings annually about 10% for the last 10 years and have increased their dividend 15%. Definitely a long-term hold. | 2011-09-14 | ||
| Comment | Crescent Point Energy Corp | CPG-T | 42.310 | Recently did an equity issue at $43.50. Very oil leveraged. Likes their Lamintory (?) which is a very high quality oil. On oil companies’ metrics, she looks at price to cash flow. This one tends to trade at a premium to its peers because of the high quality crude. | 2011-09-14 | ||
| BUY | Chartwell Seniors housing | CSH.UN-T | 6.770 | US government reimbursement scare dropped the stock. Also got painted with Extendicare (EXE.UN-T) because about 25% of their suites are in the US, but these are private care, meaning the individuals pay not the government. Over 8% yield. | 2011-09-14 | ||
| TOP PICK | Unilever PLC | UL-N | 31.330 | Defensive name. Has held up relatively well through the economic uncertainty. Half of their revenues come from emerging markets. Bullion growth has been very good this year. Long-term play on emerging markets. | 2011-09-14 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets – In spit of all the darkness, there are some good data points. S&P 500 companies are expected to grow profits 16% this year and then 14% next year. Valuations have come in quite a bit. S&P is trading at about 11.5X this year's earnings. Although governments may be bankrupt, corporate America is not. Have a lot of cash on their balance sheets, very negative right now, which is a good thing. buying back stock, raising dividends, making acquisitions and refinancing with low interest rates.2 Million jobs have been added since 2010. Investor sentiment is very negative right now, which is a good thing. Bear sentiment is over 40%. | 2011-09-14 | ||
| HOLD | Apple | AAPL-Q | 388.910 | There are big expectations built into this company, but she finds that if you watch the charts, there are certain technical Buy points. 200 day is a good support level. | 2011-08-02 | ||
| PAST TOP PICK | Abbott Labs | ABT-N | 50.200 | (A Top Pick July 26/10. Up 5.72%.) Diversified healthcare company. Branded drug division has Marot for arthritis etc., medical devices including stents and nutritional. Have also been making acquisitions in the branded generic space. Good diversity. About 20% of revenues come from emerging markets. | 2011-08-02 | ||
| Comment | Barrick Gold | ABX-T | 46.650 | This company has lagged the gold sector. Presuming there is the expected temporary pullback in gold, which resumes upwards, this one should be higher than the current price. Stock has lagged because of their Equinox acquisition if copper and gold move up, this company should do fine. | 2011-08-02 | ||
| TOP PICK | Boeing | BA-N | 67.700 | Defense and commercial aerospace but she doesn't expect much out of the defense side. Likes their commercial side where there is more air travel from developing countries. Also there are replacement demands for developed countries that need more fuel-efficient engines. High backlog. 787 is expected to be out in a couple of months. | 2011-08-02 | ||
| DON'T BUY | Bombardier Inc (B) | BBD.B-T | 5.540 | Aerospace and transportation, half and half. On transportation, they have been garnering orders, mainly in Europe primarily for infrastructure. On the Aerospace side, she needs to see more orders on the C series. Getting more competition. (See Top Picks.) | 2011-08-02 | ||
| BUY | Canadian Natural Rsrcs | CNQ-T | 37.110 | Have a very good inventory of resource plays. Nice mix of oil, oil sands, natural gas and thermal oil. They have decided to focus more on crude. Has a proven record of increasing resources and increasing cash flow per share. Also have the flexibility to add more dollars to natural gas if needed. Good entry point. | 2011-08-02 | ||
| DON'T BUY | Canadian Pacific Rail | CP-T | 59.010 | Has had numerous operational problems with flooding and whether. Operating ratio has ballooned up. Prefers Canadian National (CNR-T) whose operating ratio is in the low 60's. Good entry point for CN now. | 2011-08-02 | ||
| DON'T BUY | Cisco | CSCO-Q | 15.460 | Recently cited weakness at the state and local government level, which is their end market. There is an increase in competition. | 2011-08-02 | ||
| Comment | Encana Corp | ECA-T | 27.150 | Tends to fall natural gas prices. Well-managed and have an active hedging program. Feels that gas prices are probably near trough levels. If you are willing to hold for a couple of years, this is probably an attractive entry level. | 2011-08-02 | ||
| BUY | Enbridge | ENB-T | 31.230 | Very high quality pipeline. If you argue long-term holder, you can buy it here. 1-year target is around $33. Have a pipeline of projects. Management feel they can grow their earnings 10% every year for the next few years. Payout ratio of 70%. | 2011-08-02 | ||
| PAST TOP PICK | Fortis Inc. | FTS-T | 31.370 | (A Top Pick July 26/10. Up 12.44%.) Sold this when it had reached her target level. 3.1% yield. | 2011-08-02 | ||
| HOLD | General Motors Corporation | GM-N | 27.050 | Good long-term hold. Macro economic issues are impacting the whole auto sector, including this one. Have benefited from consumers moving away from heavy trucks and SUVs to smaller vehicles. Have the #1 share in China. Slowly regaining their US share. | 2011-08-02 | ||
| BUY | Goldcorp Inc | G-T | 46.450 | Expected gold to pull back but it was up indicating investors are losing confidence in governments. This company reported last week and had to reduce production forecasts for this year because of operational issues, but these are resolvable. This is her favourite gold stock. | 2011-08-02 | ||
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| SELL | Loblaw Companies Ltd | L-T | 36.600 | Just reported. Not a lot of tonnage growth (more food sales). Competition by good retailers is increasing. Also all they are spending money to upgrade their systems, which takes away from cash flow and earnings. | 2011-08-02 |
