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| David Burrows of Barometer Capital Management |
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| DON'T BUY | Agnico-Eagle Mines | AEM-T | 38.690 | One of the weakest performing stocks in the gold sector. The big issue is that it is very hard to bring in 5 mines at the same time. Operationally they have had a difficult time with that. | 2012-01-05 | ||
| DON'T BUY | Boeing | BA-N | 73.530 | His view is that banks are likely to go through quite a long period of time where they are sold and distributed out of investor portfolios in favour of other types of assets. Earnings multiples that the market is willing to pay may come down over time because the return on equity is challenged. There is only so much capital in the market and their are a group of banks, like the European banks, who are all going to have to raise equity. | 2012-01-05 | ||
| PAST TOP PICK | Caterpillar | CAT-N | 95.520 | (A Top Pick Jan 25/11. Up 3.23%.) Sold his holdings last spring when the market started to roll over. Still not time to be focused on the machinery stocks. | 2012-01-05 | ||
| BUY | Cisco | CSCO-Q | 18.920 | The dominant player in this space. Have been fighting some of the margin battles over the last while because competitors have come in and sold products at lower margins. If you are going to invest in techs, large-cap techs look the best. You had almost 12 years of multiple compression and earnings have continued to grow. Stock has been behaving well since early fall and be their most recent estimate by 10%. The only concern is that seasonally, as you get into January, techs stocks underperform a little but this is a good one to own. | 2012-01-05 | ||
| BUY | Enbridge | ENB-T | 37.890 | Pipelines are the best performing part of the market. There has been a dramatic shift in technology in drilling for oil and gas. As a result, North America has an oil/gas boom going on. Looking at the production that is going to come out over the next 10 years, the production profile ramps over the next 7-8 years. The people who are in the way of that volume are going to do a lot more business. | 2012-01-05 | ||
| BUY | Veresen Inc | VSN-T | 15.240 | (Market Call Minute.) Midstream energy asset. Pipeline. | 2012-01-05 | ||
| DON'T BUY | Corning Inc | GLW-N | 13.280 | (Market Call Minute.) Difficult making a margin in the glass business right now. He is short the stock. | 2012-01-05 | ||
| TOP PICK | Glaxosmithkline PLC | GSK-N | 46.130 | Pharmaceutical companies in general are going through a transition from being innovators to basically making use of their distribution capabilities, buying additional product and pushing them through the system. This one has a very strong dividend yield, which will grow. There are patents that are expiring but they have more new products coming on than what is expiring. | 2012-01-05 | ||
| DON'T BUY | Goldcorp Inc | G-T | 45.950 | He is currently not invested in gold. The pullback that took place at the end of last year was quite significant and broke a 2 year uptrend. The technical damage in gold stocks is quite significant. Great company with great assets. | 2012-01-05 | ||
| Comment | Husky Energy | HSE-T | 24.420 | New management and there are changes taking place but he thinks it's a little bit early. One of his concerns on this company is the lack of growth. 4.8% dividend is attractive. Compared to Imperial Oil (IMO-T) and Canadian Natural Rsrcs (CNQ-T) the technical picture is not as good. | 2012-01-05 | ||
| PAST TOP PICK | IBM | IBM-N | 184.660 | (A Top Pick Jan 25/11. Up 16.29%.) The 1st of the big cap tech stocks to break out. They earned about $1 in 2002 but will earn $13.50 or so this year. Has a very strong recurring revenue base. A very strong services business. Just sold his holdings today. | 2012-01-05 | ||
| PARTIAL BUY | Intel | INTC-Q | 25.400 | 3.3% dividend and is growing quite smartly at over 10%. You learn something like $2.40 this year and with the $.80 dividend there is room to raise the dividend. Maybe buy half a position now and if the market pulls back a little you have an opportunity to buy the rest. | 2012-01-05 | ||
| TOP PICK | Kraft Foods Inc | KFT-N | 37.740 | He is looking for companies in an area of the market that is doing well where there is money getting put to work. In this case, this is a very defensive sector. This one has a catalyst in that over the next year they will split the company into 2 pieces. North American grocery business which is a cash flow generating machine, which will have a significant dividend attached. Their global snack food business, which has high growth and high margins and get some exposure to quicker growing parts of the world. | 2012-01-05 | ||
| DON'T BUY | Manitoba Telecom Services | MBT-T | 29.920 | This has often been touted as a takeover candidate however it is not a good idea to invest for that reason. With telecoms having a clear leadership in the market last thing you want to do is focus on one of the poorer performing ones. This one has a big pension deficit as well as a growth problem. There are better places to be. | 2012-01-05 | ||
| DON'T BUY | Manulife Financial | MFC-T | 11.420 | (Market Call Minute.) Have avoided all of the insurance companies. Low interest rates and difficult market make it tough to be a life insurer. | 2012-01-05 | ||
| DON'T BUY | Maple Leaf Foods | MFI-T | 10.840 | Problem with this is that so much of their business is focused in protein and protein is such a hard business to make a gross margin in. Stock has been range bound for 15 years. He would focus on food stocks that are high in carbohydrates. | 2012-01-05 | ||
| Comment | Potash Corp of Saskatchewan | POT-T | 43.960 | It appears that there is lots of supply in the fertilizer space. In fact people are talking about cutting back production. Seasonally, as you get through January you get into a better seasonal period. Technically it is challenged. | 2012-01-05 | ||
| PAST TOP PICK | RioCan Real Estate Investment | REI.UN-T | 26.340 | (A Top Pick Jan 25/11. Up 19.78%.) Reits make up about 20% of his Income portfolio. On average they are 99% occupied. For the shopping center REITs, it's going to be a good year because you have a few US retailers coming to Canada. There will be some pricing power and rents will go up. | 2012-01-05 | ||
| Comment | Toronto Dominion | TD-T | 76.650 | (Market Call Minute.) One of the best performing Canadian banks. Would probably be a buyer at $1-$2 higher when it broke out of this trading range. | 2012-01-05 | ||
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| DON'T BUY | Teck Resources Ltd. (B) | TCK.B-T | 38.490 | A wonderful company that gives you great access to a number of different resources. Well-managed and great operators. Cdn$ and Australian$ have been weak against the US$. There are a number of groups, including the metals, in the TSX that have yet to turn. | 2012-01-05 | ||
| BUY | A T & T US | T-N | 30.400 | (Market Call Minute.) One of those companies that will benefit from reduced capital expenditure this upcoming year. Strong dividend. | 2012-01-05 | ||
| DON'T BUY | Weatherford International Inc. | WFT-N | 15.640 | Has a lot of market share in oil/gas equipment. Has a history with them and is less than pleased with the way management led investors to believe certain things and ultimately disappointing. There are better ones to focus on. | 2012-01-05 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets. There will be some very good opportunities this year but you will have to continue to be targeted. If you can focus on where the money is going there is some money to be made. It's a stock pickers market and a market where you are going to have to continue to be tactical and pick your spots. He continues to favour midstream energy companies that are providing infrastructure to the energy industry. Continues to favour that REITs as well as large-cap global dividend payers, where the cash flows are stable. | 2012-01-05 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Oil. The one risk that we face in the energy space is that oil prices are elevated because of what is going on in Iran. Consumption in the US was down year-over-year in December and there is a bunch of new production coming on. It is not impossible that prices back off a little bit here. | 2012-01-05 | ||
| DON'T BUY | Silver Wheaton | SLW-T | 31.210 | If you really want to own a silver stock, this is a good one because you are basically buying a royalty stream on revenues. Wrong neighbourhood. He is not focused on precious metals right now. | 2012-01-05 | ||
| DON'T BUY | Canfor Pulp Products | CFX-T | 12.720 | Their fortunes are dependent on the price of pulp and recently the price has been a little bit weak. Some of the Chinese pricing has been backing off. He is not sure that commodities are going to be the place to target this year. He would like to see a trade through the 200 day moving average first. | 2012-01-05 | ||
| Comment | Mosaic Company (The) | MOS-N | 53.300 | Seasonally, as you get through January you get into a better seasonal period. He'll watch to see if the seasonal trade starts to develop | 2012-01-05 | ||
| Comment | LuLulemon Athletica | LLL-T | 53.070 | (Market Call Minute.) He was Short the stock but covered it yesterday. He thinks he was wrong and the stock is behaving better and is in the right space | 2012-01-05 | ||
| BUY | 1stTr Dividend Leaders ETF | FDL-N | 17.470 | (Caller would like an idea with the dividend yield for a TFSA for a senior.) This one pays a yield just a little below 4% but should grow over time. He likes the idea of using ETFs in these types of accounts. Prefers this over Cdn as he feels the US$ is going to remain strong against the basket of world currencies. | 2012-01-05 | ||
| TOP PICK | Alerian MLP ETF | AMLP-N | 16.800 | This is an ETF that invests in Master Limited Partnerships, specifically in the energy infrastructure space. Have a basket of pipelines and petroleum processing companies. This is a play on the growth and production of oil and gas in the US. 6% yield that will grow over time. Because it's an ETF, you don't run into the tax reporting difficulties that you do with MLPs. | 2012-01-05 | ||
| TOP PICK | Altagas Ltd | ALA-T | 30.790 | Energy infrastructure. About 50% of revenues is from transmission of gas and this is growing. About 33% is from our transmission. Will probably double their EBITDA by 2017. 5% yield. Just acquired Pacific Gas, which gives them a foothold into Kittimac to develop future liquefied natural gas business for exporting. | 2011-11-29 | ||
| DON'T BUY | Bank of Nova Scotia | BNS-T | 49.580 | Financials have had a very difficult year globally. Within financials, the question is which one could be impacted by what is going on in Europe. This bank has done quite well in South America and Caribbean. South America has a more significant risk to what is going on in Spain. He has about a zero waiting in financials. | 2011-11-29 | ||
| DON'T BUY | CAE Inc | CAE-T | 9.600 | Benefiting from the replacement cycle in jets. The problem is, they are not really winning. He would prefer to be in one of the parts providers such as Precision Castparts (PCP-N), Triumph Group (TGI-N) and others. | 2011-11-29 | ||
| PAST TOP PICK | Caterpillar | CAT-N | 90.540 | (A Top Pick Dec 13/10. Up 1%.) Away from the equipment stocks now. | 2011-11-29 | ||
| Comment | Veresen Inc | VSN-T | 14.260 | Best known for its 50% interest in the Alliance pipeline and much of the liquid rich gas that has been typically transported to south of Chicago, is being diverted to other processors. Several contracts coming up for renewal in the next 2 years that pose some risk to this company. Feels there might be better names. 7% yield. (See Top Picks.) | 2011-11-29 | ||
| DON'T BUY | Corning Inc | GLW-N | 13.190 | We are in a market where even the companies that are hitting the numbers and doing relatively well are being called into question. The last 3 earnings numbers have been negative and there is question about the sustainability of earnings. | 2011-11-29 | ||
| DON'T BUY | Kinross Gold | K-T | 13.450 | Gold producers have been underperforming the metal as well as the rest of the market. This one is about the worst performing big gold producer. | 2011-11-29 | ||
| TOP PICK | McDonalds | MCD-N | 93.460 | One of the core leadership themes in the market are companies with predictable cash flows, visibility going forward and getting a yield. This company has returned about $75 billion to their shareholders over the last 3 years. 3% yield. Very strong global growth. Two thirds of the revenue comes from rental revenue on stores they own globally. | 2011-11-29 | ||
| DON'T BUY | Manulife Financial | MFC-T | 10.850 | As being a tough performer. Insurance companies are having a hard time. There are 2 things to look at. 1) Do they have growth in their product sales? This company has had some challenges. 2) How do they do on their equity portfolios? The equity market has been wildly volatile. He would steer clear of insurance companies. | 2011-11-29 | ||
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| PAST TOP PICK | Peyto Exploration & Develop. | PEY-T | 23.730 | (A Top Pick Dec 13/10. Up 31.92%.) | 2011-11-29 | ||
| PAST TOP PICK | Union Pacific Corp | UNP-N | 99.230 | (A Top Pick Dec 13/10. Up 8.41%.) Traded out to a different railroad. | 2011-11-29 | ||
| BUY | Calfrac Well Services Ltd | CFW-T | 26.300 | This company fits right into the group that are benefiting from some of the newer technologies being used in energy services. These companies are going to make a lot of money. | 2011-11-29 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Energy infrastructure assets. This is his number one theme that he is focusing on. Pipelines, gas processors, transmission companies, truckers etc. That whole space is benefiting from a rise in production and he doesn't see any sign of that changing anytime soon. | 2011-11-29 | ||
| DON'T BUY | Canfor Pulp Products | CFX-T | 9.910 | Economically sensitive. There is some question around pricing for this company and their distribution is dependent on strong pricing. | 2011-11-29 | ||
| BUY | Visa Inc. | V-N | 92.900 | The only theme that he likes in the financials is the card issuers. The whole group looks pretty good. Their 2 incomes are from the fees they get from banks and the spread you pay on the interest on your balance. This is a global growth story. | 2011-11-29 | ||
| TOP PICK | CASH | CASH | 0.010 | Continues to see issues in the broad equity market. | 2011-11-29 | ||
| BUY | BCE Inc. | BCE-T | 39.210 | Bell and Telus are good. He owns both. Wire line service is deteriorating more slowly than those in the US. Fiber TV is growing. Dividend will probably increase. | 2011-10-25 | ||
| BUY | Bonavista Energy Corp | BNP-T | 25.540 | In energy space, oil prices are working their way higher. He focuses in oily names, producers. LNG is also where he likes to be. He likes this one and the yield. | 2011-10-25 | ||
| PAST TOP PICK | Brookfield Properties | BPO-T | 15.840 | (Top Pick October 27/10, Down 8.15%) REITs continue to be one of his more significant weightings. This one was a casualty. Solid yield, office properties, operator. You could own it here. | 2011-10-25 | ||
| BUY | Ford Motor | F-N | 12.430 | Auto sector is one he is interested in. Average age of the car on the street is beyond what it has historically been. Thinks they can do well and may re-instate a dividend over the next year. This is the one of the automakers he would want to own. He’d be adding to a position here. | 2011-10-25 | ||
| TOP PICK | Brookfield Renewable Energy | BEP.UN-T | 26.580 | 5000 Megawatts of hydroelectric power production, very predictable business, 24 year contracts with CPI clause. 10% per year cash flow growth and 3-4% distribution growth. | 2011-10-25 | ||
| TOP PICK | Intel | INTC-Q | 24.630 | Looks for industries that have gone out of favour and then look for changes in the group. Multiple compression for 10 years. 4% dividend and 80% market share. A pretty defensible business. Tech is outperforming the market if they have a strong franchise. | 2011-10-25 | ||
| TOP PICK | Inter Pipeline Fund | IPL.UN-T | 16.390 | One of his biggest positions over the last couple of years. This one rallies on the up days. There is an appetite for this type of investment. Pipeline, Liquid extraction business, storage, will grow cash flow 4-5%/year over the next few years as well as their distribution. Very little variation in the business. | 2011-10-25 | ||
| PAST TOP PICK | Magna Int'l. (A) | MG-T | 37.200 | (Top Pick October 27/10, Down 16.41%) He got out and made some money. This was one that be moved out of in the spring to raise cash. Thinks auto space is good one to be in during this recovery. | 2011-10-25 | ||
| DON'T BUY | Potash Corp of Saskatchewan | POT-T | 49.210 | One of those companies that a lot of people care about. People have been looking to make some money back. Seasonally we are headed into a period that is tougher for agri. People will all decide to jump back on the things that worked in the last rally. He would like to reduce exposure to resources over the next 2 months. | 2011-10-25 | ||
| DON'T BUY | Research In Motion | RIM-T | 22.580 | Don’t buy based on a take-over possibility. There are lots of question marks that could make a buy stand back. Boxes of playbooks that might have to be written off. Contracts for components for playbooks that will never be built. | 2011-10-25 | ||
| HOLD | Shoppers Drug Mart Corp | SC-T | 41.830 | There is more colour coming on this in the month of November. Good margins in the from store and they are having some growth. Not inexpensive. He would focus on discount retail. | 2011-10-25 | ||
| DON'T BUY | Suncor Energy Inc | SU-T | 31.140 | Oil sands companies are having a real hard time with their costs. TSX is very heavily weighted in these companies and it is holding the index back. Better places in energy to be focused. | 2011-10-25 | ||
| SELL | SXC Health Solutions Corp. | SXC-T | 42.940 | Very successful healthcare info tech company. Yesterday they got a nasty surprise. Signa made a bid for one of their customers. This doesn’t bode well for the health of SXC. Nothing wrong with company but a big piece of company at risk. He sold half yesterday and will probably exit the rest. | 2011-10-25 | ||
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| BUY | Westshore Terminals Inc. | WTE.UN-T | 23.550 | Likes that it doesn’t change a whole lot. Growing capacity. Dominant coal terminal on west coast. Nice yield and not over sensitive to price of coal. | 2011-10-25 | ||
| SELL | TSX Group | X-T | 41.930 | Tender shares and see what happens. | 2011-10-25 | ||
| PAST TOP PICK | Baytex Energy Corp | BTE-T | 52.320 | (Top Pick October 27/10, Up 44.25) Healthy yield, low cost producer. Prefers to more energy oriented names to financial. One of the great growth stories. Yield plus inflation protection. | 2011-10-25 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Market: Thought he saw a significant low in October 4-5 indicating a late year rally. It is not necessarily being lead by cyclical stocks, but rather by more defensive stocks. Valuations got so beaten up that money is working its way back into equities. Thinks we are at a near term bottom. But he thinks it will continue to be sloppy next year. Work toward yield and more defensive sectors. Focuses on market leadership. 25% pipelines and energy infrastructure, then the rest in real state, pharma, quick service restaurants and technology. Needs defensible revenue lines. | 2011-10-25 | ||
| DON'T BUY | Silver Wheaton | SLW-T | 32.680 | Prefers energy. But when you get to precious metals, he prefers gold. The set up is a little broken. He wants the stock to trade above $34 before going in. Their dividend is now going to go up with the price of gold and he likes this. | 2011-10-25 | ||
| BUY | Trilogy Energy Corp | TET-T | 33.740 | Best performing oil stock in the Canadian market in the last year. The dilemma is that it is now becoming a big position. He doesn’t want to trim it. Ultimately someone will have to own this so they may get bought. Continue to buy it. | 2011-10-25 | ||
| DON'T BUY | Penn West Petroleum | PWT-T | 17.720 | Had a harder time developing newer resources and bringing them on. They have lots of opportunity. You wont get hurt in it but he prefers baytex or vermilion. Right area, wrong name. | 2011-10-25 | ||
| BUY | Precision Castparts Corp. | PCP-N | 171.260 | Machine parts for aircraft engines. Huge replacement cycle going on in the industry so these guys are a big beneficiary. Buy it here. Companies in this space are reporting good numbers. | 2011-10-25 | ||
| BUY | Philip Morris International | PM-N | 68.840 | Unpopular sector but very popular right now. This is a sector where you see money flowing it. | 2011-10-25 | ||
| Comment | CASH | CASH | 0.010 | As you get stopped out of positions, your cash position increases and he does not re-invest in a falling market. | 2011-10-25 | ||
| DON'T BUY | Eaton Corp. | ETN-N | 43.140 | You want to be a little bit careful with the industrials unless they have a real tail wind. This one is very economically sensitive. It could be hit if people get concerned with the economy. | 2011-10-25 | ||
| BUY | Agrium | AGU-T | 83.900 | Corn and Wheat prices had been quite strong. Fertilizer companies make a lot of sense. He would buy the stock. They beat the latest estimates. Longer term he thinks agriculture is a good place to be. He thinks there will be a forth quarter rally. He owns CF industries, AGU is more diversified. It is one of the few industries he is focused in. | 2011-09-13 | ||
| PAST TOP PICK | American Tower | AMT-N (Dead) | 52.900 | (Top Pick Sep 28/10, Up 1.22%) He would buy today and will likely buy back. Is going to convert in January to a REIT. There had been concerns about cell company mergers for a while. | 2011-09-13 | ||
| HOLD | Canadian Oil Sands | COS-T | 21.050 | There are concerns about the costs of oil sands producers. Don’t add yet. | 2011-09-13 | ||
| DON'T BUY | Encana Corp | ECA-T | 22.680 | Nat Gas is a tough business right now. In energy he has gone from overweight to underweight (8%). He wants a yield in energy stocks. This one is only 3%. The stock is not responding. The big producers are performing badly. He would prefer to stay away unless it has a bigger yield. Prefers mid-stream assets in energy. | 2011-09-13 | ||
| TOP PICK | Brookfield Renewable Energy | BEP.UN-T | 24.850 | Today they announced Brookfield Asset Management would combine its renewable power assets with those of BRC to form a larger entity going forward. He is a big proponent of yield investing. He wants yield with inflation protection. Was already an interesting business.1600 Megawatts of production across a broad variety of holdings. After the merger there will 5000 megawatts of operating capacity across 180 different facilities across Canada, US and Brazil. Yield will rise to $1.35 from $1.30. Will grow distributable cash 10% per year and distribution 3-4% per year. Contracts for an average of 24 years. | 2011-09-13 | ||
| BUY | Labrador Iron Ore | LIF.UN-T | 36.600 | This is economically sensitive, but is a large holding for him. Iron Ore prices have held globally. If production costs go up it doesn’t hurt them. Pays a nice yield. If you believe that it is possible that growth can stay somewhat positive, this should continue to do quite well. Price is moving around because there is concern about the global economy. | 2011-09-13 | ||
| WAIT | Magna Int'l. (A) | MG-T | 35.500 | Likes the auto industry, specifically while there are concerns around the economy. As a result of 2008 there are fewer cars coming off lease so a used car is relatively expensive. If you look at Japan’s spring, there is a shortage of parts. There are now fewer parts suppliers and they are more powerful there. He owns two auto part US companies. Auto should perform better of economy gets a little bit better. Business is currently strong in North America. Wait until the market behaves a bit better before getting into it. | 2011-09-13 | ||
| BUY | Microsoft | MSFT-Q | 26.040 | Not the type of stock he buys. Wants higher growth. But technically all these tech stocks topped out in 2000, while growth rates have been slow. MSFT has grown earnings much more, multiple is quite low. It will under perform if tech stocks do extremely well. It is safe, though | 2011-09-13 | ||
| DON'T BUY | Sherritt International Corp. | S-T | 4.890 | Well run company, diversified. The problem is that it is the wrong kinds of business for the current economic environment. These types of companies can really get clobbered. If you think this is a mid-cycle slowdown, then it could do well in a mid-cycle slowdown. It will have a difficult time if the economy is slowing. | 2011-09-13 | ||
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| BUY | Viterra Inc | VT-T | 10.600 | In the right neighborhood – diversified company. You could own this one. | 2011-09-13 | ||
| BUY | Baytex Energy Corp | BTE-T | 44.920 | Great business but in the wrong spot right now. Tremendous sand finding and increasing production. With that they will raise their distribution. They are attractive relative to other producers, but he is reducing his energy exposure. If you want to own one this is one and the yield is good. | 2011-09-13 | ||
| DON'T BUY | Archer Daniels Midland Company | ADM-N | 27.100 | Processor of oil seeds. With crop size being small it could impact their revenues. Prefers not to be in processors but in fertilizers. | 2011-09-13 | ||
| PAST TOP PICK | Chartwell Seniors housing | CSH.UN-T | 6.630 | (Top Pick Sept. 28/10, Down 17.82) Thought that market was improving with capacity to fill up. In Q4 it turned out they weren’t filling up. They weren’t able to hit the numbers so he exited. Business fundamentals were deteriorating. | 2011-09-13 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets: A very tough environment for all investors. All kinds of conflicts. There are certain binary outcomes that are all or nothing and it is difficult for investors to factor the risks. This is one of those times when you don’t want to be all out there. Close to 40% of securities are income producing. Gold, Cash. It is a time to be in things that you could be comfortable in if things turn down. Earnings may decline in the fall. | 2011-09-13 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Silver: He is not a gold bug but gold and silver are the largest weighting. Silver had been lagging gold. Likes silver. There is limited growth in production and a big appetite. He uses the physical silver ETF and Silver Wheaton. Also Allied Nevada. Cannot see fundamental reasons driving the market changing in the near term. | 2011-09-13 | ||
| DON'T BUY | Hudbay Minerals Inc. | HBM-T | 11.950 | The metals producers are really out of favour. Severely under performed the market along with all metal producers. An area to avoid. | 2011-09-13 | ||
| TOP PICK | Mrk Vectors Gold Miners ETF | GDX-N | 64.390 | US dollar will do better than loonie and he prefers this ETF to others. Stocks are starting to outperform the commodity. Focus on what’s working and be prepared to exit when it changes. | 2011-09-13 | ||
| HOLD | Canfor Pulp Products | CFX-T | 15.300 | Pulp prices have been quite strong and distributions have been very good. Believes distribution is safe. But if you look at this summer, weakness in economy would wash over this company. | 2011-09-13 | ||
| DON'T BUY | Hess Corp. | HES-N | 59.660 | Thinks integrated oil and gas companies will be under pressure. Own a pure producer. Prefers income-producing equities at this point. | 2011-09-13 | ||
| PAST TOP PICK | Yum! Brands | YUM-N | 52.230 | (Top Pick Sep 28/10, UP 14.60%) Would still buy it today. 40% revenues from China. Dominate fast food in China. Asian markets were the first to start rolling over so he got out. He is a little bit sorry it got out of it. They continue to execute very well. He would buy it here. He would like to see the markets stabilize a bit. | 2011-09-13 | ||
| TOP PICK | CASH | CASH | 0.010 | Gives you the flexibility to deal with what’s coming. Right now there are a lot of uncertainties. | 2011-09-13 | ||
| DON'T BUY | Annaly Capital Management Inc. | NLY-N | 17.900 | Invests in mortgages on a leveraged basis. Tends to well in a falling interest rate environment. 15% dividend. Has owned in the past. Not now because lots of talk about trying to force American financing mechanism to the detriment to this company. A very, very well run mortgage REIT. IF you can assess risks, you could own it. | 2011-09-13 | ||
| PAST TOP PICK | American Tower | AMT-N (Dead) | 48.350 | (A Top Pick Aug 9/10. Up 8.77%.) Will convert to a real estate investment trust over the next year. | 2011-08-18 | ||
| BUY | BCE Inc. | BCE-T | 38.110 | Great dividend. Very steady cash flow. Have done a great job in restructuring. Telecom is a sector where he would be buying stocks right now. | 2011-08-18 | ||
| Comment | Finning Int | FTT-T | 23.000 | Finning (FTT-T) or Toromont (TIH-T) for long-term growth and dividends? This area is a little tough right now. Industrial equipment has been pretty beaten up in the last few weeks. He would prefer Finning, which has the oil Sands in Alberta as well as South America where they have a ton of mining. Toromont more focused on Ontario so there is some mining they can focus on but it is more construction, etc. | 2011-08-18 | ||
| PAST TOP PICK | Brookfield Renewable Energy | BEP.UN-T | 22.610 | (A Top Pick Aug 9/10. Up 10.69%.) | 2011-08-18 | ||
| TOP PICK | McDonalds | MCD-N | 85.610 | One of a handful of consumer goods companies that has pricing power and global growth. Growing very nicely in Asia and growing the best right now in Europe and are winning market share in the US. Margins are expanding. They own all the properties that their stores are on, which they rent to their franchisees. Huge free cash flow and they keep buying back stock. | 2011-08-18 | ||
| DON'T BUY | Magna Int'l. (A) | MG-T | 35.100 | We have been going through an economic recovery and this period is beginning to look like the 70s where there are shorter recoveries followed up with cyclical declines in the market. He has been reducing his exposure to economically sensitive companies. | 2011-08-18 | ||
| DON'T BUY | Morgan Stanley | MS-N | 16.200 | After the first rally in 2009, he has been very cautious and negative on financials, specifically investment banks. All the major parts of these businesses are challenged. Concerns around credits continue to be an issue. | 2011-08-18 | ||
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| PAST TOP PICK | RioCan Real Estate Investment | REI.UN-T | 24.130 | (A Top Pick Aug 9/10. Up 26.85%.) | 2011-08-18 |
