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| David Taylor, MBA, CFA of Goodman & Company, Investment Counsel |
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| DON'T BUY | Cameco Corporation | CCO-T | 38.280 | Uranium is very much in favour right now and stock has done well but doesn’t understand valuations. Using today’s uranium price, stocks are trading at net asset value. Compared to a copper stock with $2 copper, they trade at half net asset value. Valuations are overdone. | 2010-12-06 | ||
| PAST TOP PICK | First Point Minerals Corp | FPX-X | 0.940 | (A Top Pick April 13/10. Up 33.33%.) Still a Buy | 2010-12-06 | ||
| Comment | Manulife Financial | MFC-T | 15.280 | Leveraged play on stock market and interest rates. If you believe rates are going higher in the long run, stock should do well. Long-term prospects are weak. ROE days of 20% are over. It’s now a 10% ROE stock and he wouldn’t pay any more than BV, which is roughly where it is now. (He sold his holdings.) | 2010-12-06 | ||
| TOP PICK | Research In Motion | RIM-T | 63.850 | Even if they lose market share, the market is growing so quickly that revenues will continue to grow. Expect they will show 20%-30% earnings growth rate. Trades at 7X earnings and has no debt. | 2010-12-06 | ||
| Comment | Rona Inc | RON-T | 13.320 | Well run company and have done everything they possibly can in a difficult environment. Very, very cheap but won’t go up until the economy improves. If you are willing to wait 2-3 years he thinks it will double. | 2010-12-06 | ||
| WEAK BUY | Royal Bank | RY-T | 52.620 | Doesn’t think you will make much money on banks. They are fairly priced. Can’t get excited about any of them. You should own some as dividends are attractive but he can do better elsewhere. | 2010-12-06 | ||
| DON'T BUY | Talisman Energy | TLM-T | 20.310 | Going through some restructuring and trying to focus on conventional oil and shale gas. Likes the story and stock is cheap, but not dirt-cheap. He can find better oil/gas in smaller names. | 2010-12-06 | ||
| BUY | Freeport McMoran Copper & Gold | FCX-N | 109.900 | Copper. Gone from $1 to roughly $4 a pound. If you think copper is going significantly higher, you want a company with highest costs and worst balance sheets where earnings will be most sensitive to higher prices. But if you believe copper will stay where it is (or fall), you want lowest costs and cleanest balance sheets such as this, which is dirt-cheap. | 2010-12-06 | ||
| PAST TOP PICK | Hudbay Minerals Inc. | HBM-T | 18.150 | (A Top Pick April 13/10. Up 36.8%.) Still likes. | 2010-12-06 | ||
| TOP PICK | Erdene Resource Development | ERD-T | 1.200 | Small coal play. In pre-feasibility with feasibility study due in the next few weeks. Partnered with Xstrata (Cape Breton met coal property). Beneficial because of location where shipping costs will be cheaper. Also have a moly and copper play in Africa that is attractive Lots of cash and supported by NAV. | 2010-12-06 | ||
| PAST TOP PICK | Osisko Exploration Ltd. | OSK-T | 15.830 | (A Top Pick April 13/10. Up 76.48%.) Still likes. | 2010-12-06 | ||
| BUY | Southern Pacific Resource | STP-T | 1.700 | Once they bring their heavy oil project (McKay) into production, it’ll get revalued. | 2010-12-06 | ||
| TOP PICK | HBP NYMEX Long Gas/Short Oil ETF | HNO-T | 8.470 | Nymex Long Gas/Short Oil ETF. (Doesn’t own but is a recommendation.) Goes Long next months gas and Short next month’s oil. Spread between price of oil and gas has never ever been higher. Producers are very much hedged in 2010 and as hedges come off and cash flows drop, capital spending is going to drop and natural gas prices are going higher in 2011. | 2010-12-06 | ||
| Comment | Apple | AAPL-Q | 242.430 | Prefers RIM (RIM-T). If he owned Apple, he would be tempted to Sell it and buy RIM. Would consider shorting Apple and going Long Rim. | 2010-04-13 | ||
| DON'T BUY | AGF Management (B) | AGF.B-T | 17.850 | Comes up on the screen all the time because fundamentally it looks cheap but he can't find the catalyst. Fold funds is basically negative every quarter. Very competitive industry. | 2010-04-13 | ||
| DON'T BUY | Connacher Oil and Gas | CLL-T | 1.680 | Struggled a lot because they did a couple of dilutive deals in a horrible market when they needed cash. Prefers Southern Pacific Resources (STP-X), which has a property next door and trades at half the valuation. | 2010-04-13 | ||
| PAST TOP PICK | Eldorado Gold | ELD-T | 13.840 | (A Top Pick Jan 10/08. Up 100%.) | 2010-04-13 | ||
| DON'T BUY | FNX Mining Company | FNX-T(Dead) | 14.490 | Great company, but not the cheapest. Merging with Quadra (QUA-T). Good management in both companies. Tends to be very few synergies when mining companies merge. Just seem to want to get bigger and be able to make bigger deals.(See Top Picks.) | 2010-04-13 | ||
| TOP PICK | First Point Minerals Corp | FPX-X | 0.690 | This one will be up either 10 times or will stay where it is. Doing a sample test to see if they can mine very low-grade nickel and iron and separate it using a magnet/floatation rather than sending it to a smelter. It would then go directly to a steel mill. Very high risk. | 2010-04-13 | ||
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| STRONG BUY | Manulife Financial | MFC-T | 19.800 | Growing aggressively in emerging markets. Very cheap. Has chronically under performed and trading at its lowest valuations. Will benefit if interest rates rise, as he expects them to. Will be a very stable, low growth company. | 2010-04-13 | ||
| PAST TOP PICK | Nexen Inc | NXY-T | 25.840 | (A Top Pick Jan 10/08. Down 32.1%.) This has been a dog. Still owns a little. | 2010-04-13 | ||
| STRONG BUY | Research In Motion | RIM-T | 72.540 | Absolutely puzzled by the valuation the company gets. No debt, about $5 a share in cash, grows at 30% a year and trades at only 12X earnings. Very competitive sector but the market itself is growing substantially. | 2010-04-13 | ||
| DON'T BUY | Suncor Energy Inc | SU-T | 34.820 | Somewhere in the middle between cheap and expensive. He can come up with better oil stocks. Prefers natural gas to oil. Cheap natural gas prices are unsustainable. | 2010-04-13 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Short Selling from a Value respective. As long as fundamentals of a stock continue to improve, an expensive stock can become even more expensive. You have to try to find a company that you believe its fundamentals and fortunes are going to change. Find balance sheets that are weakening, cash flows are dwindling, declining margins and increasing CapX. | 2010-04-13 | ||
| PAST TOP PICK | A Comment -- General Comments From an Expert | A Commentary | 0.020 | (A Top Pick Jan 10/08.) Canadian banks. | 2010-04-13 | ||
| TOP PICK | Hudbay Minerals Inc. | HBM-T | 13.300 | Zinc/copper producer. Very low-cost reserves. Strong takeover candidate. Has about $6-$7 a share in cash. Trades around 4X cash flow. | 2010-04-13 | ||
| TOP PICK | Osisko Exploration Ltd. | OSK-T | 9.100 | Gold. Have done a fantastic job of developing a world-class, low-cost deposit in northern Quebec and have about 9 million ounces and will produce about 1 million ounces a year in 4 years. Strong takeover candidate. | 2010-04-13 | ||
| STRONG BUY | Southern Pacific Resource | STP-T | 1.300 | Beautifully well run. Oil sands. Need to raise money but doing it at a good time. | 2010-04-13 | ||
| Comment | AbitibiBowater Inc. | ABH-T (Dead) | 17.840 | All newsprint players have been decimated, specifically those in Canada whose costs are in Cdn$’s. Has BV of about $25 with a terrible balance sheet. If a company can pay its banks when the commodities are low they have massive leverage when commodities improve. Newsprint inventory is down 25%, largest decline in 30 years. It could earn $8 a share and at $17, in 4 years you could be paying 2X earnings. Needs to do more work, but it fascinates him. | 2008-01-10 | ||
| TOP PICK | Eldorado Gold | ELD-T | 6.880 | Gold with 70% of its production in Turkey. There has been an injunction on their mines and they are not allowed to produce. Thinks this will be alleviated very shortly. Low-cost operator. | 2008-01-10 | ||
| BUY | Goldcorp Inc | G-T | 38.150 | (Market Call Minute.) Would definitely own. Bullish on gold. | 2008-01-10 | ||
| BUY | IGM Financial Inc. | IGM-T | 46.500 | There are companies that pay dividends that you want to hold forever. Generates a ton of cash flow and is dirt-cheap. Buy it, put it away and he guarantees that in 10 years you will have done well. | 2008-01-10 | ||
| BUY | Martinrea | MRE-T | 10.170 | This is a value play. In a great acquisition when they got the US body and chassis operations from Budd. There is a ton of opportunity for growth in this company. Feels there will be a continuous outsourcing from the big 3. | 2008-01-10 | ||
| BUY | Norbord Inc. | NBD-T | 7.150 | 2nd largest and lowest cost oriented strand board producer in North America. The good thing is, because they are the lowest cost producer, it will be the last one to go bankrupt. Pays a nice dividend while you wait and is trading below its replacement value right now. | 2008-01-10 | ||
| TOP PICK | Nexen Inc | NXY-T | 32.100 | Was one of the worst performers in 2007 among North American large cap producers. Now trading at 40% discount to NAV and the beauty is, about 30% of the assets are not producing cash flow right now. Going up 5.5X cash flow. | 2008-01-10 | ||
| PAST TOP PICK | Pfizer Inc | PFE-N | 24.080 | (A Top Pick Dec 18/06. Down 7.4%.) Got decimated when they lost a lawsuit on Lipitor. Sold his holdings. | 2008-01-10 | ||
| BUY | Power Financial Corp | PWF-T | 38.220 | Great company. There are companies that pay dividends that you want to hold forever. Likes the stock but likes Investors Group (IGM-T) better. Buy it, put it away and he guarantees that in 10 years you will have done well. | 2008-01-10 | ||
| DON'T BUY | Trinidad Energy Services | TDG.UN-T | 9.350 | Just announced they are going to convert back from a trust to a corporation and they have cut their distributions. Well-run company and has grown significantly through acquisitions but the balance sheet is not that strong. | 2008-01-10 | ||
| DON'T BUY | Teck Resources Ltd. (B) | TCK.B-T | 34.820 | A conundrum because it is a great combination of gold and base metals. He would much rather have pure plays. He is bullish on gold but is concerned about base metals. | 2008-01-10 | ||
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| HOLD | WFI Industries | WFI-T | 24.440 | Geothermal play. Was very attractive when gas prices were $12-$13. The shine came off when gas prices dropped. Thinks gas will go significantly higher so geothermal is the way to go. Very attractive dividend. | 2008-01-10 | ||
| PAST TOP PICK | Cathedral Energy Services | CET-T | 8.660 | (A Top Pick Dec 18/06. Down 17.4%.) Stock went down, but cash flow went up. Probably stronger now than when he recommended it. Into directional drilling and will be called upon more than for shallow wells. Pristine balance sheet. Safe distributions. Trades at 6X cash flow. 9% distributions. Still a buy. | 2008-01-10 | ||
| BUY | EnCana Corp. (US) | ECA-N | 67.930 | (Market Call Minute.) Have the lowest finding costs and unbelievable land-base. | 2008-01-10 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Market Outlook: Actually quite bullish. Reaction to what is going on in the economy is overdone. Historically it can be proven that the market does well whether we go into a recession or not. It can be rocky for the next couple of months but if you are an investor over the long run, you have to be optimistic. Sitting with about 7%-8.5% cash. | 2008-01-10 | ||
| TOP PICK | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Canadian Banks: - Given that 10-year yields are 3.9% and you can get 5% on a number of these banks, it's a steal of the century. They will continue to earn a significant amount of money. Balance sheets are in very good shape. Until the Commerce (CM-T) and Bank of Montreal (BMO-T) disclose their full exposure and the risk is, he doesn't think these stocks can go up. Over the short run, there could be some hurt. | 2008-01-10 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gold: - Bullish on this commodity. Demand will come from Asia as their economies continue to grow. Can easily see the price of gold going through $1000 by this time next year. | 2008-01-10 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Growth vs. Value: 2007 was the 3rd worst year for value investors, so it has been a tough year for them. Could be entering a period when growth outperforms value, but you can still make money in value. If you buy good companies that 1) pay nice dividends 2) have pristine balance sheets 3) cheap and 4) have strong management, you're going to do okay. | 2008-01-10 | ||
| SELL | Hudbay Minerals Inc. | HBM-T | 17.460 | Since zinc has dropped to about $1.15 it is far more attractive. Balance sheet is pristine. Company is sitting on $500 million in cash. However, if there is no growth it could be a value trap. Not sure what the catalyst is on this company. He is not sure. | 2008-01-10 | ||
| PAST TOP PICK | Skye Resources | SKR-T | 6.630 | (A Top Pick Dec 18/06. Down 43.1%.) Oil has gone up so cost of production has increased. Have to finance a project, which means $1 billion. The lower the stock price, the more shares they have to issue to finance it, and then the lower the stock price goes. Death spiral. Hold. | 2008-01-10 | ||
| HOLD | Kangaroo Media Inc. | KTV-X | 0.500 | This one did not work out. Its product was incredible but they where a slave to their largest customer. Stock price is the same as it has in cash, so it wouldn't sell it right now. | 2008-01-10 | ||
| STRONG BUY | Kaboose Inc. | KAB-T | 2.480 | A very successful online media company and he is very bullish on it. Earnings and revenue continue to grow. They continuously make very attractive acquisitions. Then it goes through a period where the stock drops off 20%-30% making it a very good buying opportunity. | 2008-01-10 | ||
| DON'T BUY | Bankers Petroleum | BNK-T | 0.850 | Same management that used to have Rally Energy (RAL-T). There is a premium in the stock for the current management, but for him it is fairly priced. Would prefer it when it is out of favour. | 2008-01-10 | ||
| SELL | Timminco Ltd. | TIM-T (De-Liste | 15.450 | As a contrarian, he tries to buy value and stocks that are creating a cash flow. This company is not doing that yet. If you have made a significant amount of money, this would be the time to take some off the table. | 2008-01-10 | ||
| Comment | Antrim Energy | AEN-T | 4.400 | Very high risk. Doesn’t own in his fund, but owns some personally. Could be worth a lot or very little. Has low risk assets in Argentina and drilling is hugely successful. Also drilling in the North Sea. Has plans to spend hundreds of millions, but generating very little cash flow. | 2006-12-18 | ||
| DON'T BUY | Compton Petroleum | CMT-T | 11.150 | Has shown significant production growth. Doesn’t have the strongest balance sheet. | 2006-12-18 | ||
| HOLD | Encana Corp | ECA-T | 54.950 | Believes natural gas has got to go higher. Thinks they did the right thing in cutting back on their capital expenditures. Fantastically well run. | 2006-12-18 | ||
| DON'T BUY | Eldorado Gold | ELD-T | 5.840 | Have opened 2 new mines. Have done an exceptional job on their operation side. Production estimate for 2007/2008 is quite a bit less than what the street was looking for, which dropped the stock. On a price to net asset value, it’s not a cheap stock. | 2006-12-18 | ||
| DON'T BUY | Goldcorp Inc | G-T | 31.740 | Exceptionally strong management. You have to be a strong believer that base metal prices are going to remain exceptionally strong. | 2006-12-18 | ||
| PAST TOP PICK | Home Depot | HD-N | 39.960 | (Top Pick Sept 12/06. Up 9.4%.) Housing market is going to level off in the US. Just increased its dividend an will be buying back some stock. Acquired 7 renovation stores in China. | 2006-12-18 | ||
| DON'T BUY | Maxim Power | MXG-T | 6.150 | Interesting in that demand for power in Alberta is exceptionally high. Have some concerns that the coal plant they run is quite old. Too pricey now. | 2006-12-18 | ||
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| TOP PICK | Pfizer Inc | PFE-N | 25.830 | Pulled a replacement for Lipitor because of poor tests. Wasn’t going to contribute until 2010. Stock dropped. Near its all time low. Pristine balance sheet. Oversold. | 2006-12-18 | ||
| PAST TOP PICK | Rally Energy Corp | RAL-T | 3.270 | (Top Pick Sept 12/06. Up 9.1%.) Drilling in heavy oil, low risk steam flooding in Egypt as well as gas in Pakistan. Still would Buy. | 2006-12-18 | ||
| Comment | Rona Inc | RON-T | 20.450 | Loves the renovation sector. Owns Home Depot (HD-N) instead. | 2006-12-18 | ||
| SELL | Shell Canada | SHC-T | 43.500 | All the juice is out of it after the parent bid it up. | 2006-12-18 | ||
| Comment | Teck Resources Ltd. (B) | TCK.B-T | 90.020 | Sitting on a massive cash balance. Trading at 5 X earnings, but not sure how commodity prices can stay where they are. If this one saw $100 he would sell. | 2006-12-18 | ||
| HOLD | Talisman Energy | TLM-T | 19.450 | Very bullish on oil/gas. Well diversified with a nice suite of assets. Not as cheap as Petro Canada (PCA-T) or Encana (ECA-T). | 2006-12-18 | ||
| HOLD | WFI Industries | WFI-T | 26.030 | Geothermal heat pumps. Have continued to increase and pay dividends. Not cheap any more. | 2006-12-18 | ||
| TOP PICK | Cathedral Energy Services | CET-T | 10.440 | Got decimated on the back of oil service stocks and income trusts. Well run. Manufacture measurement well drilling products. Lower gas well drilling has dropped, but feels that deeper wells will still go ahead. Strong growth rate. Distributes only 50% of its cash flow. | 2006-12-18 | ||
| Comment | Nucor Corp. | NUE-N | 57.090 | Has done exceptionally well as have all steel stocks. Tied more to non-residential construction and feels that market is still going to be strong. | 2006-12-18 | ||
| PAST TOP PICK | Hudbay Minerals Inc. | HBM-T | 22.150 | (Top Pick Sept 12/06. Up 59.5%.) Sold his last share last week, | 2006-12-18 | ||
| DON'T BUY | Falcon Oil & Gas | FO-X | 3.130 | A gas play in shale which will have to be heavily fracted. Doesn’t fit his mandate, being a non-producer. Strictly exploration. Too high risk. Have to find a lot of gas to justify what the market is paying for it. | 2006-12-18 | ||
| TOP PICK | Skye Resources | SKR-T | 11.250 | Has a nickel property in Guatemala. Nickel is currently $15. If you use $5 nickel, the net asset value is $15 compared to its present price of $11. For every $1 increase in nickel, net asset value goes up by about $1.50. Expect it to be a takeover. | 2006-12-18 | ||
| BUY | Kangaroo Media Inc. | KTV-X | 2.420 | A great concept and the product is wonderful, but has been a loser. Acceptance has been massive. They were going to a full fledge retail launch with Sprint/Nextel for last year’s Nascar series, but Sprint/Nextel couldn’t get their act together so it’s been delayed one year. Still likes the long-term story. | 2006-12-18 | ||
| BUY | Rockyview Energy Inc. | RVE-T | 3.500 | Very gassy name. Very low multiple. Net asset value of $5 to $7. | 2006-12-18 | ||
| BUY | Kaboose Inc. | KAB-T | 2.500 | On-line media is hot. Has 12 million monthly viewers. Have made some incredible acquisitions. Growth rate is wonderful. Great take out candidate. Recently did an equity issue that didn’t have enough demand to supply 10 million shares. 3rd largest, family oriented independent on-line media company in North America. | 2006-12-18 | ||
| Comment | Encana Corp | ECA-T | 52.610 | Comfortable with this company and its assets. Stock is cheap and they are fully hedged. Likes the long-term story of natural gas. Until gas prices go up, this stock will just wallow. | 2006-09-12 | ||
| BUY | Goldcorp Inc | G-T | 27.040 | Loves this company, because they drill up Glamis (GLG-T) which he owns. The 2 companies will be merged. | 2006-09-12 | ||
| TOP PICK | Home Depot | HD-N | 36.660 | ROE every year is 22/25%. Strong free cash flow. No debt. They buy back a ton of stock. Trades at 10 X earnings. Based on renovations, not new home sales. | 2006-09-12 | ||
| DON'T BUY | Kinross Gold | K-T | 14.320 | Liquidated his entire position. Had been grossly out of favour at around $8. Hugely levered to the gold price. Too many joint ventures. Their Brazilian property, which represents about half their net asset value, is not proven yet. Prefers Glamis (GLG-T). | 2006-09-12 | ||
| TOP PICK | Rally Energy Corp | RAL-T | 2.810 | (A Top Pick June 14/06. Up to 21%.) Heavy oil in Egypt and gas in Pakistan. Low risks and huge reserves. Dirt cheap. Net asset value is $3.50 and you get the Pakistan gas play for free. | 2006-09-12 | ||
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| BUY | Superior Plus Corp | SPB-T | 12.250 | The leader in propane distribution. You are paying 6.5 X net adjusted cash flow whose business was depressed last year because of a mild winter. Will sell their aluminum business. Believes the distribution is safe. | 2006-09-12 | ||
| BUY | Teck Resources Ltd. (B) | TCK.B-T | 69.490 | A fantastically well-run company with a significantly strong balance sheet. A lot of money that used to flow into Falconbridge and Inco, will flow into this stock. | 2006-09-12 | ||
| BUY | Talisman Energy | TLM-T | 17.960 | Company has done exceptionally well. Dropped recently with the oil price coming off. Exceptionally cheap. | 2006-09-12 | ||
| DON'T BUY | Wendy's | WEN-Q | 63.900 | Spinning off Tim Hortons (THI-T) and their stock will drop by the appropriate amount. It's burger business is grossly overpriced. | 2006-09-12 | ||
| BUY | Freeport McMoran Copper & Gold | FCX-N | 53.390 | Never gets the proper valuation in the market because its Grasberg properties are in Indonesia. Stable environment and they are one of the lowest cost miners in the world. Volatile. | 2006-09-12 | ||
| DON'T BUY | Ivernia West Inc | IVW-T | 1.000 | Had some production problems. The lead market remains strong but has not done nearly as well as zinc and copper. This is a 1-mine company. | 2006-09-12 | ||
| Comment | Eurozinc Mining Corp | EZM-T | 2.800 | Recently sold his holdings in order to reduce exposure to the deep cyclicals and resources. Management has done an exceptional job. Likes the merger with Lundin Mining (LUN-T). Not sure that base metals can go much higher. | 2006-09-12 | ||
| TOP PICK | Hudbay Minerals Inc. | HBM-T | 13.920 | (A Top Pick June 14/06. Up 12.5%.) Trades around 4 X cash flow. Feels that Teck (TCK.B-T) and this company should get together. Good price. | 2006-09-12 | ||
| DON'T BUY | Lyondell Chemical Co. | LYO-N | 23.710 | The ethanol market basically crapped out. Basically a commodity play and are susceptible to the end user. Volatile. | 2006-09-12 | ||
| DON'T BUY | Falcon Oil & Gas | FO-X | 3.510 | He is short this stock in his hedge fund. Drilling high risk wells in Hungary. Market cap of $150 billion and fully diluted. Have drilled 3 wells and haven't tested any of them. | 2006-09-12 | ||
| BUY | Kangaroo Media Inc. | KTV-X | 4.500 | Did exceptionally well and reached $8 but has dropped dramatically. Underlying business is exceptionally strong. Have had a few missteps, an option pricing issue which will prove to be nothing and had to restate sales figures. | 2006-09-12 | ||
| PAST TOP PICK | Kaboose Inc. | KAB-T | 1.360 | (A Top Pick June 14/06. Down 10.1%.) Online advertising. Did an outstanding acquisition. Will get taken out. Still likes. | 2006-09-12 | ||
| WEAK BUY | Aur Resources | AUR-T (Dead) | 14.190 | Cheap. The only concern he would have with this is its exposure to copper. Copper is not as tight as nickel which isn't as tight as zinc. In a base metal rally, this company will do very well. | 2006-06-14 | ||
| BUY | Encana Corp | ECA-T | 52.270 | Has unbelievable undeveloped land base and unconventional reserves that are not booked. Market cap is about $44 billion and he figures they’ve got about $15 billion in un-booked reserves. Good price. | 2006-06-14 | ||
| BUY | Glamis Gold | GLG-T-X | 34.490 | If he had to buy a gold stock, this would be the one. Had some production problems in Guatemala. Recent Western Silver deal they bought is going to be an absolute company maker. Expect the new drill report this summer will show that the reserves are double. | 2006-06-14 | ||
| BUY | Gerdau Ameristeel Corp | GNA-T (Dead) | 8.800 | 2nd largest mini-mill in North America. Trades at around 7 X earnings. Not tied to the consumer i.e. autos, washers, etc. which he likes. Geared towards infrastructure. Cash flow is strong and the balance sheet has improved significantly. | 2006-06-14 | ||
| BUY | Home Depot | HD-N | 36.750 | His best contrarian call right now. The stocks are probably discounting a recession. Effectively trading around 8 X earnings. Pristine balance sheet. About $6 billion free cash flow. They buy back their own stock. Pays a dividend. | 2006-06-14 | ||
| DON'T BUY | Labrador Iron Mines Holdings Ltd. | LIM-T | 5.000 | Has other nickel plays, such as Skye Resources (SKR-T), he would rather own then this one. | 2006-06-14 | ||
| BUY | Merck & Company | MRK-N | 33.490 | Great dividend yield. Probably one of the worst performing sectors in the S&P. Lots of cost cutting opportunities. Trading at around 8/9 X earnings. Pristine balance sheet. | 2006-06-14 | ||
| DON'T BUY | Precision Drilling | PD-T | 33.500 | A top quality company. Sold all its international assets. Would question where the growth would come from. Prefers Total Energy (TOT.UN-T) | 2006-06-14 | ||
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| BUY | Pfizer Inc | PFE-N | 23.110 | Great dividend yield. Probably one of the worst performing sectors in the S&P. Lots of cost cutting opportunities. A number of drugs along the pipeline. Trading at around 8/9 X earnings. Pristine balance sheet. | 2006-06-14 |
