STOCKCHASE

Potash Corp of Saskatchewan

58.780

New product (the Torch) and operating system. The security issues are perplexing. Not sure that it is only noise but hope so. Have built their business on supporting the business e-mailer, which they have done by having a secure site. This is been a strong selling point to the business side.

2010-08-11

PAST TOP PICK

Synaptics Inc

SYNA-Q

28.640

(A Top Pick Aug 5/09. Up 35%.) Sold his holdings at $26.25. Manufacture touch screens. Ran into some operational problems and margins got squeezed.

2010-08-11

BUY

Bank of Nova Scotia

BNS-T

49.810

Buying Canadian banks for dividend yields, especially Bank of Nova Scotia? All of the Canadian banks at these levels, especially for their yields, are certainly better than having your money in a bank account with them. This one is in the middle with about 3.5% yield. Not his favourite but any of the banks are a strong holding. (See Top Picks.)

2010-08-11

BUY on WEAKNESS

Agrium

AGU-T

67.240

Is Agrium (AGU-T) or Potash (POT-T) a buy right now? Both have had a bit of a run. Expects today's weakness will continue tomorrow and he would be cautious. Try to get at $65-$66. Favours Agrium because of its diversity. Longer-term he is looking for increased earnings this year and next.

2010-08-11

BUY on WEAKNESS

POT-T

113.090

Is Agrium (AGU-T) or Potash (POT-T) a buy right now? Both have had a bit of a run. Expects today's weakness will continue tomorrow and he would be cautious. Would use this one as a trading situation because of its volatility. Favours Agrium because of its diversity

2010-08-11

STRONG BUY

Canadian Natural Rsrcs

CNQ-T

34.710

Anywhere from $75-$85 in oil prices, Canadian oil companies are very profitable. They just reported an excellent quarter and beat on production and cash flow.

2010-08-11

BUY

Transocean Inc.

RIG-N

54.160

Recently added to some of his holdings at around these levels. The situation with this company was probably a little overblown. Doesn't think there is as much a liability risk as owning BP directly. Trading at around 5.5X next year's earnings.

2010-08-11

Comment

Goldcorp Inc

G-T

40.950

Moved in sync with other Canadian golds. He is not a big holder of gold stocks as they don't fit with his modeling of consistent earnings growth and discounts to NAV.

2010-08-11

HOLD

New Flyer Industries Inc.

13.410

With declining markets, outlook for this one is not too rosy. Almost down to the march/09 level while the market itself is much higher. Balance sheet has been fortified. Feels the market has positive leanings and this stock will survive and flourish.

2010-08-11

Comment

Precision Drilling

PD-T

7.200

This would be his preference in their sector because of their size, exposure to both the Canadian and US drilling markets. Will be a long time before it gets back to the $25-$30 level.

2010-08-11

HOLD

Great West Lifeco

GWO-T

24.930

All insurance companies are exposed to the equity markets and the low interest rate environment. At 10X next year's earnings and with a nice yield, he would Hold.

2010-08-11

BUY

Suncor Energy Inc

SU-T

33.340

Had some operational problems but judging from the 2nd quarter results, they have solved some of the issues. Had some great asset sales. Would buy in the $32-$33 area.

2010-08-11

BUY

Royal Bank

RY-T

52.060

Would buy all of the banks at their current levels but especially this one. They are in the penalty box right now.

2010-08-11

BUY

Shoppers Drug Mart Corp

SC-T

34.660

Thinks the stock has bottomed now and you can get in. All the provinces have come out with their new drug regulation plans with Ontario's being the most onerous. Company will certainly take a hit on these primarily starting next year. Trading at about 13X this year's earnings. Long-term hold.

2010-08-11

DON'T BUY

Encana Corp

ECA-T

30.490

The pre-eminent natural gas company in Canada. Gas stocks generally have not participated because of the low natural gas prices over the last couple of years. Could be a good contrarian play but in the short term, until there is some semblance of firming of prices, would prefer others.

2010-08-11

BUY

Teck Resources Ltd. (B)

TCK.B-T

34.610

A victim of the perceived slowing of the global economy, particularly China. For the long term this is a well-managed company. Good entry point for a trader.

2010-08-11

BUY

NFI.UN-T

9.910

Very solid yield at about 11.5%. Payout ratio in the mid-to upper 70%s. Not an income trust but an income deposit security, which means part of the return, is in interest and part is in dividends so it won't be impacted at all by the tax changes. Order backlog has improved again and is now about 3 years.

2010-08-11

BUY

Cisco

CSCO-Q

22.560

Sold off a little in the last week or so. Great global technology company with $4 a share in cash. Next years earnings at about $1.70-$1.80. Trades at just over 10X earnings.

2010-07-21

BUY

Consolidated Thompson Iron Mines Ltd.

CLM-T

7.210

Pure iron ore play in Canada. Just starting shipments out of their mines and will be about 8 million tons this year, expanding in phase 2 to 16 million 2-3 years down the road. Eventually has a earning powers of $1.50-$2 a share. Likes the future demand for iron ore, particularly from China.

2010-07-21

DON'T BUY

Ford Motor

F-N

11.550

On the surface it looks pretty good, trading at a pretty reasonable multiple. Best of management among the US automakers. Decent product line. Trillion dollars of debt scares him away as they could come back to the market with a new issue to pay it off.

2010-07-21

Comment

Bombardier Inc (B)

BBD.B-T

4.780

“A” shares versus “B” shares? B shares have one vote per share while the A shares have 10 votes per share. Since both prices are so close to each other, if you buy gold for the A shares because of the extra votes you get.

2010-07-21

DON'T BUY

CitiGroup

C-N

3.940

Company will survive, but it will be a while before they start paying dividends again. Still have a lot of problems. This is not something he would own within the financial services sector. There are a lot better bets in the Canadian market.

2010-07-21

BUY

Transocean Inc.

RIG-N

47.750

They were the operators of the rig during the Gulf spill. Could see it into the mid-$60's in 12 months. Less than 10% of their fleet operates in the Gulf. About 5% yield.

2010-07-21

BUY

Sears Holdings Corp.

SHLD-Q

63.190

Stock has dropped by about 50% since May. Should recover. Not the best operator, but underlying assets of real estate and brands leave a lot of potential for the gap between current share price and assets to narrow.

2010-07-21

TOP PICK

Apple

AAPL-Q

254.240

(A Top Pick Aug 5/09. Up 52.56%.) Reported strong numbers across all measures. Have $50 a share in cash. Sees $17-$18 a share in earnings next year so you are trading at only 12X earnings.

2010-07-21

TOP PICK

Student Transport of America Ltd.

146.990

SEC charged them for misleading investors in a subprime mortgage product but settled this in far more advantageous terms than he expected. Trading at 1.2X Book versus historically 1.5 to 2X book.

2010-07-21

TOP PICK

Shoppers Drug Mart Corp

SC-T

35.500

Had a very poor 2nd quarter sparked by the new regulations by the Minister of Health. Starting to crawl back. Expect this will allow them to take market share from smaller pharmacies.

2010-07-21

BUY

STB-T

5.500

4th or 5th largest student transportation company in North America. Recession resistant. Just made an acquisition of the Sudbury student buses. Doesn't see a lot of upside but it has a very nice, safe yield of 10.3%.

2010-07-21

BUY

Viterra Inc

VT-T

7.640

Has been hurt in the last 3-4 months because of the weather. A wet season in Canada and drought conditions in Australia. Earnings estimates have been lowered from about $.80 a share to about $.42 a share for the year but they go back up to $.63 next year.

2010-07-21

PAST TOP PICK

Synaptics Inc

SYNA-Q

29.750

(A Top Pick Aug 5/09. Up 19.44%.) Sold his holdings in March.

2010-07-21

PAST TOP PICK

Toronto Dominion

TD-T

70.550

(A Top Pick Aug 5/09. Up 13.39%.)

2010-07-21

BUY

55.940

Probably the 2nd cheapest technology stock out there. At 10X this year's earnings, it is discounting well more than the market share losses that they might have over the next year. Badly lacking applications and he would like to see them have more.

2010-07-21

TOP PICK

Consolidated Thompson Iron Mines Ltd.

62.010

Earnings due out tomorrow. Valuation of only 11X earnings. Growing at 25%-30% a year. Losing market share in smart phones but that market is expanding so quickly they still get great earnings growth. Great new products coming out in the fall.

2010-06-23

TOP PICK

Transocean Inc.

RIG-N

52.760

Operator of the British Petroleum (BP-N) drilling rig that caused all the problems in the Gulf. Earnings estimates have come down about 15% but stock price has come down 40%. Trading at 7-8 times earnings.

2010-06-23

TOP PICK

CLM-T

7.760

Have almost completed phase 1 of their Bloom Lake mine that they own 75% of. Partnered with a Chinese company. Phase 2 is on the drawing board. Once all phases are in operation, they'll have the earnings power of $2-$3 a share.

2010-06-23

PAST TOP PICK

Priceline.com Inc.

PCLN-Q

188.250

(A Top Pick June 10/09. Up 62.5%.) Sold his holdings at about $250, up 116%. Online travel and got hit in 2008-2009. Great company but got a little bit rich for him. Trading at about 15X forward earnings and he is watching it.

2010-06-23

PAST TOP PICK

Thomson Reuters Corp

TRI-T

38.880

(A Top Pick June 10/09. Up 17%.) Trading at about 15X earnings. Full impact of the Thomson-Reuters merger has not been seen yet. Expect good cash flow coming out later this year and in 2011. Looking for an excellent point in the low $40's.

2010-06-23

BUY

Suncor Energy Inc

SU-T

34.040

Good entry point. 1st quarter suffered from operating difficulties. Just announced more asset disposing. Very well run.

2010-06-23

HOLD

New Flyer Industries Inc.

16.400

Trading at about 8.5X this year's earnings and 7.5X next year’s. 3% dividend yield. Still suffering from having to raise some much capital during the financial crisis of 2009. Also suffering from their tie to the market but it is long-term exposure so he is not concerned about it. Great operation in Asia.

2010-06-23

HOLD

Just Energy Income Fund

JE.UN-T

12.810

If you're looking for income, this is a Hold. 10% distribution that will become a 10% dividend. Wouldn't Buy for growth.

2010-06-23

BUY

NFI.UN-T

10.070

Transit buses. About 11.5% yield. Still looking for growth in this trust because they have a backlog of about $3 billion, about 4 years of production.

2010-06-23

STRONG BUY

Agrium

AGU-T

53.040

Sold off in the last month or so along with the rest of the market. Trades at a very reasonable multiple. Well diversified among the 3 major fertilizer products along with its wholesale and retail operations. Great entry point.

2010-06-23

BUY

General Electric

GE-N

15.390

Trading at 11-12 times next year's earnings. In the process of getting rid of the majority stake of NBC Universal. Their finance arm is doing a little bit better. Very reasonable price.

2010-06-23

DON'T BUY

Coca-Cola Bottling

COKE-Q

49.402

Bottling company and he probably would not look at the bottling operation as he can’t see a lot of growth. US based only. He would prefer to play Coca-Cola (KO-N) and Pepsi (PEP-N) through their international operations.

2010-06-23

BUY

Pepsi

PEP-N

62.730

A little cheaper multiple than Coca-Cola (KO-N). Well positioned for decent growth. Likes their diversification in food products.

2010-06-23

BUY

Coca-Cola Company

KO-N

52.240

Well positioned for decent growth at a not too expensive multiple.

2010-06-23

BUY

Rogers Communcations (B)

RCI.B-T

37.400

Good cash flow generation. Good solid holding. Good growth possibilities with their bundled products. Has room for dividend growth.

2010-06-23

BUY

BCE Inc.

BCE-T

31.160

Good solid holding. Owns but feels Rogers (RCI.B-T) has more growth and dividend growth opportunities.

2010-06-23

BUY

Telus Corp

T-T

40.640

Good solid holding. Owns but feels Rogers (RCI.B-T) has more growth and dividend growth opportunities.

2010-06-23

BUY

Bank of Nova Scotia

BNS-T

50.840

Likes Canadian banks at current level. Offer very good PE ratios and dividend yields. His favourites are Royal (RY-T) and Toronto Dominion (TD-T).

2010-06-23

BUY

Royal Bank

RY-T

53.750

Sometimes when companies report earnings and are the only ones in the group that disappoint, they get punished. That's the case with this bank. Great entry point and has the most potential for growth between now and the end of the year. Toronto Dominion (TD-T) is his favourite followed by this one.

2010-06-23

BUY

Toronto Dominion

TD-T

72.630

Likes Canadian banks at this level. Very good PE ratio and dividend yields. This is his favourite, followed by Royal (RY-T). Made very good acquisitions in the US market.

2010-06-23

HOLD

Bucyrus International Inc.

BUCY-Q

51.560

Manufacturer mining equipment. Has come down because of the pullback in commodities in the last 6 weeks or so. Particularly some of the coal stocks. Very decent multiple. Still digesting an acquisition.

2010-06-23

BUY

Visa Inc.

V-N

28.010

Came down pretty hard in the last month or so on rumours of changes to interchange fees that are charged. Regulations have since been softened up. Trades at a very reasonable multiple. Prefers MasterCard (MA-N) that has a hair less growth but better valuation by 2 points.

2010-06-23

BUY

Mastercard Inc.

MA-N

219.850

Came down pretty hard in the last month or so on rumours of changes to interchange fees that are charged. Regulations have since been softened up. Trades at a very reasonable multiple. Prefers over Visa (V-N). A hair less growth but better valuation by 2 points.

2010-06-23

DON'T BUY

LuLulemon Athletica

LLL-T

43.650

Great company, but way too expensive for his liking. Trading at about 38X this year's earnings and 30X next year’s. There is still growth ahead, but not enough to justify those multiples.

2010-06-23

DON'T BUY

Trans Canada Corp

TRP-T

36.950

When looking at yields, he prefers something with more growth. Not enough growth potential of at the current price multiple of 15-16 times earnings.

2010-06-23

DON'T BUY

CitiGroup

C-N

3.890

Was on the verge of extinction not that long ago. Managed to survive with severe dilution. Wouldn't feel comfortable only in this one.

2010-06-23

Comment

New Flyer Industries Inc.

135.070

Trading at book value. They should come through their problems okay. The dominant franchise in the business. Will be punished with some sort of fine or settlement at some time but that is more than baked into the stock price right now. Expect earnings to grow at 15%-20% a year, which would give you a 60%-70% return over a couple of years.

2010-06-23

PARTIAL BUY

Teck Resources Ltd. (B)

TCK.B-T

35.670

Would start to nibble at this a little. Well exposed to global growth.

2010-06-23

BUY

Johnson & Johnson

JNJ-N

59.240

Great company, great price. Trading at 11X next year's earnings. Dividends on US companies are taxed at the full marginal rate, something like interest rates. As well there is with holding tax charged prior to the receipt of them.

2010-06-23

TOP PICK

NFI.UN-T

9.880

City transit buses across North America. Not actually a trust but an income deposit security. 12.25% yield. Stock dropped when they announced a slight decrease in their backlog order but it is still over 3 years long. Looking for slow, steady growth.

2010-05-19

TOP PICK

Corintian Colleges Inc

COCO-Q

15.610

For-profit education company, mainly post-high school with degrees and some master programs. Stock has not been able to get any traction since concerns of default of students’ government loans. Earnings growing at 18%-20%. Trading at about 7-8 times earnings.

2010-05-19

TOP PICK

Mastercard Inc.

MA-N

202.450

Stock dropped because of concerns on proposed changes on debit card fees. This was more perception than reality because they don't participate in the debit card fee itself.

2010-05-19

PAST TOP PICK

Priceline.com Inc.

PCLN-Q

190.110

(A Top Pick June 10/09. Up 65.55%.) Sold his holdings in March.

2010-05-19

PAST TOP PICK

Thomson Reuters Corp

TRI-T

37.880

(A Top Pick June 10/09. Up 1.11%.) Still a buy.

2010-05-19

PAST TOP PICK

IESI-BFC Ltd.

BIN-T

20.240

(A Top Pick June 10/09. Up 82.63%.) Still a buy.

2010-05-19

DON'T BUY

Microsoft

MSFT-Q

28.240

Doesn't say anything great ahead for this company. Reasonably valued but can't seem to avoid spinning its wheels. Great cash flow but very modest growth.

2010-05-19

BUY

Cisco

CSCO-Q

24.260

Likes the tech space and this is one of his major holdings. Just reported good numbers. Great entry point at this level.

2010-05-19

BUY

Cineplex Galaxy Income Fund

CGX.UN-T

20.120

CGX.U Great long-term hold. 6.2% yield. Just announced that they will convert to a corporation with no change in distribution. Payout ratio less than 60%.

2010-05-19

BUY

140.100

With some of the SEC news out and perhaps more to come, prices dropped considerably and it is a good entry point. Trading under BV. Still sees good earnings growth with earning power of $16-$20 over the next year or so.

2010-05-19

Comment

Cineplex Galaxy Income Fund

17.560

Reported great 1st quarter earnings and announced it on the same day the market went down. There will probably be some resistance even when the market gets better and will struggle to get through $19. Likes their exposure to China. A long-term hold.

2010-05-19

WEAK BUY

Qualcom

QCOM-Q

36.450

Hits his screen as pretty reasonable value here. Still has a great growth outlook as 3G grows into 4G. Close to his Buy list but he prefers the company he already owns.

2010-05-19

BUY

American Express

AXP-N

40.170

Very well priced and trading at about 11-12 times earnings. Earnings are growing at about 11%. (See Top Picks.)

2010-05-19

TOP PICK

Canadian Natural Rsrcs

CNQ-T

79.200

Probably one of the best managed oil/gas companies in Canada. Sorted out some of the production problems they had late 2010 on their Horizon project. Produced 72,000 barrels a day in January, up to 82,000 in February and looking for 100,000-105,000. Production goal is 110,000. Just raised their dividend.

2010-04-14

TOP PICK

CGX.UN-T

20.500

Likes the aspect of the 3-D movies, which gives better margins. Didn't have to pay for any of their new 3-D projectors. Payout ratio of about 57% so there should be no problem with them converting to a corporation. Yields about 6%.

2010-04-14

TOP PICK

A Comment -- General Comments From an Expert

184.920

Report their earnings next week. J.P. Morgan (JPM-N) and this are the best of the breed.

2010-04-14

PAST TOP PICK

Priceline.com Inc.

PCLN-Q

265.260

(A Top Pick June 10/09. Up 121.3%.) Online hotel/airline reservation discounter. Huge beneficiaries of the skittishness in the economy as people that had to travel are looking for better bargains. Sold his holdings and wouldn't go back in at these levels.

2010-04-14

PAST TOP PICK

Thomson Reuters Corp

TRI-T

36.540

(A Top Pick June 10/09. Up 5.6%.) Still in the midst of putting together all the synergies of the merger with Reuters. Expected to start kicking in next year. Very good entry point at these levels.

2010-04-14

PAST TOP PICK

IESI-BFC Ltd.

BIN-T

18.800

(A Top Pick June 10/09. Up 63% excluding yield.) Waste disposal. Still a Hold.

2010-04-14

BUY

Bank of America

BAC-N

19.400

Reporting on Fridays so it will be an interesting one. Trading at a big discount to BV. Great earnings power. Dilution because of the equity they had to issue. (See Top Picks.)

2010-04-14

BUY

General Electric

GE-N

19.350

Has moved off the bottom with a lot of other stocks but is still trading at only 12-13 times earnings. Can see good earnings growth.

2010-04-14

BUY

Agrium

AGU-T

64.500

Drop in today's stock price was probably in sympathy with Potash (POT-T) downgrade by Goldman Sachs. They provided a fairly cautious view of the fertilizer industry over the next 6-8 months. The downgrade is probably a short-lived phenomenon so not a bad buying opportunity.

2010-04-14

BUY

A Commentary

0.020

Canadian Banks. Small increase in rates and not a huge drop in loan demands is probably a positive. Expect later this year or early next year there will be a round of dividend increases. His favourite is Toronto Dominion (TD-T).

2010-04-14

BUY

BCE Inc.

BCE-T

29.650

Stock had a great move from the beginning of the year, so expects there was profit taking, which caused the drop in the price. Good yield. Under $30 is a good entry point.

2010-04-14

BUY

Suncor Energy Inc

SU-T

35.090

Has been under performing until the last couple of weeks. Had some operating issues with fires at their oil sands. Looks like the worst is over as the stock has rebounded nicely. (See Top Picks.)

2010-04-14

BUY

Abbott Labs

ABT-N

52.310

Great company with a great pipeline. Humira, a rheumatoid arthritis drug, is their major product is on patent until 2016. Have never had a down year in stock price since 1992.

2010-04-14

DON'T BUY

Pfizer Inc

PFE-N

17.070

Their big drug Lipitor comes off patent next year, which will be a lot of revenue that will be difficult to replace. Have an “OK” pipeline. Because of their size, it takes a huge blockbuster drug to turn the needle to a positive direction.

2010-04-14

BUY

Shoppers Drug Mart Corp

SC-T

38.360

Stock has suffered because of the proposed new legislation by the Ontario government. At this price, he would be a buyer. Although earnings will be lower, they will continue to grow for the foreseeable future.

2010-04-14

HOLD

Boeing

BA-N

71.700

As the new Dreamliner gets into final production and sales that should continue to be good earnings growth. Fairly reasonable multiple.

2010-04-14

Comment

19.950

Pretty fairly valued. Believes the market is going to be much better over the next several years. They should be a beneficiary. Likes the diversification, especially in the Asian market.

2010-04-14

BUY

Apple

AAPL-Q

245.690

Has been a great stock. One of the cheapest stocks he owns, even at these levels. Should have a lot more upside. They have $45 a share in cash.

2010-04-14

DON'T BUY

Microsoft

MSFT-Q

30.820

Has lost its way in the last 5 to 10 years. Would much prefer Apple (AAPL-Q), Cisco (CSCO-Q), Oracle (ORCL-Q) or RIM (RIM-T).

2010-04-14

BUY