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| Garth Jestley of Middlefield Capital |
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| DON'T BUY | Advantage Oil & Gas Ltd | AAV-T | 18.340 | Had shorted this trust earlier this year because of its high payout ratio and gas prices were weakening. There are better ways to play natural gas. | 2006-08-11 | ||
| TOP PICK | Progressive Waste Solutions Inc | BIN-T | 27.910 | (A Top Pick Dec 2/05. Down 4%.) In an economy where there may be some de-acceleration of earnings, this is a defensive holding. Is good at making acquisitions. Good landfill holdings. | 2006-08-11 | ||
| DON'T BUY | Chemtrade Logisitics Inc. | CHE.UN-T | 10.500 | Has concerns about input costs. High yield is a reflection of the markets concerns of its high payout ratio. There is danger of further distribution cuts. High debt. | 2006-08-11 | ||
| BUY | Canadian Oil Sands | COS-T | 37.050 | A large trust. Challenging to replace production, but it has a huge land suite. Likes it. | 2006-08-11 | ||
| DON'T BUY | Cinram | CRW.UN-T | 22.290 | Just reported and their results are way off due to declining DVD sales. | 2006-08-11 | ||
| Comment | Veresen Inc | VSN-T | 11.920 | Lightened up on power and pipeline trusts, which are the most interest-rate sensitive. Interest rates are now very close to peaking, which would create some interest in these again. Defensive in nature with stable income. | 2006-08-11 | ||
| TOP PICK | Focus Energy Trust | FET.UN-T | 24.080 | He has lightened up on the gas-oriented trusts recently because of near-term weakness in gas. However, feels that gas will be going up and this is one of the better names. Recently made a large acquisition giving them good diversification. | 2006-08-11 | ||
| BUY | Precision Drilling | PD-T | 39.870 | The premier energy services company in Canada. Continues to add to its fleet. Moving into the US. Very attractive yield. Good management. | 2006-08-11 | ||
| BUY | Peyto Exploration & Develop. | PEY-T | 22.080 | Just made a management change. A large player in coal bed methane. | 2006-08-11 | ||
| DON'T BUY | Parkland Fuel Corp | PKI-T | 29.900 | With the recent increase, he has lightened up his position. A good trust, but their margins can be quite volatile. Fully valued. | 2006-08-11 | ||
| DON'T BUY | Perpetual Energy | PMT-T | 19.740 | Basically a gas play. High payout ratio. | 2006-08-11 | ||
| DON'T BUY | Shiningbank Energy Income Fund | SHN.UN-T | 22.950 | Paying a very high price in acquiring Find Energy. It will be a good fit. Good management team. Looking at their high payout ratio and increasing debt ratio, he would stay on the sidelines. | 2006-08-11 | ||
| PAST TOP PICK | Just Energy Group | JE-T | 17.300 | (A Top Pick Dec 2/05. Down 7.5%.) Still likes. Good entry point. | 2006-08-11 | ||
| BUY | Yellow Media Inc | YLO-T | 14.980 | A recent negative research report created a drop in price. Good entry point. Likes management. | 2006-08-11 | ||
| BUY | Progress Energy Resources Corp | PRQ-T | 17.050 | Good management team. | 2006-08-11 | ||
| DON'T BUY | Pengrowth Energy Trust (A) | PGF.A-T | 25.300 | Acquiring Esprit Energy (EEE.UN-T), which will be positive for them. He tends to favour the more “new generation” trusts. They have taken some steps to strengthen their team and are moving in the right direction and he is watching them. | 2006-08-11 | ||
| DON'T BUY | Canwel Building Materials Ltd. | CWX-T | 4.260 | A distribution business that is a low margin business. Cyclical. Expects there will be more downside. | 2006-08-11 | ||
| DON'T BUY | NAV Energy Trust | NVG.UN-T | 8.460 | There has always been a concern that it is highly concentrated in northern Alberta that has a very limited window when they can drill. High payout ratio. | 2006-08-11 | ||
| BUY | Penn West Petroleum | PWT-T | 46.300 | The largest oil/gas producer. The challenge for it will be replacing its production. A core holding for all portfolios. Has a very large land holding to develop or lease. Well-managed. | 2006-08-11 | ||
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| PAST TOP PICK | Fairborne Energy Trust | FEL.UN-T | 14.400 | (A Top Pick Dec 2/05. Down 16.6 %.) Still likes. Dropped along with natural gas prices. Fundamentals are still good. | 2006-08-11 | ||
| DON'T BUY | Pizza Pizza Royalty Income Fund | PZA.UN-T | 10.050 | Not enthusiastic about the restaurant sector. | 2006-08-11 | ||
| DON'T BUY | Stephensons Rental Services | RNT.UN-T | 7.150 | In the equipment rental business in the Toronto area. A highly seasonal/cyclical business. High payout ratio. High debt. | 2006-08-11 | ||
| DON'T BUY | Hardwoods Distribution | HWD-T | 5.360 | Not a fan of distribution businesses. The largest hard wood distributor in Canada. There have been some improvements in its revenues but it is a thin margin business. Has cut distributions. Payout ratio is too high. | 2006-08-11 | ||
| BUY | Canetic Resources Trust | CNE.UN-T | 23.080 | Good management team. Have been successful in integrating their acquisitions. | 2006-08-11 | ||
| DON'T BUY | Futuremed Healthcare | FMD-T | 12.400 | Basically distributes products to the long care sector. A play on the ageing population. 70/75% of its business is very stable. Has performed quite well. Also sells diagnostic equipment, which tends to be volatile. Expensive at the current level. | 2006-08-11 | ||
| TOP PICK | Teranet Income Fund | TF.UN-T | 10.590 | Electronic land Registries. Has a contractual monopoly. Continues to bring on old paper-based records into its registry. | 2006-08-11 | ||
| WEAK BUY | Liquor Barn Income Fund | LBN.UN-T | 11.150 | Has about 60 stores in Alberta and British Columbia. Prefers Liquor Stores Income Fund (LIQ.UN-T), which is larger. They expect to grow through accretive acquisitions. Still in the process of integrating 8 companies. | 2006-08-11 | ||
| BUY | Arc Resources Ltd | ARX-T | 26.720 | Has a long reserve life of about 12 years. Management is very focused on return on investment. They led the way in reduced payout ratios. Low debt. | 2005-12-02 | ||
| TOP PICK | Progressive Waste Solutions Inc | BIN-T | 29.250 | The 6th largest non-hazardous waste management firm in North America. A really great growth record. | 2005-12-02 | ||
| BUY | Bonavista Energy Corp | BNP-T | 37.190 | Able to maintain the distribution and retain the reserve life out of their cash flow. | 2005-12-02 | ||
| WAIT | Connors Bros. Income Fund | CBF.UN-T | 10.450 | Has had its problems. Although he owns, he is waiting and seeing. The largest tinned seafood distributor in North America. Went into other areas and have had integration problems. Might be considering reducing distributions. | 2005-12-02 | ||
| BUY | CCS Income Trust | CCR.UN-T | 36.220 | He is bullish on the oil service sector. This is one of the better service names. Has a good track record of increasing distributions many times. Low payout ratio. Very good at what they do. Will benefit from the trend of outsourcing. | 2005-12-02 | ||
| DON'T BUY | Chemtrade Logisitics Inc. | CHE.UN-T | 12.050 | Got out at this trust because of concerns of input costs. Had lots of problems with caustic soda. Also had problems on the east coast. | 2005-12-02 | ||
| DON'T BUY | Clean Power Income Fund | CLE.UN-T | 4.390 | Have been staying away from the power and pipeline trusts because they tend to be more interest sensitive as more stable type of trusts. However, this one has not been stable. A high rate of distribution which is not a good sign. | 2005-12-02 | ||
| DON'T BUY | Clearwater Seafoods Inc. | CLR-T | 3.730 | The largest producer of shellfish in North America. Sold out on the increasing concerns of old currency risk. Have had some operational problems. | 2005-12-02 | ||
| PAST TOP PICK | Canadian Oil Sands | COS-T | 133.000 | (A Top Pick June 3/05. Up 60% plus distributions.) Has an incredibly long reserve life. | 2005-12-02 | ||
| BUY | Enerplus Corp | ERF-T | 56.030 | A very good trust. Since its inception, it has managed to maintain its reserve life index, at around 13 years. Has recently expanded into the U. S. it also has some interest in the oil sands. | 2005-12-02 | ||
| DON'T BUY | Fording Canadian Coal Trust (Inc Trust) | FDG.UN-T | 47.460 | Sold their holdings in the last 6/8 weeks. Enjoyed a good run. Thinks there will be some down tick next year in coal. More risks on the downside than opportunities on the upside. | 2005-12-02 | ||
| DON'T BUY | Labrador Iron Ore | LIF.UN-T | 27.500 | Has been a great performer over the last few years. The story for this trust rests in China and its robust growth. Labrador has a royalty interest in their production. The major producers of iron ore have enormous expansion plans which could be a problem for current high prices. | 2005-12-02 | ||
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| PAST TOP PICK | Peyto Exploration & Develop. | PEY-T | 27.700 | (A Top Pick June 3/05. No change but has had distributions.) Still likes. Low payout ratio so has a sustainable model. Has a very long reserve life index. | 2005-12-02 | ||
| DON'T BUY | Perpetual Energy | PMT-T | 22.000 | The reserve life index is very short at about five years where the average is about nine years. This leaves very little room for error. | 2005-12-02 | ||
| TOP PICK | Just Energy Group | JE-T | 19.500 | Since its inception, it has announced 20 increased distributions. Trades at a low yield but think there’s a good growth story. Expanding into the Ontario residential market as well as other areas. | 2005-12-02 | ||
| HOLD | Tree Island Wire Income Fund | TIL.UN-T | 9.500 | Doesn't focus on this trust very much. One of the largest manufacturers of wire and nails. Have had to reduce margins and pressure has come from foreign competition. | 2005-12-02 | ||
| DON'T BUY | Baytex Energy Corp | BTE-T | 17.490 | Not keen on heavy oil. Exposed to rises in the oil patch disproportionately to the others. They have hedged the differential, however he just doesn't like heavy oil. | 2005-12-02 | ||
| BUY | Cathedral Energy Services | CET-T | 10.300 | He is bullish on the oil service sector. They don't have the direct exposure to the commodities. Likes this company. | 2005-12-02 | ||
| DON'T BUY | Pengrowth Energy Trust (B) | PGF.B-T | 21.850 | One of the original income trusts in Canada. In the last few years, it has not been doing as well, as some of its peer group. It still looks at itself is very much in the financial engineering mode where there has been a broad shift to growth through the drill bit. Had some stumbles. | 2005-12-02 | ||
| HOLD | StarPoint Energy Trust | SPN.UN-T | 22.760 | Will be merging with Acclaim (AE.UN-T) and will be one of the largest trusts. Likes the management of both firms. The only issue would be integration problems but, on balance it’s a good move. | 2005-12-02 | ||
| BUY | Penn West Petroleum | PWT-T | 36.290 | A conventional oil and gas trust. Has about 5 million net acres of land base. Has been doing a pretty good job of exploiting that through farm out arrangements. | 2005-12-02 | ||
| TOP PICK | Fairborne Energy Trust | FEL.UN-T | 17.060 | A relatively small trust. Has significant ownership by management. The fifth largest coal bed methane in Canada. It’s opportunity rich. Has over 300 possible drilling locations. | 2005-12-02 | ||
| PAST TOP PICK | Esprit Energy Trust | EEE.UN-T | 12.250 | (A Top Pick June 3/05. Up 2.5% plus distributions.) Have very long reserve life but has stumbled a bit. | 2005-12-02 | ||
| BUY | Mullen Group Ltd | MTL-T | 28.510 | Generally speaking he doesn't invest in the trucking business, but this is the exception. Really involved in the oil service sector. Significant ownership by the management. Thrifty. | 2005-12-02 | ||
| WATCH | Bellatrix Exploration Ltd. | BXE-T | 19.180 | Relatively small. Will want to see how it performs over time. This was a reverse takeover of TKE Energy so 40% of the assets are new to the management. There are integration risks. About 10% of their operation is exploration drilling which he doesn't think is appropriate. | 2005-12-02 | ||
| BUY | Arc Resources Ltd | ARX-T | 18.750 | A bellweather in the royalty trusts. A 1st class firm. | 2005-06-03 | ||
| TOP PICK | Agilent Technologies | A-N | 12.000 | The knock on this company had been that they were very concentrated in the Olds area of Alberta, but they have now expanded outside that area. Low declines and lots of drilling prospects. | 2005-06-03 | ||
| DON'T BUY | Advantage Oil & Gas Ltd | AAV-T | 17.180 | Sold out his position some time ago when he became concerned about the high payout ratio. It's gone against the grain of the whole patch. | 2005-06-03 | ||
| BUY | CCS Income Trust | CCR.UN-T | 26.500 | Involved in oil field waste management. Has one of the largest fleets in Western Canada on well servicing rigs. A real growth story. Has increased distributions 5 times since its IPO. Yield is about 5%. Well managed. Very low payout ratio. | 2005-06-03 | ||
| TOP PICK | Canadian Oil Sands | COS-T | 83.400 | (A Top Pick Jan 21/05. Up 19%.) Has the prospects of stage 3 expansion being implemented next year. Sees subsatntial increases in distributions down the road. | 2005-06-03 | ||
| PAST TOP PICK | Calloway REIT | CWT.UN-T | 20.300 | (A Top Pick Jan 21/05. Up 10%.) Still likes. With its focus on Wal Mart it has a very prominent position in the Canadian Market Place. | 2005-06-03 | ||
| BUY | NAL Energy Corp | NAE-T | 14.150 | Likes this one. | 2005-06-03 | ||
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| TOP PICK | Peyto Exploration & Develop. | PEY-T | 27.350 | Low payout ratio at 46%. Added about 25% reserves last year. Very disciplined in terms of finances. Manageemnt owns 21%. | 2005-06-03 | ||
| HOLD | Tree Island Wire Income Fund | TIL.UN-T | 15.800 | Recently had a little bit of a set back due to the rising prices of steel which is now turning in the opposite direction. | 2005-06-03 | ||
| PAST TOP PICK | Vermilion Energy Inc | VET-T | 22.980 | (A Top Pick Jan 21/05. Up 19%.) Unique in the royalty trust sector. Has 2 legs outside of canada, Europe and Australia. | 2005-06-03 | ||
| BUY | Viking Energy Royalty Trust | VKR.UN-T | 6.850 | New management team has done a very good job of reducing costs. | 2005-06-03 | ||
| DON'T BUY | NAV Energy Trust | NVG.UN-T | 7.610 | A relatively small cap trust. Its resources are largely in Northern Alberta which has been a tough place in terms of getting services, etc. Has a pretty high debt. 2 to 1 in terms of debt to cash flow. Recent cut in distributions puts it in a more stable pattern. | 2005-06-03 | ||
| DON'T BUY | TKE Energy Trust | TKE.UN-T | 9.100 | Small cap, so doesn't follow actively. Part of the decline is due to the decline in the overall sector. 70% payout ratio may be a little high. | 2005-06-03 | ||
| BUY | StarPoint Energy Trust | SPN.UN-T | 18.750 | Now in the process of acquiring APF Energy Trust (AY.UN-T). Likes this trust. | 2005-06-03 | ||
| DON'T BUY | Advantage Oil & Gas Ltd | AAV-T | 21.120 | Owns, but has lightened up significantly. Has a very high payout ratio which raises questions of sustainability. Have stuck to their external management format which runs counter to the theme of internalizing managers. | 2005-02-18 | ||
| BUY | Progressive Waste Solutions Inc | BIN-T | 26.650 | A very experience management team that is not only good at handling non-hazardous waste, but are also good at making acquisitions. | 2005-02-18 | ||
| HOLD | Chemtrade Logisitics Inc. | CHE.UN-T | 16.900 | Has sold off about 15% since the beginning of the year. Have experienced problems with costs, particularily caustic soda as well as increased competition from the Chinese and the SHS market. Now trading at a 10.5% yield which management says they can hold. At the current levels, he considers it a HOLD. | 2005-02-18 | ||
| DON'T BUY | Heating Oil Partners | HIF.UN-T | 5.650 | A US based trust that has experienced some difficulties. One problem has been the rising price of heating oil which has strained their ability to finance the receivables which created bank restraints. Has also been hurt by the strong Cdn$. | 2005-02-18 | ||
| DON'T BUY | Rainmaker Entertainment | RNK-T | 4.000 | In the film production services area and doesn't think that is an appropriate area for an income trust to be. Stronger Cdn$ creates stronger pressure from US competition. Yield is over 13%, but sometimes higher yields indicates risk. | 2005-02-18 | ||
| HOLD | Retirement Residences REIT | RRR.UN-T | 10.080 | There are 3 plays in the "Seniors' Living" sector, this, Chartwell (CSH.UN-T) and Sunrise (SZR.UN-T). This one (more in nursing homes) has been hurt by Ontario government competition. Somw of their residences are getting old and refurbishing will be required. "Retirement' trusts have a place in portfolios and they own all 3. | 2005-02-18 | ||
| DON'T BUY | Fibrek Inc. | FBK-T | 7.500 | Have avoided this one because they don't like deeply cyclical plays. Some risks, but OK if you want to take a chance on the price of pulp. | 2005-02-18 | ||
| BUY | Westshore Terminals Inc. | WTE.UN-T | 13.170 | Has been a winner in the Asian demand for metalurgical coal play. Benefits by both greater throughput in their terminals and, as well, the tolls that it charges are tied, to a degree, to the price of coal. | 2005-02-18 | ||
| DON'T BUY | Baytex Energy Corp | BTE-T | 14.140 | Weighted more towards heavy oil. The light & heavy oil differential has widened which is a negative for heavy oil producers, but not as negative for Baytex in the short term as they have hedged that risk. The reality with heavy oil is that the net backs are lower and operating costs are higher. | 2005-02-18 | ||
| BUY | Chartwell Seniors housing | CSH.UN-T | 14.590 | There are 3 plays in the "Seniors' Living" sector, this, Chartwell (CSH.UN-T) and Retirement REIT (RRR.UN-T). "Retirement' trusts have a place in portfolios and they own all 3. | 2005-02-18 | ||
| DON'T BUY | Pengrowth Energy Trust (B) | PGF.B-T | 19.400 | One of the traditional royalty trusts and management looks at it as primarily and engineering vehicle that will replace reserves through acquisitions. Feels that the newer model is moving away from that by having smaller payout ratios and grow more through drilling. Have lightened up on this trust significantly. | 2005-02-18 | ||
| BUY | Sunrise Senior Living REIT | SZR.UN-T | 11.770 | There are 3 plays in the "Seniors' Living" sector, this, Chartwell (CSH.UN-T) and Retirement REIT (RRR.UN-T). "Retirement' trusts have a place in portfolios and they own all 3. | 2005-02-18 | ||
| HOLD | IAT Air Cargo Trust | ACF.UN-T (Dead) | 7.060 | There is a growth in cargo generally. 2/3 of their space is in the Vancouver area. | 2004-10-29 | ||
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| BUY | Connors Bros. Income Fund | CBF.UN-T | 16.280 | Prefers over Clearwater Seafoods because of better growth prospects. | 2004-10-29 | ||
| BUY | CCS Income Trust | CCR.UN-T | 37.990 | Would suggest Newalta or this trust for a more stable play in energies without the exposure to commodities. | 2004-10-29 | ||
| BUY | Calpine Power Income Fund | CF.UN-T | 10.400 | Underweight on power trusts because of the risk of higher interest rates. Tainted a little by its relationship with Calpine in the US, but they have good assets and a premium yield. | 2004-10-29 | ||
| DON'T BUY | Clearwater Seafoods Inc. | CLR-T | 9.900 | Would prefer Connors Brothers whith better growth prospects. | 2004-10-29 | ||
| DON'T BUY | Prime Restaurents | EAT-T (Dead) | 9.600 | Not enthusiastic about restaurant trusts. Their restaurants have not been doing that well. | 2004-10-29 | ||
| HOLD | Freehold Royalties | FRU-T | 16.550 | Has been a very good performer over time. 2/3's of its earnings comes from royalties, so doesn't have the risks of costs, etc.Has shopwn good growth in reserves. Trades at a premium valuation compared to its competition. | 2004-10-29 | ||
| DON'T BUY | Heating Oil Partners | HIF.UN-T | 5.550 | Has had to suspend distributions. Not enough money to pay for the high oil prices, and will have to renegotiate with their banks. Feels that this will be more than temporary. | 2004-10-29 | ||
| HOLD | IPC US Income Commercial REIT | IUR.UN-T | 9.900 | A play on US offices. Weaker US$ can affect. | 2004-10-29 | ||
| BUY | Newalta Corp | NAL-T | 21.540 | Would suggest CCS or this trust for a more stable play in energies without the exposure to commodities. Has an excellent record of growing distributable cash flow. Has growth. | 2004-10-29 | ||
| DON'T BUY | Perpetual Energy | PMT-T | 15.850 | Relatively short reserve life. | 2004-10-29 | ||
| BUY | Shiningbank Energy Income Fund | SHN.UN-T | 22.370 | Has done well. Good management. Reserve life of about 10 years. | 2004-10-29 | ||
| BUY | Yellow Media Inc | YLO-T | 12.650 | The streotypical good income fund. Very sound business model. Very stable. | 2004-10-29 | ||
| DON'T BUY | CML Healthcare | CLC-T | 12.020 | Didn't buy the IPO because of concerns on the pricing and low yield. | 2004-10-29 | ||
| WEAK BUY | Cathedral Energy Services | CET-T | 2.800 | Doesn't own because it's a very small cap which gives rise to liquidity concerns for their funds. Their activity in the oil batch should continue strong into 2005. Cyclical. Would suggest Newalta or CCS for a more stable play. | 2004-10-29 | ||
| BUY | Progress Energy Resources Corp | PRQ-T | 13.950 | Withholds a significant amount of their cash flow to further exploration/acquisitions. | 2004-10-29 | ||
| BUY | Agilent Technologies | A-N | 12.040 | They don't own because it is such a thin trading stock. They have done a very good job and have good assets and good management. | 2004-01-21 | ||
| WEAK BUY | Connors Bros. Income Fund | CBF.UN-T | 14.800 | Has performed pretty well. An OK trust. | 2004-01-21 | ||
| TOP PICK | Canadian Oil Sands | COS-T | 48.430 | (A top pick Nov 7/03. Up 24%.) An ongoing good story. Have been on a massive capital expansion program, which ends at the end of this year. | 2004-01-21 | ||
| BUY | Fording Canadian Coal Trust (Inc Trust) | FDG.UN-T | 44.990 | The boom of steel in China has created a demand for coal. 3 ways to play coal is Fording, Labrador Iron Ore and Westshore Terminal. All three are good. | 2004-01-21 | ||
| HOLD | Inter Pipeline Fund | IPL.UN-T | 8.250 | Good yield. | 2004-01-21 | ||
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| BUY | Labrador Iron Ore | LIF.UN-T | 18.810 | The boom of steel in China has created a demand for coal. 3 ways to play coal is Fording, Labrador Iron Ore and Westshore Terminal. All three are good. | 2004-01-21 |
