| TOP PICK | | Parkland Income Fund | PKI.UN-T | 31.000 | The largest fuel marketer in western Canada. Also operate gas bars. Recently got a contract with Esso. High margin business. | 2006-09-07 | |
| TOP PICK | | Cervus LP | CVL.UN-X | 10.900 | Agricultural equipment, mainly John Deere. They buy heavy equipment dealerships at about 2 or 3 X earnings. Have also started buying Bobcat dealerships in Alberta. | 2006-09-07 | |
| TOP PICK | | Essential Energy Services | ESN.UN-T | 7.760 | Provide truck and rig based services to the oil/gas industry. Not dependent on new drilling activity. Well diversified geographically in western Canada. Trading at about 12.5% yield. Can see this at above average growth relative to their peers. | 2006-09-07 | |
| BUY | | Keystone North America Inc. | KNA.UN-T | 8.120 | Funeral home operator. Operate out of 27 US states as well as in Ontario. More deaths are fuelling their growth, but attitudes to cremation have changed and % of cremations are expected to rise, which will squeeze margins. 12% yield. There is still growth here. | 2006-09-07 | |
| BUY | | Carfinco Income Fund | CFN.UN-T | 4.000 | Provides prime lending for purchasing automobiles. A great little trust. Based out of Edmonton. Have had 11 consecutive quarters of growth. Has increased distributions 10 times over the last 2.5 years. | 2006-09-07 | |
| DON'T BUY | | TerraVest Income Fund | TI.UN-T | 8.690 | Like a holding company. They make different investments in various business sections. Likes the model. Had a few stumbles in the past. Prefers others. 15.8% yield is a red flag. | 2006-09-07 | |
| DON'T BUY | | Arriscraft International Income Fund | AIN.UN-T | 4.850 | Specialty stone, brick, limestone etc. Have restarted distributions and the yield is about 8.5%. Have a debt level that is not in the danger zone, but to high for him. They are also using a lot of money to update their Georgian plants. A void until the debt level is a bit better. | 2006-09-07 | |
| BUY | | Peak Energy Services Trust | PES.UN-T | 10.440 | Likes the energy services sector. Has been a bit weak over the last 5/6 months. Had a week Q2 because of labour costs. Expect it to rebound. | 2006-09-07 | |
| BUY | | High Arctic Energy Services Trust | HWO-T | 11.250 | Underbalanced drilling which is highly correlated with gas wells. Gas has been weak. If you believe that natural gas prices will recover, this should recover. | 2006-09-07 | |
| BUY | | Cathedral Energy Services Income Trust | CET.UN-T | 10.020 | Stock is down and was a victim of falling gas prices. This company has a fair amount of business in the US in the Rocky Mountain region and has been growing rapidly. A good buying opportunity. | 2006-09-07 | |
| BUY | | Golf Town Income Fund | GLF.UN-T | 11.500 | Big box retailers have definitely been outperforming other retailers. Likes this one. Good format. | 2006-09-07 | |
| BUY | | Clearwater Seafoods Inc. Fund | CLR.UN-T | 5.270 | Impressed with management. They bring an innovative approach to the seafood market. Have had some problems in the past, but seem to have worked through them. The market will probably take some time to warm back up to the story. Strong Cdn$ will hurt. | 2006-09-07 | |
| BUY | | Tree Island Wire Income Fund | TIL.UN-T | 9.450 | Steel products such as nails, galvanized wire etc. Stock prices dropped because of housing fears but is only about 30% exposed to the housing construction market. Commercial construction is doing very well. The high inventories have been worked through and there should be some upside from here on in. | 2006-09-07 | |
| WEAK BUY | | E. D. Smith Income Fund | JAM.UN-T | 8.910 | Doesn't fit his criteria for picking small cap trusts. There is not the year over year growth that he would expect. However, it has a strong brand name and there is stability. A conservative approach. | 2006-09-07 | |
| BUY | | Bonnett's Energy Services Trust | BT.UN-T | 22.400 | Was priced very attractively on its IPO and has outperformed. Good management. | 2006-09-07 | |
| DON'T BUY | | Liquor Barn Income Fund | LBN.UN-T | 12.000 | This sector has very low yield. Valuations are pretty high. Competition from a similar company. Growth by acquisition. | 2006-09-07 | |
| BUY | | Avenir Diversified Income Trust | AVF.UN-T | 9.400 | Has holdings in oil and gas, real estate and financial services. Feel that their assets are undervalued. Management has a very strong track record in making acquisitions. | 2006-09-07 | |
| BUY | | XS Cargo Income Fund | XSC.UN-T | 14.400 | Specialty retailer. Very similar to Liquidation World. Sales per square foot are off the charts. Good growth. | 2006-09-07 | |
| BUY | | Boardwalk REIT | BEI.UN-T | 31.060 | Not a big fan of REITs. Properties are primarily in Alberta. Have continually increased their guidance. If there is a growth REIT, this is probably one of the better ones. | 2006-09-07 | |
| BUY | | Phoenix Technology Income Fund | PHX.UN-T | 7.980 | An energy services company. Likes the sector and thinks it will rebound. | 2006-09-07 | |
| BUY | | Trinidad Energy Services | TDG.UN-T | 16.400 | An energy services company, but more in the drilling aspects. A little bit sensitive to commodity prices and drilling activity. | 2006-09-07 | |
| WEAK BUY | | Chartwell Seniors housing | CSH.UN-T | 13.770 | Seniors housing. The seniors market tends to be priced a bit lower than your traditional REITs. It will be making some acquisitions in order to increase growth. Not a big fan of REITs. | 2006-09-07 | |
