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Jean-Francois Tardif of Sprott Asset Management

Opinions from Jean-Francois Tardif

TOP PICKCervus LPCVL.UN-X21.950Operate John Deere dealerships in Western Canada. Agriculture and Western Canada are booming and they intend to buy more dealerships. 1st quarter showed very strong margin expansion. Some expectations are for 30% growth this year. He is expecting $2.50-$3.00 of earnings this year. 4.9% yield.2008-07-15
TOP PICKDeere & Co.DE-N64.760Agriculture is the one area that will be able to do OK in this very bad market. Trades at 10X next year's earnings. Global demand is very strong.2008-07-15
TOP PICKForbes Energy ServicesFRB-T6.540Energy services in the US. Growing very fast. $.52 of earnings this year and $.82 next year. Very cheap.2008-07-15
PAST TOP PICKNorthstar HealthcareNHC-T7.350(A Top Pick Aug 7/07. Down 48%.) Healthcare in Texas. Disappointed in the last 2 or 3 quarters. Yielding 16%/17%, which their numbers seem to be able to support.2008-07-15
PAST TOP PICKTimminco Ltd.TIM-T24.050(A Top Pick Aug 7/07. Up 238%.) Think they can have 30,000 more tons of production. Still has confidence in this one.2008-07-15
PAST TOP PICKProSep Inc.PRP-T0.355(A Top Pick Aug 7/07. Down 49%. Formerly Torr Canada (TOR-T)). Water industry. Didn't get as many contracts as expected, lost money and the balance sheet looked like a disaster. Sold his holdings, but is still watching as he believes in the technology they have.2008-07-15
BUYQuesterre EnergyQEC-T3.360Gas. Has some of the best and largest land packages in the Utica shale in Quebec. Risky because it is early stage to prove up. Talisman (TLM-Y) is earning on this property. For the next 3 to 5 months, there will be results from a dozen wells and then it will be known the probability of it working. Speculative.2008-07-15
CommentNortelNT-T6.470Very large company and very hard to grow when you are that large. Sounds like they are actually turning the corner. Maybe now it is potentially a Buy. For him to Buy he needs to see sales growth, earnings growth and margin expansion. Lots of debt.2008-07-15
CommentEnergold Drilling Corp.EGD-X4.210Have unique systems that can be carried on the back so very remote areas can be accessed. Have been expanding their fleet and equipment so revenues and earnings are growing at a very fast pace. He wants to buy this one again sometime in the future.2008-07-15
BUYPremium Brands Income FundPBI.UN-T11.890Sells sandwiches and food in Western Canada. Earnings have been going up for a few years. Made an accretive acquisition last year. Should continue to do well. Very cheap.2008-07-15
BUYAbitex Resources Inc.ABE-X0.445Starting to get very bullish on uranium. Exploration asset in Québec. Also have a deposit with Heresol Coal (?) of about 6 million pounds with a potential of more than 10 million and probably mining in 2010.2008-07-15
BUYLargo Resources Ltd.LGO-X0.810Vanadium (anti-corrosive in the steel industry) play in Brazil. Will be coming up with a full feasibility study in the next few months. Very cheap. Believes there is a potential weakness in steel prices.2008-07-15
DON'T BUYShoppers Drug Mart CorpSC-T51.100Great results. Doesn’t like their high PE multiple of 21X. 2008-07-15
WAITTrican Well Service Ltd.TCW-T21.8002nd quarter will be coming out soon and will be very ugly. 2nd quarter for the drillers in Canada is always bad. Shale plays need a lot of fraqing so these companies will be extremely busy for years to come. Outlook is outstanding. Wait for the 2nd quarter.2008-07-15
CommentCalfrac Well Services LtdCFW-T30.1902nd quarter will be coming out soon and will be ugly. 2nd quarter for the drillers in Canada is always bad. Shale plays need a lot of fraqing so these companies will be extremely busy for years to come. Outlook is outstanding.2008-07-15
CommentFalcon Oil & GasFO-X0.980The gas is known to be there. The question is, is it economic. Have done many wells, and so far has not turned out positive. Still feels there is tremendous risk. If they ever succeed there is billions of $’s upside.2008-07-15
DON'T BUYJean Coutu Group (PJC) (A)PJC.A-T7.040Not doing well. Losses are really caused by their US Rite Aid (RAD-N) holdings. Have also lost Market share in Quebec to Shoppers (SC-T).2008-07-15
CommentAgriumAGU-T100.950Thinks the forecast for 2009 is in the double digits. Have increased their guidance 2 quarters in a row Outlooks for grains is outstanding right now. Prefers this one to Potash (POT-T) as it is cheaper.2008-07-15
CommentPrometic Life Sciences Inc.PLI-T0.345Very risky. Working on projects where the potential is substantial. Doesn’t always happen as the market hopes for.2008-07-15
CommentA Comment -- General Comments From an ExpertA Commentary0.020Precious Metals: His company is very bullish on precious metals. Owing gold is a form of protection from the current banking problems. Prices of gold and silver have gone up but the junior stocks haven’t. It is getting tougher to raise money, so whoever is producing today will have their stocks going higher. Investors are not as interested in those with early stage projects with a lot of risk. 2008-07-15
BUYUranium One Inc.UUU-T4.000(Market Call Minute.) Uranium is going up.2008-07-15
BUYAltai ResourcesATI-X1.960(Market Call Minute.) Utica shale and is good as part of a basket.2008-07-15
BUYTournigan Gold CorporationTVC-X0.740(Market Call Minute.)Uranium is coming back, so buy as one of a basket.2008-07-15
DON'T BUYStantec IncSTN-T22.040(Market Call Minute.) Involved a lot on residential development.2008-07-15
BUYATS AutomationATA-T6.140(Market Call Minute.) New management and they are doing much better. Focusing on solar energy.2008-07-15
BUY5N PlusVNP-T10.160(Market Call Minute.) Solar is the place to go. In a diversified portfolio it’s a good buy.2008-07-15
BUYPotash North ResourcePON-X1.520(Market Call Minute.) Potash is a good thing to own.2008-07-15
CommentA Comment -- General Comments From an ExpertA Commentary0.020People are finding the markets rather tough. If you are prepared, you don’t mind. The bottom is not close. It’s been almost a year. The world is de-leveraging right now and it’s going to take time. Many institutions want to sell assets. There’s always something happening somewhere in the market. Is happy to short in this market.2008-06-23
BUYPremium Brands Income FundPBI.UN-T12.500Western Canada is benefiting from high oil prices. Is a safer way to invest in this bear market. Very day-to-day products. Earnings are rising, generating a lot of free cash flow. Expecting $2 per share of cash flow. Stock is cheap; they are growing. 9-1/2% yield is safe.2008-06-23
SHORTHudbay Minerals Inc.HBM-T14.010Hard to be excited about this stock. Buying Skye Mine, costs will probably double what they thought.2008-06-23
BUYEquinox MineralsLtd.EQN-T4.670Better than a lot of other base metal stocks. Have copper in India, as well as uranium, great asset. Lot of people expect them to be taken over. Mine is almost done. Copper risk is a lot less than others like them.2008-06-23
BUYPotash One Inc.KCL-T5.360Main risk is capital expenditures. Have to sink a huge shaft. Price of potash looks good. With flooding in US, people will spend more on fertilizer next year. Buy one in this group.2008-06-23
BUYQuesterre EnergyQEC-T3.950Multi fracing technology can make this play economic. Higher Risk. Long term it could worth a multiple of what it is today.2008-06-23
DON'T BUYBreakwater ResourcesBWR-T0.430Zink mostly. Zinc has crashed the most. Mines are deep and need to pump out water and fuel cost is double what it was last year. Zinc price is not coming back.2008-06-23
DON'T BUYStrategic Resource AcquisitionSRZ-T0.940(Top Pick down 85% 2007-11-19). Price of zinc went down. Doesn’t believe it will go up soon. 2008-06-23
WAITLakeview Hotel REITLHR.UN-X3.640(Top Pick Down 30% 2007-07-16). $0.44 (12.2%) distribution/yr. High fixed cost business, dropped off last year when drilling declined, coming back now. Long term a good place to be. Wait a quarter to buy.2008-06-23
BUYCrew Energy Inc.CR-T18.600Fine Company to have in a collection of like companies. Things are looking good for proper.2008-06-23
BUYPoints International Ltd.PTS-T1.180Huge amount of shares dumped on market. Revenues up over 100%. Close to profitability. 2008-06-23
BUYNorthstar HealthcareNHC-T8.630Likes it. Bought more at $7.50. Heath centers in Texas where there is gas and oil and those people are rich. Baby boom is aging so more people go to health centers. More than a $1 of free cash generated this year. Expect them to make a creative acquisition. 14.3% pay-out. He thinks it’s safe.2008-06-23
BUY on WEAKNESSCanadian Natural RsrcsCNQ-T103.700Best company in western Canada. Spend extra cash in oil sands projects. Will generate tones of cash with $135 oil. Downside if price of oil comes down.2008-06-23
WAITContrans CorpCSS.UN-T8.650Well-Managed, high return on equity for years. Facing currency and high fuel prices and less Canadian exports. Cheap today. Turn probably not 2008. 14% yield.2008-06-23
CommentBankers PetroleumBNK-T2.010Shell play could be worth $1.50 a share. Own heavier oil project in Europe with recovery rate going from 6% to 30% recovery rate from oil in the ground. Could be worth 4$-6 in 4 years.2008-06-23
HOLDPotash North ResourcePON-X3.050Has free land. Not as attractive as others in the group, but can finance projects much better than others.2008-06-23
HOLDAurelian Resources IncARU-T5.380Best assets. To be producing in the future. Own almost 10 million oz in the ground reasonable grade. Gov’t not allowing production for 6 months.2008-06-23
TOP PICKMorneau Sobeco Income FundMSI.UN-T11.500Pension plan management. Large market share, just bought company that provides services to employees – growing at 20%+ per year. Thinks will beat numbers. Safe. Will grow over time. 8.3% yield. 2008-06-23
TOP PICKForbes Energy ServicesFRB-T7.540It’s cheap because nobody knows about it. Will make $0.50-$0.60 per share this year; $0.70-$0.80. Oil and gas services companies have gone through the roof. This is still at IPO price.2008-06-23
DON'T BUYBitterroot Res. Ltd.BTT-X0.930Gold assets in Canada but Saskatchewan coal discovery causing increase in price. Has too much market capitalization.2008-06-23
BUYAtrium Biotechnologies Inc.ATB-T16.590Sold a very profitable business so suddenly earnings forecasts dropped. Cash still has to be re-deployed. Stock is still very cheap, downside is very little $1.30 EPS this year $1.60 next year.2008-06-23
TOP PICKCervus LPCVL.UN-X23.890Owns John Deere dealerships in Western Canada. He is bullish on Western Canada and agriculture. Q1 margins went from 15% to 19%. If you apply this to $350 million revenue it would be a $14 million increase in earnings. Potential of $3 earnings this year versus $1.50 last year.2008-06-23
TOP PICKCoastal EnergyCEN-X4.200Oil/gas in Thailand. Have many projects to work on. Production will be rising over the next 2 years and ultimately expect to go to 23,000 barrels a day.2008-05-27
TOP PICKAgriumAGU-T81.320Trading at 11X earnings. There is earnings growth. Would treat this as a core holding.2008-05-27
TOP PICKFreehold Royalty TrustFRU.UN-T20.550Mostly own royalties from oil production in Western Canada. 10.6% yield. Only affected by the price in commodities, not any costs. Free cash flow currently is $4.75 pre-tax. With taxes, it is $3.20.2008-05-27
PAST TOP PICKCargojet Income FundCJT.UN-T11.570(A Top Pick Apr 27/07. Down 6%.) Customers are committed to long-term contracts. Any fuel increases go to the customer. Very stable business. Costs rise when they increase capacity, but after that earnings go up. Looking for a distribution increase in the next 12 months.2008-05-27
PAST TOP PICKCentamin EgyptCEE-T1.340(A Top Pick Apr 27/07. Up 33%.) Very large project in Egypt. Currently working on construction and should be in production later this year and early 09. 200,000 ounces a year. 11 million ounces of resource. Sold half his holdings.2008-05-27
PAST TOP PICKCASHCASH0.000He holds about 30% to 35% in cash.2008-05-27
CommentA Comment -- General Comments From an ExpertA Commentary0.020Inflation: - Taking a picture over the next 2 or 3 years inflation could be rising. PE’s and profits could go down. Consumer will be hurt and if they need to spend more money on basic necessities, other things have to be cut. Interest rates could go up substantially, possibly double-digit. The best way to insulate a portfolio is to either have cash (CDN$), buy hedge funds or by energy which will continue going up.2008-05-27
CommentGastem IncGMR-X3.100The Utica shale in Quebec could be very large. Rather than buying just one stock, you should buy a basket of them. This could include Questerre (QEC-T), Gastem (GMR-X), Junex (JNX-X) and Altai Resources (ATI-X).2008-05-27
CommentQuesterre EnergyQEC-T4.580The Utica shale in Quebec could be very large. Rather than buying just one stock, you should buy a basket of them. This could include Questerre (QEC-T), Gastem (GMR-X), Junex (JNX-X) and Altai Resources (ATI-X).2008-05-27
CommentJunex Inc.JNX-X3.650The Utica shale in Quebec could be very large. Rather than buying just one stock, you should buy a basket of them. This could include Questerre (QEC-T), Gastem (GMR-X), Junex (JNX-X) and Altai Resources (ATI-X).2008-05-27
CommentAltai ResourcesATI-X2.000The Utica shale in Quebec could be very large. Rather than buying just one stock, you should buy a basket of them. This could include Questerre (QEC-T), Gastem (GMR-X), Junex (JNX-X) and Altai Resources (ATI-X).2008-05-27
CommentAltiusMinerals CorpALS-T13.660Intend to build a refinery and the construction costs are extremely high. Very well managed company. Long-term, the company will do really well. Short-term, investors are going away from small caps that do not have earnings.2008-05-27
BUYPro Shares Ultra Short Mid Cap 400 ETFMZZ-A50.974Shorting on mid-caps> Gives you twice as much short as the market drops. Likes mid-caps because they have more difficulty in financing themselves.2008-05-27
BUYAtrium Biotechnologies Inc.ATB-T16.750Sold one of their businesses and is now focused on food supplements. Growth industry that generates a lot of free cash flow. Trade roughly 11X this year's free cash flow.2008-05-27
DON'T BUYAecon Group IncARE-T15.830This kind of stock used to trade at 3 to 5 times earnings. Now they are at 15X or more. He feels this is a bit too expensive.2008-05-27
CommentPaladin ResourcesPDN-T5.660Most uranium stocks have been doing really well recently. Probably the highest quality in terms of the smaller uranium companies but this is not his favourite. He prefers smaller cap companies that are at an earlier stage such as Ur-Energy (URE-T).2008-05-27
CommentKhan Resources Inc.KRI-T1.030Very bullish on the Mongolian assets of this company. It's a proven resource. The issue is the government and if they are anywhere reasonable in the terms of splitting the pot, this is extremely undervalued.2008-05-27
BUYLinear Gold Corp.LRR-T2.050Gold. Almost half their market cap is cash, so downside is protected. Letting Kinross Gold (K-T) earn in on their main property. If the project goes to production, Kinross has to pay a huge amount of money and this company gets $150 million on top of their existing cash..2008-05-27
BUYBankers PetroleumBNK-T1.870Have had new management for about 9 months. They think they can get recovery as high as 30% where it was formerly 6%. Stock will be substantially higher in 2 years.2008-05-27
BUYEncana CorpECA-T90.220Stock is not that expensive. Company will be splitting into 2 pieces. If you want to own a large cap today, this would be number one.2008-05-27
HOLDSonomax Hearing Healthcare Inc.SHH-X0.115Small caps and, generally speaking companies that don’t earn profits have been hurt. Have also been a little addicted to raising money and some investors have been disappointed that they weren’t raising free cash flow.2008-05-27
BUYGrande Cache Coal Corp.GCE-T8.120Trading very cheap at 4X this year’s earnings.2008-05-27
BUYDuvernay Oil CorpDDV-T55.660Probably the best managed oil/gas company in Canada. Has unconventional gas, which means that the degree of certainty is much higher. Should continue to do extremely well. Trades at a premium to others, but deserves it.2008-05-27
BUYOilsands Quest Inc.BQI-A4.460Given time and money, this company will produce oil. Many years from production.2008-05-27
HOLDAurelian Resources IncARU-T4.080(Market Call Minute.) All about the Ecuadorian government. A Buy for investors who are not risk averse.2008-05-27
DON'T BUYCanaccord Capital IncCCI-T9.830(Market Call Minute.) Would stay away right now as there is too much risk in the market.2008-05-27
HOLDDynasty Metals & Mining Inc.DMM-T2.650(Market Call Minute.) All about the Ecuadorian government. A Buy for investors who are not risk averse.2008-05-27
BUYWestern Canadian Coal Corp.WTN-T6.900(Market Call Minute.) Very cheap coal stock.2008-05-27
DON'T BUYPetro-CanPCA-T57.740(Market Call Minute.) Prefers Encana (ECA-T) and wouldn’t hold it.2008-05-27
DON'T BUYBreakwater ResourcesBWR-T0.700(Market Call Minute.) Zinc. Would stay away from any base metal stocks right now.2008-05-27
HOLDTimminco Ltd.TIM-T27.900(Market Call Minute.) Potential is still to come.2008-05-27
CommentTimminco Ltd.TIM-T18.500Feels his company knows the solar space very well and is confident with this one. There is some risk. There is no question about the quality of their production. The only question is can they produce in large quantities with high quality and low cost.2008-04-29
CommentYamana Gold Inc.YRI-T12.570Very bullish on gold. This stock was very weak lately because they had some problems in terms of costs and production expectations so analysts lowered their forecasts for targets. Through the years they acquired a number of assets, which they now have to take and make them more efficient. He prefers something smaller that can grow at a high rate and is not as well known.2008-04-29
BUYAltai ResourcesATI-X1.020Natural gas. One of the 4 junior companies that owns property in the Utica Shale in Quebec. This is riskier because it is early stage but there is a lot of reason to believe that these 4 juniors have a shot at owning a very large reserve of gas. There is risk, but the upside is significant. Tenfold or more.2008-04-29
BUY5N PlusVNP-T11.110Refine rare metals into high purity. Extremely profitable today. Last quarter, the net margin after tax was 25%. Very important client to First Solar (FSLR-Q), which is the high-growth company in the solar business. Opening a 2nd plant in Germany.2008-04-29
DON'T BUYGildan Activewear Inc.GIL-T25.180Did extremely well for years and years with high growth, high margin and a spectacular track record. His rule is that when it changes into a negative, he stays away. Usually one bad quarter is followed by another. If there is a bounce, consider selling.2008-04-29
BUYPoints International Ltd.PTS-T1.940Allows you to trade points of one firm for another. Last quarter was not profitable but the growth is there.2008-04-29
CommentEquinox MineralsLtd.EQN-T4.660In his fund, he has sold everything that has to do with base metals because he strongly believes the US is going into a very, very bad recession. The rest of the world will slow down dramatically. If you think the price of copper will hold here, this is a very good asset.2008-04-29
DON'T BUYFalcon Oil & GasFO-X0.960Stock has picked up because of a deal they did with Exxon Mobil (XOM-N). The past has not been very good. All the wells that have been done have shown the project to be not economic. The gas is there, but it's more about bringing it to the service at a reasonable price.2008-04-29
TOP PICKCoastal EnergyCEN-X4.400Oil/gas producer in Thailand. Starting production in one of their fields wrapping up to 5000 followed by 8000 next year. Expect them to make about $1.70 cash flow next year. Have 5 projects and the upside is significant.2008-04-29
TOP PICKQuesterre EnergyQEC-T2.140Natural gas. One of the 4 junior companies that owns property in the Utica Shale in Quebec. (Others are Gastem (GMR-X), Altai Resources (ATI-X) and Junex (JNX-X).) Chose this one because he believes they have the best land package. Also, their land has partnership with Talisman (TLM-T) and Forest Oil (FST-N) in the US. These 2 companies are spending the money to do the wells. High risk.2008-04-29
TOP PICKPro Shares Ultra Short Mid Cap 400 ETFMZZ-A54.160ETF double short on mid-cap US stocks. Doesn't think the stock market will do well for the next 2 or 3 years. Thinks mid caps will suffer more because it will be tougher for them to get financing, margin issues and investors will stay away from smaller caps.2008-04-29
CommentKhan Resources Inc.KRI-T0.910Uranium stock in Mongolia. The stock has done very poorly. Political problems but they have a real uranium asset, such as 40 million pounds. Waiting for the government to allow it to produce.2008-04-29
DON'T BUYChariot Resources Ltd.CHD-T0.870Have copper projects in Peru. Won’t be until 2010 when they get into production. Not going to do very much. Like the company. Base metals are at risk.2008-03-24
HOLDNorthstar HealthcareNHC-T11.800The recent results were slightly lower than expected so the stock took a huge beating. Confident that the stock will come back. 2008-03-24
BUYPremium Brands Income FundPBI.UN-T12.750Gives a nice dividend. Recession proof. Large growth in Western Canada. Extremely well run company. 2008-03-24
WEAK BUYOilexco IncOIL-T12.600Really like it. They are having delays. Stock is very cheap. It’s a question of time. 2008-03-24
WEAK BUYA Comment -- General Comments From an ExpertA Commentary0.020GC/J8- Have no idea what gold will do in the future. Gold will go up over the next 5 years, will be a good investment. 2008-03-24
PARTIAL SELLBreakwater ResourcesBWR-T1.100A zinc company. Zinc has dropped in price. The Canadian dollar is up significantly which hurts the company. Would be tempted to sell.2008-03-24
WEAK BUYCrew Energy Inc.CR-T11.800A producer of gas. Natural gas has been trading way below its fundamental value. Has a lot of upside in the mid-long term. Like the area.2008-03-24
TOP PICKAurelian Resources IncARU-T8.960Has a bright future. Is in Ecuador, has political issues. The politics should be fine. Worth multiple times what it’s trading at. 2008-03-24


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