STOCKCHASE

Potash Corp of Saskatchewan

67.470

One of the pioneers for e-mail enabled smart phones and they do their thing very well. International growth is phenomenal. Trading at only 10-12 X multiples on next year's earnings and growing at 16%-20%. Too cheap to ignore.

2010-01-29

TOP PICK

POT-T

105.920

Likes this one over the medium-long term because potash is one of the necessary ingredients for agriculture. Short-term earnings are going to be weak because we're still coming through the bottom. You buy this one for over the next 12-18 months.

2010-01-29

TOP PICK

Manulife Financial

MFC-T

19.540

Premier insurance company in the country but has gone through some hard times because of exposure to the equity markets. Cut their dividends and raised a lot of equity so a lot of shareholders threw in the towel but the name of the game for financial companies is going to be capital.

2010-01-29

PAST TOP PICK

32.700

(A Top Pick Jan 22/09. Down 37.5%.)

2010-01-29

PAST TOP PICK

Canadian National R.R.

CNR-T

53.320

(A Top Pick Jan 22/09. Up 33.1%.) Valuation is getting a little bit full but longer-term the quality of management and assets it's a good place to be. Buy on weakness.

2010-01-29

PAST TOP PICK

BCE Inc.

BCE-T

27.470

(A Top Pick Jan 22/09. Up 10.1%.) Sold it at $27-$28 when it was fully valued. Company faces some challenges.

2010-01-29

BUY on WEAKNESS

Microsoft

MSFT-Q

28.180

Not a bad name if you are looking for income and growth. This is the dominant force in operating systems and productivity software. Windows 7 is driving the great earnings. Have their fingers in a lot of pies and they have great software. 2% yield and have a lot of cash.

2010-01-29

Comment

0.020

5-year outlook on gold? With problems in different currencies, gold is a natural place to go. Believes the direction is up from here as there is very little alternative to go to.

2010-01-29

Comment

Labrador Iron Mines Holdings Ltd.

0.020

China. Caller commented on rumours that the government may devalue their currency but he feels they may revalue up. The revaluation is overdue as it is good for the Chinese economy..

2010-01-29

BUY on WEAKNESS

Ithaca Energy Inc.

IAE-X

1.280

Good name. Have been severely punished over the last year like all North Sea players when oil prices fell. Can be very profitable with $70 oil plus. Have a couple of projects for the next couple of years that will greatly increase production.

2010-01-29

BUY

Goldcorp Inc

G-T

36.240

Has been punished quite severely, not because of the company, but because of the direction of gold. Good leverage to go up in price. New mines are coming into production. Use as a core position and buy on pullbacks.

2010-01-29

BUY on WEAKNESS

JP Morgan

JPM-N

38.940

This is one of the winners and success stories coming out of last year's credit cycles. The problem right now is the financial regulatory landscape in the US. Trading at 7-8 times earnings. If you own, continue to hold and add to it on pullbacks.

2010-01-29

BUY

Shoppers Drug Mart Corp

SC-T

42.550

Primary worry is drug policy reform in Alberta, Ontario and BC, which would reduce the margins for all drugstores. Thinks there are offsets to this. Front store merchandise sales can only get better. Well managed.

2010-01-29

BUY

United States Steel

X-N

44.430

Steel sector and steel stocks tend to be quite volatile. Pulling back because they are worried about Chinese tightening. Good company. Almost fully integrated. If you believe global economy is coming back this is a good time to enter.

2010-01-29

Comment

Alberta Oil Sands

AOS-X

0.380

One of a host of Junior oil sands companies that have opened up in the last few years. Have pretty decent packages in bitumen and potential properties but are quite a few years away from actual production and having got the approval for their project yet. Very volatile. This would be more suitable for someone with a high-risk tolerance.

2010-01-29

HOLD

San Gold Corporation

SGR-X

3.340

Good company. Took an old gold mine and put it back into production and have had spectacular discoveries. Good drill results. Stock has had quite a run.

2010-01-29

BUY

Centamin Egypt

CEE-T

1.820

Gold in Egypt. Premier takeover target.

2010-01-29

Comment

LIM-T

5.880

Early stage in its evolution. Likes iron ore, which is a necessary input for steel production. This one looks reasonable but in the early stage so not for the faint of heart. He prefers companies that are in production with a cash flow.

2010-01-29

HOLD

Opti Canada Inc.

OPC-T

1.930

Junior partner with Nexen (NXY-T) in the Long Lake oil sands project and is in production. Production is behind schedule because of mechanical issues so were in trouble with debt covenants. Managed to mitigate it so they should be okay over the next year or so but really need to get the operating issue fixed.

2010-01-29

BUY

Connacher Oil and Gas

CLL-T

1.200

One of the few Junior companies that are producing. Brought their Great Divide project phase 1 into production on time and under budget. Will be building phase 2 and doubling production. With good oil prices they should be up to turn around their debt.

2010-01-29

BUY

Yellow Pages Income Fund

YLO.UN-T

5.250

Current distribution is around 15.5%. Will probably cut their distributions to about 12% when they convert to a corporation, which is still quite good. Face some challenges transitioning from print media to online media but they are managing it well.

2010-01-29

HOLD

Iamgold Corp

IMG-T

14.090

Did spectacularly well, particularly over the last couple of years. Assets primarily in west Africa. Challenge from this point on is to renew their growth profile over the next few years. Expect they will do an acquisition, which could be a risk to the stock in the short term.

2010-01-29

BUY

Bank of America

BAC-N

15.180

US banking sector faces some challenges with increasing regulatory scrutiny, capital requirements and less favourable trading environment. This is probably not a bad one to own. Their purchase of Merrill Lynch was good giving them a lot more earning power. Trading at very low multiples. New CEO has to prove himself.

2010-01-29

BUY on WEAKNESS

BioExx Specialty Proteins Ltd.

BXI-T

2.000

Good proprietary process that can generate high-value proteins and nutrients. Still in the ramp-up stage regarding production so it will take a little while. Could easily double in 12 months if they are able to execute their plan.

2010-01-29

Comment

HBP NYMEX Nat'l Gas Bull+

HNU-T

9.690

Natural Gas Bull+ ETF. If you own it for anything more than a very short period, there tends to be leakage in the performance. If you are a day trader and you have a conviction on the price direction, these are the tools you use. Hasn't used it lately because of the volatility of the gas price.

2010-01-29

Comment

HBP NYMEX Natural Gas Bear+ etf

HND-T

5.620

Nymex Natural Gas Bear+ ETF. If you own it for anything more than a very short period, there tends to be leakage in the performance. If you are a day trader and you have a conviction on the price direction, these are the tools you use. Hasn't used it lately because of the volatility of the gas price.

2010-01-29

DON'T BUY

Electronics Arts Inc

ERTS-Q

16.280

One of the pre-eminent game developers/publishers in the world. Fallen on hard times because they haven't had too many new hits and have been spending too much money developing. Hard to see what will move the stock.

2010-01-29

BUY

Inmet Mining

IMN-T

54.150

Copper play, which depends on your outlook for global economy, especially Chinese. He believes the demand for copper will grow and the current copper price can be sustained or go higher.

2010-01-29

Comment

Northgate Minerals Corp.

NGX-T

2.700

(Market Call Minute.) Okay company. Operating challenge in their Australian mines. Buy if you are bullish on gold.

2010-01-29

SPECULATIVE BUY

Potash One Inc.

KCL-T

2.950

(Market Call Minute.) Long-term, potash will do well. This is one of the more advanced juniors but their project will take what a few years so by as a lottery ticket..

2010-01-29

HOLD

Valero Energy Corp

VLO-N

18.420

(Market Call Minute.) Pre-eminent refining company. Refining is in a tough spot but oil prices will go up.

2010-01-29

BUY

Aecon Group Inc

ARE-T

13.580

(Market Call Minute.) Well managed construction company. Leveraged to oil sands.

2010-01-29

TOP PICK

59.610

(A Top Pick Nov 5/08. Up 2.25%.) Additional value can be created after the split. As stand-alone companies they are more likely to be takeover candidates, especially the oil side.

2009-10-02

TOP PICK

Manulife Financial

MFC-T

21.570

Cut their dividends, which was unexpected. Most financials have too much leverage and not enough capital. They are building fortress capital in order to make sure it never happens again. Expect this quarter will be a challenging one as well but longer-term a strong capital means they can take more risks and make more money.

2009-10-02

TOP PICK

Potash Corp of Saskatchewan

70.830

Recently took a 17% hit in one day because guidance for the next quarter was somewhat behind analysts’ estimates. This is still the #1 cell phone player. Continuing to grow earnings at 25% to 40% a year and trading at 16X current year PE. Too cheap to pass up.

2009-10-02

PAST TOP PICK

Toronto Dominion

TD-T

65.170

(A Top Pick Nov 5/08. Up 19%.) Think the banks are fairly valued. If the US commercial real estate is not going to collapse like many feared and they're going to get better, this should still have more upside.

2009-10-02

PAST TOP PICK

BCE Inc.

BCE-T

26.050

(A Top Pick Nov 5/08. Down 22%.) Recommended it because he was betting that the takeover by the Teachers would go through. He is neutral on it now. 6.2% dividend is safe but you'll have to wait for capital gains.

2009-10-02

DON'T BUY

Breakwater Resources

BWR-T

0.280

Zinc producer. Have a collection of mines in Canada and Central America. High cost producer so subject to the vagaries of commodity markets. Would be reasonably cautious on zinc prices at this point. Need higher prices to have a higher upside.

2009-10-02

HOLD

TriStar Oil & Gas

TOG-T

15.450

Merging to create a new entity called Petrobakken, which he likes. Creates a dominant Southeast Saskatchewan oil play rivalling Crescent Point (CPG-T). Not cheap, but has a lot of upside in development locations and production growth.

2009-10-02

HOLD

Aecon Group Inc

ARE-T

11.380

Construction engineering company. Involved in a lot of construction around Toronto and highways as well as having concessions in Ecuador and Israel. Big driver currently is the stimulus program in Canada. Could be a bit of a correction in the next few months.

2009-10-02

BUY

Barrick Gold

ABX-T

39.040

Have pretty much bought out their hedge book so their leverage to gold is a lot higher than what it was. Likes gold as a hedge to the financial markets.

2009-10-02

HOLD

Dryships

DRYS-Q

6.160

One of the largest dry bulk ship operators and very leveraged to the Baltic dry Index, which has been on a roller coaster ride. Chinese demand for iron ore has dropped. If you own and can take continued volatility, continue to hold. You could sell some Covered Call options a little further out to take advantage of expected upside or you could write some Put options.

2009-10-02

BUY

Paladin Resources

PDN-T

4.000

Likes outlook for uranium. This one is producing and has exploration upside. Has a mine in production and another coming in.

2009-10-02

WATCH

Methanex Corp

MX-T

17.850

One of the biggest methanol producers globally. Methanol prices have been increasing so stock has had a run but is now saying increase production in China. Would be cautious near term to see if incremental supply would offset the Chinese increase. Longer term he does like it.

2009-10-02

HOLD

Westshore Terminals Inc.

WTE.UN-T

11.810

Coal shipping terminals and main customer is Teck Resources (TCK.B-T). Contract allowed them to take some of the upside in coal prices, so benefited tremendously from the run-up. Contract now up for renewal and the fear is that Teck will try to get a lot of concessions. Attractive yield, which they can support over the next couple of years but there could be a reduction of 20%-25% when they have to convert in 2011.

2009-10-02

HOLD

Power Financial Corp

PWF-T

29.690

Financials and their big driver is Great West Life (GWO-T) and IGM Financial (IGM-T). Banks have had a pretty big run but this one has not moved very much and if there is to be more upside in financials this is the place to be. 4.72% yield.

2009-10-02

DON'T BUY

Harvest Energy Trust

HTE.UN-T

6.560

Conventional oil/gas production in Western Canada and refining in Newfoundland. Had taken on a lot of debt to acquire the refinery and refining margins have not been good. Doesn't see this changing for while. Changeover in 2011 is another challenge and they have their work cut out for them.

2009-10-02

BUY

Avalon Rare Metals Inc.

AVL-T

3.420

Rare earth sector has become noticed because of its use in making LCD flat screen TVs and hybrid cars. 90% comes from China who tend to keep it for themselves when their own economy needs it. Rejuvenation in western resources is sorely needed and this company is making very good progress. 3 or 4 years away from production so be aware of the risk.

2009-10-02

Comment

Mercator Minerals Ltd.

ML-T

2.740

Acquiring Stingray (SRY-T) but didn't make a lot of sense to him because it diluted molybdenum exposure. Likes moly in the medium term but short-term he is a little bit cautious because it had a big run. Long-term he expects the use of moly to expand.

2009-10-02

WEAK BUY

ProspEx Resources

PSX-T

1.120

Believes that in 12 to 18 months natural gas prices will be in the $6-$7 range. Short-term he expects some downside so you need to be able to take the volatility. Have some decent projects in the Montney play.

2009-10-02

BUY

Calloway REIT

CWT.UN-T

17.530

REITs are exempt from having to change to corps in 2011. There has been a good recovery in the sector. Amount of leverage they can use going forward will probably be limited and real estate in general depends on leverage. Reasonably valued and growth will depend on the growth of their tenants, primarily Wal-Mart. Thinks 12.9% distribution can be maintained until 2011 and then gradually increases.

2009-10-02

Comment

UEX Corp.

UEX-T

1.150

Uranium exploration company controlled by other uranium companies, which make them expensive. Has done very well focusing around other uranium plays in Saskatchewan. A reasonable play but he prefers something that is in production.

2009-10-02

HOLD

Tim Hortons

THI-T

30.230

US expansion had not done very well until recently when they had a good quarter and rope even. Moving into New York City, which is hopefully a good thing. If they continue to improve US operations they should do quite well but it's too early to tell.

2009-10-02

Comment

POT-T

92.850

Have been exercising production discipline to keep the price high. A short-term negative is that the Chinese negotiation has not been settled for 2009. Thinks the stock will come back.

2009-10-02

BUY

Pengrowth Energy Trust

PGF.UN-T

10.280

Today's 30% distribution cut was disappointing but not unexpected. Newman is and is doing the right thing in increasing capital expenditure and building for the future.

2009-10-02

Comment

Thompson Creek Metals

TCM-T

12.370

(Market Call Minute.) Molybdenum. Likes at long-term but short-term see some downturn risks.

2009-10-02

HOLD

CML Healthcare Income Fund

CLC.UN-T

13.560

(Market Call Minute.) Good, steady, long-term cash flow. Pays a good dividend but not much upside.

2009-10-02

BUY

Viterra Inc

VT-T

10.300

(Market Call Minute.) Recently completed an acquisition and became a global player. Lots of upside.

2009-10-02

BUY

Talisman Energy

TLM-T

17.860

(Market Call Minute.) Oil prices will go up in this company is well positioned in developing new plays.

2009-10-02

Comment

Sherritt International Corp.

S-T

6.750

If the US lists the trade embargo on Cuba, this will be better for the company. On the other hand, more businesses will be located in Cuba and it will no longer be a one-man show. A little concerned about their nickel projects in Africa as well as a correction in base metals.

2009-08-24

HOLD

Aecon Group Inc

ARE-T

11.080

Construction company and haven't done too badly. Haven't really seen some of the stimulus dollars flowing yet even though there has been a lot of talk. Recent political uncertainty in Ecuador where the law could be changing and the profit could be lower. Hold until you see the benefits of the new projects coming in.

2009-08-24

Comment

0.020

US financials. If you are a trader and are fairly nimble there could be some upside to the extent that they have been oversold. Short-term you are looking at very strong trading revenue for some of the banks that have good exposures.

2009-08-24

BUY

82.150

Rim (RIM-T) or Apple (AAPL-Q) for a 3 year period? A tough call because both companies have their own merits. Apple seems to be doing very well in anything that appeals to consumer tastes. You could buy both. Both will win because of the trend towards flat phones and will be successful in their own ways. If he had to pick one, it would be Rim because it is trading at about 5 multiple points behind.

2009-08-24

BUY

Apple

AAPL-Q

169.060

2009-08-24

Comment

Claymore Natural Gas Commodity ETF

0.020

How do you play US stocks with Cdn$ going higher? You could buy Bear ETF’s on the US$. This will partially hedge your exposure.

2009-08-24

DON'T BUY

GAS-T

4.530

Natural gas ETF. There are quite a few ETF’s that you can play natural gas with. There is no question that in the medium to long-term, 12 to 18 months, gas will rebound. Timing is everything. He doesn't see a short-term rebound in gas and in fact it could go lower.

2009-08-24

BUY

Toronto Dominion

TD-T

63.630

Likes this bank because of their very strong retail position and the strong US exposure. Because their US holdings have been hit hard, he expects on the way back they will provide better contributions. Relatively cheap from a PE multiple. Dividend is reasonable and he can see a possible increase down the road.

2009-08-24

HOLD

Pengrowth Energy Trust

PGF.UN-T

9.600

Based on current production and cash flow, they are fairly valued. Historically it has been over levered and under performing. New management team has been doing some good things in the constructing portfolios and rejuvenating growth.

2009-08-24

Comment

Direx Financial Bear 3x E.T.F.

FAZ-N

24.380

US financials bear x3 ETF. In the short term, US financials could have some upside. Some short-term pullback is inevitable. If you're nimble next few weeks you could probably use this instrument but there is a lot of leverage in this product. Be careful.

2009-08-24

TOP PICK

Suncor Energy Inc

SU-T

35.270

Just completed a merger with PetroCanada, which de-leverages the balance sheet. This gives them room to grow the oil sand production and focus the company. PetroCanada has been under performing so there is a lot of opportunity to create value from the asset base. Sees oil getting to the $80-$90 range.

2009-08-24

TOP PICK

Manulife Financial

MFC-T

22.400

Cut the dividend in August and the stock dropped and has not recovered. They went to a scare last year that they don't want to repeat so they are having to build up their capital.

2009-08-24

TOP PICK

Canadian National R.R.

CNR-T

52.790

(A Top Pick Feb 20/09. Up 30.72%.) Transportation, rails in particular, is a reflection of the economy. To the extent that the economy is hitting the bottom and recovering, you should see this in the rails. This is one of the most efficient rail operators on the continent. Resemble balance sheet and good management team.

2009-08-24

PAST TOP PICK

Western Canadian Coal Corp.

57.450

(A Top Pick Feb 20/09. Up 20.87%.)

2009-08-24

PAST TOP PICK

BCE Inc.

BCE-T

26.700

2009-08-24

BUY

Fortis Inc.

FTS-T

25.920

If you are looking for utilities, you are looking for a defensive position and a dividend yield so this one would be a decent purchase. Good management. Reasonable value. Doesn't see a lot of upside on prices.

2009-08-24

HOLD

UTS Energy

UTS-T

1.530

Likes the project long-term. Short-term there are a lot of obstacles. They have to be comfortable on a long-term oil price, which they will be, but not quite yet.

2009-08-24

BUY

WTN-T

2.050

Just acquired Cambrian Mining and are a stronger company for it. In high-cost coking coal for steel producing but coal price has not recovered. There is talk coal could go to $150 a ton. He considers this one of the higher risk plays that will give you higher leverage.

2009-07-16

BUY

A T & T US

T-N

20.350

One of the largest telephone companies in the US. Traditional landline business is still declining. Wireless business is doing well. Have been cutting costs. Dividend appears to be safe. If income oriented, you can look at this as a long-term holding.

2009-07-16

HOLD

Shaw Communication (B)

SJR.B-T

18.620

In the Canadian landscape, cable companies are virtual monopolies. Well managed and pays good dividends. The more expensive than their peers.

2009-07-16

Comment

Potash Corp of Saskatchewan

55.810

Well managed and not very expensive. Heavily exposed to natural gas. He is not looking for much change in natural gas prices over the next 6 months. Expect they will bounce back strongly in 12 to 18 months and this company will do very well. No reason to jump in right away.

2009-07-16

HOLD

Westjet Airlines

WJA-T

9.990

Well managed. Good balance sheet. Relatively low cost. Oil prices have gone up and will continue to do so and this is the challenge. Because of the economy, traffic will be down.

2009-07-16

WAIT

POT-T

102.330

Stock price went up on rumours that Mosaic (MOS-N) could be taken over by Vale out of Brazil. Has been some movement on potash negotiations with some companies breaking ranks and filing for lower prices. This will affect future prices so their earning power will be quite depressed.

2009-07-16

DON'T BUY

Advanced Micro Devices

AMD-N

3.920

Wouldn't own because they are perpetually #2 to Intel (INTC-Q) in the chip business. Recently had some positive developments with capital injection.

2009-07-16

DON'T BUY

Dryships

DRYS-Q

5.930

Very sensitive to the Baltic Dry Index, which is a reflection of the shipping rates. A lot of it depends on how quickly China is importing. Expect you will see this pace slows down in the next little while. Risk/reward is not favourable.

2009-07-16

BUY