STOCKCHASE

13.950

On a debt to cash flow basis looked quite good but saw an opportunity to raise cash and got $250 million. A prudent move on their part as it will fund their capital projects. (One is a Montney gas plant this year.) Should be part of a core portfolio in energy.

2009-02-27

TOP PICK

Altagas Ltd

ALA-T

13.650

Natural gas. 2nd quarter results were quite strong. Has been unduly punished and is very cheap. Thinks distribution is safe. Do a very good job of hedging with 66% on the power side for 09 and 50% in 2010. On frac spreads 50% in 09 and 15%-20% in 2010. Good management ownership.

2009-02-27

DON'T BUY

Advantage Oil & Gas Ltd

AAV-T

2.920

Double whammy in that it is natural gas focused and has a lot of leverage. Have a number of convertible debentures that are due to mature in the next 3 years, particularly 2009. Chances of refinancing are pretty limited.

2009-02-27

BUY

9.400

(Market Call Minute.) Cheap relative to its US peers. Did a recent equity issue that cleans up their balance sheet a bit.

2009-02-27

BUY

Canadian Oil Sands

COS-T

20.000

(Market Call Minute.) Given his longer-term view on oil prices, it is a Buy today.

2009-02-27

HOLD

Dundee REIT

D.UN-T

13.750

Alberta focused. Oil prices are going to be a big factor in how this one performs. A lot of new office construction in Calgary, which is a negative. Have a lot of cash on the balance sheet so they are defensively positioned. Longer-term would look for another name from a fundamental perspective.

2009-02-27

BUY

Enerplus Corp

ERF-T

21.560

(Market Call Minute.) Very good balance sheet. Should be able make some very good acquisitions.

2009-02-27

PAST TOP PICK

H&R Real Estate Inv Trust

7.400

(A Top Pick Dec 4/07. Down 18.8%.) Had been looking for more defensive picks in order to get paid while you wait. Feels distribution is safe.

2009-02-27

TOP PICK

HR.UN-T

7.240

Big office development in Calgary for Encana (ECA-T). Construction financing needs has been a huge overhang. Got $200 million from Fairfax Financial (FFH-T) that is contingent upon getting remaining financing from a syndicate of banks. Feels 80% chance that this happens and if so could see unit price going to $9 to $10.

2009-02-27

BUY

Inter Pipeline Fund

IPL.UN-T

7.280

Conventional/oil sands pipelines in Western Canada. Currently involved in the corridor pipeline expansion due for completion in latter 2009 or early 2010. Frac spreads have weighed on their results somewhat but this should improve. 11.6% yield should be safe.

2009-02-27

HOLD

Morguard Real Estate Inv Trust

MRT.UN-T

8.850

(Market Call Minute.) Very good balance sheet and good liquidity but fundamentally you want to look for another name once things turn.

2009-02-27

HOLD

NAL Energy Corp

NAE-T

6.400

Probably a good quality energy trust. Production is fairly well balanced between oil and gas. Solid management.

2009-02-27

DON'T BUY

Provident Energy Ltd

PVE-T

3.740

Unique because they have upstream oil/gas assets combined with more midstream natural gas processing assets. He prefers more pure plays. Had a couple of distribution cuts. Going through a strategic review.

2009-02-27

PAST TOP PICK

RioCan Real Estate Investment

REI.UN-T

12.690

(A Top Pick Dec 4/07. Down 37%.) The largest REIT in Canada and very well diversified. Unfortunately, REITs are getting tainted with the same brush as financial services. Has been oversold.

2009-02-27

DON'T BUY

Royal Host Inc

RYL-T

2.620

Micro-cap REIT in the hotel sector. Not a fan of hotels right now. Large special distribution at year-end because of some gains on properties sold.

2009-02-27

HOLD

Superior Plus Corp

SPB-T

10.570

Management change is positive. Got rid of some of their businesses. Bought a shell company that had tax pools. Reasonable payout.

2009-02-27

BUY

Vermilion Energy Inc

VET-T

24.480

Verenex Energy (VNX-T) just announced a deal to sell their company to China National Oil Corp for $10 per share, a very good price. This company owns a big chunk of Verenex and are likely to get back $200 million in cash, which will clear their debt allowing them to make a very accretive acquisition.

2009-02-27

BUY

Crescent Point Energy Corp

5.750

Thinks 20% yield is safe for the next 12 months. Very good value at under $6. Negative sentiment because of slowing economy. Advertising spending will be coming under pressure. Much better shape than its peers but have been impacted with them.

2009-02-27

TOP PICK

CPG-T

23.560

Oil weighted and their big play is the light oil Bakkens in southeast Saskatchewan. 11.6% yield. Very good visibility for drilling/fracing inventory. Good consolidator.

2009-02-27

DON'T BUY

11.210

One of the bigger energy trusts. Biggest issue they had was not getting good enough returns on capital they were spending. Better names such as Crescent Point (CPG.UN-T), Vermilion (VET.UN-T), Arc (AET.UN-T) and Enerplus (ERF.UN-T).

2009-02-27

HOLD

Mullen Group Ltd

MTL-T

8.600

(Market Call Minute.) Hold. There will be a better buying opportunity.

2009-02-27

PAST TOP PICK

Capital Power L.P.

CPA.UN-T (Dead)

16.200

(A Top Pick Dec 4/07. Down 18%.) Infrastructure type of play. More defensive. Good market cap and good liquidity. Very good operators. Stable distribution in a tough economic market.

2009-02-27

HOLD

Capital Power L.P.

CPA.UN-T (Dead)

16.200

(Market Call Minute.) Very nice distribution yield. In this environment it is the right place to be.

2009-02-27

WAIT

Pengrowth Energy

PGF-T

7.260

Had a substantial distribution cut of about 40%, which is positive. Good asset base. Leverage is a bit higher than average but the distribution cut addresses this. Would wait to see more positive things before he stepped in.

2009-02-27

PAST TOP PICK

27.910

(A Top Pick July 11/07. Up 36%.) This is one of those core holdings that you want to have in your portfolio for energy exposure. Good holdings in the Montney B.C. play.

2008-05-06

TOP PICK

Altagas Ltd

ALA-T

25.390

Gather and process natural gas in Western Canada. Has some good upside. 8.4% yield.

2008-05-06

PAST TOP PICK

H&R Real Estate Inv Trust

20.650

(A Top Pick July 11/07. Up 2%.) A good diversified REIT. Have done a good job in turning acquired assets from Montreal around. Management owns 25%.

2008-05-06

Comment

Dundee REIT

D.UN-T

33.910

Sold a good chunk of their Eastern/Central Canada portfolio and held on to the Western B class and C class assets. With strong energy prices, there are signs that Alberta is picking up again. Good holding for now but would be out by 2009/2010 as there will be a lot of new construction in Calgary.

2008-05-06

TOP PICK

Davis + Henderson

DH-T

17.290

Dominant supplier of cheques to Canada's leading financial institutions. The selloff in February was overdone. Recommends a Partial Buy now and if it sells off more, add to it.

2008-05-06

Comment

HR.UN-T

20.190

Quality in the base assets is quite high with long-term leases and long-term debt maturities. Bow development in Calgary has proven to be a challenge for them. Haven't secured their financing costs and haven't locked in 100% of their construction costs. Feels management will get through this.

2008-05-06

Comment

Labrador Iron Ore

LIF.UN-T

56.990

Iron ore prices have been going up substantially. Expect distributions will go up this year. If you own and you have made big gains, consider taking some money off the table.

2008-05-06

HOLD

NAL Energy Corp

NAE-T

15.120

Benefiting from the higher energy prices. There is potential here for them to increase distributions. 13% yield.

2008-05-06

PARTIAL SELL

Precision Drilling

PD-T

26.210

Will be looking to expand beyond North America. This is the shoulder season for energy, soul if you own, he would recommend taking some profits. If you don't own, Wait.

2008-05-06

TOP PICK

Canadian Real Estate Investment

REF.UN-T

28.540

Very stable name. Great balance sheet. 75% payout ratio. Good financial flexibility. While diversified across retail, industrial and office. 4.7% yield and he would anticipate a distribution increase this year.

2008-05-06

DON'T BUY

TransForce Inc.

TFI-T

7.560

One of Canada's largest trucking firms. Trucking is very cyclical and will move with the economy. Thinks they are intending to convert back to a corporate structure and distributions will be reduced. A little early to be looking at this one.

2008-05-06

PAST TOP PICK

Keystone North America Inc.

10.700

(A Top Pick July 11/07. Down 18%.) Guilty by association with global competitors that are in financial difficulties. Much better competitor landscape in Canada. Online strategy has been going quite well. Dividend is very safe. Still a Buy.

2008-05-06

Comment

KNA-T (Dead)

6.580

Wasn't actually structured as an income trust but as an Income Depository Security that consisted of a common share and some debt paper clipped together. They are proposing to replace debt with more equity. Rights were issued to unitholders. This allows debt to be replaced with common shares. He feels it makes sense to exercise the Rights.

2008-05-06

Comment

Trilogy Energy Corp

TET-T

13.090

Predominantly natural gas. Low payout ratio, so he would expect a distribution increase. Benefits from a 20% ownership of Paramount Resources (POU-T). If you own, consider taking some profits after the distribution increase. There are better alternatives.

2008-05-06

SELL

31.800

Had some challenges in the past in terms of their capital efficiency ratios. Has had a decent rally. Acquired Canetic Resources last year, which he didn't feel was a good one. There are better alternatives.

2008-05-06

Comment

Hungtingdon Capital

HNT-T

2.040

Payout ratio is probably north of 140%. Will be difficult for them to grow in this kind of environment. Wouldn't be comfortable owning this. Expects distributions will be cut.

2008-05-06

HOLD

Bell Aliant

BA-T

30.370

Has probably been one of the best performing telecom stock. Pretty steady performer but wouldn't put new money in.

2008-05-06

DON'T BUY

Pengrowth Energy

PGF-T

20.170

Payout ratio on a relative basis to their peers is quite high. Also carry a bit higher than normal debt. Good assets. Would Prefer Arc Energy AET.UN-T), Crescent Point (CPG.UN-T) or Vermilion Energy (VET.UN-T).

2008-05-06

BUY

25.900

This is a good example of a trust that has a lot of flexibility between now and 2011. Made a very good trust and has done very well with a good steady, stable cash flow. One of the more growthy trusts. Feels the distribution is very sustainable.

2007-12-04

PAST TOP PICK

CCS Income Trust

CCR.UN-T

45.990

(A Past Top Pick Oct 27/06. Up 23%.) Went private on Nov 14/07.

2007-12-04

PAST TOP PICK

20.960

(A Past Top Pick Oct 27/06. Up 1%.) A dominant landlord in Quebec city. Acquired a number of under performing assets in the Montreal area and was able to increase occupancy. Superior management team owns 20% to 25% of the REIT.

2007-12-04

TOP PICK

Brookfield Renewable Energy

10.500

(A Past Top Pick Oct 27/06. Down 13.3%.) Benefiting in the last several months from very strong frac spreads, the difference between oil and natural gas prices. Generating a lot of free cash flow. Very good growth prospects on the horizon. Reasonable valuation. Just bumped their distribution from $.93 to $1. Defensive.

2007-12-04

BUY on WEAKNESS

BEP.UN-T

18.700

High quality name. Has always traded at a very high premium. Has corrected with the broader market and getting back to a more reasonable valuation. Hydro assets are very long life, predictable, longer-term assets. Wouldn't rush into buying at this time.

2007-12-04

DON'T BUY

Harvest Energy Trust

HTE.UN-T

21.340

Unique story in the oil/gas trust space. Bought a refinery in Newfoundland. Did very well the first part of this year with healthy refining margins. Conventional assets disappointed in 2nd and 3rd quarters and refining margins have now fallen out of bed. Doesn't have a lot of confidence in refining margins, which can be very volatile.

2007-12-04

DON'T BUY

InnVest Reit

INN.UN-T

10.350

One of the few remaining hotel focused trusts left in Canada. Upgraded their portfolio by acquiring some assets from the former Legacy Income Trust. Suffering from the headwind in the economy and the strong Cdn$. Tough to get too excited in the short term.

2007-12-04

Comment

IPC US Income Commercial REIT

IUR.UN-T

9.770

In the process of being taken over by a US REIT. Mainly US focused. Put itself up for sale, which did not go well.

2007-12-04

HOLD

NAL Energy Corp

NAE-T

11.340

A decent name, it is not in the top tier of the sector. We'll give you some decent returns and yield.

2007-12-04

HOLD

Precision Drilling

PD-T

16.000

Like all energy services it has corrected good amount. Natural gas has been very soft with inventory levels being full. There’ve been big imports of LNG. This will be a late 2nd half 08 story. Distribution cut was made, so this should now be stable. Yield of 9% plus.

2007-12-04

TOP PICK

RioCan Real Estate Investment

REI.UN-T

21.600

Good quality core holding. Defensive. Retail focused. Good growth in 2008, probably 5%-6% through leases rolling over. Decent development pipeline.

2007-12-04

HOLD

Chartwell Seniors housing

CSH.UN-T

10.010

There has been a lot going on in the seniors housing space this year. Trading at around 11X AFFO. They are over distributing. Has been a growth by acquisition. Have a very good platform in the US and Canada, however have not been able to grow accretively on a per unit basis. There is potential for a distribution cut.

2007-12-04

HOLD

Armtec Infrastructure

ARF-T

20.780

Infrastructure in Canada. Looks like it is going to be a good place to be. Not too familiar with this trust.

2007-12-04

SELL

Trilogy Energy Corp

TET-T

6.600

Natural gas focused. Would put Focus (FET.UN-T), Peyto (PEY.UN-T) or even Progress (PGX.UN-T) ahead of it. Cut the distribution earlier this year. Good discount to NAV. Debt ratio is a bit higher than he would like.

2007-12-04

SELL

Daylight Energy Ltd

DAY-T (Dead)

6.540

One of the more quality oil/gas trusts. Cut their distribution early this year. Probably trades at a healthy discount to its NAV but is probably cheap for a reason. Wouldn't count on too much of a premium if it gets taken out. Would move on to a better trust.

2007-12-04

SELL

26.400

Merging with Canetic (CNE.UN-T) and bought Vault (VNG.UN-T), so there is a lot going on. Will be the largest oil/gas trust in Canada but not sure how a bigger trust will benefit. Down with tax loss selling, but market is also indicating it is not sure how a bigger trust will benefit going forward.

2007-12-04

TOP PICK

Capital Power L.P.

CPA.UN-T (Dead)

22.690

Had been beaten up quite a bit but recently had a nice little recovery. Well diversified across 20 different power facilities through natural gas, hydro and biomass. Market has over penalized and it is cheap. Over 11% yield. Defensive.

2007-12-04

BUY

CI Financial Income Fund

CIX.UN-T

26.560

In a pretty tight trading range for the last year between $26 and $28. Pretty decent value at today's price. Rumoured to be one of the bidders for Dundee Wealth. The risk is of a sustained downturn in the equity markets. Very well run company. Longer term, a good place to be.

2007-12-04

HOLD

Bell Aliant

BA-T

28.800

Has corrected in line with the broader equity markets. This is a good, steady, core holding. Not a lot of excitement. Will deliver a pretty good, steady, stable yield. There might be 1%-2% annual growth in the underlying business.

2007-12-04

HOLD

InStorage REIT

IS.UN-T

0.800

Weakening with the general weakness in the REIT sector. Growth by acquisition story and that strategy is facing a fair amount of headwind today. Consolidator of the self-storage space. A good little business but would be patient about buying.

2007-12-04

TOP PICK

21.970

Management delivers on a pretty consistent basis. 50% natural gas/50% oil. Healthy balance sheet so can take advantage of acquisition opportunities. Sustainable model with lower payout ratio and lower yield, but very good at reinvesting money back into the ground. Longer term, have some pretty decent resource plays. Good at increasing recovery through CO2 injection.

2007-07-11

PAST TOP PICK

28.760

(A Top Pick May 5/06. Up 4.4%.) One of the dominant players in the non-hazardous waste management. Recession resistant. Probably one of the better growth stories in the trust sector.

2007-07-11

Comment

Bonavista Energy Corp

BNP-T

30.440

About 55% natural gas and 45% oil. A good long-term name. Great management team. Need an increase in natural gas prices to give it a lift.

2007-07-11

Comment

Canadian Oil Sands

COS-T

31.850

The beauty of this is that their expansion and growth is already behind them so they don't face the possibility of increasing costs.

2007-07-11

TOP PICK

21.330

Relatively cheap. Made a recent acquisition from Alexis Nehon which diversified them away from Quebec city and into Montreal and Ottawa. Management owns about 20%.

2007-07-11

BUY

EnerCare Inc

ECI-T

17.150

Their competition in Ontario was UE Water Heater, which was recently taken over. Water heater market is very lucrative. Generates a lot of free cash flow. Good pricing power. Starting to branch out into other areas. Could be a takeover target.

2007-07-11

PAST TOP PICK

Davis + Henderson

DH-T

19.490

(A Top Pick May 5/06. Down 5.2%.) Have done a very good job in offsetting the decline in cheque writing. Have expanded into other related products and services. Made some good acquisitions.

2007-07-11

BUY

Fording Canadian Coal Trust (Inc Trust)

10.770

Good value at this price. Recently increased their guidance for 2007. Own 50% of the Alliance Pipeline going from NE B.C. to Chicago. Very predictable, high-quality, long life asset. Also get profits from extracting natural gas liquids.

2007-07-11

SELL

FDG.UN-T

36.820

Coal prices are in the mid-$90 range, up from what they where a year or two ago. Future for coal prices is starting to improve. If you own, consider taking some profits and see what negotiations for coal prices bring later on this year.

2007-07-11

PAST TOP PICK

H&R Real Estate Inv Trust

HR.UN-T

23.800

(A Top Pick May 5/06. Up 11.6%.) REITs in the last little while have corrected somewhat. Should not be impacted by the government trust announcement. This one should continue to do well.

2007-07-11

BUY

Labrador Iron Ore

LIF.UN-T

35.210

Outlook for iron ore prices is quite strong. Expecting a pretty healthy distribution increase in 2008. They own 15% of Iron Ore Co of Canada and there's speculation it will be taken over. Still upside if a takeover were to happen.

2007-07-11

PARTIAL BUY

Newalta Corp

NAL-T

25.600

Provides waste management services for the energy sector in western Canada. A similar company is CCS Income Trust (CCR.UN-T), which just had a takeover offer by private equity. This will create added interest to this trust.

2007-07-11

HOLD

Precision Drilling

PD-T

25.930

Softer natural gas prices have decreased drilling activities. This company will have the most upside should this cycle change.

2007-07-11

TOP PICK

Gateway Casinos Income Fund

14.020

Expanded into the classified publishing with the acquisition of Trader Medium, Auto Trader, etc. Delivering very good growth of about 30% on the internet side. Looking for 4%-5% growth overall.

2007-07-11

SELL

GCI.UN-T

25.200

Has been the subject of a takeover offer by private equity. It is unlikely there will be a higher bid. If you own, take your profit and move on.

2007-07-11

HOLD

Progress Energy Resources Corp

PRQ-T

12.750

80% natural gas. Have a lot of tax pools making it attractive. Expect pressure on natural gas will continue through the summer. LNG is switching from Europe to North America because of warm weather. This is increasing inventory levels. Longer term, he likes natural gas and this income trust.

2007-07-11

HOLD

Boardwalk REIT

BEI.UN-T

49.000

Has had a fantastic run. A large part of their portfolio is in Calgary and Edmonton. Have a great pricing power in terms of rental rates. Expect their strong growth will continue. Fully valued at this price.

2007-07-11

DON'T BUY

Trilogy Energy Corp

TET-T

10.340

Natural gas focused. Would prefer others such as Progress Energy (PGX.UN-T) or Focus Energy (FET.UN-T). Has had a chequered past and has not been as steady a performer as others.

2007-07-11

DON'T BUY

Bellatrix Exploration Ltd.

BXE-T

6.020

Probably at the lower end of quality in the oil/gas trust sector. There are a lot of better names out there.

2007-07-11

HOLD

Teranet Income Fund

TF.UN-T

10.350

Good fundamental story. Pretty much has a monopoly position in providing services for land Registry in Ontario. Not a ton of growth, but very stable. Low payout ratio. North of $10 it is fully priced.

2007-07-11

HOLD

InStorage REIT

IS.UN-T

1.220

To buy to consolidate storage business. Have made some good acquisitions. He is continuing to watch it and as it grows he is more interested.

2007-07-11

HOLD

20.350

Very high quality management team. Balanced production profile between oil and gas. Typically trades at the higher end of the valuation range.

2007-03-09

TOP PICK

Altagas Ltd

ALA-T

26.400

They 1) gather/processing natural gas, 2) extract natural gas liquids and 3) electrical power generation. Good record of growth. Clean balance sheet. May have some good acquisition opportunities.

2007-03-09

TOP PICK

26.400

Strong quarterly results. Organic growth was in the 8%-10% range. Good prospects going forward.

2007-03-09

PAST TOP PICK

CCS Income Trust

CCR.UN-T

37.320

(A Top Pick Oct 27/06. Up 1.8%.) Still likes.

2007-03-09

PAST TOP PICK

25.730

(A Top Pick Oct 27/06. Up 23.8%.) Tried to acquire Alexis Nihon (AN.UN-T) and will get 60%, which is better than nothing.

2007-03-09

PAST TOP PICK

Brookfield Renewable Energy

10.580

(A Top Pick Oct 27/06. Down 12.1%.) Has not rebounded as well as others, after the tax announcement. Continues to like. Good price. Good growth potential.

2007-03-09

HOLD

BEP.UN-T

19.420

Higher-quality power trust. Produce hydro through their dams, so have long life assets. Distributions are very safe. A bit expensive. Modest growth.

2007-03-09

HOLD

Inter Pipeline Fund

IPL.UN-T

9.450

Made a large acquisition of a pipeline in the oil sands region of Alberta. Opens up a new growth platform for them. Currently undergoing expansion of their existing pipeline. Looks expensive on an EBITDA ratio, but when you look out 3 or 4 years, it becomes a bit more reasonable. 8.9% yield.

2007-03-09

HOLD

Northland Power Inc

NPI-T

12.900

Selling electricity to Ontario Hydro. He has generally been underweight the power trust group, which is a low growth sector. Good-quality name.

2007-03-09

HOLD

Peyto Exploration & Develop.

PEY-T

16.420

Looking for a weaker period in natural gas at this time. This is a good trust, but you might be able to buy it a little cheaper over the next few months. Reserve life index of about 19 years.

2007-03-09

DON'T BUY

Perpetual Energy

PMT-T

9.370

Very short reserve life index. Primary focus is natural gas. Their ability to maintain the reserve life is going to be a challenge. If you're looking for natural gas, he would suggest looking at Focus Energy (FET.UN-T), Peyto Energy (PEY.UN-T) or Progress Energy (PGX.UN-T).

2007-03-09

SELL

Royal Host Inc

RYL-T

7.090

The price increase has really been driven by speculation of a takeover. Doesn't expect a whole lot of upside in the unit price from here.

2007-03-09

BUY

13.500

Good-quality core holding. Recently acquired the directory services for eastern Canada from Bell Aliant (BA.UN-T). Decent growth profile.

2007-03-09

DON'T BUY

Retrocom Mid-Market REIT

RMM.UN-T

5.450

This is a REIT that has really struggled. Focused on the retail space in typically secondary markets. Better quality REITs available.

2007-03-09

BUY