| TOP PICK | | Altagas Services | ALA.UN-T | 25.390 | Gather and process natural gas in Western Canada. Has some good upside. 8.4% yield. | 2008-05-06 | |
| TOP PICK | | Davis & Henderson Income Fund | DHF.UN-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 | |
| 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 | |
| PAST TOP PICK | | Arc Energy Trust Units | AET.UN-T | 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 Montne B.C. play. | 2008-05-06 | |
| PAST TOP PICK | | Yellow Pages Income Fund | YLO.UN-T | 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 | |
| PAST TOP PICK | | Cominar Real Estate Inv Tr | CUF.UN-T | 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 | |
| DON'T BUY | | Pengrowth Energy Trust | PGF.UN-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 | |
| Comment | | Keystone North America Inc. | KNA.UN-T | 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 | | Hungtingdon REIT | HNT.UN-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 | |
| PARTIAL SELL | | Precision Drilling Corp. | PD.UN-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 | |
| SELL | | Penn West Energy Trust | PWT.UN-T | 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 | |
| HOLD | | NAL Oil & Gas Trust | NAE.UN-T | 15.120 | Benefiting from the higher energy prices. There is potential here for them to increase distributions. 13% yield. | 2008-05-06 | |
| Comment | | Trilogy Energy Trust | TET.UN-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 | |
| 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 | |
| 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 | | Bell Aliant | BA.UN-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 | |
| Comment | | H&R Real Estate Inv Trust | 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 | |
| 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 | |
| TOP PICK | | Fort Chicago Energy Partners | FCE.UN-T | 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 | |
| TOP PICK | | Epcor Power L.P. | EP.UN-T | 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 | |
| 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 | |
| PAST TOP PICK | | Cominar Real Estate Inv Tr | CUF.UN-T | 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 | |
| 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 | |
| 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 | | Precision Drilling Corp. | PD.UN-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 | |
| 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 | |
| SELL | | Penn West Energy Trust | PWT.UN-T | 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 | |
| HOLD | | Bell Aliant | BA.UN-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 | |
| 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 | |
| BUY | | CI Financial Income Fund | CIX.UN-T | 26.560 | In a pretty tight trading range for the last year between $26 and $28. Pretty decent value at today's price. Rumoured to be one of the bidders for Dundee Wealth. The risk is of a sustained downturn in the equity markets. Very well run company. Longer term, a good place to be. | 2007-12-04 | |
| SELL | | Trilogy Energy Trust | TET.UN-T | 6.600 | Natural gas focused. Would put Focus (FET.UN-T), Peyto (PEY.UN-T) or even Progress (PGX.UN-T) ahead of it. Cut the distribution earlier this year. Good discount to NAV. Debt ratio is a bit higher than he would like. | 2007-12-04 | |
| BUY | | BFI Canada Income Fund | BFC.UN-T | 25.900 | This is a good example of a trust that has a lot of flexibility between now and 2011. Made a very good trust and has done very well with a good steady, stable cash flow. One of the more growthy trusts. Feels the distribution is very sustainable. | 2007-12-04 | |
| HOLD | | NAL Oil & Gas Trust | NAE.UN-T | 11.340 | A decent name, it is not in the top tier of the sector. We'll give you some decent returns and yield. | 2007-12-04 | |
| DON'T BUY | | InnVest Reit | INN.UN-T | 10.350 | One of the few remaining hotel focused trusts left in Canada. Upgraded their portfolio by acquiring some assets from the former Legacy Income Trust. Suffering from the headwind in the economy and the strong Cdn$. Tough to get too excited in the short term. | 2007-12-04 | |
| HOLD | | Armtec Infrastructure Income Fund | ARF.UN-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 | | Daylight Energy Trust | DAY.UN-T | 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 | |
| BUY on WEAKNESS | | Great Lakes Hydro Inc | GLH.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 | |
| 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 | |
| TOP PICK | | Yellow Pages Income Fund | YLO.UN-T | 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 | |
| TOP PICK | | Cominar Real Estate Inv Tr | CUF.UN-T | 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 | |
| TOP PICK | | Arc Energy Trust Units | AET.UN-T | 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 | | 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 | |
| PAST TOP PICK | | BFI Canada Income Fund | BFC.UN-T | 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 | |
| PAST TOP PICK | | Davis & Henderson Income Fund | DHF.UN-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 | |
| HOLD | | Progress Energy Trust | PGX.UN-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 | | 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 | |
| Comment | | Canadian Oil Sands Trust | COS.UN-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 | |
| Comment | | Bonavista Energy Trust | BNP.UN-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 | |
| 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 | |
| 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 | |
| SELL | | Gateway Casinos Income Fund | 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 | | 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 Trust | TET.UN-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 | | True Energy Trust | TUI.UN-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 | |
| SELL | | Fording Canadian Coal Trust (Inc Trust) | 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 | |
| PARTIAL BUY | | Newalta Income Fund | NAL.UN-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 | |
| BUY | | Consumers Waterheater Fund | CWI.UN-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 | |
| BUY | | Fort Chicago Energy Partners | FCE.UN-T | 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 | |
| HOLD | | Precision Drilling Corp. | PD.UN-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 | | Altagas Services | ALA.UN-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 | | Extendicare REIT | EXE.UN-T | 16.950 | Involved in long-term care in nursing homes, 70% US and 30% Canada. Reasonably priced. Good growth prospects. | 2007-03-09 | |
| TOP PICK | | BFI Canada Income Fund | BFC.UN-T | 26.400 | Strong quarterly results. Organic growth was in the 8%-10% range. Good prospects going forward. | 2007-03-09 | |
| PAST TOP PICK | | Cominar Real Estate Inv Tr | CUF.UN-T | 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 | | Fort Chicago Energy Partners | FCE.UN-T | 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 | | Northland Power Income Fund | NPI.UN-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 | | 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 | |
| Comment | | Lakeport Brewing Income Fund | TFR.UN-T | 27.860 | They are in the value segment of the beer market. ($1 a beer!) Have recently had a $28 offer by Labatt’s Brewery, which is about a 35% increase to the trading price. If you own, he suggests you tender to the offer. | 2007-03-09 | |
| DON'T BUY | | Paramount Energy Trust | PMT.UN-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 | | Boralex Power Income Fund | BPT.UN-T | 10.240 | Recently reported good numbers. Have put themselves up for sale. The parent company, Boralex (BLX-T) indicated they might take them over, but probably at a lower price.. Have always looked at this as a lower tier power trust group. | 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 | |
| HOLD | | Arc Energy Trust Units | AET.UN-T | 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 | |
| BUY | | Penn West Energy Trust | PWT.UN-T | 33.670 | Fundamentally, this trust is in pretty good shape. Conventional side of their oil was a little bit softer than expected. Longer-term, they have some very good resource plays. | 2007-03-09 | |
| HOLD | | Great Lakes Hydro Inc | GLH.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 | | Peyto Energy Trust | PEY.UN-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 | |
| HOLD | | Macquarie Power Income Fund | MPT.UN-T | 11.180 | 2 aspects to their business. Power generation and seniors’ housing. Both sides are pretty stable. Valuations are rising on the seniors’ housing side. | 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 | |
| PARTIAL BUY | | Mullen Group Income Fund | MTL.UN-T | 17.470 | Oilfield services in Alberta and trucking. Oilfield services have been weak, but expects it to pick up in the 2nd half. Trucking has done well and continues to do so. High-quality company. Might be a good one to pick away at. | 2007-03-09 | |
| BUY | | Yellow Pages Income Fund | YLO.UN-T | 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 | |
| SELL | | Royal Host Real Estate I.T. | RYL.UN-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 | |
| TOP PICK | | Cominar Real Estate Inv Tr | CUF.UN-T | 20.840 | 20% of the Company is held by management. Very conservatively run. Probably the best balance sheet in the REIT sector. Rock solid distribution. Very reasonable valuation. | 2006-10-27 | |
| TOP PICK | | CCS Income Trust | CCR.UN-T | 37.310 | Provides waste management services to the energy and industrial sectors. Growth oriented. Very active in reinvesting cash flow back into the business. Low payout ratio. Expanding into the US. Looking for 15% growth. | 2006-10-27 | |
| TOP PICK | | Fort Chicago Energy Partners | FCE.UN-T | 11.900 | Has three main assets. The biggest is the Alliance Pipeline which transports natural gas from B.C. to Chicago. Very steady, stable high quality asset. Have some pretty good growth prospects going forward. Valuation is attractive. | 2006-10-27 | |
| PAST TOP PICK | | BFI Canada Income Fund | BFC.UN-T | 30.000 | (A Top Pick May 5/06. Up 8.7%.) A quality name in the business trust area. Pretty fully valued at this point. Should continue to deliver pretty good growth. | 2006-10-27 | |
| PAST TOP PICK | | Davis & Henderson Income Fund | DHF.UN-T | 19.450 | (A Top Pick May 5/06. Down 3.7%.) Continues to like it. A good, steady name in the business area. Market sold off on their new acquisition, but this should work out quite well. Should get 3-4 percent growth. | 2006-10-27 | |
| PAST TOP PICK | | H&R Real Estate Inv Trust | HR.UN-T | 23.600 | (A Top Pick May 5/06. Up 12.4%.) The whole REIT sector has been positive. Summit REIT takeover by ING, Australia took out about 7%, so REIT’s have started re-evaluating themselves. A lot of capital flowing into the REIT sector now. | 2006-10-27 | |
| BUY | | Peyto Energy Trust | PEY.UN-T | 22.400 | Natural gas focused. Gas prices have been firming up in the last little while. Long reserve life index. High quality assets. Good value here. | 2006-10-27 | |
| BUY | | Teranet Income Fund | TF.UN-T | 10.460 | Have an exclusive arrangement with Ontario to 2017 to provide access and maintain the database on the electronic land registry service. Sees some growth going forward. Branching out into payment systems for lawyers and hospitals. | 2006-10-27 | |
| BUY | | Penn West Energy Trust | PWT.UN-T | 42.890 | Very liquid, high quality name. Low payout ratio. Long reserve life. High quality management. | 2006-10-27 | |
| BUY | | Acclaim Energy Trust | AE.UN-T | 20.000 | Very liquid, high quality name. Low payout ratio. Long reserve life. High quality management. | 2006-10-27 | |
| DON'T BUY | | Transalta Power Lp | TPW.UN-T | 8.240 | Has a number of natural gas coal generated power facilities. He is underweight the power trust sector. Sees risks in the natural gas fired facilities and the margins on these. | 2006-10-27 | |
| HOLD | | Bonavista Energy Trust | BNP.UN-T | 34.100 | Recently announced a distribution cut which brought the payout ratio down to a reasonable level. Market accepted this. Very high quality management team. | 2006-10-27 | |
| DON'T BUY | | Advantage Energy Income Fund | AVN.UN-T | 16.000 | Have had some distribution cuts. One of the bigger under performers in the group. Very highly leveraged. Payout ratio is higher than the group average. Natural gas focused. | 2006-10-27 | |
| BUY | | Keyera Facilities Income Fund | KEY.UN-T | 21.130 | They gather and process natural gas in Alberta. Also getting into the midstream part of the oil business. High-quality name. One of the better organic growth stories. Low payout ratio. | 2006-10-27 | |
| HOLD | | Fording Canadian Coal Trust (Inc Trust) | FDG.UN-T | 27.900 | Has been a difficult story over the last couple of months. If you own, you probably should continue to hold. Will be entering into their annual contract negotiations for the price of coal and prices could drop. | 2006-10-27 | |
| BUY on WEAKNESS | | CI Financial Income Fund | CIX.UN-T | 29.400 | Very well-run company. A reasonable entry point would be $27-$28 . One of the top managers left, so there could be some defections and money moving out. | 2006-10-27 | |
| Comment | | Oil Sands Sector Fund | OSF.UN-T | 8.650 | Closed-end fund and can't speak specifically to its value. Geared to the oil sands region. Oil sands potential, long-term, is very positive. Will be volatile. Attractive to global investors for a high quality, low risk reserve, relative to political risks elsewhere. | 2006-10-27 | |
| BUY | | Canadian Oil Sands Trust | COS.UN-T | 31.300 | Geared to the oil sands region. The oil sands potential, long-term, is very positive. Will be volatile. Attractive to global investors for a high quality, low risk reserve, relative to political risks elsewhere. | 2006-10-27 | |
| BUY | | Crescent Point Energy Trust | CPG.UN-T | 20.050 | Has been very active on the acquisition front. Would like to see them slow down a bit and consolidate what they have. Very good balance sheet. Very good company and good valuation. | 2006-10-27 | |
| BUY on WEAKNESS | | Precision Drilling Corp. | PD.UN-T | 32.480 | Very good 3rd quarter results, slightly above analysts expectations. Some concerns on a possible distribution cut next year. Conservative management. By on weakness. | 2006-10-27 | |
| DON'T BUY | | SCITI Trust | SIN.UN-T | 17.750 | A closed end fund that is designed to mimic the Scotia Capital Trust Index, so it is a passively managed fund with probably some leverage. Active managed can outperform passive managed. Exposure to energy will be 45% plus. | 2006-10-27 | |
