| TOP PICK | | BCE Inc. | BCE-T | 38.900 | Highly probable that the deal closes at $42.75 in 5 months giving more than a 20% annualized rate of return. | 2008-07-10 | |
| TOP PICK | | Enbridge | ENB-T | 41.550 | Huge amount of capital projects ahead. Highly visible 10% earnings per share growth rate probably through 2012 to 2013. Dividend of 3.2%. Return not spectacular but in the 12% to 15% range. | 2008-07-10 | |
| TOP PICK | | Eaton Corp. | ETN-N | 81.430 | Assembly line gear for trucks and autos but has diversified in the last 5 years. Much more balanced for every phase of the cycle. Also more exposed to infrastructure spending outside of the US. Trading at 10X 08 earnings and 8.5X 09 earnings. 2.5% dividend. Cheap stock. | 2008-07-10 | |
| PAST TOP PICK | | 3M Co. | MMM-N | 68.920 | (A Top Pick Aug 2/07. Down 19%.) Great long-term investment. Technologically driven in all of its areas. Latest concerns have to do with LCD pricing, which she thinks is temporary. More than 60% of revenue is outside of North America. Still a Buy. | 2008-07-10 | |
| PAST TOP PICK | | Thomson Reuters Corp | TRI-T | 30.810 | (A Top Pick Aug 2/07. Down 27%.) Reflects concerns of people about unemployment in financials. Acquisition of Reuters gives them good exposure to commodity markets and Asia. Still buying but through TRIN-Q, which is 20% cheaper. | 2008-07-10 | |
| PAST TOP PICK | | IGM Financial Inc. | IGM-T | 38.790 | (A Top Pick Aug 2/07. Down 20%.) Great long-term investment. Over 4% yield that grows at between 15% and 20%. As the baby boom continues, these companies will do well and this is the premiere play. | 2008-07-10 | |
| HOLD | | Royal Bank | RY-T | 43.630 | Vulnerable, but not as much as some of the others. Medium to longer term, have a great franchise and the US expansion will be positive. Possible US recession and credit contraction will be tough on the banks. Prefers Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T). | 2008-07-10 | |
| BUY | | Encana Corp | ECA-T | 83.650 | Outlook for natural gas is very positive. Took some profits earlier in the summer but for some clients are starting to add back. It will be choppy. | 2008-07-10 | |
| BUY | | Suncor Energy Inc | SU-T | 58.890 | Price change is a reaction to changes in oil prices as well as comments in the US about dirty fuel from oil sands. 7% to 8% of your portfolio would be a reasonable weighting. | 2008-07-10 | |
| BUY | | Toyoto | TM-N | 92.600 | Longer term, a superb company. People will continue to buy cars globally. Especially well positioned to benefit from expansion of the middle class in Asia. It will be choppy but a great entry point. | 2008-07-10 | |
| BUY | | General Electric | GE-N | 27.640 | Disappointing performer, due primarily to its financial unit. Spin off of their consumer-industrial unit is the start of trying to change their fortunes. Now yielding over 4%. Good time to add but will be a difficult 12 months ahead. Will be a good investment over the next 5 years. | 2008-07-10 | |
| DON'T BUY | | Goldman Sachs | GS-N | 170.160 | Was the best investment bank by a country mile. However expensive relative to the opportunities. Trading about 2X book value. There will be increased regulations on the investment banks and that will impact margins, especially on this one. Wait to see what the legislation will be and how regulated these companies will be. | 2008-07-10 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Bank Preferred Shares: Generally doesn't like to take the equity risk that is associated with them. However, tax laws make dividend yields very attractive. Feels they are safe. Makes sense for a small portion of your portfolio but would diversify between banks. | 2008-07-10 | |
| BUY on WEAKNESS | | Agrium | AGU-T | 101.190 | Think agricultural stocks are due for a correction. Quite expensive relative to their outlook. Would try to buy at $90. | 2008-07-10 | |
| BUY on WEAKNESS | | Potash Corp of Saskatchewan | POT-T | 221.790 | Vulnerable in the short term but longer term this is a great company. Diversified product mix. Good global exposure. $210 would be a better entry point. | 2008-07-10 | |
| BUY on WEAKNESS | | Cemex SA | CX-N | 23.040 | Great global play on infrastructure spending about vulnerable in the near term. She is watching it very carefully and looking to buy in the $19-$20 range. | 2008-07-10 | |
| DON'T BUY | | Canadian Tire Corporation Ltd. (A) | CTC.A-T | 51.580 | Great Canadian company. Stock has been very disappointing. Retail discretionary spending is going to be challenging. Faced with increasing competition. The revenues that come from their financial services will be vulnerable. | 2008-07-10 | |
| DON'T BUY | | Wal-Mart Stores Inc. | WMT-N | 57.210 | Will do well on a relative basis because there will be a march down and they are the best at discount retailing on a broad basis. Margin pressure and will be vulnerable to a stronger dollar as a lot of savings that they pass on to consumers is from importing from overseas. | 2008-07-10 | |
| Comment | | CitiGroup | C-N | 16.280 | This company has real issues and we haven't seen the end of the write-offs. Great franchise but there will be margin pressures going forward. There could be a bounce in it and if you own, look at it in Oct/Nov as a possible tax loss candidate. | 2008-07-10 | |
| Comment | | Toronto Dominion | TD-T | 60.120 | Think you can start to buy this one now but there is no rush. Near a 52-week low. Likes the outlook for them and they are well prepared for the environment that is coming. Likes their US strategy. | 2008-07-10 | |
| DON'T BUY | | Ford Motor | F-N | 4.580 | Have real problems. Collapse in automobile sales has been truly amazing. This is the “falling knife”. | 2008-07-10 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gold: Will trade in part on the US$. Doesn't think the bottom is here yet. Will also trade to some extent on geopolitical events. Technically, the $1,000 mark is where it is heading. Not keen on gold stocks. The price is a psychological one as opposed to a supply/demand fundamental. | 2008-07-10 | |
| HOLD | | Pfizer Inc | PFE-N | 18.030 | All of the big pharma have been very disappointing. Now yielding over 7% but doesn't think the dividend is in jeopardy as the cash flow is amazingly strong. Won't be a great investment for another year or so. | 2008-07-10 | |
| Comment | | Microsoft | MSFT-Q | 25.450 | Back and forth with Yahoo (YHOO-Q). One of the strangest takeover battles she has ever seen. Very cheap on an earnings basis. Expect they will start to return more cash to the shareholders. Have some challenges with their Internet strategy. Probably a non-performer until the Yahoo situation is firmly resolved. | 2008-07-10 | |
| Comment | | Power Financial Corp | PWF-T | 31.510 | Very cheap. Has been a very disappointing performer. Yielding over 4% and trading under 12X earnings. Has a record of being a very savvy acquisitor. Looking at this one very closely. | 2008-07-10 | |
| TOP PICK | | Canadian National R.R. | CNR-T | 50.570 | Have a 1 to 2 month lag on the fuel surcharge, so doesn’t feel the impact. Great way to participate in international growth. Best operating ratios in North America. Trading at a discount to its peers. Good for the medium to long-term horizon. Good dividend and a great record of increasing them. | 2008-06-18 | |
| TOP PICK | | Trans Canada Corp | TRP-T | 40.170 | Power will be a major investment area in North America over the next 10 years. They’re exquisitely placed to benefit from this. Won’t have fabulous growth. Will be 8% with a 3.5% dividend. Good stable part of the portfolio. | 2008-06-18 | |
| HOLD | | General Electric | GE-N | 28.210 | Has been a very disappointing performer. Hitting multi-year lows. Industrial side of the company is very strong. They are in all the high growth areas and well positioned internationally. The financial side has been the big drag for them. 4.5% yield. Potential of capital appreciation and increased dividends over the next 5 years. Could be some more downside. | 2008-06-18 | |
| TOP PICK | | Eaton Corp. | ETN-N | 94.170 | Trading at quite a low multiple because of the perception that it is a trucking supply company. Have done a great job of diversifying away from this over the last 5 years, mainly through acquisitions. 75% of their business is not related to the automotive side, but is an infrastructure play. Strong balance sheet. | 2008-06-18 | |
| DON'T BUY | | Bombardier Inc (B) | BBD.B-T | 7.660 | Latest quarterly report was terrific. Margins have improved on the transportation side. Her big concern is what is happening with the airlines. Thinks there could be cancellations on orders. | 2008-06-18 | |
| DON'T BUY | | Yellow Pages Income Fund | YLO.UN-T | 9.980 | Yield is over 11% and she is cautious when she sees this as it suggests there is some risk. People don’t use Yellow Pages any more and it is a declining business. | 2008-06-18 | |
| DON'T BUY | | Biovail Corp. | BVF-T | 10.820 | Has had a very chequered history. Base business is quite attractive. With all the controversy surrounding it she would wait until things settle down. | 2008-06-18 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gold: Q: Royal Bank of Scotland (RBS-N) is calling for a market crash within 3 months. What happens to gold? A: If this happen, which she doubts, gold would probably go up. | 2008-06-18 | |
| HOLD | | Power Corp | POW-T | 32.750 | One of the best managed companies in Canada. Well diversified. Down because of its exposure to the financial sector. | 2008-06-18 | |
| BUY | | Becton Dickinson | BDX-N | 78.890 | Hospital supply company as well as doing a lot of diagnostics testing. Had disappointing performance in the near term, but she likes it longer term. Growing at 18% to 17% with 60% to 70% of its profits outside of North America. | 2008-06-18 | |
| SELL | | Ford Motor | F-N | 6.220 | North American car industry is in a very difficult position. Just announced a 15 year low in sales. Company seems to have enough cash. Can’t see a big upside. | 2008-06-18 | |
| BUY | | Toyoto | TM-N | 102.450 | Has been taking market share in North America. Has exposure and market share overseas. Also well positioned in the hybrid and smaller vehicles. | 2008-06-18 | |
| BUY | | IGM Financial Inc. | IGM-T | 47.000 | Short term it’s going to trade in a choppy market. Mutual fund companies are high beta. In the long term, as the baby boom generation continues to save, this will be a leader in Canada. Strong balance sheet. Good management. Good record of increasing dividends. Yielding over 4%. | 2008-06-18 | |
| DON'T BUY | | Bank of Montreal | BMO-T | 45.450 | Canadian banks have the best balance sheets on a global basis. Margins are not going to be as great over the next few years as they’ve been in the last 10, but they will be a decent investment. However, this one is not one of her favourites. Prefers Bank of Nova Scotia (BNS-T). | 2008-06-18 | |
| TOP PICK | | Canadian National R.R. | CNR-T | 54.610 | Best operator of North American rails by a long shot. Rails are taking business away from the trucking industry. As Asia continues strong, shipping to the coast should be good. Great record of increasing dividends. | 2008-05-23 | |
| TOP PICK | | Trans Canada Corp | TRP-T | 39.480 | A less volatile way to play the energy sector. Incentive will be given to them for the Alaskan pipeline. Yield around 4% plus our growth rate of 5% to 8% gives a pretty solid mid-teens performer. | 2008-05-23 | |
| TOP PICK | | United Technologies | UTX-N | 70.010 | Great infrastructure play. Well positioned outside of North America, particularly in the rapid urbanization of China with its Otis elevators and Carrier air conditioners. Will do well on a 3 to 5 year horizon. Very tight cost controls and good balance sheet. Consistent growth in earnings. | 2008-05-23 | |
| PAST TOP PICK | | Thomson Reuters Corp | TRI-T | 36.080 | (A Top Pick Aug 2/07. Down 14%.) Has been a disappointment perennially, but still likes. Reuters acquisition was good. Going to be a great stock 2-3 years out. Sold this for a capital loss and bought Thomson Reuters PLC (TRIN-Q) (same company) which trades at a 12% to 13% discount. | 2008-05-23 | |
| PAST TOP PICK | | IGM Financial Inc. | IGM-T | 45.320 | (A Top Pick Aug 2/07. Down 12%.) Still has a good increasing dividend yield. Longer term it will be great. Shorter term will be very volatile. | 2008-05-23 | |
| PAST TOP PICK | | 3M Co. | MMM-N | 75.810 | (A Top Pick Aug 2/07. Down 11%.) Disappointing performance. Very well positioned to benefit from Asia growth. While diversified product line. Research innovators. Cheap on any historical multiple basis. High ROE and good balance sheet. | 2008-05-23 | |
| BUY | | Thomson Reuters PLC | TRIN-Q | 191.400 | If you own Thomson Reuters (TRI-T), consider selling for the capital loss and buying this one, which trades at a 12% to 13% discount to the Canadian one. Exactly the same company, but you are getting it at a discount. Over time, they'll both come back to the same price. | 2008-05-23 | |
| BUY | | Becton Dickinson | BDX-N | 83.580 | Great international company. | 2008-05-23 | |
| Comment | | General Electric | GE-N | 30.430 | Great international infrastructure play, but earnings are disappointing because half the company is a black box finance. Looks like a good entry point but can see problems in the near term. | 2008-05-23 | |
| DON'T BUY | | McGraw Hill | MHP-N | 39.920 | Good company. Strong franchise with S&P. Terrible performer because of the rating situation and that there were conflicts in the ratings provided to many of these derivative instruments. Thinks there will be lawsuits. Also expects the volume to be less. | 2008-05-23 | |
| HOLD | | BCE Inc. (Pref.) | BCE.PR.A-T | 23.560 | Much like the bondholders, preferreds will do better if this company is left alone, as it will have less debt. Doesn't think they saga is done yet. | 2008-05-23 | |
| Comment | | Nasdaq Stock Market | NDAQ-Q | 33.620 | Volumes are down on the New York Stock Exchange (NYX-N) is because of all the alternate trading platforms and this will affect this one as well. In a bear or difficult market volumes go down and at the same time have increased competition. | 2008-05-23 | |
| DON'T BUY | | TSX Group | X-T | 43.090 | Trading on BCE and 36 other companies go down yesterday was horrible timing. Increases the appeal to trade on other platforms such as Alpha. Estimates are from 20% to 50% volumes could move to others, over time. Expensive at this point and doesn’t discount the risk of competition. | 2008-05-23 | |
| DON'T BUY | | Precision Drilling Corp. | PD.UN-T | 26.190 | 3 to 5 years this is a great story. Near term there are some issues. Pricing a great deal of success into the organic growth initiatives they are having in the US and internationally. 6% yield. A little bit ahead of itself. | 2008-05-23 | |
| BUY | | Becton Dickinson | BDX-N | 83.580 | Medical supplies. Long time favourite. Unlike big pharma, has been delivering in terms of earnings 1st quarter was up almost 18%, well above expectations. Should continue to generate great returns, probably in the 10% to 12% range. Great international exposure. | 2008-05-23 | |
| DON'T BUY | | General Motors Corporation | GM-N | 17.600 | North American auto manufacturers will have a very difficult time ahead of them. | 2008-05-23 | |
| DON'T BUY | | Sears Holdings Corp. | SHLD-Q | 87.950 | Mr. Lampert, hailed as a genius 2 years ago is no longer viewed that way. Retailing is so tough and he’s a real estate guy. Merchandising in the US is brutal. | 2008-05-23 | |
| DON'T BUY | | Wal-Mart Stores Inc. | WMT-N | 55.750 | Seems to be doing well, but the stock has not been a great performer. If she had to have a retailer, this would be the one because the consumer is going to downshift. | 2008-05-23 | |
| Comment | | Shoppers Drug Mart Corp | SC-T | 55.350 | This is the retailer she is looking at closely. Great in a difficult environment. Top quality company and top merchandiser. Likes their store layout strategy. | 2008-05-23 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Uranium; - Technically there should be a big boast because of the high oil prices but we’re not big on building nuclear plants. Doesn’t see nuclear energy as being a major push in North America because of the fear of it. | 2008-05-23 | |
| DON'T BUY | | Cameco Corporation | CCO-T | 40.320 | Have had problems with Bruce Power and Cigar Lake. Trading at about 1.5X asset value so thinks it will tread water here or go down to a more attractive price such as $35. | 2008-05-23 | |
| BUY | | IBM | IBM-N | 124.200 | Very well positioned internationally. Q1 earnings were spectacular. A very steady performer in a difficult environment. Well positioned in the longer term to benefit from the overseas growth and will see better growth in N.A. in 5 years. | 2008-05-23 | |
| Comment | | Bank of Montreal | BMO-T | 48.520 | Had some issues over the last year or so and was one of the poorer performing banks. Would prefer Toronto Dominion (TD-T) or Bank of Nova Scotia (BNS-T). However on a 5-year time frame Canadian banks are going to be fine but will not provide the kind of returns as in the past. | 2008-05-23 | |
| DON'T BUY | | Visa Inc. | V-N | 76.350 | Likes the concept, but there will be a better opportunity. Big advantage is that they benefit from the transactions but don’t take any risks. A little expensive. Would consider in the $55 range. | 2008-05-23 | |
| DON'T BUY | | Research In Motion | RIM-T | 129.800 | Thinks it will pull back some more. Trading at 70X earnings and 40X next year’s earnings. Pretty aggressive expectations. Fabulous company and a great product. Thinks increasing smart phones will take market share. | 2008-05-23 | |
| Comment | | Encana Corp | ECA-T | 92.100 | Will be splitting into 2 separate companies in 2009. Stock has moved up- very sharply, so wouldn’t be an aggressive buyer here. She has been taking some profits n order to re-balance the portfolios.. | 2008-05-23 | |
| HOLD | | Canadian Tire Corporation Ltd. (A) | CTC.A-T | 60.350 | Had disappointing earnings. Earnings continue to be driven by its Mastercard operation. Increased competition is coming. Wouldn’t Buy here. | 2008-05-23 | |
| SELL | | Ford Motor | F-N | 6.870 | (Market Call Minute.) N.A. auto manufacturers are going to have great issues going forward. Announced they weren’t going to make profitability in 09. | 2008-05-23 | |
| PARTIAL SELL | | Bombardier Inc (B) | BBD.B-T | 7.450 | (Market Call Minute.) Has risen pretty dramatically so would take some profits. Doesn’t feel that airline travel cutbacks and signs of a recession have been priced into this. | 2008-05-23 | |
| HOLD | | Alimentation Couche-Tard (B) | ATD.B-T | 14.630 | (Market Call Minute.) Prefers Shoppers (SC-T). | 2008-05-23 | |
| HOLD | | Loblaws | L-T | 33.090 | (Market Call Minute.) Too early to Buy. | 2008-05-23 | |
| WAIT | | Potash Corp of Saskatchewan | POT-T | 194.400 | (Market Call Minute.) Trading at 25X earnings and feels it is going lower. | 2008-05-23 | |
| TOP PICK | | Trans Canada Corp | TRP-T | 36.750 | Great dividend yield. Has been very careful about its acquisitions. It has projects with probably about 15 years of visibility. It will never be an exciting grower, but will be a 6% to 8% grower and dividend will grow 6% to 8%. Came up recently on their power facility acquisition that they did in New York. This is a good time to initiate acquisition. | 2008-04-23 | |
| TOP PICK | | Canadian National R.R. | CNR-T | 51.860 | Cut their forecast because of weather. That's a good time to buy a company, because weather is not a fundamental factor for them. Remains the best operator in North America. Believes global demand is going to remain reasonably strong and the railways will benefit from this. Dividend has grown 22% in the last 5 years. | 2008-04-23 | |
| TOP PICK | | United Technologies | UTX-N | 71.860 | Its big appeal right now is its infrastructure operations, which are principally Otis elevators and Carrier air conditioning. These 2 divisions alone account for 50% of operating profits. Buildings that are being seen in developing economies need elevators and air conditioners. 50% of their revenues are outside of North America. They are a major beneficiary of a weaker US$. | 2008-04-23 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Oil in 6 months: - Not good at short-term predictions, but thinks the oil has gotten ahead of itself due to a lot of speculation. Barring some horrible geopolitical event, she thinks it should pull back to the $90-$100 range. | 2008-04-23 | |
| BUY on WEAKNESS | | Suncor Energy Inc | SU-T | 116.000 | Seems to be trading dollar for dollar with the price of oil. Has had a tremendous move over the past year. This is one that you could buy on weakness. It could pull well back under $100. | 2008-04-23 | |
| BUY on WEAKNESS | | Encana Corp | ECA-T | 84.440 | This has come off a bit but it could come off a bit more. | 2008-04-23 | |
| BUY on WEAKNESS | | Toyoto | TM-N | 100.180 | She just purchased this one in the $95 range. At global company. Has now overtaken General Motors in the US. Great productivity. Might be a bit early, but feels global growth will continue to be strong. Pretty attractive purchase in the $90 to $95 range. | 2008-04-23 | |
| BUY | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | ETF’s: - She doesn't use ETF’s for her clients but they are a good way to get diversification if you want to make sure that you are buying from well known providers. When buying, you have to look at your industry and geographical diversification as you put them together. | 2008-04-23 | |
| Comment | | 3M Co. | MMM-N | 80.630 | A terrific company with great global exposure. Close to 65% of its operations are outside of North America. After coming off sharply, it has started to recover. | 2008-04-23 | |
| Comment | | Johnson & Johnson | JNJ-N | 67.260 | Has done a great job in anybody's portfolio. Very stable price while the market has gyrated. Has performed so well on a relative basis that there may not be a lot left. | 2008-04-23 | |
| BUY | | Toronto Dominion | TD-T | 63.950 | Has acquired the US Commerce Bankcorp. Important questions are; is it a good acquisition, can they integrate it and is it a good foray into the US. She believes the answers are yes. Likes their 2-prong US strategy with the discount brokerage operation and now a more traditional bank. | 2008-04-23 | |
| BUY | | Thomson Reuters Corp | TRI-T | 35.900 | The acquisition of Reuters was a great one. It increases the exposure to the financial services sector. Because of concerns on the financial, in the near term there will be some cyclical problems with this stock. Eventually they will throw off a ton of cash flow. | 2008-04-23 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Canadian $: - Cdn$ is in a pretty tight trading range. Where it goes will be partly a function of what happens to US interest rates. The $1.10 figure last year was really an aberration. Expect we will stay in the $.97 to $1.02 range. Bank of Canada has indicated they are going to be quite aggressive on interest rates so there will be downward pressure. | 2008-04-23 | |
| BUY | | Pfizer Inc | PFE-N | 19.880 | This has not been a good experience over the last year. Stock has come off pretty sharply. All of the drugs are coming off patent for the big pharmaceuticals. Trading at under 10X earnings and is still earning 35% on its equity and yielding over 6%. | 2008-04-23 | |
| DON'T BUY | | Bank of America | BAC-N | 36.860 | Would be a little cautious on this one. Not sure how good the Countrywide acquisition is going to be and could take 5 years before we know. | 2008-04-23 | |
| DON'T BUY | | Petro-Can | PCA-T | 51.140 | This has been a perennial disappointment. It has not mastered under promising and over delivering. Has the framework to be a great company but hasn't been able to achieve it. | 2008-04-23 | |
| TOP PICK | | Encana Corp | ECA-T | 75.660 | Finally being recognized for the very long-life reserves it has in unconventional gas production. Has strengthened its determination to return value to the shareholders, which can be seen in its dividend policies and share buyback policy. Has hedged part of its production in gas assets at over $8 a share as well as $72 a barrel for its oil. Quality management and reserves. | 2008-03-12 | |
| TOP PICK | | Enbridge | ENB-T | 41.420 | Pipeline company, energy infrastructure. A large part of their earnings are regulated. Yields over 3%. Forecasting growth for 2012 at 10% to 11%. The combination of the dividend, which is expected to grow in the 6% to 10% range, plus the earnings growth, gives you a pretty comfortable 15% to 17% returning stock on a 5-year horizon. Energy infrastructure will continue to be a major area in North America. | 2008-03-12 | |
| TOP PICK | | Proctor & Gamble | PG-N | 67.040 | Very defensive stock. In all kinds of products that everyone uses. Well positioned overseas with more than 60% of its revenues outside of North America. Strong earnings outlook. Strong balance sheet. | 2008-03-12 | |
| PAST TOP PICK | | Becton Dickinson | BDX-N | 86.390 | (A Top Pick Mar 14/07. Up 15% including dividends.) Hospital supplies. Great company, but not well followed or well known. Well diversified with 60% revenues outside of North America. Good R&D. Trades at about 18X earnings. Still a Buy. | 2008-03-12 | |
| PAST TOP PICK | | Bank of Nova Scotia | BNS-T | 45.360 | (A Top Pick Mar 14/07. Down 11% including dividends.) Still a Partial Buy, particularly if you have low exposure to financials. Over 4% yield. Their credit losses are the lowest among Canadian banks. Good geographic diversification. | 2008-03-12 | |
| PAST TOP PICK | | IGM Financial Inc. | IGM-T | 42.060 | (A Top Pick Mar 14/07. Down 11%.) Largest independent mutual fund company. With aging baby boomers, there will be increased savings. Yielding 4.7% and has increased its dividends at 15% to 17% over the last 10 years. Still a Partial Buy. | 2008-03-12 | |
| BUY on WEAKNESS | | Johnson & Johnson | JNJ-N | 62.550 | Has the medical side as well as the consumer side. Its medical device side is facing a bit of problem and its drugs are likely to face increased scrutiny if there is a Democratic administration. Attractive in the $55-$58 range. | 2008-03-12 | |
| SELL | | Bank of Montreal | BMO-T | 41.790 | (Caller has this in his RRSP.) Major disappointment. Yielding over 6%, which is a bit of a warning sign. If you own in an RRSP, she would consider diversifying into other financials such as Bank of Nova Scotia (BNS-T) or Toronto Dominion (TD-T) which have shown abilities to weather this environment. | 2008-03-12 | |
| HOLD | | TSX Group | X-T | 38.150 | Will be very challenging environment for all exchanges in the next 3 to 6 months. Market volatility is great for traders, but not for exchanges. Coming merger looks very positive and is good news. On a longer-term basis, it's a good industry to be in. Would stay away for the next 6 months. | 2008-03-12 | |
| DON'T BUY | | UBS AG | UBS-N | 30.570 | She is looking for an entry point into some of these large international financials. Given its exposure to this whole sub prime area, and that we are not true at or the uncertainties surrounding it, she would not be aggressive buying it, but would rather wait. | 2008-03-12 | |
| DON'T BUY | | Loblaws | L-T | 28.160 | Looking very cheap on an asset basis. Real estate is valued at over the current stock price at about $30 a share. The problem is, there is no confidence yet that they have been able to turn earnings and get control of their environment. Given the margin pressures it is facing, it is too early. | 2008-03-12 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | New Visa IPO: - The MasterCard IPO has done very well. The appeal to these credit card companies is that they don't take any of the credit risks. Make most of their money on the transaction. She is a little nervous about IPOs because there is a little seasoning that goes on but it would be very dependent on what the price is and the market environment. There would be a drop in the value if there were a sharp drop in transactions. | 2008-03-12 | |
| DON'T BUY | | Telus Corp | T-T | 42.560 | Looks very cheap on the numbers. Her concern is wireless growth. Manitoba Tel (MBT-T) has just announced that they are going for the Spectrum with 2 strong partners. There has already been enough competition from the incumbent standpoint. | 2008-03-12 | |
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