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| BUY on WEAKNESS | | C.I.Fund Management | CIX-T | 24.100 | Going to be a great income trust as it has huge cash flows and not a lot of CapX. Spiked today, so wouldn't jump in yet. | 2005-09-08 | |
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| DON'T BUY | | ATI Technologies | ATY-T | 15.920 | Has been selected by IGT (IGT-N) to power their gaming machines which is a nice deal for ATI. Has been paring back on his holdings as it has been getting hit on the high end by Nvidia (NVDA-Q) and on the low end by Intel (INTC-Q). Coming out with their new chip pretty soon and hopefullly it's good. | 2005-09-08 | |
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| TOP PICK | | Aeroplan Income Fund | AER.UN-T | 14.250 | Expect it to continue to move. A real cash cow and doesn't need CapX. All Canadian, so you don't have the foreign exchange exposure. They'll be consolidators in the loyalty program space. | 2005-09-08 | |
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| BUY | | Teck Cominco Ltd. (B) | TCK.B-T | 49.400 | Bought into the Fort Hills oil sand project and they paid a pretty penny. Likes it when metal companies use their cash in good times to buy into longer term energy plays. | 2005-09-08 | |
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| BUY on WEAKNESS | | Phoenix Technology Income Fund | PHX.UN-T | 9.150 | Have been on fire for a few years now. Could be a takeover target. Likes this sector. Feels the price has moved a little too far too fast. | 2005-09-08 | |
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| TOP PICK | | Petro-Canada | PCA-T | 48.290 | Management is gaining credibility. Have been making some acquisitions that have turned out well. | 2005-09-08 | |
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| DON'T BUY | | Manitoba Telecom Services | MBT-T | 48.600 | Not a huge fan of this company because he didn't like the Allstream acquisition. The long distance market is a tough area to be in when you're a small telco and you're being attacked by the cable companies. Can't see much upside left. | 2005-09-08 | |
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| HOLD | | Alcan Aluminum | AL-T | 37.950 | Electricity costs are so high, 70% of the cost of aluminum. Keeps on getting hit. Thinks it can't go much lower. | 2005-09-08 | |
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| BUY | | Penn West Energy Trust | PWT.UN-T | 35.850 | Good company. The biggest royalty trust. Has some long term opportunity in coal bed methane. Has some capital efficiency issues. For the amount of money it's spending, it should be producing more. It seems to be doing all the right things to deal with this. | 2005-09-08 | |
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| TOP PICK | | Boardwalk REIT | BEI.UN-T | 20.750 | The biggest residential REIT in the country. Mainly in Alberta. Vacancy rates have been going up and rents have been coming down, so it's been tough on residential REITs. At some point housing prices are going to get to a level that it's more economical to rent rather than buy. Trades at about net asset value, so it's cheap. | 2005-09-08 | |
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| BUY on WEAKNESS | | TSX Group | X-T | 41.700 | It might become an income trust. A cash cow. Somewhat of a monopoly and doesn't have much capital expenditures. Moved up to quickly today. | 2005-09-08 | |
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| WEAK BUY | | Canadian Natural Rsrcs | CNQ-T | 55.620 | A good idea to take some money from conventional oil/gas and put it in the long life assets of oil sands. A little rich, but would consider buying at this price. | 2005-09-08 | |
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| BUY | | Arc Energy Trust | AET.UN-T | 23.680 | Can't do much better than this one in the trust area. The blue chip one. Low operating costs and low payout ratios. | 2005-09-08 | |
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| BUY | | Shoppers Drug Mart Corp | SC-T | 42.170 | A fantastic stock. Fantastic growth story.You have the back of the store which is drugs (a play on demographics), the front of the store beauty aid and health and a play on restructuring. Have another 8 years ahead of them of building out the new stores. | 2005-07-15 | |
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| BUY | | Viking Energy Royalty Trust | VKR.UN-T | 7.570 | Royalty trusts in general haven't been keeping up with the oil stocks and are now in line on a cash flow basis with the oil corporations. Look a lot more attractive. This one has a lower payout ratio than last year. Lower valuation than the group because it is somewhat of a turn around story. Prefers others, but doesn't think you will get hurt on this one. | 2005-07-15 | |
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| TOP PICK | | Petro-Canada | PCA-T | 82.460 | Most energy stocks are fairly valued in the E & P companies, but this one hasn't gone up nearly as much as the others. More of a defensive oil with their refineries and retail. Feels that production will be up next year by about 5% and 10% the following year. | 2005-07-15 | |
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| WAIT | | CML Healthcare Income Fund | CLC.UN-T | 14.000 | A good Canadian health care trust, in that it's a lab business which is a cash flow business. Very stable. Looking for a new CEO. Won't buy until they see what new management is like. | 2005-07-15 | |
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| WAIT | | Acclaim Energy Trust | AE.UN-T | 15.900 | Likes the energy trusts in general, but this one has a bit of a short reserve life, 8.5 years. Doesn't have a big problem with it. | 2005-07-15 | |
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| BUY | | RioCan Real Estate Investment | REI.UN-T | 20.970 | Retail space is a pretty steady space. The difficulty here is how do they grow when they are so big. Have been impressive. Have only about 1% organic growth. Can also grow 1% through joint ventures they have as well as 1% by development and repositioning of property. | 2005-07-15 | |
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| TOP PICK | | Arc Energy Trust | AET.UN-T | 21.250 | A blue chip in the trust sector. Payout ratio is getting down to around 55% which means it has a lot of extra cash to invest and exploitation which is very profitable when energy prices are so high. Down the road they are going to have to increase distributions. | 2005-07-15 | |
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| BUY | | Bank of Nova Scotia | BNS-T | 40.750 | Hasn't moved very much year to date. Thinks banks are a fantastic place to be right now. Averaging 12 X next year's earnings. Great international operations. Has a ton of excess cash. | 2005-07-15 | |
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| WEAK BUY | | Bonavista Energy Trust | BNP.UN-T | 31.750 | Started out with a short reserve life. Management has proven itself before and done it again with this trust. Grown its reserve life. Has a lot of undrilled land base. His problem is that it is one of the most highly valued of the trusts. | 2005-07-15 | |
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| TOP PICK | | Gamehost Income Fund | GH.UN-T | 29.400 | Owns 2 casinos in ALberts. Opening a new one in Calgary which is very high end with good entertainment facilities. This should increase cash flow by about 40%. Only about a 5.5% yield, but this should go up when the casino gets finished. | 2005-07-15 | |
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| BUY | | Parkland Income Fund | PKI.UN-T | 19.200 | A very good income trust. Watching it as it comes down. One of the largest retailers of gas in the north west region. Basically rural across the country. They make their money off the retail margin of gasoline and that margin can be volatile. Trying to cut back on the volatility by adding more stores. Looks like an interetsing opportunity right here. | 2005-07-15 | |
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| BUY on WEAKNESS | | Canadian Oil Sands Trust | COS.UN-T | 96.350 | The oil sands are fantastic at these prices. You'll see more cash flow as the year goes on. Feels there's been a ton of excitement on the oil sands in the last year. Would prefer to buy it on a pullback. | 2005-07-15 | |
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| WAIT | | Sequoia Oil & Gas Trust | SQE.UN-T | 16.010 | He is careful with new conversions because a lot of times management thinks they can keep production high even as it's paying out a lot of its cash flow and not putting as much into exploration and then a few months later management realizes production's not as high as expected. Would let this one mature a little bit. | 2005-07-15 | |
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| DON'T BUY | | Bombardier Inc (B) | BBD.B-T | 3.030 | Market is getting a little less worried about this company. They're a little more comfotable with the business jet market, foreign exchange issues are not as serious, maybe transportation margins will improve. He's not bullish as he has never seen a company in the mass transit market make money. Lots of risks. | 2005-07-15 | |
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| DON'T BUY | | Domtar Inc. | DTC-T | 9.450 | One of the better forestry stocks. Levered to US employment growth which hasn't been strong. Not one of the better commodities to be in. Overcapacity. | 2005-06-01 | |
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| DON'T BUY | | Biovail Corp. | BVF-T | 20.000 | Looks like one of their drugs has been approved. Backlog is fairly weak. It's become a one-story stock. Their drug Welbutrin is a great drug, but it makes up 50% of their profit. It'll only be another year or two that they'll have an exclusive on that drug. | 2005-06-01 | |
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| TOP PICK | | Peyto Energy Trust | PEY.UN-T | 26.950 | The best royalty trust performer in the last 3 years. Will continue to grow at 25% for the forseeable future. Has the longest reserve life. Low operating costs. Not expensive compared to other royalty trusts. About 7.5 X next year's cash flow. | 2005-06-01 | |
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| BUY | | TerraVest Income Fund | TI.UN-T | 14.600 | Pretty good little story. Not very well followed. Sold their holdings, but it's still a decent story. Had a pretty good quarter. | 2005-06-01 | |
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| WAIT | | StarPoint Energy Trust | SPN.UN-T | 18.900 | Energy trusts are looking pretty good on a valuation basis. Starpoint's model looks sustainable. Has some good assets. His only issue with this trust is that they just made 2 very big acquisitions and he wants to see them deal with this first and what their production is going to be. | 2005-06-01 | |
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| BUY | | Alcan Aluminum | AL-T | 38.300 | Getting to be interesting at these levels. Debt levels have improved since the spun off Novelis (NVL-T). The input costs which have been killing the company are not as serious as they once were. Valuation is around book value. | 2005-06-01 | |
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| TOP PICK | | Energy Savings Income Fund | SIF.UN-T | 17.060 | Feels they are going to be back on a growth trajectory of 15%. Have gotten into B.C., Alberta, Quebec, Manitoba and Illinois. They are now going into New York. | 2005-06-01 | |
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| DON'T BUY | | BCE Inc. | BCE-T | 28.550 | FDC just announced a 25% reduction in fees for high speed internet. A fight is brewing between the cables and telephone companies. It's going to be ugly. A pretty tricky area to be in right now. | 2005-06-01 | |
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| BUY | | Shoppers Drug Mart Corp | SC-T | 40.600 | A good defensive way to play this market. In a slowing economy a good holding. Prescription drugs will continue to grow. Doing a good job in upgrading their stores and products. | 2005-06-01 | |
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| TOP PICK | | Student Transport of America Ltd. | STB.UN-T | 14.000 | 5th biggest busing company in the US. Long term assets and recession proof. They are acquirers and expect they will make acquisitions this summer. | 2005-06-01 | |
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| HOLD | | Connors Bros. Income Fund | CBF.UN-T | 15.500 | Have been disappointed. Came in with a weak quarter. Input costs went up and tuna catches were weak. Doesn't look like the next quarter's going to be any better. Thinks they are having some integration issues. Still believes management is going to pull off the integration of acquisitions. | 2005-06-01 | |
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| DON'T BUY | | Manitoba Telecom Services | MBT-T | 46.700 | Has to fight off the cables on high speed internet, video, HDTV, VOiP. Also bought a long distance carrier which didn't look like a fantastic purchase. | 2005-06-01 | |
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| DON'T BUY | | Bombardier Inc (B) | BBD.B-T | 2.520 | Basically this is just a call option on the C series regional jet. Doesn't know if that jet will be made or profitable. | 2005-06-01 | |
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| BUY | | Labrador Iron Ore | LIF.UN-T | 24.000 | Feels there is still hidden value in this trust. | 2005-06-01 | |
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| BUY | | Reitmans (Canada) Ltd. (A) | RET.A-T | 14.900 | A great retailer. Has held in pretty well. | 2005-04-08 | |
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| SELL | | Pengrowth Energy Trust (B) | PGF.B-T | 16.500 | Royalty trusts have come down in valuation versus corporations, so they're looking somewhat better on a relative value. Tjis one is not a favourite. Has a higher payout ratio than a lot of the others so it has a somewhat higher cost base. Prefers trusts with a lower payout ratio so they can grow organically. | 2005-04-08 | |
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| TOP PICK | | Liquor Stores Income Fund | LIQ.UN-T | 17.000 | B.C. and Alberta liquor stores. Good cash cow. Very stable. A fragmented market and they can grow through acquisition. Just bought 13 stores at about 7.5 X EBITDA. They trade about 13 X EBITDA next year, so very accretive. Have 63 stores but have 350 on their radar screen. Distributions should increase. | 2005-04-08 | |
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| DON'T BUY | | Fairfax Financial | FFH-T | 172.660 | Property and casualty market on the commercial side has probably peaked out. Has sold off parts of its jewels Odyssey Re Holdings (ORH-N) and Northbridge (NB-T). That's always a negative when a company has to sell off its best assets. | 2005-04-08 | |
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| BUY | | Manulife Financial | MFC-T | 57.740 | One of his favourite financials. The integration with John Hancock is supposed expected to be done by October. This acquisition has made them more levered to the US$. Great footprint in Asia, US and Canada. | 2005-04-08 | |
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| BUY on WEAKNESS | | Potash Corp of Saskatchewan | POT-T | 108.640 | Feels it should continue to rise. It has tripled in the last year and a half, so be a little cautious. The stock might consolidate here for awhile. Potash price continues to be strong. Positive for the long term. Try to buy around $100. | 2005-04-08 | |
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| TOP PICK | | Talisman Energy | TLM-T | 42.000 | Cheap by oil producers' standards. Has a lot of offshore/international operations. Has been a great acquirer. Expects decent production growth. | 2005-04-08 | |
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| SELL | | Chemtrade Logisitics Inc. | CHE.UN-T | 15.110 | The sulpher business which is its main business is experiencing some competition from China and other international sulpher producers. Thinks it's going to have a tough time. | 2005-04-08 | |
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| BUY | | Atlas Cold Storage Income Trust | FZR.UN-T | 6.010 | Just bought some a month ago based on the new management which is squeaky clean. Although some areas of their operations are a little bit weak, they think they will come back. Have a high debt level and paying pretty high yields on that debt, so with the cash flows that are coming in they are going to pay down the debt for the rest of the year, so no distribution until next year. | 2005-04-08 | |
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| TOP PICK | | BFI Canada Income Fund | BFC.UN-T | 25.800 | Waste management is a pretty stable business. Good cash flow generator. Made a big acquisition in the US with a lot of paper in relation to the size of the income trust and the market is just trying to digest that unit issue and that has been keeping the price of the unit down. | 2005-04-08 | |
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| BUY | | Petro-Canada | PCA-T | 70.030 | Likes it. A good integrated play. Pretty cheap. Not a lot of production growth this year, but will see a some from its international side over the next few years. Margins on the mid-stream business are getting better. | 2005-04-08 | |
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| BUY | | Peyto Energy Trust | PEY.UN-T | 48.800 | Cream of the crop of the royalty trust area. The only one that's actually growing its production per unit, probably about 30% over the next year. Lowest finding and development costs. Low payout ratio. Has management ownership. | 2005-04-08 | |
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| DON'T BUY | | TKE Energy Trust | TKE.UN-T | 9.750 | A very small cap story, so they don't own it because there's a little more risk. A high yielding stock. Payout ratio might be a little higher than he would be comfortable with. | 2005-04-08 | |
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| DON'T BUY | | A Comment -- General Comments From an Expert | A Commentary | 11.860 | Has one of the higher payout ratios at 80%. A little higher debt at 1.6 X debt to cash flow. | 2005-04-08 | |
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| STRONG BUY | | Student Transport of America Ltd. | STB.UN-T | 12.320 | Was a Top Pick. Hasn't done very much, but it's held its own during the selloff. Very stable. Long contracts that tend to stay around. Passing through about 40% of the energy costs. Energy costs would be the one negative on the whole story. Expects the management to double the company in the next 5 years. | 2005-04-08 | |
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| BUY on WEAKNESS | | Suncor Energy Inc | SU-T | 46.710 | The Oil Sands stocks have had a great run. This one is probably the best operator in the Oil Sands. The best long term way to play the price of oil is an Oil Sands stock. May have moved up a little too high at this time. Wait for it to settle down a bit, maybe 10% lower. | 2005-03-16 | |
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| DON'T BUY | | Advantage Energy Income Fund | AVN.UN-T | 19.880 | Payout ratio and leverage are a little too high. Not trading at a discount to the group. Better royalty trusts available. | 2005-03-16 | |
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| BUY | | Peyto Energy Trust | PEY.UN-T | 52.800 | Cream of the crop in royalty trusts. Lowest finding and development costs. Highest reserve life. High management ownership. Growing production per unit which is pretty rare. | 2005-03-16 | |
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| DON'T BUY | | Calpine Power Income Fund | CF.UN-T | 10.950 | Doesn't own because of the parent company. Sell a lot of their power to the parent company Calpine (CPN-N) which has a low debt rating (about 80 which is junk) in the US. Doesn't want any risks of anything happening to the parent company. Would prefer a Transcanada Power (TPL.UN-T), Inter Pipeline (IPL.UN-T) Great Lakes Hydro (GLH.UN-T). | 2005-03-16 | |
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| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Feels that the income trusts in utilities, power, pipelines are more attractive than the corporations as you usually see very little growth, but with trusts you are getting an income. | 2005-03-16 | |
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| BUY | | A Comment -- General Comments From an Expert | A Commentary | 34.550 | Prefer this, Inter Pipeline (IPL.UN-T) or Great Lakes Hydro (GLH.UN-T) over Calpine Power Income Fund (CF.UN-T). | 2005-03-16 | |
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| BUY | | Great Lakes Hydro Inc | GLH.UN-T | 19.860 | Prefer this, Transcanada Power (TPL.UN-T) or Inter Pipeline (IPL.UN-T) over Calpine Power Income Fund (CF.UN-T). | 2005-03-16 | |
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| BUY | | Inter Pipeline Fund | IPL.UN-T | 9.240 | Prefer this, Transcanada Power (TPL.UN-T) or Great Lakes Hydro (GLH.UN-T) over Calpine Power Income Fund (CF.UN-T). | 2005-03-16 | |
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| DON'T BUY | | Viking Energy Royalty Trust | VKR.UN-T | 7.330 | Q: Viking (VKR.UN-T) versus TKE (TKE.UN-T). A: Has a little shorter reserve life. A turn around story which seems to be working. | 2005-03-16 | |
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| DON'T BUY | | TKE Energy Trust | TKE.UN-T | 10.750 | Q: Viking (VKR.UN-T) versus TKE (TKE.UN-T). A: TKE (Tusk) is a newer type of trust using a low payout ratio making it a more sustainable model, but it does have a low reserve life. | 2005-03-16 | |
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| BUY | | Shiningbank Energy Income Fund | SHN.UN-T | 21.800 | Have a large undrilled land base which means they can grow by the drill bit. Because of its size, growth by the drill bit is not as important as making acquisitions. A good play on gas. | 2005-03-16 | |
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| DON'T BUY | | Inco | N-T | 48.740 | Commodities have had a great run. Have 2 of the best nickel prospects with Goro and Voiseys Bay in the next few years. These will involve a high capital expenditure. Wouldn't jump in here after the big-run up they've had. There's a lot more growth in some smaller names. | 2005-03-16 | |
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| WEAK BUY | | Yellow Pages Income Fund | YLO.UN-T | 13.470 | Very stable and has a compeitive advantage. Not a huge grower. You won't get hurt on it. | 2005-03-16 | |
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| DON'T BUY | | General Motors Corporation | GM-N | 29.010 | A very ugly chart. Wouldn't average down if you own. Had its biggest loss in a quarter since 1992. Losing market share. | 2005-03-16 | |
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| WEAK BUY | | Canadian Tire Corporation Ltd | CTC-T | 80.580 | Have a lot of great real estate assets. Very strong brand that's held up in the face of very strong competition. Now own Mark's Work Wearhouse and are upgrading their stores. Doing a very good job. Looks a little pricey. | 2005-03-16 | |
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| BUY | | PetroKazakhstan Inc | PKZ-T | 48.800 | A low multiple stock because of country risk (Kazakstan). The story here is getting their transportation costs down which they have been doing. Huge cash flows. Sell-off is a buying opportunity. | 2005-03-16 | |
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| WAIT | | Cott Corp | BCB-T | 29.100 | About 45% of its product goes to Walmart, so levered to the growth of Walmart. There is some upside in that the share of private label is going up in Walmart and elsewhere. Input costs have gone up and have not been able to produce fast enough for the growth, so have outsourced the manufacturing. Haven't completely dealt with the costs issues yet. Wait to see if they get their margins in line. | 2005-03-16 | |
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| BUY | | Trimac Income Fund | TMA.UN-T | 11.250 | A newer trust that they recently bought. A very good trust. | 2005-03-16 | |
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| TOP PICK | | Home Capital Group | HCG-T | 36.240 | The most interesting stock in the financial area. In the alternative mortgages space which is a big niche market. Doubles its earnings every 9 quarters. Return On Equity (ROE) of 30% which keeps going up. | 2005-03-16 | |
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| TOP PICK | | Student Transport of America Ltd. | STB.UN-T | 12.400 | A school bus company. Very stable cash generator. Recession proof. Very low payout ratio. Keeps making tuck-in aquisitions for growth. Long term contracts with the school boards. | 2005-03-16 | |
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| TOP PICK | | Connors Bros. Income Fund | CBF.UN-T | 19.000 | Aggressive management has made a number of acquisitions recently, making the company #1 in a number of products. Low payout ratio. | 2005-03-16 | |
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| BUY | | Sunlife Financial | SLF-T | 38.730 | Leadership in the markets has probably moved from financials to energy and metals, however, this is a good little story. Trades at a discount to ManuLife(MFC-T). Has tons of excess capital and will be making acquisitions. Expects it to grow quite nicely this year. | 2005-03-16 | |
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| DON'T BUY | | Legacy Hotels | LGY.UN-T | 7.100 | Holds the assets that Fairmount Hotels (FHR-T) manages. Fairmount still has a number of assets that it will sell into the Legacy trust. Not a bad REIT for the hotel business. Has some stunning irreplaceable assets. Hotel business is a very difficult and unstable business. Higher Cdn$ means less US visitors and more Canadians going out of the country for vacations. | 2005-03-16 | |
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| DON'T BUY | | Pengrowth Energy Trust (A) | PGF.A-T | 25.030 | Feels that some of the cross-border trusts are a little over valued because of US players bidding them up. Payout ratio and operating costs are a bit high. | 2005-03-16 | |
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| BUY on WEAKNESS | | Shell Canada | SHC-T | 90.670 | Has had a very high return on equity historically. Has some nice recent gas finds. Has a huge oil sands play. Looks a little rich. Very well run company. | 2005-03-16 | |
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| BUY | | Peak Energy Services Trust | PES.UN-T | 9.400 | The gas services stocks usually are more volatile. They live off the gas price. Has come off because of a timing issue where some of the drilling has slowed down. Might be an interesting time to get in. | 2005-03-16 | |
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| DON'T BUY | | Stelco Inc | STE-T | 3.520 | A gamble. You're betting on what the courts are going to decide regarding a CCAA. | 2005-03-16 | |
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| DON'T BUY | | General Donlee Income Fund | GDI.UN-T | 3.500 | Basically an aerospace and industrial. Has had a tough time. Even with aerospace coming back it doesn't seem to be winning too many contracts. New CEO won't guarantee new contracts. | 2005-03-16 | |
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| BUY | | Canadian National R.R. | CNR-T | 74.600 | Q: Trade CNR (CNR-T) for CP (CP-T)? A: Likes both of the stocks but wouldn't trade. This is the best rail company in North America. Has the highest ROE and the best operating margins. | 2005-03-16 | |
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| BUY | | Canadian Pacific Rail | CP-T | 43.150 | Q: Trade CNR (CNR-T) for CP (CP-T)? A: Likes both of the stocks but wouldn't trade. Has more operating issues than CNR. | 2005-03-16 | |
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| BUY | | Alimentation Couche-Tard (B) | ATD.B-T | 18.750 | An excellent company. Made a huge acquisition in the US and seem to be doing a pretty good job. A very high cash flow and very high Return On Equity company. Levered up to make the acquisition but because they have such good ROE, the balance sheet gets fixed pretty quickly. | 2005-03-16 | |
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| BUY | | A Comment -- General Comments From an Expert | A Commentary | 24.490 | The purchase of the balance of Falconbridge is positive as that is where the cash flows are and where the copper and nickel productions are. Will be a much bigger company and new projects will be much easier to fund. Looks pretty cheap presuming the deal goes through. | 2005-03-16 | |
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| DON'T BUY | | Thomson Reuters Corp | TRI-T | 41.350 | Hasn't really performed over the last couple of years. Has really gone through such a change in the last number of years. Tough to figure out how fast this company can grow organically. A leader in on-line services on the legal side with Westlaw. Financial services is not as strong. Health and education comimg along but not as strong as Westlaw. All together, an organic grower of 4%. | 2005-03-16 | |
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| BUY | | Bonavista Energy Trust | BNP.UN-T | 29.100 | Any of the royalty trusts are expensive these days, but have been skated on side by high oil prices. This one is one of the very best of the roylaty trusts. Low payout ratio and has been able to grow by the drill bit. Lower reserve life than average. | 2005-01-27 | |
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| SELL | | Novelis Inc. (bought by Hindalco an Indian based compa | NVL-T | 27.610 | Alcan put a lot of debt into this company. This is not a way to play aluminum. A stable, low margin business. At 14 X earnings. | 2005-01-27 | |
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| TOP PICK | | Labrador Iron Ore | LIF.UN-T | 24.650 | Pays about 4%. Iron ore is going up in price. Steel went up 60% last year but iron ore only went up 20%. Should catch up this year. The company is expanding. Owns some hidden value in a private iron ore company that it doesn't receive any cash flow from. | 2005-01-27 | |
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| BUY on WEAKNESS | | TSX Group | X-T | 60.550 | Has moved up a lot. A play on Canada, but also a play on the income trust area as that is where a lot of the new issues are coming from. A lot of that has been factored into the stock. Looks a bit frothy at this point. | 2005-01-27 | |
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| BUY | | IPC US Income Commercial REIT | IUR.UN-T | 11.170 | Very few ways to play North American office space. 2 ways to play. O&Y REIT and this one. Thinks there will be a rebound in office space as occupancy goes up. The only issue is the US$. Thinks there is still decent growth in the story. | 2005-01-27 | |
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| TOP PICK | | Connors Bros. Income Fund | CBF.UN-T | 19.220 | Acquiring like crazy. Just made 2 accretive acquisitions in the last month. Have increased distributions in the last year and think they'll go up again. A low payout ratio at 75%. | 2005-01-27 | |
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| BUY on WEAKNESS | | Enerplus Resources Fund | ERF.UN-T | 47.340 | Has a very long reserve life. Asset base is distibuted over a wide variety of assets so risk is lower. Pretty good operating costs. The trouble with cross border trusts is that US buyers have gotten into them in a big way and bid up the price, so not cheap, but of all the cross border trusts, this is the only one they own. | 2005-01-27 | |
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| BUY | | Allied Properties REIT | AP.UN-T | 14.710 | A smaller real estate REIT and if you want to get any growth in REITs, you'll have to get into the smaller ones. Very successful in Toronto and now moving into Montreal. Riskier than a lot of the other REITs. | 2005-01-27 | |
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| DON'T BUY | | Paramount Energy Trust | PMT.UN-T | 17.490 | Got some back from the Alberta government over the closure of some of its properties. Not one of his favourites. Not growing organically. Pure gas play and a short reserve life. Still has to prove itself. | 2005-01-27 | |
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| TOP PICK | | Student Transport of America Ltd. | STB.UN-T | 12.550 | Pays over 11.5% distribution. A good type of company for an income trust as it spins a lot of cash and is recession proof. Contracts with school boards are pretty long term. Good price. | 2005-01-27 | |
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| BUY | | TransForce Inc. | TFI-T | 17.740 | The biggest trucking company in Canada and transportation is doing fantastically. Acquiring other companies that are having problems with costs on inflation, insurance or wages. Expect they will raise distributions. | 2005-01-27 | |
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