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| Michael Sprung of Sprung & Company Investment Counsel | |
|---|---|
Michael Sprung | |
| We are a discretionary investment counsel. Our sole responsibility is the preservation and growth of our clients' assets. Sprung & Co. builds and manages investment portfolios on behalf of clients. Our investment portfolios are custom tailored to individual circumstances. We do not recommend or sell anything except our services. As managers, we earn no revenues of any kind except client fees. Clients come to us because they have outgrown mass market products and want personal attention from intelligent, logic-based, trusted professionals. They demand value for their investment management fees — and that is what Sprung & Co. delivers. | |
| Suite 337, 366 Adelaide Street East | |
| Toronto ON | |
| M5A 3X9 | |
| 416-934-7160 | |
| Michael Sprung's website | |
| msprung@sprunginvestment.com |
| TOP PICK | Thomson Reuters Corp | TRI-T | 34.830 | (A Top Pick Feb 2/09. Up 17.4% not including dividends.) Was discounted more than appropriate during the downturn. Expect them to be very competitive. Great supplier of data but can also supply analytics for data in both legal and scientific fields. | 2010-01-27 | ||
| TOP PICK | Bank of Nova Scotia | BNS-T | 45.790 | At the beginning of the financial crisis, they seem to avoid a lot of the pitfalls that other banks fell in to. Didn't have a large exposure to the US. Beginning to get some headwinds in their Caribbean operations but have done very well in building a base in South America. A long-term core holding. Dividend yield of 4.3%. | 2010-01-27 | ||
| TOP PICK | Cenovus Energy | CVE-T | 24.750 | Has lagged the industry to a great extent and is becoming a compelling buy. Good production profile going forward. Downstream margins have not been strong but this company will participate in natural gas strength. | 2010-01-27 | ||
| PAST TOP PICK | Stantec Inc | STN-T | 27.650 | (A Top Pick Feb 2/09. Up 5.4%.) Engineering diversified in North American. Don't have construction risks. Involved in urban land development, buildings, roads and highways but also very much expanded into environmental practice. Excellent infrastructure play. Good price. | 2010-01-27 | ||
| PAST TOP PICK | Petro-Canada | PCA-T | 45.500 | (A Top Pick Feb 2/09. Up 30.2% Using Suncor (SU-T) prices.) | 2010-01-27 | ||
| PAST TOP PICK | Suncor Energy Inc | SU-T | 34.710 | Liked their merger with Petrocan. A dominant player in energy. | 2010-01-27 | ||
| DON'T BUY | Research In Motion | RIM-T | 68.180 | Stock has oscillated over the last several months because of concerns on competition. Too early to tell. Very strong in the business segment. Multiples are more reasonable than they have been but still not out of level that would interest him. | 2010-01-27 | ||
| Comment | Morneau Sobeco Income Fund | MSI.UN-T | 9.700 | Pension fund consultants and intermediaries. Developing into a full-service competitor with others in the industry. Not sure they will be able to maintain distributions at the same levels once they convert but this is a very good growth industry. | 2010-01-27 | ||
| Comment | Manitoba Telecom Services | MBT-T | 34.160 | Dividend is relatively secure. Not expecting a lot from them from a capital point of view. Growth prospects are limited. If you are just buying it for the yield, it is pretty safe. | 2010-01-27 | ||
| BUY | Bonavista Energy Trust | BNP.UN-T | 23.580 | Yield is just a little bit over 8%, which indicates it is probably not in jeopardy going forward. Recently raised over $400 million. Tend to hedge a fair amount of their production. Fairly steady cash flow. Well managed. | 2010-01-27 | ||
| BUY | Daylight Energy Trust | DAY.UN-T | 10.500 | Recently raised about $170 million and it is speculated that it is for acquisitions. Doesn't think the 9% yield is in much jeopardy. Well managed. | 2010-01-27 | ||
| BUY | Westshore Terminals Inc. | WTE.UN-T | 14.430 | At the moment they are in the right place at the right time. Oscillations in this stock are directly related to shipping of coal, particularly metallurgical coal. If you have an outlook longer than 2 years, this would be relatively safe. | 2010-01-27 | ||
| DON'T BUY | Nexen Inc | NXY-T | 22.960 | Development at Long Lake seems to continually be longer than hoped for but eventually it will come into production. Recently announced a $2.5 billion capital expenditure program, which is a good step. From a price valuation, he sees this in the middle of the field. He would like to see it 10%-15% lower. | 2010-01-27 | ||
| BUY | Viterra Inc | VT-T | 9.750 | Dominant grain handling in Canada. This is a call on agriculture. Anything under $10 is a good price. Stumbled on little with the Australian acquisition but longer-term this is a good fit for them. Allows them to diversify their seasonality and gives them a window on the Asian markets. | 2010-01-27 | ||
| BUY | North West Company Fund | NWF.UN-T | 17.900 | Northern community stores. One of the original trusts. Have a very good business model. Good company at a good price. | 2010-01-27 | ||
| Comment | Thompson Creek Metals | TCM-T | 12.560 | This is playing into the whole theme of how stable are commodity prices currently. Has been hit with a pullback in commodities in the last few days. Has very good sponsorship. Still too expensive for him. | 2010-01-27 | ||
| Comment | Canadian National R.R. | CNR-T | 55.930 | Canadian National (CNR-T) versus Canadian Pacific (CP-T) on a 4 or 5-year hold? A question he wrestles with all the time but currently he would put his cards with Canadian Pacific as he sees at benefiting from a recovery in commodities. CN is a benchmark railroad with the best operating ratio and are diversified throughout North America. | 2010-01-27 | ||
| BUY | Canadian Pacific Rail | CP-T | 54.410 | Canadian National (CNR-T) versus Canadian Pacific (CP-T) on a 4 or 5-year hold? A question he wrestles with all the time but currently he would put his cards with Canadian Pacific as he sees at benefiting from a recovery in commodities. CN is a benchmark railroad with the best operating ratio and are diversified throughout North America. | 2010-01-27 | ||
| BUY | Precision Drilling Corp. | PD.UN-T | 9.020 | Oil service industry has not been robust in the last couple of years but going forward it should be in a better position. Likes it going forward for the long-term but would like it cheaper than what it is. If you have a three-year outlook, you could buy it today. | 2010-01-27 | ||
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| BUY | Barrick Gold | ABX-T | 38.040 | As a value investor it has always been difficult for him to buy gold stocks. Likes this one and Goldcorp (G-T). This one is a benchmark and dominant player in the gold industry. Long-term fundamentals for gold against the US$ is good but you could see gold pull back. | 2010-01-27 | ||
| BUY | Timberwest Forest | TWF.UN-T | 5.050 | Forest product companies seem to have come alive again in the last couple of years. A number of large pension companies have been buying timber assets. Longer-term it is a good area to have exposure to. Looks a little expensive but if your view is long-term it could be a good place to be. | 2010-01-27 | ||
| BUY on WEAKNESS | Hudbay Minerals Inc. | HBM-T | 12.530 | (Market Call Minute.) Would buy if it pulled back a bit. | 2010-01-27 | ||
| BUY | Brookfield Asset Management (A) | BAM.A-T | 21.850 | (Market Call Minute.) If you are a long-term investor, it will do very well. Excellent management. | 2010-01-27 | ||
| HOLD | Bell Aliant | BA.UN-T | 26.740 | (Market Call Minute.) Growth prospects are minimal. | 2010-01-27 | ||
| BUY | Manulife Financial | MFC-T | 19.910 | (Market Call Minute.) Dominant player in the insurance business. Good price level. | 2010-01-27 | ||
| TOP PICK | Manulife Financial | MFC-T | 19.110 | Has been beat up lately. Not a lot of people on the street are in favour of it. Issued a lot of capital recently. They have a great cushion against adverse affects of equity markets if they should fall again. It is a great company, dominant in its industry. Earning scan go back to 2 or 2-1/2 over next couple of years. | 2009-12-22 | ||
| TOP PICK | Viterra Inc | VT-T | 9.740 | Thinks this is a compelling story. Purchased ABB in Australia and caused a pullback. Dominant in grain handling in both countries, exposure to Asian markets. Good balance sheet. Well run company. Diversified seasonal and weather risks. | 2009-12-22 | ||
| TOP PICK | North West Company Fund | NWF.UN-T | 18.580 | Value investors favour this. Outlets in rural and urban settings. In far north are the only game in town. Strong management and will be able to go through conversion, maintaining something close to the distribution. Insulated in retail world. | 2009-12-22 | ||
| PAST TOP PICK | Suncor Energy Inc | SU-T | 37.130 | (Top Pick Dec 19/08, Up 33%) It’s getting a little more respect nit he Gas patch. Good upstream and downstream exposure to the oils. Suspects we will see more and more M&A activity in the oil and gas patch. There are always some re-alignment of properties after a take-over. | 2009-12-22 | ||
| WEAK BUY | New Flyer Industries Inc. | NFI.UN-T | 9.980 | Public transportation should benefit from infrastructure spending. Eventually bus fleets will be replaced with more fuel-efficient vehicles. Long term you could be ok. | 2009-12-22 | ||
| PAST TOP PICK | George Weston Ltd. | WN-T | 65.990 | (Top Pick Dec 19/08, Up 10.8%) Sitting on a pile of cash. Loblaws seems to be turning the corner and bakery division is turning the corner and showing profits. The nice thing is that they are not rushing out to spend the cash. They are probably not willing to dividend out the extra cash as they are a family-owned company. | 2009-12-22 | ||
| PAST TOP PICK | Stantec Inc | STN-T | 30.830 | (Top Pick Dec 19/08, Up 9.7%) Over the next few years it has great prospects. SNC always looks extremely expensive. There are pockets in SNC that are overvalued. (Y) | 2009-12-22 | ||
| SELL | Research In Motion | RIM-T | 70.750 | Because he is in a value camp, this is always a difficult one for him to step up to. Perhaps there were opportunities earlier on. Build into RIM are expectations of future growth when smart phones are ubiquitous. Had big earnings this week. He would be tempted to take profits. | 2009-12-22 | ||
| BUY | Mullen Group Ltd | MTL-T | 16.100 | Always been a fairly well run company. During boom times they were having trouble hanging on to employees. They are a good company and have already converted from an income trust to a corp., so you don’t have to worry about the effects of that. | 2009-12-22 | ||
| BUY on WEAKNESS | Metro Inc (A) | MRU.A-T | 38.300 | He owns Weston. There is maybe a bit more run in Ontario, where they re-branded Dominion to Metro. Price has built in growth expectations, but if it pulled back 15% or so, he would take a serious look at it. | 2009-12-22 | ||
| BUY | Morneau Sobeco Income Fund | MSI.UN-T | 9.800 | Do a lot of consulting in the investment industry, which is a growth industry. They have been gaining market share within that growth. 9-1/2%, reasonable multiple. Distribution will not necessarily remain in tact during the conversion. | 2009-12-22 | ||
| BUY | Hudbay Minerals Inc. | HBM-T | 13.230 | Managers coming and going upsets shareholders. The mining operations appear to be quote good and stable, good cost-wise and good growth profile. | 2009-12-22 | ||
| BUY | Barrick Gold | ABX-T | 42.180 | Have not added to positions recently. Issue at Cortez mine will eventually be resolved in their favour (environmental). They are one of the lower cost producers. They are a dominant player in the industry. | 2009-12-22 | ||
| BUY | Agnico-Eagle Mines | AEM-T | 57.600 | Has pulled back with the other golds, but they came out with guidance that was less than what the investment community was looking for, but there are prospects of increasing the production over the next years in addition to what the market expects. | 2009-12-22 | ||
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| VAGUE | Bank of Montreal | BMO-T | 54.390 | Lot of people are asking if their money can earn more elsewhere than the banks. But more analysts are recommending BMO. 5% yield still. No compelling reason to get out. | 2009-12-22 | ||
| DON'T BUY | Manitoba Telecom Services | MBT-T | 33.420 | Dividend is safe for time being. Been well hit lately within telecom industry. Bell has had much better execution lately. | 2009-12-22 | ||
| DON'T BUY | Yellow Pages Income Fund | YLO.UN-T | 5.300 | Possibility of distribution being cut. Conversion soon. Market share being eaten up by Internet. Not a business model they like. | 2009-12-22 | ||
| BUY | Parkland Income Fund | PKI.UN-T | 13.220 | (Market Call Minute) Great execution. | 2009-12-22 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 11.050 | (Market Call Minute) Well run company | 2009-12-22 | ||
| HOLD | Daylight Energy Trust | DAY.UN-T | 10.090 | (Market Call Minute) | 2009-12-22 | ||
| HOLD | Canadian National R.R. | CNR-T | 56.660 | (Market Call Minute) Some appreciation in railways lately. | 2009-12-22 | ||
| BUY | Westshore Terminals Inc. | WTE.UN-T | 14.750 | (Market Call Minute) Will do well if you expect recovery to take hold | 2009-12-22 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | All along investors have been desperately seeking good news and are latching onto any news that is positive. People are trying to end on a positive note. Housing numbers were good, but we know there are still structural problem south of the border and there is a lot that could happen to upset that balance. Canada weathered the storm much better than a lot of other countries. People expect us to come out of the recession stronger. Politicians are worried about how fragile the recovery is at this stage still. He is relatively cautious. Markets were ahead of the fundamentals. Trying to buy more strategically. | 2009-12-22 | ||
| HOLD | Bell Aliant | BA.UN-T | 27.980 | Maybe peel a little profits off here. Dominant in their market but question is growth going forward. Wouldn’t worry in terms of downside risk. | 2009-12-22 | ||
| DON'T BUY | Ford Motor | F-N | 10.080 | Automotive has great deal of over capacity. Built to produce 16 million units in North America. Doesn’t know where market is going 10 or 12 million units. Hopefully we see a much better year next year. Consumer debt levels are high, especially in the US. We aren’t in for smooth sailing yet. | 2009-12-22 | ||
| BUY | Suncor Energy Inc | SU-T | 37.130 | Likes it and prefers it. Bit more diversified play on oil and gas industry. | 2009-12-22 | ||
| BUY | Just Energy Income Fund | JE.UN-T | 14.300 | Likes it. Valuation wise it is a little ahead of itself. Reliable cash flows, done well compared to competitors. Well run company. Keep in mind a cut in distribution upon conversion to corporation but that should be discounted at present. | 2009-12-22 | ||
| BUY on WEAKNESS | Aecon Group Inc | ARE-T | 15.100 | Done well lately within the infrastructure group. Announced a number of contracts. He owns Stantec because it only does the engineering, diversified throughout North America. But Aecon is a well managed company, a little expensive and could be bought during a pull back. | 2009-12-22 | ||
| DON'T BUY | Imperial Oil | IMO-T | 40.150 | One should not buy oil and gas on the speculation that they might be taken out. It should have happened when these things were crushed on price. IMO always sells at a premium because of assets they own. Very well run company, but it is expensive. | 2009-12-22 | ||
| WEAK BUY | Sherritt International Corp. | S-T | 6.610 | If embargo on Cuba were lifted, it would be beneficial. Their dependence on Cuba is not a great as it used to be. They have diversified. They are not an expensive stock. | 2009-12-22 | ||
| PAST TOP PICK | Sunlife Financial | SLF-T | 29.020 | (A Top Pick Nov 18/08. Up 29%.) Has done well but can go even further. 4.95% yield. | 2009-11-27 | ||
| PAST TOP PICK | Petro-Canada | PCA-T | 45.500 | (A Top Pick Nov 18/08. Up 91%.) Acquired by Suncor (SU-T), which he still owns. Lightened up a little. There will be a lot of opportunity. | 2009-11-27 | ||
| PAST TOP PICK | George Weston Ltd. | WN-T | 61.090 | (A Top Pick Nov 18/08. Up 0.5%.) 2.4% yield. A smart way to play the recovery in Loblaws (L-T). Extremely rich balance sheet with $4 billion or more in cash. Well priced. | 2009-11-27 | ||
| TOP PICK | Stantec Inc | STN-T | 26.590 | North American infrastructure company. Do the engineering work, not the construction work. Hurt last year because of their large exposure to land development, particularly in California, which has been dramatically reduced now. Have expanded their environmental engineering footprint. Well priced. | 2009-11-27 | ||
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| TOP PICK | Viterra Inc | VT-T | 10.620 | Gives you a window in the agricultural market without taking volatility risks. Made an acquisition in Australia that will help in the Asian market. Well priced. | 2009-11-27 | ||
| TOP PICK | Thomson Reuters Corp | TRI-T | 33.150 | Rising profitability over the next few years. Digesting of Reuters has been monumental but during the recession they held up on the legal and scientific areas. Will be coming out with new products in the new year on the financial side. | 2009-11-27 | ||
| Comment | Bonavista Energy Trust | BNP.UN-T | 21.000 | More than half the assets are in natural gas, which is where a lot of the problem has been. There is overcapacity in the gas market and pricing has not been great. Yielding over 9.1%. Have been fixing their balance sheet and have sold some properties. | 2009-11-27 | ||
| BUY | Encana Corp | ECA-T | 56.730 | Splitting their natural gas and oil assets into 2 separate companies on Dec 7/09. Expect this will be a good thing for investors. | 2009-11-27 | ||
| DON'T BUY | Home Capital Group | HCG-T | 40.550 | Issue mortgages were banks sometimes won't. Have done extremely well over the last little while. Fully valued at this time. | 2009-11-27 | ||
| HOLD | Precision Drilling Corp. | PD.UN-T | 6.940 | Has recently shown up on his radar screen. Selling at a modest multiple of what its normalized earnings would be. Looking attractive and potentially has some good upside. | 2009-11-27 | ||
| Comment | Harvest Energy Trust | HTE.UN-T | 9.870 | Being acquired by Korea National Oil. A lot of people are not happy with the price agreed to. | 2009-11-27 | ||
| HOLD | Manulife Financial | MFC-T | 18.490 | Cut the dividend and then followed up by issuing more shares creating a great deal of dilution. Management is trying to create a bulletproof balance sheet. Doesn't think they have entirely lost the potential upside in an improving market. 2.8% yield. | 2009-11-27 | ||
| BUY on WEAKNESS | Shoppers Drug Mart Corp | SC-T | 43.270 | Fixed a lot of operations so profitability continued to go up. Then reached the zenith and continued at a premium price is if the improvement profitability was going to continue. Rebates on generic drug products are falling and have to be made up on the front end of the store. Would like to see the price below $40. | 2009-11-27 | ||
| DON'T BUY | Jean Coutu Group (PJC) (A) | PJC.A-T | 9.270 | Have problems with Rite Aid in the US. Had difficulty in taking the franchise beyond the Quebec borders. | 2009-11-27 | ||
| DON'T BUY | Research In Motion | RIM-T | 61.450 | Year-to-date it is up about 24% but is being hammered recently. Trading at about 14X trailing earnings. Getting a lot of competition. Has always been dominant in the business sector. Too expensive for him. | 2009-11-27 | ||
| DON'T BUY | Davis & Henderson Income Fund | DHF.UN-T | 15.990 | Pay out about $1.84 in distribution and earnings per unit are around $2.20 giving them about an 80% payout ratio. Not sure they will be able to sustain the distribution. | 2009-11-27 | ||
| WEAK BUY | Pengrowth Energy Trust | PGF.UN-T | 10.200 | Fairly priced. A little over 8% yield. Have already addressed the distribution and are pretty well set up for 2011. Have oil, half gas. | 2009-11-27 | ||
| BUY | Crescent Point Energy Corp | CPG-T | 39.400 | Continues to fire on all cylinders. Have more potential drilling sites that could last over the next few years. Extremely well managed. Considerable upside left. | 2009-11-27 | ||
| DON'T BUY | Morneau Sobeco Income Fund | MSI.UN-T | 9.650 | Pension consulting, etc. is an expanding industry. However, they have a very high payout ratio so not sure their distribution will be sustainable post-2011. | 2009-11-27 | ||
| DON'T BUY | Brookfield Properties | BPO-T | 11.950 | One of the better managed property management companies. The big concern right now is commercial real estate and how sustainable leases will be in the current economic situation. Fully valued. | 2009-11-27 | ||
| DON'T BUY | Kingsway Financial Services | KFS-T | 1.500 | Made a lot of acquisitions, which had a lot of hidden liabilities. There is a strong possibility the company will not survive. | 2009-11-27 | ||
| BUY | Arc Energy Trust | AET.UN-T | 19.920 | (Market Call Minute.) Superbly managed trust. Good long-term hold. | 2009-11-27 | ||
| DON'T BUY | New Flyer Industries Inc. | NFI.UN-T | 9.770 | (Market Call Minute.) Bus industry is being hit with a lot of municipalities not able to afford to buy buses. | 2009-11-27 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 10.470 | (Market Call Minute.) Likes this company. | 2009-11-27 | ||
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| Comment | Fort Chicago Energy Partners | FCE.UN-T | 10.000 | (Market Call Minute.) Would prefer Inter Pipeline (IPL.UN-T) | 2009-11-27 | ||
| DON'T BUY | Air Canada (B) | AC.B-T | 1.290 | (Market Call Minute.) Airlines are difficult at the best of times, particularly in the environment we are in. | 2009-11-27 | ||
| TOP PICK | Manulife Financial | MFC-T | 22.480 | Stumbled very badly by taking on some risks that they failed to hedge. Since then they have taken dramatic steps to shore up their balance sheet as well as improve their capital position. Recently took more steps to decrease their sensitivity to equity market movements. | 2009-10-14 | ||
| TOP PICK | Talisman Energy | TLM-T | 19.730 | Has lagged the energy group. Change their business model and are now going for more of the unconventional play. Doing very well in the Montney shale gas play. Still have some very prime international assets. Sold some assets at good prices. | 2009-10-14 | ||
| TOP PICK | Stantec Inc | STN-T | 25.930 | A lot of consulting and engineering projects in North America but they don't take on construction risks. Have diversified away from urban land development and are much more into environmental engineering. Well placed across North America to participate in any infrastructure build out. | 2009-10-14 | ||
| PAST TOP PICK | Petro-Canada | PCA-T | 45.500 | (A Top Pick Oct 16/08. Up 107%.) (Now Suncor (SU-T)) A dominant player. Well diversified across gas, oil, oil sands, upstream, downstream. Will be the bellwether stock in the oil/gas industry. | 2009-10-14 | ||
| PAST TOP PICK | Thomson Reuters Corp | TRI-T | 34.580 | (A Top Pick Oct 16/08. Up 34%.) Still has quite a ways to go on the upside. Will be coming out with new products early next year. | 2009-10-14 | ||
| PAST TOP PICK | Bank of Nova Scotia | BNS-T | 47.070 | (A Top Pick Oct 16/08. Up 14%.) Extremely well managed. Always had a conservative approach to credit and that has kept him out of a lot of trouble. Facing a few headwinds in the Caribbean and South America but longer-term it is well managed. | 2009-10-14 | ||
| Comment | RioCan Real Estate Investment | REI.UN-T | 18.400 | Stocks are already beginning to price in the conversion factor on changing from trusts. There could be 30%-40% drop in payouts but as a REIT, it may not fall in this category. Commercial real estate is starting to be affected by perceived problems. (REITs are supposed to continue qualifying as Trusts so please check with your own advisor regarding this. Editor.) | 2009-10-14 | ||
| HOLD | Davis & Henderson Income Fund | DHF.UN-T | 14.220 | Have a relatively steady cash flow that is pretty dependable, which would be attractive to a lot of potential buyers. | 2009-10-14 | ||
| BUY | Livingston Int'l Income Fund | LIV.UN-T | 8.170 | Expecting trade between Canada and other countries to pick up. Have a lot of logistics in the cross-border movement of goods. Selling at an extremely cheap multiple. | 2009-10-14 | ||
| Comment | Precision Drilling Corp. | PD.UN-T | 7.110 | Recovered quite a lot from its lows. Partially a reflection on the increased activity in the oil services patch. This is a leader in this field. Outlook for the business is quite good but expect distributions could be cut. | 2009-10-14 | ||
| BUY | Bonavista Energy Trust | BNP.UN-T | 23.110 | Has moved up with the improvement of natural gas prices. This is a very volatile period for natural gas because of the large inventory and the discovery of huge new fields. If you believe in the longer term future for natural gas, this would be a good trust. 8.3% yield. | 2009-10-14 | ||
| PARTIAL SELL | FNX Mining Company | FNX-T | 11.630 | Outlook for nickel will define what happens with this company. Commodities have run ahead of themselves quite a bit so there is a danger of a small pullback in the near term but longer-term nickel will do quite well. If you own, consider reducing your holdings. | 2009-10-14 | ||
| DON'T BUY | Rogers Communcations (B) | RCI.B-T | 27.580 | There is some new competition coming in between now and 2011. With this threat, he could see the stock moving sideways or even down for the next little while. | 2009-10-14 | ||
| DON'T BUY | BCE Inc. | BCE-T | 25.370 | There is some new competition coming in between now and 2011. With this threat, he could see the stock moving sideways or even down for the next little while. | 2009-10-14 | ||
| DON'T BUY | Jean Coutu Group (PJC) (A) | PJC.A-T | 9.250 | Strong Canadian franchise but the US Rite Aid is still not performing very well and created a lot of write-offs so the book value has been diminished quite a bit. Multiple is on a par with Shoppers but Shoppers has much more substantial operations and successfully diversifying. Not to take it on the cheap. | 2009-10-14 | ||
| DON'T BUY | Chartwell Seniors housing | CSH.UN-T | 6.000 | Have cut the distribution and he thinks it was sufficient enough that there shouldn't be a problem. Operations haven't been performing as well as expected. Probably better places to be. | 2009-10-14 | ||
| Comment | Extendicare REIT | EXE.UN-T | 7.690 | If holding as a DRIP, is it a reasonable holding to continue with after 2011? If it is a core holding and you are going to keep it for the long term, this can make sense. If you are a trader, it is not worthwhile. A good way for a company to raise capital so he would expect more of them. | 2009-10-14 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 9.840 | If you have a long-term outlook, this is a good investment. Pipelines have steady cash flows. A growing industry he expects a lot of build-out in the next few years. | 2009-10-14 | ||
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| DON'T BUY | Finning Int | FTT-T | 17.050 | A dominant player in the heavy equipment sector and is diversified globally. Has done extremely well since March because of anticipation of the recovery being here. He is not so sure recovery will be that smooth. Longer term it is an extremely well managed company. 2.5% dividend. | 2009-10-14 |