STOCKCHASE

31.980

One of his largest holdings in the energy group. A dominant company in Canada. They are going down as the price of energy is going down. He would be buying it at current levels.

2010-08-25

BUY

Penn West Energy Trust

PWT.UN-T

20.330

Latest quarter was in line with expectations. It is one of the larger of the energy producer trusts. Thinks it will do quite well. Post change, distribution will be between $1.20 to $1.40.

2010-08-25

DON'T BUY

Yellow Pages Income Fund

YLO.UN-T

5.130

15.6% distribution but you don’t get a lot of capital gains. This is a company that is in a very tough business position. Directories were very profitable. They are diversified in on-line content but it takes a lot of volume to match what they got in print. This is not a business model that he wants to be in.

2010-08-25

PAST TOP PICK

Thomson Reuters Corp

TRI-T

36.280

(Top Pick Sep 02/09, Up 10% Total Return) With fears of recession and economic problems and slowdown in the markets, they have pulled back. But they are doing well in other fields – scientific and legal division. Profitability is slowly improving. He likes the formula of rising profitability and dominant player.

2010-08-25

PAST TOP PICK

Crescent Point Energy Corp

8.660

(Top Pick Sep 02/09, Down 6%) He thinks they will do extremely well in the next 1 to 2 years. Flooding in western Canada was a problem.

2010-08-25

HOLD

Vermilion Energy Trust

VET.UN-T

34.080

Thinks it is a very good company – well managed, well diversified. A good company. The problem is that they are expensive. He has never been able to step up to the plate.

2010-08-25

BUY

Canadian Oil Sands Trust

COS.UN-T

25.290

It is a long-term play. It’s going to take a long time to see real returns, especially where oil prices are. Over the next few years they will do well. Well managed. Significant tax pool so they should not have to reduce distribution as much as other companies would have to.

2010-08-25

DON'T BUY

Bell Aliant

BA.UN-T

25.350

BCE is the big one in the field. There was a question as to whether they would by BA. Their second quarter was a bit of a miss. People are looking at the conversion and wonder where the distribution will go to. This is a bit of an uncertainty. Would prefer BCE.

2010-08-25

HOLD

North West Company Fund

NWF.UN-T

21.090

It is a significant holding for him. People are looking for safety. They dominate communities where their stores are. Yield is not too bad. Suspects distribution will be tax adjusted. Well run company. They have franchise area for Giant Tiger. If it goes a few more dollars, they will be tempted to take profits.

2010-08-25

BUY

CPG-T

36.000

Has had a significant holding, rode it up and down. It is such a significant company in the shale and gas area. This is a company that could well go back through its highs. Extremely well managed. Maintained distribution through conversion and have enough tax pools to maintain it for a while yet. Sees production increases. A good buy at this price.

2010-08-25

BUY

Enbridge

ENB-T

52.700

Well run company. Despite oil spill, stock only took a little dip and was up again. I always looked a little pricey for him. This is a good company to have a position in. Would prefer to buy in low 40’s

2010-08-25

BUY

Morneau Sobeco Income Fund

10.400

Was ideally suited to be in the income trust model. Labs give a predictable cash flow. They did have some problems in radiology in the States. Second quarter was a little bit of a disappointment. Thinks distribution will be tax adjusted after conversion. A good long-term stock to own.

2010-08-25

HOLD

MSI.UN-T

9.350

Would continue to hold. More recent results disappointed market. Are a significant and growing player in the financial services sector. Distribution will have to be tax adjusted when they convert.

2010-08-25

BUY

Westshore Terminals Inc.

WTE.UN-T

17.960

Depends on coal market and on China to a large degree. Reasonable company to hold onto at this point in time. Distribution will have to be adjusted when they convert but it wont be a surprise to the market. Longer term this is a company that should continue to do well.

2010-08-25

TOP PICK

Encana Corp

ECA-T

28.150

Nat Gas is unusually inexpensive at the present. Inventories are full. Anything to do with Nat Gas has been punished. He sees it as compelling. Production could increase significantly (20%) over the next few years. Reasonable yield for a production company.

2010-08-25

TOP PICK

TSX Group

X-T

28.780

This is the leading market in Canada. They sell a lot of data to the markets. Some investor relations services. Thinks they look attractive..

2010-08-25

TOP PICK

Stantec Inc

STN-T

25.280

(Top Pick Sep 02/09, Down 8.3%) We are seeing a lot of volatility in engineering stocks. They depend a lot on ability of governments to spend money. If we fear another recession, then there may not be a lot of capital to do projects. But they are diversified into buildings and land. Still likes it. Diversified engineering company that does not take on a lot of construction risk, like a lot of its competitors. Broadened foot print in environmental engineering area. Over the next couple of years you will see more significant organic growth as well.

2010-08-25

TOP PICK

8.300

(A Top Pick Sept 2/09. Down 9%.) Australia market has been weaker than anticipated. Flooding in western Canada postpones profitability. Dominant player in agriculture in Canada and Australia.

2010-07-28

TOP PICK

Western Canadian Coal Corp.

33.040

Dominant player in the Canadian oil patch. Still digesting the Petrocan assets. What happens to energy will be reflected in this company. Operating problems affected the stock price. Expecting cash flows to go up significantly for the next few years.

2010-07-28

TOP PICK

Cogeco Cable

CCA-T

34.540

Punished severely for their exposure to Portugal assets but a lot of that has been written off. Have some very desirable assets in Canada. Cash flow positive.

2010-07-28

PAST TOP PICK

Stantec Inc

STN-T

24.610

(A Top Pick Sept 2/09. Down 11%.) A lot of stimulus spending for road construction/bridges didn’t happen as expected. Making acquisitions in the environmental engineering area, which will be their future. Very well positioned North American engineering company without any of the construction risks.

2010-07-28

PAST TOP PICK

Thomson Reuters Corp

TRI-T

39.700

(A Top Pick Sept 2/09. Up 20%.) Hoping to see it in the low $40's. Profitability lower than expected. New product launches will make them more competitive, particularly in the financial sector.

2010-07-28

BUY on WEAKNESS

Enbridge

ENB-T

50.530

Recent oil spill will put them in the penalty box but over all an extremely well run company. Would like to see it around $43-$45.

2010-07-28

Comment

Bell Aliant

BA.UN-T

26.030

May have to shave their 11.1% dividend a little when they convert to a corp. Pretty much locked into their area but recent results indicate they have not lost as much in land lines as other telephone companies. Have also held their own in wireless and in adding other services.

2010-07-28

Comment

Superior Plus Corp

SPB-T

13.400

11.8% dividend should be safe for the next couple of years. Not sure he can see any long-term stability in the business model. Doesn't show up on his radar screen from a valuation perspective.

2010-07-28

HOLD

Inter Pipeline Fund

IPL.UN-T

12.730

Yield of almost 7% is not in any immediate jeopardy. Have some growth ahead of them. Last quarter was in line. Corridor expansion is on track.

2010-07-28

Comment

WTN-T

4.150

Coal market is centred on what is happening in China. Any threat of China slowing down worries him that coal is going to suffer. If you believe in the long-term outlook for steel, demand for coal is going to remain robust. Little too volatile for him.

2010-07-28

DON'T BUY

Yellow Pages Income Fund

YLO.UN-T

5.730

Fundamentals in this industry are changing rapidly. Recent results shows revenue from hard copy is very sensitive to the economic climate. For each $1 they lose in hard copy, they have to get a lot more online advertising to raise the same amount of revenue. Relatively high payout ratio.

2010-07-28

DON'T BUY

Canfor Pulp Income Fund

CFX.UN-T

13.670

Has done extremely well with the revival in pulp. Was getting a little bit pricey and has come off recently. Also slowing market has affected it. Still too expensive.

2010-07-28

BUY

Consumers Waterheater Fund

9.650

Has been waiting for this one to get to $10, which is a compelling valuation. Can earn in the neighbourhood of $1.20 in the next couple of years. 11.2% yield

2010-07-28

BUY on WEAKNESS

Linamar Corp

LNR-T

18.050

Tend to do more precision type auto parts and end up being a sole supplier at times. Have been hurt by their acquisition of Skyjack several years ago. Would like to see it at around $16.50-$17.

2010-07-28

BUY

Just Energy Income Fund

JE.UN-T

13.100

Extremely well run. Acquired Hudson Energy recently and their market share has been increasing. Recently did a successful convertible debenture issue. Will have to tax adjust the payout of 9.5% on conversion.

2010-07-28

DON'T BUY

Bank of Montreal

BMO-T

62.570

(Market Call Minute.) Not his favourite bank at the moment.

2010-07-28

BUY

Teck Resources Ltd. (B)

TCK.B-T

35.380

(Market Call Minute.) Has come off enough that it is beginning to look attractive.

2010-07-28

DON'T BUY

Research In Motion

RIM-T

57.550

(Market Call Minute.) Everybody is hoping that a new product will be coming out soon. Can continue to be a profitable company even though they are losing market share. Coming down to multiples that he can begin looking at it but still a little too rich.

2010-07-28

DON'T BUY

CWI.UN-T

4.650

Has been a disappointing holding. Have had higher customer retention problems than anticipated. Earnings hadn't come through as expected. Current valuation is compelling but if it went over $5 he would consider selling his holdings.

2010-07-28

BUY

Bonavista Energy Trust

BNP.UN-T

24.120

Weighted to natural gas. Current 7.9% yield indicates it is not an excessive payout at current levels. Expect the same level, on a tax-adjusted basis, when they convert to a corp. Very strong management.

2010-07-28

BUY on WEAKNESS

Manulife Financial

MFC-T

15.700

Long-term this company will survive and prosper. Extremely strong balance sheet and its reserve ratio is amongst the highest in Canada. However, it is fairly sensitive to what happens in the equity market. Lifecos will start reporting in the next week or so and he is possibly expecting some bad news on this one, which could create a buying opportunity.

2010-07-28

HOLD

Pengrowth Energy Trust

PGF.UN-T

10.030

In anticipation of the conversion to a corp. so they 8.3% yield is probably sustainable. Expect they have a lot of tax pools to shelter them. Well run company with a lot of drilling opportunities ahead. Pretty much 50/50 oil and gas.

2010-07-28

BUY

Thompson Creek Metals

TCM-T

9.410

Molybdenum. Likes this one and is getting into range where he is considering buying. Profile is good for considerable earnings expansion. $.38 last year, which could go up to $1 in the next couple of years if molybdenum market holds in. Recent acquisition was good.

2010-07-28

TOP PICK

Consumers Waterheater Fund

7.090

(A Top Pick Sept 2/09. Down 22.3%.) Ran into some headwinds lately, particularly in Australia where margins have not been as high as had been hoped for. Last year's Australian acquisition balances them seasonally for grain handling. Won't be as volatile as a pure fertilizer play.

2010-06-30

TOP PICK

Manulife Financial

MFC-T

15.450

Market is not giving this company the credit it deserves. Have made significant progress over the last couple of years in shoring up their balance sheet. Operate in 22 countries. Much stronger capital base so their equity products are not at as much risk. Can see earnings coming back at the $2 level in the next few years.

2010-06-30

TOP PICK

Talisman Energy

TLM-T

16.100

About 50/50 gas and oil. Have been selling their non-core assets and have a strong balance sheet. Going more and more into unconventional plays. Most recent success has been in the shale fields. Expect their cash flow could be going up $3.50-$4 over the next couple of years.

2010-06-30

PAST TOP PICK

Thomson Reuters Corp

TRI-T

38.100

(A Top Pick Sept 2/09. Up 16%.) Recently announced new products. Enhanced their legal product, one of the strongest in the field. New products in the financial area will be very competitive. ROE is rising. Still a buy.

2010-06-30

PAST TOP PICK

Stantec Inc

STN-T

23.580

(A Top Pick Sept 2/09. Down 14%.) Infrastructure play. Came off lately because people are worried about the state and municipal finances. Have diversified away from land development projects and are more involved in environmental engineering. Not involved with construction risks. Still a buy.

2010-06-30

DON'T BUY

Yellow Pages Income Fund

YLO.UN-T

5.960

Market share is being eaten away by other sources. Have been trying very hard to move into the wired world but for every $1 they gain, they lose more on their print side. With industry changing in a fundamental way, you have to be careful. 13% distribution could be at risk.

2010-06-30

Comment

CWI.UN-T

4.640

He inherited a small bit through new accounts and has been reluctant to get rid of it as he perceives more value in the company than the current price is reflecting. Have suffered from higher costs and a fair amount of attrition in the customer base. More reasonable price would be $5.50, where he would sell.

2010-06-30

HOLD

Maple Leaf Foods

MFI-T

8.970

Teachers pension board want to fight the poison pill in order to allow a possible bidding war. Compelling at current prices. Until the Teachers’ holdings of about 35% are gone, there might not be a lot of appreciation in the stock.

2010-06-30

DON'T BUY

Cameco Corporation

CCO-T

22.640

Key is uranium. Had problems at Cigar Lake last couple of years but have made progress in clearing it up. Hoping for production by October 2013. Doesn't look unreasonably priced for a longer-term view but not cheap.

2010-06-30

BUY on WEAKNESS

Inmet Mining

IMN-T

42.150

Under performed relative to a lot of the other base metal companies. Starting to show up on his radar screen. Under $40 could be compelling. Base metal prices have pulled back a lot. Until base metals have a better market, there won't be a lot of lift in the stock.

2010-06-30

WAIT

Harry Winston Diamond Corp.

HW-T

13.090

Had a disappointing 1st quarter but retail sales were looking at little better. A “wait and see” stock. Earnings forecasts make it look expensive.

2010-06-30

DON'T BUY

Manitoba Telecom Services

MBT-T

26.910

People are worried about sustainability of the dividend. Had weak results from their Allstream division and debt levels have been rising. Would prefer others.

2010-06-30

BUY on WEAKNESS

Research In Motion

RIM-T

52.330

(Verizon (VZ-N) announced they are going to start carrying Apple (AAPL-Q) as well.) A dominant player in the business segment. As a value player, this stock would typically be out of his realm but is now getting to a price that reflect normal multiple's earnings growth pattern is not as high as it once was. Would be interested at $45.

2010-06-30

BUY

Arc Energy Trust

AET.UN-T

19.730

About 50/50 natural gas and oil. One of the better managed energy trusts. Doesn't have the yield that a lot of other trusts have because you are paying for quality. Good balance sheet.

2010-06-30

BUY

Fortis Inc.

FTS-T

27.180

Big utility. A little expensive for him right now. Expected to earn around $1.60-$1.65 in 2011 but on a price to cash flow basis, the dividend is extremely well covered. If you like the yield, it is not a bad place to be.

2010-06-30

DON'T BUY

Bell Aliant

BA.UN-T

25.430

When they convert the dividend will be less than the current distribution. Not sure where their growth is going to come from. Relatively solid cash flow. Prefers others.

2010-06-30

HOLD

9.930

A little distress currently because of negotiations with radiologists in their US operations. Distribution will be a little less when they convert. Lab operations are steady with consistent cash flow.

2010-06-30

WEAK BUY

Pengrowth Energy Trust

PGF.UN-T

9.730

About 50/50 split between oil and gas. Distribution is now at a level where it is sustainable. In unconventional but long life assets. Have a lot of drilling opportunities ahead of them.

2010-06-30

DON'T BUY

Yamana Gold Inc.

YRI-T

10.920

Not a compelling price for him. Wants a good growth profile and low operation cost when looking at gold. His favourite is Goldcorp (G-T) followed by Barrick (ABX-T).

2010-06-30

STRONG BUY

A Comment -- General Comments From an Expert

31.330

Likes the longer-term fundamentals for energy and this one is a dominant player in Canada. Good value at current levels. Could see earnings going up through $2 over the next year or two and cash flows approaching $6 a share.

2010-06-30

BUY

Penn West Energy Trust

PWT.UN-T

20.300

(Market Call Minute.) One of the more dominant trusts in its field. Well priced and the yield is reasonable.

2010-06-30

DON'T BUY

Shoppers Drug Mart Corp

SC-T

32.920

(Market Call Minute.) Being hit by the generic rules in Ontario, which will spread across Canada and hurt them in the short term.

2010-06-30

DON'T BUY

Osisko Exploration Ltd.

OSK-T

11.480

(Market Call Minute.) Speculation that they are a likely candidate to be taken out. Looks a little expensive.

2010-06-30

N/A

A Commentary

0.020

It’s a difficult market to find things you want to buy, but some things are getting down to prices where you want to buy. There are going to be more and more opportunities for people with a 3-5 year horizon. If prices go up substantially in the short term it is time to take money off the table.

2010-06-02

BUY

9.940

Been under a fair amount of pressure primarily due to their US activities. In Canada they will possibly be affected by the HST. Distribution likely to be cut to $0.60 cents or so when they convert to a corporation. The lab business is a steady generator of cash flow. This one was always a good model for an income trust. Feels in the future more and more will be outsourced in healthcare. He thinks it is attractive at $10

2010-06-02

DON'T BUY

Royal Bank

RY-T

55.080

We had a mixed bag of earnings. Banks were doing well in retail. Wholesale did not have a lot of IPOs. On a long-term basis. They are all selling on about 11 times forward earnings. Would prefer a different bank right now.

2010-06-02

WEAK BUY

Rogers Communcations (B)

RCI.B-T

36.790

Market leader. Balance sheet is very, very good. Do throw off a lot of free cash flow. In a very competitive environment. Thinks they will hold their own within that environment. Reasonably profitable. Could see some dividend increases in the near future.

2010-06-02

Comment

Westshore Terminals Inc.

WTE.UN-T

17.070

Just recovered from near death over the last couple of years. He’s worried about the integrity of the economic recovery in general.

2010-06-02

BUY on WEAKNESS

Manulife Financial

MFC-T

17.830

Very, very exposed to what happens in the equity markets. Longer term, it will prove to be a good investment, especially from these levels. Don’t look for return if time horizon is less than 2 years.

2010-06-02

PAST TOP PICK

7.530

(Top Pick May 27/09, Down 15.87%)

2010-06-02

PAST TOP PICK

Shaw Communication (B)

SJR.B-T

19.320

(Top Pick May 27/09, Up 24.10%)

2010-06-02

PAST TOP PICK

Sunlife Financial

SLF-T

30.800

(Top Pick May 27/09, Up 16.90%)

2010-06-02

TOP PICK

Armtec Infrastructure Income Fund

7.530

[Was past pick] Sometimes a pick goes down and you have to reassess. It’s now a better buy that it was. There are some things that delayed their earnings potential. There have been weak wheat prices. Earnings will be less this year than he had anticipated they would be, but they will be a dominant player in Canada in the agriculture business, especially in grain handling. Stock has more than pulled back.

2010-06-02

TOP PICK

Bank of Nova Scotia

BNS-T

50.820

Beat earnings. Good retail. Wholesale held up better than some of the other banks. It is one of the better managed of the banks. They have a very strong credit discipline. Biggest risk is the economy – international exposure.

2010-06-02

TOP PICK

TSX Group

X-T

27.560

A recent purchase. It has pulled back because of long term concern over their holding on to their share of the market. But the TSX will remain the preferred exchange. Their derivative trade is expanding. Good dividend that is well covered.

2010-06-02

BUY

ARF.UN-T

22.520

Infrastructure. Announced a conversion to a corporation effective Jan 1st. Should pretty much be priced in to the stock price. Company has been doing pretty well. Good price.

2010-04-27

BUY on WEAKNESS

Agrium

AGU-T

61.520

Working down to its 200 day moving average of about $60. Fertilizer plays seem to be extremely volatile. This one is now getting into a territory where you can begin to look at it. Would prefer it 15% or so lower. (See Top Picks.)

2010-04-27

Comment

Canadian Oil Sands Trust

COS.UN-T

30.490

A lot of the energy related areas are being affected by the pullback in the commodity price. This one is a long-term play and you have to be extremely patient with it. There is also the adjustment coming when they convert to a corporation.

2010-04-27

HOLD

Just Energy Income Fund

JE.UN-T

13.550

Dividend will be adjusted when they convert to a corp and this should be built into the price now. Geographically diversified with fairly consistent cash flows. Good long-term investment.

2010-04-27

BUY

Goldcorp Inc

G-T

41.670

European financial distress could lead to a lower euro and a higher US$. How would this affect gold? When the US$ is strong, gold consistently pulls back but ultimately it will become more of a hedge. Every portfolio should have some positioning to gold. This company has good production profile and is a low-cost producer.

2010-04-27

HOLD

Pengrowth Energy Trust

PGF.UN-T

11.660

Evenly split between oil and gas. Very good properties and fairly consistent management. As these companies convert to corporations, there will be a lot of M&A activity.

2010-04-27

BUY on WEAKNESS

Arc Energy Trust

AET.UN-T

22.060

Excellent properties and have increased their exposure to the Montney. Announced increased CapX. Recently raised $250 million quite easily to acquire more properties. Would like to see it 10%-15% lower.

2010-04-27

HOLD

Consumers Waterheater Fund

CWI.UN-T

5.380

Not done too well, particularly against Just Energy (JE.UN-T). Erosion in their customer base through competition but seem to have stemmed that and come back a little. Expect distribution will be cut when they convert.

2010-04-27

HOLD

Parkland Income Fund

PKI.UN-T

11.650

Recently acquired more fuel distribution facilities, which had a heavier component of diesel sales. Credit facility has been expanded by the banks up to $400 million.

2010-04-27

TOP PICK

8.740

Agriculture industry has slowed down and wheat prices have been weak and they make a lot of their money through grain handling. Australian acquisition had a few bumps but they have straightened this out. Current weakness is a good buying opportunity. Very cheap.

2010-04-27

TOP PICK