STOCKCHASE

Morneau Sobeco Income Fund

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

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

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

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

19.910

(Market Call Minute.) Dominant player in the insurance business. Good price level.

2010-01-27

TOP PICK

New Flyer Industries Inc.

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

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

Morneau Sobeco Income Fund

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

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

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

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

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

Jean Coutu Group (PJC) (A)

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

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

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

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