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| Michael Sprung of Sprung Investment Management | |
|---|---|
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. | |
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| PAST TOP PICK | CAE Inc | CAE-T | 11.010 | (A Top Pick Jan 14/11. Down 7.99%.) | 2012-01-23 | ||
| BUY | Canadian Pacific Rail | CP-T | 71.460 | Believes there is room to move their operating ratios to be closer in line with Canadian National (CNR-T). Believes the proxy battle that is currently taking place is a real boon to investors. Trading at only 3.2X book value. | 2012-01-23 | ||
| TOP PICK | Encana Corp | ECA-T | 19.000 | Severely undervalued. Natural gas prices have created a selloff, which he feels has been overdone. Nice dividend. Have some of the best properties in North America for natural gas resource development. Well-managed. 3-5 year outlook for this. | 2012-01-23 | ||
| Comment | Finning Int | FTT-T | 27.370 | Very much dependent on capital projects going on globally. Just need an accretive acquisition in equipment distribution from Caterpillar (CAT-N). If you believe expanding economies are going to continue to accelerate growth this company will continue to do well. | 2012-01-23 | ||
| PAST TOP PICK | Goldcorp Inc | G-T | 45.690 | (A Top Pick Jan 14/11. Up 14.63%.) | 2012-01-23 | ||
| Comment | Kinross Gold | K-T | 10.750 | Everyone should have a position or some exposure to gold. Relative to its peer group, it is beginning to look like as if it has got a bit of value built into it. Biggest problem has been the possible write-down their Tasiast mine in Mauritania. This one is getting into range that he could be looking at it. | 2012-01-23 | ||
| TOP PICK | North West Company | NWC-T | 19.920 | Retailer in northern communities. Delivers fairly consistent results even in today's environment. | 2012-01-23 | ||
| BUY | Precision Drilling | PD-T | 9.670 | There is a large cutback in the natural gas drilling which has had an effect on the stock price. Represents pretty good value at under $10 and could be well up in the mid teens in the next few years. | 2012-01-23 | ||
| HOLD | Suncor Energy Inc | SU-T | 34.220 | Up about 15% from the beginning of the year. Possesses some of the best properties in the oil/gas sector. Traditionally has sold at a discount to the group. Have got a premium valuation for some of the assets they have sold off. Certainly sees upside over the next number of years. | 2012-01-23 | ||
| TOP PICK | Viterra Inc | VT-T | 10.320 | Doesn't feel the market appreciates the structural changes that are going on in the industry with the demise of the Canadian Wheat Board. Expect that grain handling margins will be going up because of this. Lately there have been stronger fertilizer volumes. | 2012-01-23 | ||
| Comment | Thomson Reuters Corp | TRI-T | 29.200 | Keep hitting a number of headwinds, not the least of which is the financial crisis of 2008, which slowed down sales. | 2012-01-23 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Canadian banks? A lot of people have been buying for dividends in the last year or so and have been looking for companies that can grow and sustain dividends. The banks still fall into this framework. There are some headwinds coming up including basil 3 with their capital requirements banks will have to put up. Overall they are in a relatively good shape. Good for people that are looking for long-term holds. | 2012-01-23 | ||
| DON'T BUY | Tim Hortons | THI-T | 49.030 | Valuation has appreciated over the last year or so and he considers it as fully valued now. Not a great deal of capital appreciation if you buy now. | 2012-01-23 | ||
| PAST TOP PICK | Cenovus Energy | CVE-T | 36.580 | (A Top Pick Jan 14/11. Up 16.35%.) | 2012-01-23 | ||
| DON'T BUY | Agnico-Eagle Mines | AEM-T | 37.690 | Had a little bit of problem in Meadowbank, one of their projects but seem to be straightening it out. Production profile looking out over the next few years he can’t see the same amount of new production coming as some of their competition. All of the mining companies, particularly the gold, have been hit on the costs side. This wouldn’t be his first choice. | 2011-12-19 | ||
| BUY | Aecon Group Inc | ARE-T | 10.350 | Have had some changes in management and have been making some good improvements in their operations. Have realigned some of their operations. Industrial side has not been doing too well but they work they do in infrastructure as being good or better than expected. Good price. (See Top Picks.) | 2011-12-19 | ||
| BUY on WEAKNESS | BCE Inc. | BCE-T | 40.630 | Had a lot of good things going for them lately. Over the last couple of years, management has really demonstrated some solid improvements. In the last quarter there have been some good cost controls in effect. Losses in the wire line side were not as bad as expected. Expansion into fibre optic TV is offering a competitive alternative to some of the cable areas. Have consistently increased their dividend over the years. Good core holding for anyone with a long-term perspective. Currently the valuation is a little bit rich. Would prefer it at $36. | 2011-12-19 | ||
| BUY | Progressive Waste Solutions Inc | BIN-T | 19.200 | There is a great deal of consolidation in waste management. What they have done, which is very, very smart, is expanding in areas contiguous with the areas where they already have operational efficiencies. Good entry point, but you will have to be patient with this stock. | 2011-12-19 | ||
| PAST TOP PICK | CAE Inc | CAE-T | 9.740 | (A Top Pick Jan 14/11. Down 18.38%.) He is looking to buy more. People have lost faith on the military side of their business, which is about half their business. Civil side has been picking up a bit. There are a lot more aircraft being ordered and their training programs are going to expand going forward. Have broadened out a little into the healthcare sector. | 2011-12-19 | ||
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| Comment | Cascades Inc | CAS-T | 4.040 | Longer-term prospects are very good. Input costs have been getting higher and their ability to pass on the costs in the current market has been limited. However it is getting to a price level where he is watching it. | 2011-12-19 | ||
| HOLD | Encana Corp | ECA-T | 18.560 | On a longer-term basis, this is extremely undervalued given the properties they own but with gas selling in the low $3 the stock price is reflecting this. One of the best positioned companies to take advantage in the event of a turnaround in gas prices. | 2011-12-19 | ||
| Comment | Enerplus Corp | ERF-T | 24.770 | Have made some improvements in operations in the last year or so, especially in some of the smart metering that they are getting into over the longer term. That is supposed to help them. Relative to their earnings, the dividend is at a fairly high payout ratio so there is a question if they can stay at current levels. | 2011-12-19 | ||
| PAST TOP PICK | Goldcorp Inc | G-T | 46.140 | (A Top Pick Jan 14/11. Up 17.47%.) Likes companies that have a good roster of projects going forward that are in development that could come on stream. Production should grow from 2,600,000 ounces a year to over 3 million over the next few years. Very efficient and well managed company. | 2011-12-19 | ||
| WATCH | Kinross Gold | K-T | 12.080 | Have a big bet that they have made in Africa and there are some concerns with regards to cost escalations but also how much it is going to be to develop the site. If successful, it has potential to be a big success. With the pullback in the price of gold and the inflation and worries about costs estimates to develop the mine, the stock has pulled back. Too high a risk. | 2011-12-19 | ||
| TOP PICK | Manulife Financial | MFC-T | 10.250 | This is a stock that no longer seems to get any respect, yet over the last 2 years, management have done a great deal to de-risk the company, hedge the exposure to interest rates and equity markets. Have also redesigned a lot of their product mix, which makes him less risky than a lot of their previous products. Continuing to expand on a global basis. | 2011-12-19 | ||
| BUY | Precision Drilling | PD-T | 9.670 | Has pulled back significantly in price and represents extremely good value. Expects to see drilling activity pick up over the next 6 months or so. Day rates are getting better for drilling equipment. | 2011-12-19 | ||
| DON'T BUY | Jean Coutu Group (PJC) (A) | PJC.A-T | 13.320 | Has gone a long way to straightening out some of the difficulties they were having in the US. Still own a little bit of Rite Aid but have been fixing in terms of monetizing in order to reduce their exposure. All the alien drug companies have been faced with provinces’ handling of generic drugs. Last quarter was a little bit weak. Same-store sales were okay but margins on some of the sundry items were not as high as he would have liked. This is reflective of the competitive environment out there. He would prefer Shoppers (SC-T). | 2011-12-19 | ||
| Comment | Potash Corp of Saskatchewan | POT-T | 39.980 | With any commodity stock, there is no telling where the bottom can be. Potash pricing has been fairly flat. There has been more and more M&A activity taking place in potash. With this one, you are playing a one commodity bet. As the potential to do very well, but also the potential to be weighed down for the time being. | 2011-12-19 | ||
| Comment | Power Financial Corp | PWF-T | 24.810 | Primary components are Paraba (?), Great West life (GWO-T) and Investors Group. What drives this company's price is the outlook for great West life and investors group. Selling at reasonable multiples to earn 13%-15% return on equity. Yield is about 5%. Not a bad place for a longer-term investor. | 2011-12-19 | ||
| DON'T BUY | Just Energy Group | JE-T | 10.700 | Have been looking for areas with more growth prospects and searching for new products and distribution channels. Their customer and the turnover has been of some concern to investors. Carrying an extremely high yield and there is some question whether the dividend is sustainable. | 2011-12-19 | ||
| BUY | Viterra Inc | VT-T | 10.370 | With the government planning to scrap the wheat board, will this benefit companies like this? This company will be one of the prime beneficiaries if the wheat board is disbanded. They are already one of the main grain handlers. Into agro products in Canada and Australia. Very attractive price. | 2011-12-19 | ||
| DON'T BUY | Transalta Corp | TA-T | 20.480 | Not certain that it has found its bottom yet. Have had some well-known problems over the last year or 2, which is pretty much discounted in the stock. Not sure what the catalyst is to move the price up again. Management has not delineated to investors’ satisfaction what they plan to do to improve the earnings profile. | 2011-12-19 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets. Going into this year, his perception was that the markets were a little bit ahead of fundamentals. We have now seen the correction but have also seen the problems begin to build, whether they wear the European problems or the political intransigence that we have seen in the US. Those problems are going to continue to follow us through into 2012. This is created a lot of volatility in the market and it has been hard to make money. For a longer term focus, it has been a relatively good time to upgrade the quality of the holdings in your portfolio. | 2011-12-19 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gold. He tends to invest through producers rather than bullion. Even as a value investor, he feels there is a good place for gold as a bit of a hedge in your portfolio. He would keep 5% to 10% at most. Longer term, there is room for the gold price to move up again. | 2011-12-19 | ||
| PARTIAL BUY | Silver Wheaton | SLW-T | 29.390 | Not sure that it will fall into much more. We have seen a retreat in a lot of the materials stocks. Reaching a point where it can be looked at as a possible entry point and start to accumulate a position. | 2011-12-19 | ||
| BUY | Brookfield Asset Management (A) | BAM.A-T | 27.330 | Extremely well managed. What has been holding the stock back recently is the general economy. Fairly well diversified play with interests in Brookfield Properties (BPO-T), Brookfield infrastructure as well as their own entities. Attractive price. | 2011-12-19 | ||
| TOP PICK | Churchill Corporation (The) | CUQ-T | 10.900 | Has pulled back to the extent that it is selling at quite a severe discount relative to its peers. A lot of this is because they have been coming off a lot of high-margin projects. Backlog has been building but in lower margin projects. Extremely well managed. | 2011-12-19 | ||
| TOP PICK | Alliance Grain Traders Inc. | AGT-T | 19.250 | One of the world's leaders in dealing with canola, soybeans, lentils growing demand. Have facilities globally positioned so are well-positioned to take advantage of global demand. Good long-term company. | 2011-12-19 | ||
| PAST TOP PICK | Cenovus Energy | CVE-T | 31.390 | (A Top Pick Jan 14/11. Up 0.68%.) Still likes this one. Assets that they own are very good. Have some downstream growing production. Possibility it could increase its dividend down the road. A story that gets better and better as time goes on. | 2011-12-19 | ||
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| BUY | Aecon Group Inc | ARE-T | 9.700 | Have had some problems over the last few years but recently had a few positive announcements. There have been improvements in operations and some new contracts. | 2011-11-25 | ||
| DON'T BUY | Bank of Montreal | BMO-T | 55.490 | Over the last month, all banks have been hit pretty hard. Have a big presence in Chicago area and are expanding it with a recent acquisition. There has always been a question of when shareholders are going to see real benefits from return on capital. Doesn't feel its valuation is compelling. (See Top Picks.) | 2011-11-25 | ||
| TOP PICK | CAE Inc | CAE-T | 9.250 | Big in flight simulators and have recently been expanding into health areas with patient simulators in endoscopy and ultrasound. Stock has been pulling off because of concerns of military spending going forward but their civil side remains quite strong. | 2011-11-25 | ||
| TOP PICK | Canadian Imperial Bank of Commerce | CM-T | 68.430 | Made great strides in the last few years in de-risking the bank. Boosted their wealth management operations and he expects to see more improvements in this area. Less exposed to structured credit than what they have been. Have a compelling multiple compared to the group. Dividend yield in excess of 5%. | 2011-11-25 | ||
| BUY | Canadian Western Bank | CWB-T | 26.150 | Strong, steady performer over the last few years. In a very good area of the country, primarily Alberta. Extremely well managed. Yield of 2.14%, which is quite safe. | 2011-11-25 | ||
| PAST TOP PICK | Industrial-Alliance Life Ins | IAG-T | 26.900 | (A Top Pick Dec 1/10. Down 21.98%.) All of the insurance companies have been hurt by the environment with falling interest rates and declining equity markets. Add a big miss in their last quarter. Feels the dividend is safe. | 2011-11-25 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 17.800 | Likes this one at these levels. Last quarter was fairly clean. Over the last period of time, more of their business is coming from fees and is less commodity dependent than it used to be. Have been expanding their operations at Cold Lake. | 2011-11-25 | ||
| Comment | Manitoba Telecom Services | MBT-T | 30.190 | Everybody's looking for their Allstream division to stabilize but the jury is still out on that to some extent. Good healthy yield. As a utility, they are alright for the time being. | 2011-11-25 | ||
| HOLD | Manulife Financial | MFC-T | 10.840 | Management, over the last few years, has taken great strides in de-risking this company. Sensitivity to equity markets and interest rates is a lot less than what it was in 2008. Has also built up their capital. | 2011-11-25 | ||
| BUY | National Bank of Canada | NA-T | 63.820 | Have recently been expanding some of their wealth management operations out West. Very well-managed. Dividend is about 2.84%. For a longer-term play, you could look at this at current levels. | 2011-11-25 | ||
| BUY | Power Financial Corp | PWF-T | 23.960 | Primary components of this company are Great West Life (GWO-T) and IGM Financial (IGM-T). Through the years has been a fairly good provider of dividends. Insurance companies have had difficulty in dealing with the environment of low interest rates and the declining equity values. You should be quite safe over the next 5 years. | 2011-11-25 | ||
| Comment | Research In Motion | RIM-T | 16.980 | Hurt really badly lately. Lost significant market share and share price seems to hit new lows almost every other week, No debt and cash on the balance sheet. Have capacity to expand earnings. Doing quite well over seas. Patents are valuable. | 2011-11-25 | ||
| Comment | Just Energy Group | JE-T | 9.960 | Only hesitation he has is that their dividend yield is quite high and they are paying out pretty much what they're earning. Has been investing and broadening out its products and services and distribution channels. Just acquired a retail electric provider. Expect they will do a little bit better going forward. | 2011-11-25 | ||
| Comment | Sherritt International Corp. | S-T | 4.980 | Have a big bet in Madagascar. If it is successful, it will really make this company but there are political risks and mine development risks. There have been a lot of cost pressures in the whole mining area. Would prefer to be in a more diversified operation of mines. | 2011-11-25 | ||
| PAST TOP PICK | Stantec Inc | STN-T | 24.500 | (A Top Pick Dec 1/10. Down 9.86%.) Still likes. Very well run engineering company. | 2011-11-25 | ||
| PAST TOP PICK | Suncor Energy Inc | SU-T | 28.140 | (A Top Pick Dec 1/10. Down 19.74%.) Still likes it. Have some of the best properties. | 2011-11-25 | ||
| BUY | Teck Resources Ltd. (B) | TCK.B-T | 32.660 | A lot of mining stocks have taken quite a hit with the recent slide in commodity prices. This company is much different now than it was a few years ago. Balance sheet has been improving dramatically over the last little while. | 2011-11-25 | ||
| BUY | Talisman Energy | TLM-T | 12.790 | Has faith that in the longer term, this company will do it really well. On a valuation basis, it is one of the more compelling in terms of its price in the oil patch. Good management. Cash flow could get to well above $3 over the next few years | 2011-11-25 | ||
| BUY | Bell Aliant | BA-T | 27.280 | Long-term hold 20 – 25 years? Extremely difficult to look that far into the future. As a value investor, he only looks through a business cycle such as 3, 4, 5 or even 6 years only. There have been massive changes in the utilities over the last 25 years. A criticism has always been of being in a constrained market or growth but they have been investing a lot into fibre optics, which is beginning to get some traction for them. Dividend should be okay. | 2011-11-25 | ||
| TOP PICK | Cenovus Energy | CVE-T | 30.150 | You have a great play on the oil sands with this one. You also have the refining kicker. Have been expanding their operations and looking for joint ventures to help finance the development of a number of properties. | 2011-11-25 | ||
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| Comment | Agnico-Eagle Mines | AEM-T | 43.240 | 3rd quarter was a big disappointment for investors and the stock has been punished quite a bit. People are expecting to see some growth from production but perhaps more modest compared to their competitors. Not his 1st pick in gold. | 2011-10-31 | ||
| DON'T BUY | Aecon Group Inc | ARE-T | 9.000 | Feels there are some good things going on in this company. Have made some shifts in management to address their problems. Expect they would do better going forward. Has a ways to go to prove itself with investors again. 2% yield. | 2011-10-31 | ||
| TOP PICK | Progressive Waste Solutions Inc | BIN-T | 21.000 | Well positioned in a recessionary environment. Extremely well-managed in strategic tuck in acquisitions for synergies. 3rd quarter was a disappointment because of their Northeast US operations. Results in Canada and southern US were in-line. Good price. | 2011-10-31 | ||
| Comment | Potash Corp of Saskatchewan | POT-T | 47.180 | NDP is promising to raise government royalties if they are elected in Saskatchewan on Nov 17. Stock has taken a hit. Need for food is bound to increase globally. There are other ways to the agriculture and the stock is you more volatility. | 2011-10-31 | ||
| TOP PICK | Royal Bank | RY-T | 48.620 | (A Top Pick Oct 20/10. Down 8.4%.) The dominant franchise in Canada. Because of US problems, they're selling at a discount rather than the premium they used to get. Management is taking steps to address their US problems. There will be expansion in their wealth management along with a more aggressive posture in their other areas. Good yield of almost 4.7%. | 2011-10-31 | ||
| Comment | Sherritt International Corp. | S-T | 5.730 | New nickel mine in Madagascar is pretty much nearing completion. This is a key for them as it is such a huge project. There are some questions about political stability. Looks inexpensive. Higher risk than his clients could tolerate. | 2011-10-31 | ||
| PAST TOP PICK | Stantec Inc | STN-T | 24.510 | (A Top Pick Oct 20/10. Down 13.33%.) Still likes. Takes less risk than other construction companies. | 2011-10-31 | ||
| PAST TOP PICK | Suncor Energy Inc | SU-T | 31.750 | (A Top Pick Oct 20/10. Down 2.37%.) Still likes. Continues to exploit its assets and selling off nonstrategic assets. | 2011-10-31 | ||
| TOP PICK | Talisman Energy | TLM-T | 14.140 | Has dropped along with a lot of energy stocks as well as because of delays in some of their projects. Starting to see good results in a number of their areas. Have very good landholdings to exploit going forward. | 2011-10-31 | ||
| BUY on WEAKNESS | Westshore Terminals Inc. | WTE.UN-T | 24.310 | The key for them is the need for exported coal. Coming off some operational problems. Looks okay for a long-term investor. Like to see it an little bit lower before committing. | 2011-10-31 | ||
| Comment | Crescent Point Energy Corp | CPG-T | 42.570 | Payout ratio is over 100% but have a very large take up in their DRIP program. Nervous about the risk this imposes because of the dilution of shares. Continue to have excellent properties and positions. Great opportunities in what they can drill and explore. | 2011-10-31 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets. Not changing his strategy in a short rally like this. Problems still exist in the markets have been quite over reactive, both on positive and negative news. Expect we are seeing some profit taking. Expects we'll continue to see volatility in the foreseeable future. For investors in for the longer haul, there should be opportunities opening up. | 2011-10-31 | ||
| DON'T BUY | Canadian Tire Corporation Ltd. (A) | CTC.A-T | 59.580 | In a competitive environment and getting even more so. Just acquired Forzani Group so people are going to wait to see how it is going to be integrated. Facing a number of headwinds in the current environment including delinquencies on their financing side, slow growth in the economy, etc. Not that cheap at 12X earnings. | 2011-10-31 | ||
| BUY | Canadian Imperial Bank of Commerce | CM-T | 75.380 | Over the years has made its share of mistakes so has always sold at a discounted multiple to the group. On an ROE basis it is probably one of the most profitable banks. In the last few years, they have taken significant steps to de-risk this bank. Yield of close to 5%. (See Top Picks.) | 2011-09-20 | ||
| BUY | Canadian Pacific Rail | CP-T | 50.820 | Rails are pretty much a barometer on the economy. We are in a very slow growth economy so stock prices have pulled back quite a bit. At this price it is a relatively good buy. | 2011-09-20 | ||
| TOP PICK | Fortis Inc. | FTS-T | 32.630 | Have a fairly good rate base and seemed to be expanding it more than 5% per year. There will be dividend increases going forward. Have good operations. Good price. | 2011-09-20 | ||
| BUY | Research In Motion | RIM-T | 22.600 | Market seems to have a hate on for this stock and yet it has very good enterprise positioning. They are in many businesses that are not going to disappear. It is profitable and have potential room for growth. He is tempted at current levels. Cheap multiple. | 2011-09-20 | ||
| TOP PICK | Royal Bank | RY-T | 47.040 | (A Top Pick Sept 22/10. Down 15.08%.) You want to get banks, particularly those in Canada, when they are mis-priced relative to the rest of the group. This bank has had its share of problems recently. Sold off their US retail operations. For years and years, it has commanded a premium multiple. Good reward in 5 years. | 2011-09-20 | ||
| Comment | Sherritt International Corp. | S-T | 4.930 | Diversified base metals and coal. Have pulled back quite a bit with investors fleeing to safer havens. Very large project under development in Madagascar. Stock has been punished probably because of the perceived political risk. This mine could be extremely profitable for the company. | 2011-09-20 | ||
| TOP PICK | Suncor Energy Inc | SU-T | 28.890 | Integrated oil company. Have some of the best properties. Has been punished with the recent pullback in oils. Buzzard operation is coming back on stream. | 2011-09-20 | ||
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| PAST TOP PICK | Viterra Inc | VT-T | 10.650 | (A Top Pick Sept 22/10. Down 8.2%.) | 2011-09-20 | ||
| BUY | Teck Resources Ltd. (B) | TCK.B-T | 36.110 | With the pullback in base metals stocks, he has been looking at this one. The demand will be there for the longer term. As economies recover, the demand for resources is bound to go up. This one is capable of learning $5 and up. For a patient investor, this would be a good one. | 2011-09-20 | ||
| PAST TOP PICK | Talisman Energy | TLM-T | 14.030 | (A Top Pick Sept 22/10. Up 24.79%.) | 2011-09-20 | ||
| BUY on WEAKNESS | Westshore Terminals Inc. | WTE.UN-T | 23.420 | Has been looking at this but would like to see it a little less expensive. One of the primary handlers of coal going overseas and that demand is fairly robust and should continue to be so over the long run. | 2011-09-20 | ||
| DON'T BUY | Yellow Media Inc | YLO-T | 0.550 | Has never liked the construction of their business. The stock price is an indication that people are losing confidence. At current levels, it is more a speculation than an investment. | 2011-09-20 | ||
| HOLD | Daylight Energy Ltd | DAY-T (Dead) | 6.740 | Well-managed company in the oil patch. Projected cash flow could be around $1.50 or better. Looks fairly compelling at this price. Sufficient cash flow to continue paying the distribution. | 2011-09-20 | ||
| BUY on WEAKNESS | Agrium | AGU-T | 79.310 | Has been looking at it a bit lately. In all three areas of the fertilizer market that are important. Agriculture demand going forward will go up. Multiples are going to more compelling levels. Long-term capital gain potential. It is approaching levels where he would consider buying it. Around $75 it is compelling. | 2011-08-23 | ||
| TOP PICK | Progressive Waste Solutions Inc | BIN-T | 21.240 | Likes the story. A well managed company. 40% Canada and 60% US. Strategic acquisition leads to growth. Throws off great cash flow. The market has ignored this company for so long. Will not be constrained in acquisitions like the rest of the market. | 2011-08-23 | ||
| TOP PICK | Bank of Nova Scotia | BNS-T | 51.430 | Likes the international flavor. Canada’s most internationally diversified bank. Best for credit discipline. Fewer surprises in terms of loan losses. Sells for a premium but worth it because of stability it supplies to a portfolio. | 2011-08-23 | ||
| WEAK BUY | Cameco Corporation | CCO-T | 21.580 | Made progress at cigar lake where they were having trouble. Sales were a bit sluggish. Uranium market is one he has always had trouble predicting. 10 year cycle to get a power plant into production. Demand will ultimately go up. Not sure how fast that is going to happen. | 2011-08-23 | ||
| BUY | Canadian Natural Rsrcs | CNQ-T | 34.880 | If longer term, it could take longer term to play out. | 2011-08-23 | ||
| BUY | Canadian Oil Sands | COS-T | 21.880 | One has to have a long-term perspective on this one. Oil sands have had a lot of controversy recently, in the US. Overall the If happy with the yield, it is a good long term investment. | 2011-08-23 | ||
| PAST TOP PICK | Encana Corp | ECA-T | 24.290 | (Top Pick Aug 25/10, Down 12.37%) He was early on this call. One of the biggest Nat Gas participants in North America. Good balance sheet. They can survive what has happened to natural gas. In the longer term this stock could do extremely well. | 2011-08-23 | ||
| TOP PICK | Encana Corp | ECA-T | 24.290 | One of the premier companies in unconventional natural gas. Gas has been depressed and may continue for a year or two. A dominant player. Management has shown they are innovative in how they develop properties, yield in excess of 3%. | 2011-08-23 | ||
| BUY | Power Financial Corp | PWF-T | 26.410 | Very attractive yield over 5%. Main components are the investors group and the mutual fund business and then Great West Life. Good businesses to be in in the longer term. You will not see this dividend cut. The family behind the company likes it. | 2011-08-23 | ||
| BUY | Rogers Communcations (B) | RCI.B-T | 37.620 | This is an extremely competitive marketplace right now. Recently we saw the revenues per customer dropped due to voice side. Cable side is doing all right. Good balance sheet and good yield. Can’t decide between Rogers and Bell, perhaps Bell is slightly preferred. | 2011-08-23 | ||
| BUY | Sunlife Financial | SLF-T | 25.280 | Thinks dividend is pretty safe. Lifecos are being discounted by the capital markets to a little more than they should. They have more capital appreciation in them than the banks but it may take longer for that to be realized. Can be owned safely in this environment. | 2011-08-23 | ||
| PAST TOP PICK | Stantec Inc | STN-T | 23.050 | (Top Pick Aug 25/10, Down 9.69%) Had been up on it in the last year. Primarily exposed in the US and an infrastructure, pure engineering company with now a little construction. Margins holding in their environmental group but transportation is lagging. | 2011-08-23 | ||
| BUY | Suncor Energy Inc | SU-T | 30.100 | One of his largest holdings and almost a top pick tonight. Offers compelling value. Extremely diversified play. Downstream operations, oil and gas, some of the best properties in North America. Good balance sheet. Excellently managed company and sells at a slight premium as always. | 2011-08-23 | ||
| PAST TOP PICK | TSX Group | X-T | 41.310 | (Top Pick Aug 25/10, Up 48.17%) he took is profits and ran. It ran up more than he anticipating. He took his money off the table. Going forward he would not be running to buy it until the Maple Group issue is resolved. Doesn’t see the value in the deal. | 2011-08-23 | ||
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| DON'T BUY | Yellow Media Inc | YLO-T | 0.930 | For the last couple of years they have consistently had a YLO question. He doesn’t like their business model. An old economy stock trying to e a new economy stock and they have to sell so much more in the new economy to get the same revenue as in the old economy. Questions if the current dividend will remain stable. You have to believe an investment has a sustainable business model. | 2011-08-23 |