STOCKCHASE

A Comment -- General Comments From an Expert

26.100

Valuation is high. Trading at a pretty nice premium to the group. Great long-term investment though.

2012-01-25

DON'T BUY

Sunlife Financial

SLF-T

21.110

Doesn't particularly like the life insurance sector right now. There are a number of challenges facing them. Difficult for them to be profitable in this low interest-rate environment. Expect volatility and downside risks. Preferreds would be better with less likelihood of a dividend cut. (Her funds have some preferreds.)

2012-01-25

TOP PICK

Toronto Dominion

TD-T

78.730

Banks were pretty much laggards last year because of concerns about Europe. This is the strongest of the Canadian banks. Have the strongest retail franchise. Have some grows from their credit card or followed all the acquired. US platform is probably the strongest of the Canadian banks.

2012-01-25

PAST TOP PICK

Thomson Reuters Corp

TRI-T

28.900

(A Top Pick April 8/11. Down 22.24%.) Still positive on this one. Had some significant management changes. Strong dividend yield.

2012-01-25

WATCH

Telus Corp

T-T

56.260

She is a little bit cautious on the telco space which had a nice run, especially into year-end. They have been driven more by the defensive trader had a need for income and stability. Expect the market will be looking at these a little closer and realize there are headwinds including new entrants into the harness space. This is one of the better names in this space. Dividend yield of almost 4.5%.

2012-01-25

BUY

Boardwalk REIT

BEI.UN-T

51.880

Dundee (D.UN-T) or Boardwalk (BEI.UN-T)? Boardwalk is in the residential sector, which she feels is the most defensive sector and in this environment fundamentals are very good. Outlook is very good. Have about $700 million of debt coming due this year that they will be able to roll down from 4.5% interest rate to about 2.85%. Well-managed.

2012-01-25

Comment

A Commentary

0.020

Economy. The economic data in the US, Europe and Asia is not bad. Particularly in the US where it has been quite strong with a lot of signs of firming. Job numbers are getting better and housing seems to be bottoming. There are a number of tail risks in the form of the European debt crisis that have to be resolved and moved forward.

2012-01-25

DON'T BUY

Artis Real Estate Investment Trust

AX.UN-T

15.240

Has grown very quickly but not as prudently as it could have. Considers that as a #2 rate so wouldn't be the 1st choice for her.

2012-01-25

TOP PICK

Progressive Waste Solutions Inc

22.750

Trace record of execution is good. A good management team. Great sustainablity model. Payout model is 110% this year to 90% next year. A lot of good prospects in this environment. At this level it's good, if you are patient and scale in as it goes lower even better.

2011-10-06

PAST TOP PICK

Altagas Ltd

ALA-T

27.250

Still a great place to be.

2011-10-06

PAST TOP PICK

BIN-T

22.340

In a recession resistant industry. Had a change in CEO, incoming has been with company for a long time.

2011-10-06

DON'T BUY

Canadian Oil Sands

COS-T

20.650

They need $60 - $65 oil barrel to break even. Thinks the dividend is sustainable at $80, but less so if the price comes down to $70 There are other more defensive plays in the oil patch. Ok for a long term play though.

2011-10-06

TOP PICK

Davis + Henderson

DH-T

16.250

Diversifying their business. Student loan processing, lean processing. Have bought a couple of companies. "Asset", a collect business which is counter cyclical to their student loan business. And "Mortgage" bought in the US which is a web based mortgage sales package. CEO is retiring, new CEO looks good. 70% payout ratio, conservative balance sheet.

2011-10-06

WEAK BUY

Great West Lifeco

GWO-T

21.470

Not favourable on Life Insurance as a whole. However this would be their top pick for the Insurance market if they were to go into it. Has higher ROE and sustainable dividend then others. As a long term opportunity it's a good time to step in.They own Power Financial, and Power Funds, don't own Great West.

2011-10-06

STRONG BUY

Manitoba Telecom Services

MBT-T

30.830

They like it. Sustainable dividend. Good for a long term buy as interest rates cannot go much lower, but will go higher. Interest rates are a short term problem for them, (no cash hit).

2011-10-06

TOP PICK

Canadian Real Estate Investment

REF.UN-T

34.600

Well diversified, exposure to office/industrial/retail. Strong balance sheet. Payout is 70%. Slow steady stable. Good longterm hold.

2011-10-06

DON'T BUY

Sunlife Financial

SLF-T

25.820

They have done some wealth management moves which are good,but is outweighed by the Insurance market itself. (equity,interest rate, regulatory sensitivity).

2011-10-06

PAST TOP PICK

Thomson Reuters Corp

TRI-T

29.380

Is going to be a bit challenged until the economy improves. Has share buy-back in place which looks good. Making management changes to the company to help with the execution.

2011-10-06

WATCH

A Comment -- General Comments From an Expert

8.970

Quite a bit of uncertainty. Needs to resolve, 1.negotiating a new labratory cap agreement with Ont. Gov. 2. Need a CEO. 3. Their US business, (dependent on the CEO).

2011-10-06

Comment

A Commentary

0.020

Interest rates being at an all time low are making dividend yielding and equity more attractive. The reason the interest rates are low are concerns about the slowing global economy.

2011-10-06

DON'T BUY

Daylight Energy Ltd

DAY-T (Dead)

4.670

Very high leverage compared to the rest at 2.3 times. Dividend probably not be sustainable. 70% drawn on their bank facility. If you want some gas exposure there are better places to be.

2011-10-06

HOLD

Extendicare REIT

EXE.UN-T

6.770

A slightly higher risk RIET due to them being in the US, with Medicare/Medicad cuts. Distribution in Canadian will offset. If you have many REITS in your portfolio then it's good to own, if you you only have one or two then not good.

2011-10-06

DON'T BUY

Artis Real Estate Investment Trust

AX.UN-T

12.000

On aggressive acquisition program and quality of what they are acquiring is mixed. In process of internalizing management contract, but it has taken them a long time. Better opportunities in the REIT space.

2011-10-06

TOP PICK

Altagas Ltd

ALA-T

26.310

Energy infrastructure play. Basically have a balance between power, gas and utility. Benefiting from Alberta’s leverage to power prices. With Transalta (TA-T) bringing down its Sundance plant, supply dynamics has tightened up. Also benefiting from strong frac spreads. Very visible growth opportunities for the next several years. Goal is to double EBITDA by 2016. 5% yield.

2011-04-08

TOP PICK

Progressive Waste Solutions Inc

BIN-T

25.020

Waste management. Very defensive. Recession resistant. Very strong track record of growth, both organically and by acquisition.

2011-04-08

DON'T BUY

Bank of Nova Scotia

BNS-T

58.340

Generally likes the banking group. Dividend increase is expected later this year. Their international operations are a good platform for growth and they are making good inroads and making market share. A little expensive relative to the rest of the banks.

2011-04-08

PAST TOP PICK

H&R Real Estate Inv Trust

HR.UN-T

21.380

(A Top Pick Nov 25/09. Up 67.23%.) High quality REIT. Big Bow project problems in Calgary are basically behind them. Will come on towards the end of this year with an Encana (ECA-T) lease. This is the only REIT with a visible distribution increase and have increases slated for the next 6 quarters. Still a Buy.

2011-04-08

PAST TOP PICK

Keyera Corp

KEY-T

38.570

(A Top Pick Nov 25/09. Up 83.18%.)

2011-04-08

BUY

Precision Drilling

PD-T

14.380

Benefiting from a strong increase in activity the western Canadian sedentary basin as well as the US. Very strong in terms of rig count and activity. There is a lot of focus on drilling with oil going through $100. Doesn’t anticipate that they will reinstate a dividend soon.

2011-04-08

HOLD

24.990

One of the biggest real estate REITs in the country. Very strong franchise in the big-box stand alone REITs. High quality company. US retail companies coming into Canada is positive for REITS as there is not a lot of unspoken for space. She has been paring a little of her REIT exposure.

2011-04-08

PAST TOP PICK

Shoppers Drug Mart Corp

SC-T

40.730

(A Top Pick Nov 25/09. Down 3.42%.) Still likes.

2011-04-08

TOP PICK

Thomson Reuters Corp

TRI-T

38.230

Attractive cash flow story. Free cash flow is slated to grow by 20% in 2011 and about 30% in 2012. Cheap at about 13X EPS. 3.2% dividend yield.

2011-04-08

HOLD

A Comment -- General Comments From an Expert

10.080

Have had some challenges over the past several quarters particularly in their US business. They made an acquisition about 3 years ago. Took a 2nd $50 million dollar write down on it last year. Small part of their business and not affecting their EBITDA but is making headline news. Cdn business remains very stable. A yield play at 7.5%.

2011-04-08

Comment

A Commentary

0.020

Market has been on a one way run since Aug/10. You would have thought natural disasters and higher oil prices would have had an impact but the market keeps chugging along. In spit of strong job numbers, good balance sheets, etc., she feels headwinds are increasing. 1) QE2 will come to an end in June 2) beginning of the tightening cycle 3) ECB interest rates went up this week 4) Bank of Canada rates will likely go up towards the end of summer, 5) Fed will probably go up early next year and 6) dampening of consumer growth because of higher prices.

2011-04-08

Comment

Pengrowth Energy

PGF-T

13.850

Good company. New management about 18 months ago. Straightening out some of the mess. Good management. A little concerned about possible cost over runs and operational issues on their SAGD project in Lindburg. 6% yield.

2011-04-08

BUY on WEAKNESS

H&R Real Estate Inv Trust

20.800

Very high quality holding. Will have very good exposure to low-cost natural gas. Cut their distribution and will likely be up to maintain the current level of 5.7%. Good exposure to the Montney play in BC.

2009-11-25

BUY

Altagas Ltd

ALA-T

18.840

Looking quite attractive. Likes midstream infrastructure space. Has been penalized. Some exposure to field processing/gathering, which has been soft this year. Some catalysts are coming up that bode well. 11.5% yield.

2009-11-25

BUY

Bonavista Energy Corp

BNP-T

21.760

Excellent name. Hasn't participated in the rally as much as some of the others. Recently made an attractive natural gas acquisition from Encana (ECA-T) and will use horizontal multi-stage fraqing and is probably economic in the $3-$4 gas pricing. 8.8% distribution is likely safe.

2009-11-25

PARTIAL SELL

Canadian Oil Sands

COS-T

29.770

(Market Call Minute.) Good long-term hold but she would be trimming. Excellent long life forty-year resource play. Good payout ratio. 4.7% yield.

2009-11-25

SELL

EnerCare Inc

ECI-T

3.890

Risk/reward not looking particularly good right now. Cut distribution in half earlier this year, which brought payout ratio down to under 100% but doesn't feel the present 5.4% is safe. Has been a marked deterioration in the business outlook. Competition has increased significantly.

2009-11-25

PAST TOP PICK

Calloway REIT

CWT.UN-T

18.550

(A Top Pick Dec 5/08. Up 136%.) Retail oriented. Defensive. Trading in line with its NAV, so not overly expensive. Hold. 8.3% yield.

2009-11-25

HOLD

Davis + Henderson

DH-T

16.360

(Market Call Minute.) Looking at little bit expensive. Good base business. 11% yield.

2009-11-25

TOP PICK

HR.UN-T

13.450

Steady, stable, high-quality REIT. Now benefited from clarification of the financing on the Bow in Calgary. Steady and stable yield should continue.

2009-11-25

BUY

Inter Pipeline Fund

IPL.UN-T

10.430

In a different situation so not planning to convert but distribution will come out as a dividend, which is quite attractive for tax purposes.

2009-11-25

TOP PICK

Keyera Corp

KEY-T

22.850

Strong management. Great track record of creating value. High quality assets and strong market position. Gathering/processing side has good exposure to sour gas where most drilling is taking place. Also into natural gas liquids infrastructure, which is starting to pay dividends. Marketing side can be a little volatile but without much downside. 7.8% yield should continue after conversion.

2009-11-25

BUY

Labrador Iron Ore

LIF.UN-T

40.100

Level of distribution is very dependent on outlook for iron ore, which is currently looking quite strong. This is driven by Chinese steel demand. Expecting 4.9% distribution will go up next year.

2009-11-25

WATCH

NAL Energy Corp

NAE-T

12.820

Decent oil play. Primarily in the Cardium in Alberta with some quite decent results. Horizontal drilling can make this very attractive. A little expensive right now.

2009-11-25

DON'T BUY

Peyto Exploration & Develop.

PEY-T

12.000

Has benefited from the natural gas trade with the low cost gas producers doing particularly well. Have concerns over the sustainability of distributions. Introducing horizontal drilling into some of their plays, which should help to increase production levels.

2009-11-25

HOLD

18.450

(Market Call Minute.) A little bit ahead of itself. Would buy around the $17 level. Solid management team and high-quality real estate. 7.5% yield.

2009-11-25

TOP PICK

Shoppers Drug Mart Corp

SC-T

43.740

A bit of an overhang right now because of the Ontario government's drug reform. Expects a significant increase in free cash flow over the next several years. 1.97% yield.

2009-11-25

BUY

Vermilion Energy Inc

VET-T

30.510

Fairly significant international portfolio so distributions are not affected by conversion. Oil/gas exposure is 50/50 that their oil is priced more favourably. Very low pay out ratio. Recently made an acquisition offshore Ireland, which is a very good investment and will begin to yield dividends over the next couple of years. 7.5% yield.

2009-11-25

Comment

Yellow Media Inc

YLO-T

5.480

Caller is Shorting. Risk/reward in terms of unit price is about balanced. Pretty hefty yield that you carry if you are shorting and this is a risky one to Short.

2009-11-25

PAST TOP PICK

13.740

(A Top Pick Dec 5/08. Up 12.7%.) Has a little bit of lid on it because of exposure to US healthcare but this impact should be very modest. Will have to cut their distribution when they convert to a corporation. Still likes.

2009-11-25

BUY on WEAKNESS

Cineplex Inc

CGX-T

17.700

Very solid base. Box office has been very strong. Shifting towards digital and 3-D technology. Concessions have been strong. Media business is a great source of directed advertising. About $600 million in tax pools so well positioned for conversion. A little expensive.

2009-11-25

PAST TOP PICK

Boardwalk REIT

BEI.UN-T

37.240

(A Top Pick Dec 5/08. Up 79.75%.) High quality. An apartment-based REIT, which tends to be very defensive. Managing occupancy and rent levels very well. CMHC backed. 4.8% yield. Fair value from a long-term perspective. Buy on weakness.

2009-11-25

SELL

Penn West Petroleum

PWT-T

19.420

Had got into a situation where they were growing for the sake of growing. Got to 200,000 BOE is a day, which was very difficult to sustain and as a result there was a significant decline. Starting to address their issues. Have some good resource plays. Expect they will cut their distribution going forward.

2009-11-25

HOLD

Capital Power L.P.

CPA.UN-T (Dead)

14.080

Current level of distribution should be safe.

2009-11-25

WATCH

Pengrowth Energy

PGF-T

10.390

Didn't do a great job of migrating their asset base towards more sustainable properties and had a very high payout ratio. Change in management and thinks the direction will change significantly but will take some time, possibly 12 to 24 months.

2009-11-25

BUY

Canadian Real Estate Investment

18.350

Have cut distributions, as have most of the oil/gas trusts. About 50/50 oil and gas. Very attractive land position in the Montney. Allocating a lot of CapX to building a gas facility and putting some infrastructure in place. When their gas comes on stream in 2010, you should see a lot of pick up in production growth.

2009-09-11

STRONG BUY

Bonavista Energy Corp

BNP-T

20.000

Very good holding. Planning on converting in early 2011 and maintain the current level of distribution. Recently acquired some gas assets from Encana (ECA-T). 9.6% yield.

2009-09-11

DON'T BUY

EnerCare Inc

ECI-T

4.940

Sold her holdings over the last year. Prices dropped because the market is factoring in a distribution cut. Payout ratio of about 100%. Will definitely have to cut the distribution in 2011. Competitive landscape has become quite a bit more aggressive.

2009-09-11

BUY on WEAKNESS

Calloway REIT

CWT.UN-T

18.160

Had been beaten up because of a concern on financing. Have done a great job in addressing this. Fairly priced and probably at a slight premium to NAV. You might try to get in at $15 or lower if the market has a correction over the next couple of months.

2009-09-11

DON'T BUY

Harvest Energy Trust

HTE.UN-T

6.270

Hasn't participated in the upside. Cheap, but for a reason. Refining operations will continue to be challenged and the upstream operations have never been stellar. Ugly balance sheet.

2009-09-11

BUY

Keyera Corp

KEY-T

19.700

Recently gave guidance that they will be able to supplant and maintain current level of distributions in 2011. Strong businesses of 1) sour gas gathering and processing 2) transportation/storage and 3) energy marketing. Balance sheet is in good shape. 9.1% yield.

2009-09-11

BUY

Labrador Iron Ore

LIF.UN-T

36.900

Have a nice run on the back of the strength of iron ore. This is a play on the China story. Distribution should be sustainable. Longer-term she expects them to expand their operations, which will bode well. Sees some decent upside. 5.4% yield.

2009-09-11

WATCH

NAL Energy Corp

NAE-T

11.860

Looks quite interesting. Good exposure to the Cardium play outside of Silver Lake. Relatively new management team. Looking for good things over the next 12 to 24 months.

2009-09-11

PAST TOP PICK

REF.UN-T

25.930

(A Top Pick Oct 2/08. Flat.) Well diversified REIT. Have industrial, office and retail. Conservatively managed. Strong balance sheet and relatively low payout. 5.25% yield.

2009-09-11

TOP PICK

Shoppers Drug Mart Corp

SC-T

43.740

Great cash flow story. 2% dividend is probably on the low side of what she would be looking for but the growth in dividends over time is going to be pretty marked. A defensive staple name. Very visible growth outlook.

2009-09-11

TOP PICK

Vermilion Energy Inc

VET-T

29.190

Focused more internationally including Australia, Netherlands and most recently Ireland. Planning on converting in Sept/10 and maintaining the same level of distribution. Sale of Libyan assets fell through and the market overreacted. 7.8% yield.

2009-09-11

Comment

Westshore Terminals Inc.

WTE.UN-T

13.550

Had a nice run based on continuing strength of coal markets because of steel demands from China. As long as that continues you could see this start to run. A good way to play the China story. Distribution is quite safe. No debt. 8.25% yield.

2009-09-11

Comment

Yellow Media Inc

YLO-T

4.850

Have the free cash flow to fully fund all of their debt maturities for the next couple of years. Questions if the downturn in advertising is a cyclical phenomena because of the economy or if it is a secular decline with a long-term shift away from print advertising. She feels it is primarily cyclical.

2009-09-11

PAST TOP PICK

Crescent Point Energy Corp

CPG-T

37.130

(A Top Pick Oct 2/08. Up 35%.) Great name. Oily which bodes well. Have consolidated the Bakken play in Saskatchewan and just made a new acquisition of Wave Energy. Pretty fully valued. If you own, consider taking some profits.

2009-09-11

TOP PICK

iShares S&P/TSX Capped REIT

12.990

(A Top Pick Oct 2/08. Flat.) Did not participate in the rally primarily because of a US acquisition they made 1.5 years ago but the margins of this were up 15% and thinks it will provide a very good platform. Clean balance sheet.

2009-09-11

Comment

XRE-T

10.620

ETF based on the REIT Index, which holds 11 REITs. Most of them are relatively high quality. She has an issue with the concentration of REITs. If you only have a small allocation, this is fine but if REITs are a bigger portion of your portfolio, she would be more selective.

2009-09-11

HOLD

Primaris Retail REIT

PMZ.UN-T

14.020

Retail REIT that is more focused on malls rather than big-box stores. One of the strongest balance sheets in the REITs. Valuation is quite reasonable relative to the rest of the group. Little more economically sensitive as the stores are more fashion oriented but bankruptcies have been relatively low to date.

2009-09-11

SELL

Penn West Petroleum

PWT-T

14.390

Fell into the trap of making a lot of acquisitions for the sake of getting bigger as opposed to making a stronger company. Still trying to work through some of the issues of integration. Capital efficiencies are not that good. Debt is higher than what she likes. Expect there will be a distribution cut going into 2011.

2009-09-11

Comment

New Flyer Industries Inc.

NFI.UN-T

8.100

Relatively low pay out ratio. A bit concerned about their business outlook as they have lost some orders. A lot of new bus funding comes from the state levels that are having difficulty with their fiscal situation. Also have continually over promised and under delivered on their quarters. Backlog is quite extensive and they have a lot more orders than they can fill in the next couple of years. 14.4% yield.

2009-09-11

Comment

Bell Aliant

BA-T

26.880

Doesn't think BCE (BCE-T) will acquire this. Doesn't see any impetus for this. Yield of almost 11%. You won't see a lot of unit price appreciation. Good stable business.

2009-09-11

WATCH

Pengrowth Energy

PGF-T

9.670

Did not migrate to as much of a balanced model in terms of balancing the level of payout and its capital expenditures as other trusts. New CEO is trying to refocus the company into getting into some of the resource oriented plays.

2009-09-11

TOP PICK

H&R Real Estate Inv Trust

16.930

(A longer-term pick.) Great exposure to assets in the Montney, a natural gas play in northern BC. Currently have a 50/50 balance between oil and gas. Great management. Have cut distributions several times and she thinks they are through that cycle. She sees good production growth, particularly into 2010 when they start bringing Montney production on stream.

2009-07-17

BUY

Bonavista Energy Corp

BNP-T

16.850

Very high quality oil/gas trust. Strong management team. High netbacks. Just bought a large amount of natural gas assets from Encana (ECA-T) and with new technology they feel results can be very significant.

2009-07-17

BUY

Canadian Oil Sands

COS-T

26.290

Have tax pools to help them when they convert to a corporation. Long life assets and good future growth opportunities. In the near term 2nd quarter results could be a little disappointing but longer term it is an excellent holding.

2009-07-17

TOP PICK

HR.UN-T

11.390

High-quality REIT with a diversified office, industrial, retail portfolio. Class A properties with long leases. Have been knocked down because of the Bow, a large development project in Calgary. Financing has now been substantially lined up. Trading at a significant discount to its peers. Payout ratio is only 50%. There could be a substantial increase in distributions.

2009-07-17

TOP PICK

Rogers Communcations (B)

RCI.B-T

30.750

New management is very focused on free cash flow generation. This makes sense. As the business matures there won't be the same top line growth. Dividend has been increased by about 15%. Also had a significant share Buy Back program.

2009-07-17

HOLD

Chartwell Seniors housing

14.980

Very high quality REIT. In the retail side, which is a little bit more defensive in this environment because they have large big box retailers. Payout is a little high but she thinks they can grow into it.

2009-07-17

BUY

CSH.UN-T

5.590

Seniors housing and have access to cheap CMHC financing. Good play on demographics over the longer term. High-quality assets. Risk/reward is quite good. Leverage is a little bit higher than some of the other REITs.

2009-07-17

STRONG BUY