STOCKCHASE

0.020

The fed is not interested in scaring the market so it raises rates very slowly. Stocks are fairly valued. What you should look at is higher paying dividend-paying stocks. It’s a stock picker’s market. Previously a lot of earnings came from cost cutting. Now we need to see earnings from growth. It’s going to take a little while for the economy to heal itself.

2010-02-18

BUY

Nexen Inc

NXY-T

23.540

Will be range bound until you see something happen with oil. He likes oil stocks and thinks oil will be a lot higher over time. You can’t find cheap oil any more, so that is a benefit to Canadian oil companies.

2010-02-18

WAIT

Suncor Energy Inc

SU-T

31.680

2 issues: cost structure is slightly out of whack and capital expenditure not coming on line. It will be a reasonable buy at some point, but they have to get some synergies out of the merger.

2010-02-18

SELL

Vodafone Group PLC

VOD-Q

22.290

Cheap on valuation but they face some difficult things. They under spent on capital expenditure. This hurt them because data is becoming an important part of their business. Capacity is a problem on their network. It probably wont hurt the dividend.

2010-02-18

STRONG BUY

Agnico-Eagle Mines

AEM-T

62.870

The stock has under performed the gold price and is relatively cheap. A lot of smaller ‘might find’ stocks went up earlier. You should buy gold stocks here because they don’t represent the price of gold.

2010-02-18

BUY

Fort Chicago Energy Partners

0.020

You should own good income trusts at this point. Real estate happens to be a good trust structure. Some others will have tax losses to use after they convert. Cineplex is a great trust, for example. West Shore has no debt and lots of cash so they wont stop paying their dividend.

2010-02-18

BUY

Eli Lilly & Co.

LLY-N

34.410

2 issues that face phama stocks: one is health care and what will happen; and two is that the pipeline of fantastic drugs has slowed down. Treat it as a high dividend paying company and not look for huge increases in stock price.

2010-02-18

BUY

Rogers Communcations (B)

RCI.B-T

33.450

Likes it and owns it. Part of problem with telco space, especially in the wireless side is the new entrants and they will have an impact. It’s hard for people to switch carriers. He thinks it will not be as bad as people think. Thinks it is in great shape and could increase dividends even more. Cable has done a great job of increasing pricing.

2010-02-18

BUY

Barclays Bank PLC

BCS-N

19.360

Is a very different company than a year ago due to their acquisition. Doesn’t like that they sold off iShares. They will be valued differently from now on. The investment banking side is the volatile part of the business and will keep the multiple low. Likes it and over the long time they will do very well.

2010-02-18

HOLD

Dell Computers

DELL-Q

14.429

Beat their numbers by a penny. Consumer business was weak. They are not a retail computer maker and most of their business comes from corporate. When you see an uptake on corporate and gov’t spending then you will see it do better. Stock is fairly cheap.

2010-02-18

HOLD

Canadian Oil Sands Trust

COS.UN-T

29.500

You should hold oil. He chose to hold others because he felt they had better management.

2010-02-18

DON'T BUY

Barrick Gold

ABX-T

40.940

Prefers others because they have good growth and low cost of production. Doesn’t see where the growth will come in this one. They are making a lot of changes and possibly he will think of switching at some point in time.

2010-02-18

BUY

FCE.UN-T

10.500

(Market Call Minute) will continue to payout at 10%. Great asset. It’s a tollbooth business.

2010-02-18

BUY

Berkshire Hathaway Inc. (B)

BRK.B-N

76.640

(Market Call Minute) Betting against Buffet is foolish. You have to look at the insurance business more carefully.

2010-02-18

SELL

CitiGroup

C-N

3.430

(Market Call Minute) Better off buying others.

2010-02-18

PAST TOP PICK

Cisco

CSCO-Q

24.280

(Top Pick Feb 23/09, Up 69%) Still likes it because it has a wonderful franchise in technology. Superior line of products. Made some astute acquisitions. Even after revenue collapsed, their margins stayed the same. Executes very well. As economy grows, they will continue to do very well. Trading relatively cheap.

2010-02-18

PAST TOP PICK

64.530

(Top Pick Feb 23/09, Up 20%) Held it a very long time. They are very unique in that they are a pharma company, a personal care company and medical devices company. They trade at a relatively low PE ratio. A very consistent company that will grow between 10 and 15% yearly.

2010-02-18

PAST TOP PICK

Toronto Dominion

TD-T

66.140

(Top Pick Feb 23/09, Up 102%) One of the best 2 run banks in Canada. Great retail franchise and great asset management franchise. Sold a portion 4 or 5 months ago. You shouldn’t own so much in the banking sector now.

2010-02-18

BUY

Telefonica S.A.

TEF-N

71.280

(Market Call Minute) Great telecom. Problems with Venezuela. They can cover the dividend no problem. Great growth and well run.

2010-02-18

TOP PICK

28.969

Windows 7 has had very good reviews. They are coming out with more and more products in 2010. Vista was a bad product for them. They have no debt and throw off tones of free cash. A growth spurt could be quite substantial.

2010-02-18

TOP PICK

BCE Inc.

BCE-T

29.280

Lots of telecoms try to be internet and media companies. After 2002 they sold off a lot of assets that they bought. Now things are going back to more normalized levels. Paying down debt and lots of cash flow and great dividend.

2010-02-18

TOP PICK

Lloyds TSB Group PLC

LYG-N

3.200

They were forced by the gov’t to make and acquisition and had to do a huge issue. Feb 28th we should see revenue growth goes up a little bit and cost structure comes down due to synergies with the acquisition. It’s a great retail bank without a lot of risk.

2010-02-18

TOP PICK

30.860

Windows 7 had good reviews and will be coming out with a lot of products over the next year. 1.6% yield. Trades at 16-17 times earnings. Great potential for good upgrades in the earnings.

2010-01-18

TOP PICK

BCE Inc.

BCE-T

27.840

Very low PE and high dividend yield at 6.3%. Very high free cash flow yield. Now back to their good core businesses with some pricing power in some of them.

2010-01-18

TOP PICK

Lloyds TSB Group PLC

LYG-N

3.750

Great retail bank, not investment bank. Were returning about 24% on equity prior to their purchase of HBOS. A bad deal but they were the only ones who could buy it. It was a reasonable deal, which allowed them to increase their franchise. On the longer-term it is going to turn out to do incredibly well for them.

2010-01-18

PAST TOP PICK

Brookfield Asset Management (A)

64.560

(A Top Pick Jan 29/09. Up 10.8%.) Not just pharmaceuticals, but a consumer's product company as well. Still likes. Great balance sheet and pays nice dividends.

2010-01-18

PAST TOP PICK

BAM.A-T

22.820

(A Top Pick Jan 29/09. Up 14.8%.) Very smart operators. Have a lot of cash and will be able to buy a lot of assets.

2010-01-18

PAST TOP PICK

0.020

(A Top Pick Jan 29/09.) Investment grade corporate bonds. Not as much spread now so you want to be out of these and looking at other things.

2010-01-18

DON'T BUY

Vodafone Group PLC

VOD-Q

22.090

Trades about 8% on PE and about 12%-13% on a free cash flow yield so it looks cheap. One of the headwinds it faces is their stake in Verizon (VZ-N), which just gives them a dividend and doesn't help them to grow. Have maintained low levels of CapX and although they have lots of cost savings, which hurts them going forward.

2010-01-18

DON'T BUY

16.440

Owns bonds instead of stocks. They need to make a large acquisition but has been stifled along the way. Never going to get the multiple that it had 5-6 years ago. No longer have stability of earnings because they have moved into the riskier areas. GE Capital still has a lot of issues they have to solve.

2010-01-18

BUY on WEAKNESS

United States Steel

X-N

62.040

Steel industry has done incredibly well and is on a very sound footing and should continue to grow.

2010-01-18

BUY on WEAKNESS

Bank of Nova Scotia

BNS-T

46.490

Canadian banks have done incredibly well through the crisis but are at the top end of their range in multiples now. Well capitalized. Lower leverage than anybody else.

2010-01-18

BUY

Allied Irish Bank PLC

AIB-N

4.320

Suffered from the overheating of the property market in Ireland. Banks are very much a proxy for the economy of the country they are in. Ireland is a great economy with a young well educated work force with low tax rates. It will come back but may take a while. This may be a good opportunity.

2010-01-18

HOLD

Barclays Bank PLC

BCS-N

20.300

Getting Lehman Brothers for the cost of the building will go down as the greatest buy in the history of the whole crisis. You are not buying a retail bank any more but you are buying more of an investment bank, which has more risk.

2010-01-18

Comment

0.020

Japan or China and which sector? Japan historically is a cyclical play in the economy so should do well with a reasonable global recovery. If you want to play this, he would suggest doing it through an ETF. You also have to be careful because of the strong Cdn$.

2010-01-18

DON'T BUY

Bristol Myers Squibb

BMY-N

25.070

Very cheap on any value metrics but has had a very hard time. Did very well when they had blockbuster drugs but those drugs have come off and it is hard to get them replaced. Prefers Johnson & Johnson (JNJ-N) because it is not a pure pharmaceutical company.

2010-01-18

Comment

Nestlé's

NSRGY-US

0.020

Nestlé's is a great story. Been restructured nicely and continues to grow. If you own, continue to hold. Also a buy in this range. (Also sold under NSRGY-PK in New York. Pink Sheets)

2010-01-18

BUY

Onex Corp

OCX-T

25.150

In a very solid position with lots of cash to buy assets. Very good at buying assets very cheap and then restructuring and selling. There are 2 headwinds they face now. 1.) Big pension plans are competing for their assets so they could end up overpaying. 2.) It is not a public company in that Jerry Schwartz runs it his way.

2010-01-18

DON'T BUY

Barrick Gold

ABX-T

40.320

Prefers Agnico Eagle (AEM-T) and Goldcorp (G-T). Cost of production is too high so he doesn't see a lot of growth.

2010-01-18

BUY

16.260

Has 10% of the deposits in the US. Merrill Lynch will be a great deal for them in the longer term. Could probably make $4-$6 in the next 5 years.

2010-01-18

DON'T BUY

CitiGroup

C-N

3.420

A lot of issues they have to sort out. Will be very hard for them to turn around.

2010-01-18

BUY

Telefonica S.A.

TEF-N

79.170

Telecommunication companies trade at very low multiples with very high free cash flow yields and a great dividend yields. This one has done a very good job of expanding their franchise in Latin America on the cell phone side. 5.6% yield.

2010-01-18

BUY

0.020

Technology? Likes the tech sector and thinks there are great opportunities. Companies he likes are Microsoft (MSFT-Q) and Cisco (CSCO-Q). He also owns RIM (RIM-T).

2010-01-18

BUY

Tata Motors Ltd.

TTM-N

17.340

Largest maker of cars in India. What will help them is the domestic growth in India. Also bought Jaguar and Rover and will have good benefits coming from this over the next couple of years.

2010-01-18

HOLD

Agnico-Eagle Mines

AEM-T

58.800

Very neutral on gold and thinks gold will be sticking at the current levels. Likes this company but not a buyer or seller at this time.

2010-01-18

BUY

Ford Motor

F-N

11.600

(Market Call Minute.)

2010-01-18

BUY

Veolia Environnement

VE-N

36.250

(Market Call Minute.) This is a cyclical recovery in the economy as well as a secular recovery.

2010-01-18

DON'T BUY

Caterpillar

CAT-N

60.120

(Market Call Minute.) Trading at 23X earnings so he would not be a buyer.

2010-01-18

TOP PICK

Cisco

CSCO-Q

23.940

(A Top Pick Dec 22/08. Up 45.74%.) Good growth coming in the tech sector. Almost $30 billion in cash. Just acquired a video conferencing business, which is becoming a bigger thing. Not expensive at 22X earnings. Demolished their competition.

2009-12-10

TOP PICK

29.870

7.9 free cash flow yield along with a dividend yield. Windows 7 is working out and thinks corporations will be moving to this. Have new products coming out. Trading at one of the lowest multiples ever. Tons of cash. Worth $40.

2009-12-10

TOP PICK

15.210

Has potential to generate a lot of earnings, probably $4-$5 a share. Using a simple multiple of 10X earnings gives you a $40-$50 stock in the next 4 to 5 years. Acquisitions they made were good.

2009-12-10

PAST TOP PICK

64.770

(A Top Pick Dec 22/08. Up 12.92%.)

2009-12-10

PAST TOP PICK

15.610

(A Top Pick Dec 22/08. Up 50.2%.) Capital Bonds 5.37% maturing 2037.

2009-12-10

Comment

Total SA

TOT-N

62.600

Large energy company. Likes oil for the long-term. If you are going to buy oil stocks, Canada has some exceptionally great oil/gas companies so why take on currency risks. This is not the best company internationally but it is good with great cash flow generation.

2009-12-10

DON'T BUY

Visa Inc.

V-N

82.320

Great company with no credit risks. Trades at about 22X next year's earnings so too rich for him.

2009-12-10

STRONG BUY

Manulife Financial

MFC-T

17.960

Did an equity issue that investors felt uncomfortable with but he thinks it was the right thing to do. This increased capital so they can make good acquisitions. Have one of the best franchises in Canada as well as a global franchise. Great growth prospects.

2009-12-10

DON'T BUY

Barrick Gold

ABX-T

43.090

Likes gold for the longer term but doesn't believe this company has great growth prospects. He owns Agnico-Eagle (AEM-T) and GoldCorp (G-T) whose costs of production is much lower.

2009-12-10

Comment

Bank of Montreal

BMO-T

53.350

Dividend is high but he doesn't think they will cut them.

2009-12-10

Comment

0.020

Cdn$. Thinks it will grow because of commodities. As the world continues to grow, the dollar will get stronger and stronger. There may be US$ strength next year that will put some pressure on it but longer-term he thinks it will go through par.

2009-12-10

Comment

Teck Resources Ltd. (B)

TCK.B-T

37.250

Will do well in a resource environment that is growing. He prefers Westshore Terminals (WTE.UN-T), which is the 2nd largest coal terminal globally and will benefit from this company’s growth.

2009-12-10

N/A

RioCan Real Estate Investment

0.020

Markets are fully valued. It was due for a pull back and we are getting it and hopefully we get a little more. You should be buying on weakness over the next couple of weeks. Technology, rails and transportation are going to benefit. The US banks could be bought on a pull-back business. Canada is a great place to invest in general. You have 55% of capitalization amongst Canada and the US. CAD$ will continue to be a strong currency.

2009-11-03

BUY on WEAKNESS

Allied Irish Bank PLC

AIB-N

4.650

Was highly involved in the real estate market and over invested and over loaned and had a tremendous problem when liquidity crisis occurred. Essentials of economy are strong and they had a net immigration into the country. It ran up after the low and had quite a good, then pulled back. Short term there will be volatility.

2009-11-03

DON'T BUY

Yellow Pages Income Fund

YLO.UN-T

5.350

Doesn’t like it. They have done some things that have helped restructure the company. They should have cit the yield more. The business will deteriorate over time.

2009-11-03

DON'T BUY

Iamgold Corp

IMG-T

16.120

All gold stocks were up today. He feels that gold has broken out and is going higher. Prefers Agnico Eagle.

2009-11-03

BUY on WEAKNESS

Research In Motion

RIM-T

63.890

It’s trading much cheaper than it was. They are moving business from high margin corporate to consumer. ASPs have to come down on their products. The question is if margins are going to drop considerably. They were 51% and now are 44%. There are some tough times ahead for smart phone marketplace. Buy at $55.

2009-11-03

HOLD

Motorola

MOT-N

9.080

A fair bit of their growth is already in their stock price. Stock is fairly valued at these levels.

2009-11-03

WAIT

JP Morgan

JPM-N

42.700

It will pull back like the banks and then you could buy it. Buy 12-20% lower than today.

2009-11-03

BUY

Encana Corp

ECA-T

60.510

Splits at the end of the month. Thinks it’s a great company and will own both companies when it splits.

2009-11-03

BUY

REI.UN-T

18.050

Well run company. Big anchor tenants. One of the best companies in the Real Estate Sector, but they pay out more than they earn. Hopefully this will change as they expand. You have to keep an eye on this. REITs will stay after 2011 so you don’t have to worry about that.

2009-11-03

DON'T BUY

Tim Hortons

THI-T

29.840

Did well when things were tough. It’s a defensive stock in many ways. If you have a sustained rally, it will move sideways. If you think the market will go up from here, then you don’t want to own it now.

2009-11-03

DON'T BUY

Loblaw Companies Ltd

L-T

30.230

Don’t like it and haven’t for a long time. They came out and had great concept and now competitors have copied. It’s difficult for them. They are never going to see the multiples they saw before. Prefers Weston.

2009-11-03

BUY

Cineplex Galaxy Income Fund

CGX.UN-T

16.940

Have lots of losses to allow them to continue to pay out after conversion. Oligopoly in Canada in this business. It’s a growing business. The concession business has done well for them. Nice yield, well run.

2009-11-03

BUY

Rogers Communcations (B)

RCI.B-T

32.140

Likes it and owned it for along time. There is some really good growth on wireless and home phone/internet side. There may be pressure short term on margins but not long time. Would like to see a higher dividend or buy back some of their stock.

2009-11-03

TOP PICK

27.530

Thinks it is a cheap stock. They have a bunch of products coming out over the next little while. You are going to be able to tell that they are a growth company in the next 6-8 months. Windows 7 will get a great reception. A very different company than two years ago. Everyone has this massive light on Google and no one likes this one.

2009-11-03

TOP PICK

14.800

Still likes it. Has strong retail banking, investment banking and mortgage business. Great assets. Making them all work together would be the big issue. They can generate incredible EPS when things are working well.

2009-11-03

TOP PICK

Westshore Terminals Inc.

WTE.UN-T

12.730

10% yield. Is a terminal for coal. Largest in Canada and one of the largest in the world. It’s important that coal has held up. No debt. 25% cash. Great story. It’s a tollbooth. Everything that goes through it makes money.

2009-11-03

PAST TOP PICK

Toronto Dominion

TD-T

63.320

(Top Pick Nov 27/08, Up 57%) Took some profits. Thinks banking sector is in very good shape. Good products and less risky. They will continue to grow. Buy on a pullback.

2009-11-03

PAST TOP PICK

Cisco

CSCO-Q

22.910

(Top Pick Nov 27/08, Up 40%) Great organization, great free cash flow, low multiple, competitors have fallen by the wayside. Deal with large, small and Telco businesses. With all the cash they have they will have to pay a dividend eventually.

2009-11-03

PAST TOP PICK

14.800

(Top Pick Nov 27/08, Down 2 %) Likes it and it is still a top pick. Potential for profitability is high.

2009-11-03

BUY

Imperial Oil

IMO-T

39.930

Likes it. It’s a boring company. They have good assets and will continue to do well. Does not go up and down as much as oil. It’s a well-run boring company. Will grow slowly over a period of time. It is a core holding.

2009-11-03

HOLD

Manitoba Telecom Services

14.320

(Market Call Minute) Doesn’t like it. It is never going to get the same multiple it did years ago.

2009-11-03

HOLD

BCE Inc.

BCE-T

26.160

(Market Call Minute) Likes Rogers better. Nice dividend yield, 14% free cash flow. Over the longer term it is going to go higher.

2009-11-03

SELL

MBT-T

31.350

(Market Call Minute) Doesn’t have the same dynamics as BCE. BCE has better businesses.

2009-11-03

BUY

Sunlife Financial

SLF-T

30.230

(Market Call Minute) Likes MFC better but you should hold this too. They are going to do well over a period of time.

2009-11-03

BUY

Brookfield Properties

BPO-T

11.170

(Market Call Minute) Likes it. Best commercial assets in the world. Will come off a little in the short term. You buy it for the longer term.

2009-11-03

TOP PICK

17.330

(A Top Pick Oct 23/08. Down 22.7%.) Yield curve is very steep by borrowing short and buying US treasuries. Interest margins have come down aggressively over the last 10-15 years and margins are going to go up because pricing is more realistic. This is a by for the next 4-5 years but you can wait for a pullback before buying.

2009-10-08

TOP PICK

0.020

Government of Canada 5.75% bonds due June 1/33. Likes long bonds in Canada because he thinks we are in a deflationary and the yield curve is too steep. Looking for tepid economic growth and yields should come down. Risk/reward is very good.

2009-10-08

TOP PICK

25.670

Very cheap story at 15X earnings. Windows7 is coming out this month and Office is coming out in the new year. Market is placing zero value on their online services.

2009-10-08

PAST TOP PICK

60.940

(A Top Pick Oct 23/08. No change.) Still likes. Not just a pharmaceutical company but also consumer and medical devices businesses. Great balance sheet. 3%+ dividend. Historically has done a great job of growing its equity 10%-15%. Great core holding.

2009-10-08

PAST TOP PICK

16.220

(A Top Pick Oct 23/08. Up 28%.) GE Bonds 5.73% due Oct 22 of 2037.

2009-10-08

Comment

Canadian Oil Sands Trust

COS.UN-T

32.600

Likes oil over the long-term and this is a great asset. Oil has run up and he is fairly neutral on it right now and prefers natural gas. If you own you could Sell some and look to Buy it back or Hold looking for oil to go higher down the road.

2009-10-08

SELL

Banco Santander SA

STD-N

16.300

Has been a very funny stock simply because Spain has had one of the most disastrous economies in Europe and over the long-term will have to feel some effects from this. Has done a good job of diversifying globally. At these levels he would Sell.

2009-10-08

PARTIAL SELL

Vale S.A.

VALE-N

24.970

Brazilian mining company, largest iron ore producer globally. Making new highs and participating in the current commodity boom. Highly valued at these levels so consider taking some money off the table. Longer term, these companies are in the right sector at the right time and have great assets.

2009-10-08

BUY on WEAKNESS

Allied Irish Bank PLC

AIB-N

8.820

Similar to many of the English banks in that the government took them up as Ireland fell into a deep recession. Irish economy will probably come back because of low tax rates and educated workforce. Expect they will do an equity issue to increase their tier 1 capital.

2009-10-08

BUY on WEAKNESS

ConocoPhillips

COP-N

51.410

Likes the oil market and thinks oil stocks are relatively cheap. Continue to throw off a lot of free cash flow. Would look to buy these companies on pullbacks. Dividend of almost 4%. Better off buying Canadian companies so you don't suffer currency exchange.

2009-10-08

DON'T BUY

16.220

Has never really liked his company because of its growth through acquisitions over a long period of time. Had a higher multiple because of the safety in their earnings but turned out they were highly cyclical. (He owns the bonds.)

2009-10-08

HOLD

Goldcorp Inc

G-T

44.600

Lowest cost gold producer and has the highest growth rate. If gold breaks out even further from here large caps won't be able to participate as much as smaller gold names.

2009-10-08

PARTIAL SELL

Goldman Sachs

GS-N

188.170

Has run up a lot so there could be a bit of a pullback. If you made some money, consider taking some off the table and then buying it back. Thinks it will be the premier investment bank and should continue to do well.

2009-10-08

Comment