STOCKCHASE

0.880

(A Top Pick Dec 8/11. Down 57.57%.) Still likes. Very cheap. Has been hurt because of the atrocious gas prices. Have 3 significant plays, one gas and 2 potential oils. Expect they will have a partner for some of these.

2012-04-02

PAST TOP PICK

St Andrew Goldfields Ltd.

16.770

(A Top Pick Dec 8/11. Up 7.06%.)

2012-04-02

Comment

Loblaw Companies Ltd

L-T

34.260

They are cleaning up. Liked the recent announcement of a cleanup of the systems. Doesn't seem to be acting any different than other big grocery chains in North America. With low inflation, it is difficult for grocers to make headway. Looks like competition is growing.

2012-04-02

BUY

Suncor Energy Inc

SU-T

33.200

The whole group has come off because a) oil has come off a little and b) the fear factor of a soft landing in China escalating into a hard landing. There is currently a very tight market.

2012-04-02

TOP PICK

Best Buy Company Inc

BBY-N

23.640

BestBuy.com is growing at 30%-40% and forecasting another double digit growth for this year. Growing in China. Shrinking back there big box stores.

2012-04-02

Comment

Lake Shore Gold

LSG-T

1.160

Gold group has come off in the last month or 2 because 1) general correction in commodities and 2) higher costs. This one has had production delays, didn't meet expected guidance and a recent large issue to raise funds. Looks like they are bottoming out. Golds should start going up again.

2012-04-02

STRONG BUY

SAS-T

0.495

Next-door neighbour to Lake Shore Gold (LSG-T). One of his largest positions. Had some operational issues last year where costs went up higher than expected and production was lower than expected. Now back on track. Making a very good profit margin. Should do $.12-$.14 in earnings this year and going higher next year.

2012-04-02

STRONG BUY

Fortress Paper

FTP-T

28.430

Specialty paper/chemical company, which makes pulp into rayon. Likes this lot. Stock has corrected because of market sentiment against commodity related stocks. Also, the company is a couple of quarters behind. Should be at 90% of production by the end of June. 2nd mill goes on line at the end of 2013. Low-cost producer. Reasonably good balance sheet. Trading at about 4-5 times expected earnings. Should free cash flow $6-$7 a share starting June 30. Worth $60-$70 and going to over $100 in the next 3 years.

2012-04-02

TOP PICK

Legacy Oil + Gas Inc.

LEG-T

9.530

About 85% of their business is oil. Looking for 25% more production as well as more earnings per share growth, etc. Should be about $25 of value in 3 years. Drilled about 99 wells last year and hit all 99.

2012-04-02

TOP PICK

Berkshire Hathaway Inc. (B)

1.740

Trading at 50% of its fair value. Still in early stages although they are currently doing 2000 barrels a day. Have guided to 4000 barrels. Have guided to $48 million of cash flow starting at the end of this year. Trades at about 2X cash flow. Potential to cash flow more than its share price in 3 years.

2012-04-02

PAST TOP PICK

Apple

AAPL-Q

509.460

(Top Pick Dec 8/11, Up 28.65%) Would be a buyer at current prices. Likes it a lot.

2012-02-14

BUY

BRK.B-N

78.920

Likes it – a lot. Great track record over decades. Value of cash and ‘A’ class securities is about $110K then you add $60K for businesses they own. Well above share value. Triple A company at a discount. Won’t grow by leaps and bounds.

2012-02-14

PAST TOP PICK

0.830

(Top Pick Dec 8/11, Down 55.15%) Have an oil project that should attract a partner in next 60 days.

2012-02-14

PAST TOP PICK

St Andrew Goldfields Ltd.

18.040

(Top Pick Dec 8/11, Up 16.00%)

2012-02-14

DON'T BUY

Kinross Gold

K-T

10.350

Has not been growing in the recent past. Semefo (SMF-T) is more interesting to him, although it is fairly valued and he would prefer to buy it on weakness.

2012-02-14

BUY

Microsoft

MSFT-Q

30.250

Terrifically undervalued. 2.6% dividend. 9x earnings. Huge cash horde on balance sheet. Terrific grower. Trading at discount to market. Better balance sheet than average company. Could jump 30-40% in next couple of years.

2012-02-14

DON'T BUY

Sirius Satellite Radio

SIRI-Q

2.145

Great company and product. Since merge, lots of synergies, but stock ran up to over $2 mark and he feels it is fairly valued now.

2012-02-14

DON'T BUY

Suncor Energy Inc

SU-T

33.730

Attractive, but not incredibly. SU is closer to fair value than the broader market. An issue with oil prices goes away shortly. Prefers others, such as one of his top picks.

2012-02-14

DON'T BUY

Transalta Corp

TA-T

20.400

Not a huge fan of utilities here. Economy is reviving. This is the time to be in resource companies, tech companies, and energy companies. Trading closer to its value. 16 or 17x. This is not where the value is today.

2012-02-14

TOP PICK

Best Buy Company Inc

BBY-N

25.490

Walmarts of the world are dedicating less shelf space to electronics. Market share has gone up to over 50%. Trading at 6x free cash flow. Thinks it is ridiculously undervalued and is bottoming right here. Grown sales every year for the last 10 years. Margins are increasing due to moving into smart phones.

2012-02-14

WATCH

SAS-T

0.455

Owns a significant amount of it. Timmins Ontario. Were in penalty box for good part of last year due to lower production than forecast. Did well in Q4. Ridiculously undervalued. Need to show 2 or 3 quarters of good results.

2012-02-14

N/A

0.020

Markets: Since 2008, everybody has been fearful but particularly the individual. Last year the fear came raging back and there is more money under the mattress than ever before. You are looking at 7 or 8% in North American markets.

2012-02-14

Comment

0.020

Growth VS Value: Growth has to do with momentum. Value is when it is trading less than book value.

2012-02-14

TOP PICK

Fortress Paper

FTP-T

37.450

Not a paper company. Produce dissolving pulp. Used for Rayon. Rayon is a substitute for cotton. 6x free cash flow. By middle of this year should be at a run rate of $6. 17% earning yield. Announced second plant in Quebec for end of 2013. Could add $5 a share of free cash flow. Could be over $100 in 2 to 3 years.

2012-02-14

DON'T BUY

Aeropostale Inc.

ARO-N

17.560

Prefers American Eagle (AEO-N). Clothing retailers move between 8 and 20% margins. Buy them at low margins and hold for 24%. A dividend while you wait helps.

2012-02-14

BUY

Xcite Energy.

XEL-X

1.850

Hopefully last two days are indicative. Huge development in North Sea. At this price it is hard to go wrong because of proven assets being worth more than share price.

2012-02-14

TOP PICK

Berkshire Hathaway Inc. (B)

1.790

Foothills of Alberta. Every time they drill a well, they get over 100% rate of return. 2.5x future run rate. Thinks there is a long run rate here. 3400 barrels and land positions to take them to over 10K barrels.

2012-02-14

TOP PICK

Apple

AAPL-Q

390.660

IPhone is biggest part of business. It’s cheap – 7 x earnings. 14% earnings yield. $100 a share of cash. War chest. $42 a share of free cash flow. Refresh in iPad and iPhone.

2011-12-08

STRONG BUY

BRK.B-N

76.940

Terrific value. Most attractive that this one has ever been. 35% discount to book value. There has not been a 5-year value where he has not grown the company book value faster than the S&P. 70 Billion of cash on the balance sheet and will use all but 20 billion to buy back shares.

2011-12-08

TOP PICK

1.980

(Top Pick Oct 27/11, Down 23.17%) Drifted off on indiscriminant selling. Zero bad news. In fact terrific news last week. New Brunswick. Believes it is crazily valued below $2. More than $10 of asset value. No debt and cash on the balance sheet and cash flow from small production base. $3 of proven reserves. Get price higher into New England.

2011-12-08

TOP PICK

General Motors Corporation

15.500

(Top Pick Oct 27/11, Down 2.35%) Price has moved sideways but value is appreciating. 4 x earnings. Silly price for such a good and growing company.

2011-12-08

BUY

Encana Corp

ECA-T

19.530

Depends on Nat Gas prices. He is pretty bullish. Reality is people are switching from oil to gas. Lots of new LNG facilities being built and there will be a normalization of prices. Buy now because when gas goes up ECA will have already gone up.

2011-12-08

BUY

GM-N

20.980

Very attractive here. If you deduct all the preferreds and cash and pension obligations it is at 4x free cash flow. Balance sheet is impeccable. Ford is interesting but not as cheap as GE and will not do that much better over time.

2011-12-08

DON'T BUY

Research In Motion

RIM-T

16.720

Dusted off the file every month as the stock declines. How do you not look at it. Keeps reviewing it and reviewing it and is still not sure it is the place to be. Declining revenues, profits, market share, etc. You are fighting a declining fair market value. If he could get that installed base at a discount he would be interested but it would be below $10

2011-12-08

BUY

St Andrew Goldfields Ltd.

SAS-T

0.540

Has a significant positioning this. Cheapest gold stock. 3 x next year’s cash flow. Costs have been coming down. Issues earlier in the year have been resolved. Spectacular value here. 10 days until tax loss selling is over.

2011-12-08

N/A

0.020

Market: He normally appraises a company and tries to buy below that appraised value. He wants to get something more than the market gives you, which is 8%. In certain times he will make a mistake and in other cases he will make up for it. With small caps he looks for a higher rate of return in exchange for the increased volatility. He believes in holding for 2-4 years, not 2-4 weeks. Tech hardware looks interesting, resource companies, interest him. The biggest companies of the world are interesting.

2011-12-08

DON'T BUY

Netflix Inc.

NFLX-Q

69.420

Similar to RIM. Loosing money, not making it. Doesn’t like the stock because it is too hard to figure out where they are going from here.

2011-12-08

PAST TOP PICK

1.600

(Top Pick Oct 27/11, Down 17.70%) Did an issue to satisfy demand. Is a spectacular company.

2011-12-08

BUY

Barrick Gold

ABX-T

48.610

Would be a buyer at these levels. Pricing in only about $1300 gold. Production is only growing at 3% a year, but he would choose ABX before gold bullion. Prefers St. Andrew Gold Fields (SAS-T), which he owns.

2011-10-27

TOP PICK

2.460

$3 of value in their reserves, trading at 2/3rds. Drilled two well that were successful.

2011-10-27

TOP PICK

16.320

Thinks they are a mover and a shaker. They changed their platform over the last couple of years and people haven’t noticed or don’t believe it. Company is buying back stock as are insiders. Values it at $28/share. Have cash on the balance sheet above their debt. In 4.5 years time the company will be all cash. It is no longer a PC company. Less than 10% is from PCs. Servers, IT services, storage, cloud computing, software, peripherals.

2011-10-27

TOP PICK

Reitmans (Canada) Ltd. (A)

16.320

2011-10-27

BUY

Ford Motor

F-N

11.970

More cyclical than average, but less than TCK.B. Clean balance sheet and outlook was not terrific and market soured on it. He prefers GM but you are not paying much for the business right here and an advantage with the US dollar being as low as it is right here. If we get back to close to normal volumes they will do well.

2011-10-27

STRONG BUY

Microsoft

MSFT-Q

27.250

A top ten holding. Just above 8 times earnings. Lots of growth ahead of it. Stock has gone nowhere for years. Earnings increased 4x over last 10 years but stock price has gone nowhere. Fundamentals are way above the price of the stock. Window 8 next year is pretty exciting. Dominant market share. A pretty good place to hold your dollars these days. Fair market value is about double and a 3% yield while you wait.

2011-10-27

BUY

Teck Resources Ltd. (B)

TCK.B-T

40.350

Has no idea what comes in the next two weeks, but this is an interesting play here. It is undervalued based on the discounted cash flow going forward. You have o have an outlook on copper and copping coal. If you believe global growth will continue at a descent clip, then it will do well, otherwise companies like Microsoft will do better.

2011-10-27

WEAK BUY

RET.A-T

14.930

Not experienced a lot of growth in the last few years but the dividend is over 5%. He prefers Telbits

2011-10-27

N/A

Canadian Tire Corporation Ltd. (A)

0.020

Market: Always nice when the market is up 300 points. The market was right to rise. When the news isn’t as bad or even good, it is going to go up. There is pent up demand from all walks of life - investors and pension funds. There is no alternative to stocks when bonds are so low. China has tried to soften their economy to 9%. If they have a hard landing, only time will tell.

2011-10-27

BUY

CTC.A-T

60.250

A good place to invest here. Made acquisition and are now dominant in sporting goods in Canada. Good franchise in tires but bit been good in recent years because consumer has not been spending on tires. Thinks there are better opportunities out there but it is a pretty good investment over the next 3 years.

2011-10-27

BUY

Fortress Paper

FTP-T

38.700

Had a wildcat strike for a day or two that was not sanctioned by the union. Their product is used in Rayon and the demand is growing. Better aesthetics and breathes easier than cotton. About 5x earnings. Was over due for a technical correction. As we move forward the company is talking about two more plants in 2013, which would be very exciting, but he is not counting on it.

2011-10-27

BUY

Xcite Energy.

XEL-X

2.200

Financing is about to be resolved. Drilled key appraisal well that delineated the well. Best north sea well in years. There is a dilution concern. They are in discussion with a number of banks. In 30-60 days you will see the bank line come into place. Will bring in drilling rig in early December.

2011-10-27

TOP PICK