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| Ravi Sood of Lawrence Asset Management |
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| DON'T BUY | Barrick Gold | ABX-T | 43.250 | Thinks that in the short term, gold equities are going to be weak. Not a good entry point. Over owned. | 2008-04-21 | ||
| BUY | Canadian Imperial Bank of Commerce | CM-T | 69.720 | Represents an interesting entry point. Doesn't think it will get close to its previous highs in the next 2 years but expect to get your dividend and some capital appreciation. | 2008-04-21 | ||
| Comment | Canadian Hydro Developers | KHD-T | 6.140 | This company has a portfolio of power generation projects. Very well managed and strategic projects. More attention will be put on companies such as this. Could be a very interesting investment proposition in the next 2 or 3 years. | 2008-04-21 | ||
| WEAK BUY | Labrador Iron Ore | LIF.UN-T | 58.550 | Prices of iron ore are currently very high. This one is now at a good value and there are others that are higher leveraged plays that would be more attractive. His favourite would be Baffinland Iron (BIM-T), which is on the speculative end. | 2008-04-21 | ||
| Comment | Nova Chemicals Corp. | NCX-T | 25.370 | Has been a real disappointment. There has been fabulous performance from virtually every basic material stock in the TSX while this one has lost people money over the last several years. There is a lot more by you than what the share price shows. Could possibly be a takeover at some point. | 2008-04-21 | ||
| STRONG BUY | Northstar Healthcare | NHC-T | 10.700 | Big believer in this company. Paying a virtual 10% dividend yield. Stock dropped because 1) market is weak 2) there are a few very large sellers looking for liquidity 3) didn't make huge acquisitions as promised and 4) numbers were a little bit disappointing. Fabulous entry point. | 2008-04-21 | ||
| DON'T BUY | Potash Corp of Saskatchewan | POT-T | 211.100 | Fundamentals for this company are spectacular, earnings momentum is going to be great and the whole agricultural sector is going to be a hot one for many years. Multiples are very high on this one. Will be reporting earnings very soon and there could be some selling off on the news. Look for a period when the market is weak or the stock gives up a lot based on news. | 2008-04-21 | ||
| SELL | Royal Bank | RY-T | 48.830 | (Market Call Minute.) Can do better in other banks. | 2008-04-21 | ||
| DON'T BUY | Teck Resources Ltd. (B) | TCK.B-T | 48.280 | The story of the day for them is their position in coal, particularly Fording (FDG.UN-T) and the process there. Would prefer to own Fording as it is a more pure play on coal. | 2008-04-21 | ||
| BUY | Talisman Energy | TLM-T | 21.400 | (Market Call Minute.) Large-cap energy and likely long-term acquisition candidate. | 2008-04-21 | ||
| BUY | Thomson Reuters Corp | TRI-T | 35.570 | Just completed their merger, which created a lot of confusion with people trying to value the stock and hedge funds being involved trying to play the arbitrage. A wonderful second derivative way to play a rebound in financials. It fell with all the financials even though it is not a financial. Fabulously well run and well capitalized. A good one to salt away without the catastrophic risks of financials. Good for long-term. | 2008-04-21 | ||
| BUY | Yellow Media Inc | YLO-T | 11.120 | (Market Call Minute.) Very good entry point. Long-term issues with this business, but the market is more than discounting these. | 2008-04-21 | ||
| DON'T BUY | Uranium One Inc. | UUU-T | 4.840 | Uranium prices have cooled off. Long-term fundamentals for nuclear power generation and the supply/demand imbalance in uranium still remain attractive. This one would not be one of his top picks. Not comfortable with their position in Kazakhstan. A risky holding at this point in time. UEX (UEX-T) would be a top pick and could be an acquisition target as well. Ur-Energy (URE-T) would be safe and has a very large cash position. | 2008-04-21 | ||
| BUY | Hanfeng Evergreen | HF-T | 12.950 | (Market Call Minute.) A Chinese fertilizer related play. The market has thrown it out as the Chinese market has sold off. | 2008-04-21 | ||
| DON'T BUY | WebTech Wireless Inc. | WEW-T | 3.050 | Investors have to look at this one very carefully. Thinks they have very little in proprietary technology. They are virtually a reseller of off-the-shelf technology. History has a lot of black eyes. | 2008-04-21 | ||
| BUY | EnCana Corp. (US) | ECA-N | 86.230 | (Market Call Minute.) Fabulous. Simply the best gas company there is. Long-term investors should hold this. Will produce free cash flow and free cash flow growth for many years. | 2008-04-21 | ||
| BUY | Bellatrix Exploration Ltd. | BXE-T | 4.290 | Not a typical income investment as it is more speculative than others. At a very interesting level. Should be able to see significant capital gains. 11.5% distribution is safe and they have a very low payout ratio. | 2008-04-21 | ||
| PAST TOP PICK | Vault Energy Trust | VNG.UN-T | 3.880 | (A Top Pick Nov 17/06. Down 1%.) Acquired by Penn West Energy (PWT.UN-T) | 2008-04-21 | ||
| SELL | Bonnett's Energy | BT-T | 2.790 | Victims of the weakening gas prices and the weaker energy services sector. Their current problems are balance sheet oriented. A very dangerous holding at this point. Would prefer companies like Total Energy Services (TOT.UN-T), Precision Drilling (PD.UN-T) or Akita (AKT.A-T). | 2008-04-21 | ||
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| PAST TOP PICK | Teranet Income Fund | TF.UN-T | 9.710 | (A Top Pick Nov 17/06. Note change.) When it converts over to a corporate structure, it will be able to maintain its level of distribution. A fabulous target for private equity. | 2008-04-21 | ||
| PAST TOP PICK | Sound Energy Trust | SND.UN-T | 3.530 | (A Top Pick Nov 17/06. Down 10%.) Acquired by Advantage Energy (AVN.UN-T). | 2008-04-21 | ||
| DON'T BUY | Bankers Petroleum | BNK-T | 1.680 | (Market Call Minute.) Excellent new management team. Great long-term prospects. Over owned and overbought right now, so wait for a better entry point. | 2008-04-21 | ||
| BUY | Akita Drilling Ltd. | AKT.A-T | 15.740 | Very good company. Interesting space to be in. The turnaround in share price of the drillers has probably preceded the fundamentals. Fundamentals over the next several years look incredibly strong. Prefers drillers that have a yield such as Precision Drilling (PD.UN-T). Good entry point. | 2008-04-21 | ||
| HOLD | Neo Material Technologies Inc. | NEM-T | 4.730 | (Market Call Minute.) Fabulous company but no short-term catalyst to the upside. | 2008-04-21 | ||
| TOP SHORT | Timminco Ltd. | TIM-T | 22.150 | Has not seen anything to prove to him that they have any sort of proprietary technology and yet there is so much built into the stock. Had declining revenues and operating losses for several years. No clear technology advantage over anyone. Doesn't think they can deliver on any of their contracts. | 2008-04-21 | ||
| TOP PICK | MagIndustries Corp. | MAA-T | 2.790 | Potash play. A very large extremely profitable potash project in West Africa, Magminerals will be spun out as an independent company and will be valued about $4 per share giving a huge premium on today's price. Also have residual operations of forestry and power generation worth about $1.50. Gives close to $5.50/$6 per share of value. You won't capture all this as it will probably trade at discount, but it gives a huge upside from the current price. | 2008-04-21 | ||
| TOP PICK | CIC Energy | ELC-T | 16.000 | Huge coal asset. Assets are in Botswana but the company is serving an electricity-starved market of South Africa. Have huge negotiating power and will probably be locking in a contract and allow them to build their power plant at very profitable levels. The power business will be worth $26-$30 a share. In addition to the power business, they have enormous residual coal reserves that will make a very profitable standalone operation. | 2008-04-21 | ||
| BUY | Arc Resources Ltd | ARX-T | 20.700 | Stellar management team. Great assets with long reserve life. Good long-term holding in the oil/gas space. Probably won't participate in any near-term rally. | 2006-11-17 | ||
| BUY | Boston Pizza Royalties | BPF.UN-T | 14.660 | A spectacularly successful company that is in a growth mode. Very well-run. | 2006-11-17 | ||
| HOLD | EnerCare Inc | ECI-T | 13.650 | Great stable assets. Prefers UE Waterheater (UWH.UN-T) at this time. | 2006-11-17 | ||
| BUY | Harvest Energy Trust | HTE.UN-T | 27.010 | A great name. Acquired a refinery, which created a lot of chaos in re-pricing the issue. High yield. | 2006-11-17 | ||
| BUY | Keyera Corp | KEY-T | 16.550 | A very good name. Very undervalued at this point. | 2006-11-17 | ||
| HOLD | NAL Energy Corp | NAE-T | 12.850 | Have reduced distributions. | 2006-11-17 | ||
| BUY | Pembina Pipeline Corp | PPL-T | 14.350 | Pipeline and utility companies in the income trust format are very interesting here. Very stable cash flows. Huge targets for private equities or corporate buyers. | 2006-11-17 | ||
| BUY | Shiningbank Energy Income Fund | SHN.UN-T | 14.730 | Any gas weighted trust is probably close to the cusp of cutting distributions, but would ignore that as you have very high yield here. Distributions may move up-and-down, but you have huge capital gains potential. Consider buying Rider (RRZ-T) which gives you exposure because of the share offer giving exposure to their explore co. | 2006-11-17 | ||
| SELL | Trinidad Energy Services | TDG.UN-T | 12.350 | An excellent company with technological advantages with a very young fleet. If demand for rigs goes down, this will be the least affected. Would move out of this and into something with more short-term growth. Go back to it in the spring. | 2006-11-17 | ||
| BUY | UE Waterheater Income Fund | UWH.UN-T | 12.950 | Prefers over Consumer Waterheater (CWI.UN-T). | 2006-11-17 | ||
| DON'T BUY | Liquor Stores N. A. | LIQ-T | 17.150 | This was a business that depended on the high valuation that they got as an income trust. Not only will they be taxed with no shield, but the ability to make acquisitions has been reduced. | 2006-11-17 | ||
| HOLD | Medical Facilities Corp. | DR-T | 8.620 | Medical facilities, principally in South Dakota. A prime target for privatization by US equity players. If that happens, you'll continue to get distributions and a price of $10 next year. | 2006-11-17 | ||
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| PAST TOP SHORT | Penn West Petroleum | PWT-T | 33.390 | (A Top Short July 21/06. Down 30.7%.) Probably an interesting Buy at this point. If you own, Hold. | 2006-11-17 | ||
| SELL | Equal Energy Ltd. | EQU-T | 11.430 | Grossly overvalued. Take the opportunity to sell and get out and move to something better. | 2006-11-17 | ||
| HOLD | Mission Oil & Gas Inc. | MSO-T | 11.080 | High quality management team and high growth assets.. Being acquired by Crescent Point Energy (CPG.UN-T). This is a good exit if you own so he would tender. | 2006-11-17 | ||
| DON'T BUY | Mullen Group Ltd | MTL-T | 18.250 | Hit with the changes in the income trusts as well as with the drop in the oil energy services sector. Access to capital for acquisition is reduced. At best, a sideways story for the next several months. | 2006-11-17 | ||
| HOLD | XS Cargo Income Fund | XSC.UN-X (Dead) | 11.000 | Fairly valued. Their business model is not impacted by the tax changes for income trust. | 2006-11-17 | ||
| SELL | SIR Royalty Income Fund | SRV.UN-T | 8.900 | There will be an impact on the cash flow for distributions. Would prefer some of the bigger brand names that are more liquid. | 2006-11-17 | ||
| TOP PICK | Vault Energy Trust | VNG.UN-T | 5.610 | Huge yield. Trading at a huge discount to its net asset value. Have $450 million of tax losses. When 2011 rolls around, this gives them a huge tax shield. | 2006-11-17 | ||
| BUY | New Flyer Industries Inc. | NFI.UN-T | 8.300 | A main competitor was recently a target of private equity players at a very high multiple. This implied a much higher price for this stock, which gave it a boost. Business is growing very quickly. | 2006-11-17 | ||
| PAST TOP PICK | Bonnett's Energy | BT-T | 14.990 | (A Top Pick July 21/06. Down 36%.) A double whammy of negative energy services as well as they income trust problems. Incredibly inexpensive on a multiple basis. No risk to their distribution. | 2006-11-17 | ||
| TOP PICK | Teranet Income Fund | TF.UN-T | 8.910 | Grade A management team. A monopoly type business in Ontario. World-class technology that they can export into different business verticals internationally. | 2006-11-17 | ||
| BUY | Bell Aliant | BA-T | 27.630 | 3% growth. A good name for conservative investors. There won't be much capital appreciation. | 2006-11-17 | ||
| DON'T BUY | Liquor Barn Income Fund | LBN.UN-T | 8.060 | This was a business that depended on the high valuation that they got as an income trust. Not only will they be taxed with no shield, but the ability to make acquisitions has been reduced. | 2006-11-17 | ||
| TOP PICK | Sound Energy Trust | SND.UN-T | 5.280 | Huge cash-on-cash yield. Gigantic tax shield of $510 million. | 2006-11-17 | ||
| WEAK BUY | Pengrowth Energy | PGF-T | 19.710 | Worth owning, but would not be one of his top picks on the oil/gas side. Made an acquisition of Esprit Energy at a very good price. Not really cheap at this point. | 2006-11-17 | ||
| PAST TOP PICK | Extendicare REIT | EXE.UN-T | 25.300 | (A Top Pick July 21/06. Up 8.3%.) (Now a trust.) Is not getting the exemptions that some REITs are, otherwise it would be a lot higher. Consider selling your shares. | 2006-11-17 | ||
| BUY | Brompton Equal Weight Income Fund | EWI.UN-T | 10.750 | A diversified basket of income trusts. Very low fees. Trading at a big discount to its net asset value. | 2006-11-17 | ||
| BUY | Bonavista Energy Corp | BNP-T | 35.340 | One of his favourite names on the oil/gas side. Has one of the most stable distributions profiles. There is capital appreciation from this level. | 2006-07-21 | ||
| DON'T BUY | Davis + Henderson | DH-T | 18.300 | Has been one of the stars in the business trust area. May actually have turned a corner and be facing a decline in volumes which is affecting their core business. Doesn't see any opportunity for capital gains. | 2006-07-21 | ||
| BUY | Enerplus Corp | ERF-T | 62.240 | Distribution is safe. As for the unit price and your capital exposure, this has been the “go to” name. Chronically overvalued because of its US listing. You won't earn significant capital gains unless there is a huge move upwards in oil/gas. | 2006-07-21 | ||
| DON'T BUY | Fording Canadian Coal Trust (Inc Trust) | FDG.UN-T | 29.230 | The big capital gains and the big excitement of coal is past. This one is a great way to play coal but is showing tremendous volatility in share price and distributions as coal prices move around year-to-year. | 2006-07-21 | ||
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| BUY | Keyera Corp | KEY-T | 20.050 | Really likes the midstream assets right now, which they own. Expect there will be capital gains here. Good opportunities ahead of them. | 2006-07-21 | ||
| BUY | Precision Drilling | PD-T | 35.000 | Has dropped off with all the oil/gas trusts. Represents good value here. | 2006-07-21 | ||
| BUY | Peyto Exploration & Develop. | PEY-T | 21.870 | Has been an absolute star in creating shareholder value at the drill bit. A lot of the sell off was because it got ahead of itself. Good level. | 2006-07-21 | ||
| HOLD | Perpetual Energy | PMT-T | 18.010 | Gas weighted. With their distribution cuts now out of the way, it is probably a decent entry point. Not the best trust to play a turnaround in gas prices. | 2006-07-21 | ||
| TOP SHORT | Prime West Energy Trust | PWI.UN-T | 33.620 | Doesn't have anything seriously wrong with it but is more of a market hedge. About 70% gas. High level of debt at 2 X debt to cash flow. Believe they will have to issue equity which will be a catalyst to lower the price. Chronically overvalued because it is inter-listed. Good one to short it if you own a lot of oil/gas trusts. | 2006-07-21 | ||
| BUY on WEAKNESS | Retirement Residences REIT | RRR.UN-T | 7.480 | Paul Reichmann plans to join the bidding for this company. Feels there will be more bids. At anything below $7.50, the risk/reward is very good and you should be buying. | 2006-07-21 | ||
| WEAK BUY | Shiningbank Energy Income Fund | SHN.UN-T | 20.350 | Recently had a distribution cuts, but they should be fine from this level. A pretty good way to play a turnaround in gas but there are better ways. | 2006-07-21 | ||
| PAST TOP PICK | Trinidad Energy Services | TDG.UN-T | 15.970 | (A Top Pick Feb 10. Down 8%.) Has had significant volatility. Sold his holdings except for one fund. Setting up nicely again. Still a favourite to play for the back half of the year. | 2006-07-21 | ||
| BUY | Baytex Energy Corp | BTE-T | 23.450 | Expects capital gains. A name he really likes. | 2006-07-21 | ||
| BUY | Golf Town Income Fund | GLF.UN-T | 10.480 | Extremely strong management team. Weather conditions and weakness in the last quarter has cost the stock to drop. A good growth name to own. | 2006-07-21 | ||
| WEAK BUY | Medical Facilities Corp. | DR-T | 9.150 | An odd one in the Canadian business trust as it is a set of small medical facilities in the US. Represents stable distributions. Extremely well run company. US$ exposure. | 2006-07-21 | ||
| WEAK BUY | AvenEx Energy Corp | AVF-T | 7.940 | Chart shows a precipitous drop, but this is the result of them spinning out a division. Excellent management with a lot of their own money in it. Yield should be safe, but shouldn't be a core holding. | 2006-07-21 | ||
| BUY | Trilogy Energy Corp | TET-T | 18.150 | Can't see any more distribution cuts. Great management team. A good way to play rebounding gas. Good level. | 2006-07-21 | ||
| SELL | Daylight Energy Ltd | DAY-T (Dead) | 9.950 | Shares have performed far worse than the actual underlying business. Have been contaminated by their merger with Sequoia Trust. Expect further negative developments with Sequoia. | 2006-07-21 | ||
| BUY | Fairborne Energy Trust | FEL.UN-T | 12.390 | Not on the top of his list for oil/gas trusts. At the level it is now, distributions should be reasonably secure. Good price. | 2006-07-21 | ||
| BUY | Mullen Group Ltd | MTL-T | 24.100 | Well run company. Recently completed a merger that was a very smart move. Sold off primarily because it is an energy services group. Reaction has been far beyond the actual deterioration of their business. A great holding. | 2006-07-21 | ||
| BUY | Canadian Helicopters Group | CHL.A-T | 7.880 | Falls in with the group of energy service operators and was sold off with the rest of them. Represents good value at this price. | 2006-07-21 | ||
| BUY | E. D. Smith Income Fund | JAM.UN-T | 8.490 | Recently did a major acquisition. Good value at this price. | 2006-07-21 | ||
| PAST TOP PICK | XS Cargo Income Fund | XSC.UN-X (Dead) | 13.900 | (A Top Pick Feb 10. Down 6.7%.) Management owns half the company. A growth story. Still a favourite. Great long-term story. | 2006-07-21 | ||
| DON'T BUY | Bellatrix Exploration Ltd. | BXE-T | 14.200 | Despite having a payout ratio in excess of 100%, they have been quite resilient in not cutting distributions. Now that they have their acquisition of the way, he would expect they should do a cut. This is his least favourite oil/gas trust. Has serious issues. | 2006-07-21 | ||
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| WEAK BUY | Canetic Resources Trust | CNE.UN-T | 22.740 | Not near the top of his list in terms of oil/gas trusts. | 2006-07-21 | ||
| PAST TOP PICK | Sterling Shoes Inc | SSI-T (Dead?) | 12.700 | (A Top Pick Feb 10. Up 21.4%.) There is still more to go. Not a well followed name. | 2006-07-21 | ||
| BUY | Canwest Media Networks Income Fund | CWM.UN-T | 8.300 | Has gone down from the new issue due to a lack of demand for shares. Odds have been stacked against them. Represents value at $8 or below, but once it gets over the $9 level there is no reason to own it. | 2006-07-21 | ||
| TOP PICK | Bonnett's Energy | BT-T | 23.390 | Weakened by weak natural gas prices. The action has far outweighed the slowdown of the business over the last couple of quarters. Super inexpensive. They'll virtually double their distribution year over year. | 2006-07-21 | ||
| HOLD | Bell Aliant | BA-T | 35.100 | A very smart restructuring and was the absolutely right thing to do. Good for shareholders short-term and long-term. Very modest capital appreciation four people who were looking for steady income. There won't be substantial growth. | 2006-07-21 | ||
| BUY | Citadel Income & Growth Fund | CIF.UN-T | 10.700 | A closed-end fund. This is an interesting way to play the income trust market in that these funds typically trade at a 5% discount. | 2006-07-21 | ||
| SELL | Lanesborough REIT | LRT.UN-T | 5.610 | Doesn't like this one. Very risky given their capital structure and their strategy. | 2006-07-21 | ||
| BUY | Oil Sands Sector Fund | OSF.UN-T | 8.400 | Focuses on oil sands stocks. A good way to play the oil sands. It will give you a diversified basket. | 2006-07-21 | ||
| TOP PICK | Extendicare REIT | EXE.UN-T | 23.600 | Splitting into 2 companies, one of them an income trust. An excellent risk/reward. | 2006-07-21 | ||
| SELL | Advantage Oil & Gas Ltd | AAV-T | 20.350 | Advantage Energy (AVN.UN-T) and Ketch Resources (KER.UN-T) are emerging. Wouldn't own the merged company. He was short Advantage and longer Ketch. | 2006-05-26 | ||
| BUY | Boston Pizza Royalties | BPF.UN-T | 18.000 | Has been a great performer. Still has a great growth profile ahead of it. Well managed. | 2006-05-26 | ||
| HOLD | RioCan Real Estate Investment | REI.UN-T | 21.510 | A great name. Fabulously well managed. Not much upside or downside. Very stable but not much growth. | 2006-05-26 | ||
| Comment | Retirement Residences REIT | RRR.UN-T | 8.250 | Been a complete mess lately. Up for sale and a potential bidder, Chartwell, dropped out. That took the stock down. Thinks it will get sold for a higher price than what it is trading at, maybe $9.50. | 2006-05-26 | ||
| TOP PICK | Just Energy Group | JE-T | 17.580 | Has returned only about 10% to investors over the last year or so, under performing the broader market. With their quarter that came out last week, things are picking up with their US strategy. | 2006-05-26 | ||
| DON'T BUY | Superior Plus Corp | SPB-T | 12.030 | Had to cut distributions. No sure that it makes much sense for it to be trading higher. | 2006-05-26 | ||
| BUY | Trican Well Service Ltd. | TCW-T | 26.050 | Fracturing business is a very hot space. Prefers this one over Calfrac (CFW-T). Feels both will convert to an income trust model in the next 24 months. Current price is probably factoring this in. | 2006-05-26 | ||
| PAST TOP PICK | Trinidad Energy Services | TDG.UN-T | 18.350 | (A Top Pick Feb 10/06. No change.) Good value at these levels. One of the best names you can own in this sector. | 2006-05-26 | ||
| BUY | CML Healthcare | CLC-T | 14.650 | A great super stable name. Not much in the way of capital gains to be expected. You won't be disappointed with this. Extremely well managed. Long-term hold. | 2006-05-26 | ||
| BUY | Calfrac Well Services Ltd | CFW-T | 30.000 | Fracturing business is a very hot space. Prefers Trican Well Service (TCW-T). Feels both will convert to an income trust model in the next 24 months. Current price is probably factoring this in. | 2006-05-26 | ||
| HOLD | Pengrowth Energy Trust (B) | PGF.B-T | 24.400 | Combining their A and B shares together. At these levels, this is a pretty good hold. | 2006-05-26 | ||
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| SELL | Foremost Industries Inc. FD | FMO.UN-T (Dead) | 19.600 | Has been a spectacular performer. There is very little intellectual property in this business. They are a small player. Very risky. | 2006-05-26 |
