Hong Kong rail company. Core operations are running a subway, but because of the density of Hong Kong it owns the subway stations and the retail operations which they charge rent. Very attractive growing dividend. Has 2 operations in China as well as management contracts in Sweden, Australia and the UK. Dividend yield of 2.53%.

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Markets. 1^st quarter we had a big run as we have historically had, which was on the back of the RRSP and the 401K in the US. Typically after Q1 we see a slowdown. Then towards the end of the 4^th quarter the market starts to pick up and repeat the cycle. Intensity of the 1^st quarter was actually stronger than it has been in the last 4 years. He is expecting the US to continue to recover. Industrial production is continuing to improve, as it has done in the last 4 years, and coming off a very low employment level. Europe is getting the bite of austerity and that is starting to show up in a number of companies’ earnings. Also higher taxes are there, so slower growth in Europe is going to be the main thing moving forward. Asia generally is recovering. India is an interesting pocket and has had some interesting numbers. Latin America generally is going to have a slower period of growth, really on the back of lower commodities. Generally modest growth globally but there will be some pockets to pick up for those looking for global exposure.

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Always seems to travel during the dividend time, which is coming up very soon. How is this going to go in the next couple of days as a trade? In the last couple of years is probably closer to its highs that it has been. Doesn’t think this is a company where you can just buy it and flip it. This is an industrial, slow moving company.  More of a long-term buy and hold. Good balance sheet and good dividends. Slow growth. Look for something with a little more heat to it.

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Feels they made a structural mistake by getting into the consumer market and moving away from its core, the business and enterprise markets. Once it did that, it really opened itself up to direct competition from Apple (AAPL-Q). Good company but it has to reintroduce itself and he is not sure it is going to make it. If you are looking for a trade, it does have a cyclical bounce pattern which you could trade.

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This company is on sale. Has a big litigation overhang. Had to sell off some assets and build a provision for the liability. Once the liability is removed, likely this year, stock should move higher. Recently sold off their Russian assets and rolled the majority of the proceeds into Rosniv (?), a substantial Russian oil company. With the balance of their $8 billion they are going to buy back shares and he sees some lift there. 5.13% dividend yield.

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His clients have done very well on this. On a valuation point of view, it is a very expensive stock at 19X earnings. Has a progressive dividend. Good balance sheet. Have acquired many companies globally and you have to wonder what is left to buy. At some point it will become an organic story as opposed to an acquisition story.

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Some of its gains from its lows were to do with currency. US$ was fairly weak and they were exporting into stronger economies. Longer-term this is a good company. Selling off now because of relatively disappointing earnings. Thinks this is a long-term very good story. If you want exposure to cloud computing or high-end government contracts they have this.

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First thing you have to think about is that European banks in general have to be recapitalized and that is a substantial challenge. This could mean a lot of equity can get crushed and ultimately result in something like a 10 to 1 crushing. The exposure this bank has from a UK point of view, is that it is in a very tough situation.

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