Table View - Opinions in Detail

Has been trending down and has broken a little bit of support. There is a tendency for treasury bonds to move up over the summer. From the seasonal perspective, it should be a good place to be. He would only be interested in this if it broke out of its consolidation pattern, which looks a little weak.

(A Top Pick April 5/13. Down 2.96%.) There is kind of a tendency for this to move between $15 and $16 and has a big dividend of about 5%. Doesn’t think this indicates a disaster in the making, so he has not sold his holdings.

US Markets. Cdn markets have been disappointing but he feels the real correction should be in the US. Even though things are improving there, a lot of the buying activity that we have seen over the last few months was due to the Japanese yen. The yen carry trade is going to be in doubt for a little while as Japan is pausing on their initiatives. US market is probably going to struggle until we start seeing earnings in about a month.

In the event of a significant market correction, which categories of Cdn large cap stocks will be best able to continue their dividend payments in $ terms? If we had a big correction, the banks would be the place to be. Right now they are trading at around 11X earnings and 10X forward earnings. Payouts are roughly around 50%. They will be able to maintain their dollar dividends fairly substantially. Look for companies that have very strong balance sheets and payout ratios of 50% or less.

A long-term believer in this company. Has been doing a little bit better of late. There are reports that lentil exports have been increasing quite a bit. Just about to commission their new pulse protein plant, so they are going to get more food additives within the pulse world. Well-positioned in Turkey. One of the major players in the pulse market which is a growing market. Over the last few years have had a number of problems hit them but thinks this is all behind them.

(Market Call Minute.) Below market valuation right now. Still has growth from acquisitions.

This is a play on the US housing recovery. There is improving US loan growth, lower litigation risks, accretive share repurchases and the balance sheets are strengthening. Dividend yield of 0.3%.

(A Top Pick June 21/12. Up 14.89%.)

Always thought this was one of the better managed energy producers. At these levels, this is one he would be taking a serious look at. Excellent properties and good management. Financial situation is fairly good.

This company is in the sweet spot of the aviation market. They are a world leader in simulation technology. Pilots will be trained, more likely, on this company’s equipment than almost any other. Well-balanced between military and civil aviation. He hopes to see $14-$15 sometime over the next business cycle.

Good company and executing well. Q1 production beat 117,000 barrels versus 113,000. Upped their guidance for the year. The one thing he didn’t like this quarter was their CapX went a little bit higher, back to $1.5 billion, which the market doesn’t want to see. Very low debt levels. Debt to cash level is around 1.1X. Effective payout ratio of about 141% is a little bit higher than their peers. Great, light oil name. Should benefit if the pipelines get built.

1^st time in 15 quarters that they actually missed estimates. Retail landscape in Canada is changing so rapidly. Still thinks this one has some good growth years ahead of it. Well managed. A formidable competitor in their business. On a valuation basis it looks quite expensive to him.

(Market Call Minute.) Building momentum. Cash flow and production is improving. Debt levels are improving also.

Gold companies being particularly hard hit but this company has a number of large viable projects on stream over the next few years. Feels their production profile is going to go up from about 2.5 million ounces today and could be well over 4 million ounces 2017-2018. Has always been a very efficient producer.

Just did another $150 million in the last day or so on top of the $500 million long-term debenture out to 2020. With this they have been able to relieve some of their tighter covenants with respect to their earnings before interest, taxes, depreciation and amortization against their debt holding. Have 3 projects coming on.

One of your best names in Canadian energy infrastructure. About 90% of their cash flows come from infrastructure and trades at a premium multiple because of that and is very much warranted. Recent decision to internalize their general partner is very accretive and will help the company free up ownership restrictions. Expects 5% dividend growth every year. 4.76% dividend yield. Target of $27 in 12 months.

(A Top Pick June 10/12. Up 16.67%.) Thinks there is going to be a lot more activity in the drilling space over the next few years. This is one of the stronger competitors. Have been renewing a lot of their fleet over the last couple of years. Expects day rates to remain stable or even move up.

A stable, lower risk play in this environment. If interest rates are going higher, insurance (Great West Life) and asset management are good places to be. Great West just made an accretive acquisition of Irish Life. Payout ratio is very low. Dividend yield of 4.57%.

Banks have pulled back and a lot of this has been driven by misinformed speculation in the US, as to the condition of our housing market and the vulnerability of the banks to the mortgages. They don’t really understand how our mortgage market works. Loan to Value ratio overall, there is a 3^rd or more of equity. This bank is very strong, not only in retail banking but also has a very strong presence in capital markets. Earning about a 19% return on equity. Dividend yield of about 4.3%.

Feels the stock dropped because of the recent ruling from Revenue Canada. At the end of the day, he doesn’t think there is going to be a 4^th player. All 3 telcos you could buy at their current levels but this one, of the 3, has the greatest amount of growth. His target price is $41 in 12 months. 4% quarterly dividend yield.

Not so sure that the dividend is entirely safe here, so wouldn’t buy this for the dividend. The setback in the stock is indicative of some of the problems that this company has had.

Pipelines, generally speaking, are not a bad place to be looking. With all the new development of resources, we are going to want to move them and he doesn’t believe this is all going to happen by rail necessarily. For this one, the big question today has been the Keystone XL pipeline, which appears to be a political football. Should that be turned down, the stock could take a little bit of a hit. If you have a 3-5 year outlook, you could safely buy it here.

Have a fairly good production profile in terms of increases coming up over the next few years. Has done pretty well. Expects to see them producing well over 1.5 million ounces a year in the not-too-distant future. On a price basis, he feels there are some relatively better values in the gold market. (See Top Picks)

Markets. Market was arguably overbought so the pullback was probably needed. There could be a bit more. It is obviously being driven by the uncertainty of the fed pulling back on their asset buying program. Her view is that there will be a gradual withdrawal. Feels that longer-term, we are in a slow global recovery environment and would use this opportunity to add exposure to companies that will benefit from the ongoing recovery. She still likes Canadian banks and pipeline stocks.

Thinks they have a bit more frac exposure so she prefers Pembina (PPL-T). Dividend yield of 3.86% which is lower than Pembina.

The 3 names she owns in energy are Arc Resources (ARX-T), Bonavista (BNP-T) and Crescent Point Energy (CPG-T). If she had to pick one that was more natural gas, it would be this one. Great operators and provides a yield in the low 5%. Good growth profile and visibility on how they are going to grow their production.

This would be his 5^th favourite bank out of the big 5 Cdn banks. Has broken through its 50 day and 200 day support although the sentiment indicator has turned pretty level now. The Cdn banks are pretty good value here. (See Top Picks.)

The 3 names she owns in energy are Arc Resources (ARX-T), Bonavista (BNP-T) and Crescent Point Energy (CPG-T).

(Market Call Minute.) Has corrected quite a bit from its highs. Leveraged to construction and mining longer-term.

Sold her holdings last year because of her concerns on the widening differential of Canadian crude versus WTI. This company was very vulnerable to the price differential. Differential has now narrowed somewhat. Before re-entering this stock, she would want more clarity on how they were going to move their crude from Canada into the US.