Table View - Opinions in Detail

(Top Pick May 10/12, Up 53.53%)

Thinks there is a dividend increase coming later in the year but don’t expect 4% ever.  This is a growth company.  It is still not expensive but autos are cyclical.  In a couple more dollars he would take half off the table.

Different than POT and AGU.  This one is a special situation.  It has phosphate which is his favourite nutrient.  12 times earnings.  $2.5 billion on the balance sheet.  Thinks they will buy back stock with the extra cash.

There are a couple of problems.  You have planted this year’s crop right to the fence post and we are expecting record crops, which will push prices down including potash.  There is a large supply of potash and the price may not stay up here.  Nat gas prices are going higher so increased input costs.  Entry point is low 80s. 

He owns IPL.  PPL has historically had a little more debt.  The multiple is really high.  You can’t go much higher. 

He owns it.  We have been expecting an acquisition and it is slow coming and this is a great entry point.  He is prepared to wait.

He sold.  All of a sudden after an acquisition there is a 100% payout ratio.  They are now saying they are going to restructure.  They should cut the dividend.  Get out if it runs for no reason.  He lost money on this one.  There is not much more downside on this one.

Seems it is waiting until June or July to buy these things.  Buy on weakness in the summer. 

The whole group is the same.  They are all at all time highs and raising dividends.  You can’t expect much more.  But if things stay as they are, you will get 3-5% dividend and 7-9% total return.  It has never come back 10% once.  The entry point is a little high.

(Top Pick Jun 29/12, Up 9.20%) Favorite Canadian Bank.  Doing well in the US and leaves them less exposed to a Canadian Real Estate melt down if it were to come.  Doesn’t see the same kind of melt down.

Oil.  does well from July to September.  Don’t go in now as there is usually a lull.  It has not broken out right now.  You want to see a breakout.  

Markets. There are some very clear and long lived themes that continue to perform very well.  The companies that are highly economically sensitive are not doing as well and companies that are benefiting from monetary policy and have a good dividend policy.  Investors lack income replacement.  Highly cyclicals are doing well, but consumer cyclicals are benefiting.  Companies and sectors where their ability to pay is improving are doing well.  Telecom, Real Estate Investment Trusts, and Pharmaceutical.  These companies are willing to pay out more of their earnings.  He avoids materials, energy producers, and golds.

Has been YOUR tech spot until last month.  It has been bottoming for some time.  He wishes it to retest previous levels.

(Market Call Minute) Avoids golds.  If dollar gets stronger they will have a tough time.

This is the time of year to buy agriculture.  But there are headwinds.  Late US crop due to weather.  Nat Gas prices are higher and it is an input cost.  Second quarter is the big one for them.  Weather could hold back some of their orders.  He would prefer Monsanto.  He is short the stock.

Mid stream energy infrastructure companies in the US are usually held in a master limited partnership.  The problem is that the investor has to pay taxes locally in the state they are in.  AMLP-N is an ETF that takes care of the tax problem.  He likes it.

With a 7% dividend that is not covered, he prefers not to own this kind of company.  Prefers T-T (Telus Corp.).

Their recent numbers were pretty good and bookings are strong.  Prefers Boeing.  BBD is following in suit, though.  Price breakout on the chart and you could own it.

The problem is not a quality problem but that there is a lot of international money in Canada that is moving out of Canadian stock markets.  US banks should see more dividend growth.  Prefers US financials.

Buy the REIT or the stock?  He reduced REIT exposure in the last few months, thinking Canada is slowing a little with the US being better.  Thinks the value on the real estate is higher than they put it at.  Prefers the US.  The only risk is that it is a single tenant risk.  But they are unlocking value in the short term.  There probably is upside.

Biotech group has been performing extremely well.  There is growth and there is an expectation that they will be bought by a traditional drug company.  You are buying something for growth here.  Prefers to own the group, such as XBI-N, an ETF.

Recovery in housing.  Were out of favour for a long period of time.  Restructured to come out the other side strong.  Rationalized locations, got very focused on financial metrics and bought back shares.  Raised dividend by 34%, strong cash flow.  Beneficiary of pent up demand in home improvement.

One of the best ways to participate in the growth of the oil sands.  Core competency is taking distillates and ship them up a pipeline to be used in the oil sands.  Almost 5% dividend and dividend growth of 5-10%.  A core position for him.  Good numbers came out today.

Pharma.  Sterling track record of growing cash flow over time.  8% compound growth rate in dividend over 10 years.  50% cash flow growth.  Pharma and consumer businesses are strong.  A little bit more expensive compared to past but worth it.

50% payout ratio.  Drugs are coming off patent.  You are buying for yield and low volatility.  There are better names in the group but they are in the sweet spot in the market.

Tech has underperformed this year.  But in the last few weeks it has shown improvement.  Strong balance sheet and willingness to return capital.  2.8% dividend.  11 times earnings.  30% payout.  It is being bought for the dividend.

(Market Call Minute) Benefits from stronger markets.

(Market Call Minute) Has been underperforming.  Prefers others.

Came to an end of seasonal strength at the end of April, when it peaked.  Has not done much since then.  Jan to Apr is strong for the financials.

*Short*.  May and June are very negative for silver.  2.8%, usually.  It is very negative this year. A lot of negative setups.  He would short for May and June and then you get into a period of seasonal strength for Silver, so exit then.