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| Michael Simpson, CFA of Sentry Select Capital Corp |
|---|
| The Exchange Tower |
| 130 King Street West, Suite 2850 |
| Toronto ON |
| M5X 1A4 |
| 416-861-8729 |
| Michael Simpson, CFA's website |
| Toll Free: 1-888-246-6656 |
| Fax: 416-364-1197 |
| info@sentryselect.com |
| TOP PICK | Intel | INTC-Q | 20.143 | World's largest semiconductor chipmaker based on revenue. Grown dividends by 23% over the last 5 years. Have $2.93 cash per share. Huge demand in Asia and emerging markets as well as Apple and RIM products. Trading at about 10X 2011 earnings. | 2010-07-07 | ||
| TOP PICK | Futuremed Healthcare Income Fund | FMD.UN-T | 9.200 | Distributes supplies such as wound management, chairs, furniture, etc. to retirement homes. Well run. Have already cut their distributions. Trades at 6 times EBITDA. | 2010-07-07 | ||
| TOP PICK | TransForce Inc. | TFI-T | 8.860 | Largest trucking firm in Canada and includes less-than-truckload and specialized truckload service. Also has a waste management division, which market is not ascribing any value to. Starting to see volumes pick up in trucking. Paying down debt. 4% dividend. | 2010-07-07 | ||
| PAST TOP PICK | Black Diamond Group | BDI-T | 18.250 | (A Top Pick Sept 17/09. Up 37.5%.) Provide workforce accommodation in the oil/gas industry. Expanding and signing new agreements. Also has exposure in the US now. Sold at around $20.50. Would look at it in the $17-$18 range. | 2010-07-07 | ||
| PAST TOP PICK | Computer Modeling Group Ltd | CMG-T | 16.700 | (A Top Pick Sept 17/09. Up 10%.) Heavy oil software and consulting work. No debt. Yields about 4%. History of raising dividends and paying special ones. 80% market share. | 2010-07-07 | ||
| PAST TOP PICK | Cargojet Income Fund | CJT.UN-T | 6.200 | (A Top Pick Sept 17/09. Up 13%.) Have taken a lot of costs out of their system in 2008-2009. Starting to see an uptick in volume. 50% market share in Canada. | 2010-07-07 | ||
| BUY on WEAKNESS | The Data Group Income Fund | DGI.UN-T | 7.000 | Publish a lot of forms for banks, annual reports, etc. Very high payout ratio last year. Expecting distributions to be cut anywhere from 30% to 35% when they convert. | 2010-07-07 | ||
| HOLD | Pembina Pipeline Income Trust | PIF.UN-T | 18.170 | Very good, strong infrastructure that includes pipelines, natural gas liquid marketing and storage. High payout ratio. Have tax pools. He would like to see a small distribution cut of 10%-15%. | 2010-07-07 | ||
| BUY on WEAKNESS | Cineplex Galaxy Income Fund | CGX.UN-T | 19.250 | Have done very well. What may hurt them in the coming quarter is that they are coming off a very strong Q2 2009. Will continue same level of dividend as distribution when they convert in 2011. 3-D movies are good for them because of higher margins. | 2010-07-07 | ||
| Comment | Labrador Iron Ore | LIF.UN-T | 44.310 | World-class iron ore deposit in Labrador. Iron ore prices are quite strong. No debt. Will be converting. If you are bullish on world steel demand, continue to hold. | 2010-07-07 | ||
| BUY | Westshore Terminals Inc. | WTE.UN-T | 17.700 | Exposure to coal, in particular metallurgical coal. No debt. Great infrastructure asset. | 2010-07-07 | ||
| BUY | Daylight Resources Trust | DAY-T | 8.880 | About 55% oil and 45% natural gas. Converted to a common stock and reduced distributions. Highpine and West Energy were good acquisitions. Good growth prospects. | 2010-07-07 | ||
| BUY on WEAKNESS | Brookfield Renewable Power Fund | BRC.UN-T | 19.840 | Long life assets in Hydro/electrical water driven with about 11% in wind power. Trading at about 9.5X on a price to cash flow basis. To maintain distributions after they convert. Buy below $19.50. | 2010-07-07 | ||
| BUY on WEAKNESS | Baytex Energy Trust | BTE.UN-T | 33.160 | About 80% oil (mostly heavy oil) and 20% natural gas. Finding costs for their heavy oil are quite good. Have indicated they will keep distributions as is when they convert. Good growth prospects. | 2010-07-07 | ||
| Comment | Manulife Financial | MFC-T | 15.700 | New CEO (2 years ago) that inherited a company that needed drastic changes. Cut dividends in half. Sell annuities that are tied to different stock markets so have a lot of exposure to capital markets globally. If you feel capital markets are going to come out stronger, this is a Buy. He looks at this as a trading opportunity. | 2010-07-07 | ||
| HOLD | Royal Bank | RY-T | 52.460 | Premier Bank in Canada. Has come down a lot during the correction. 4% dividend yield. | 2010-07-07 | ||
| BUY | Vermilion Energy Inc | VET-T | 34.400 | Announced they will convert in late November. Made a number of acquisitions so are international including assets in Alberta, Australia Netherlands and France. Recent gas acquisition in Ireland, which may increase the payout ratio. Great trust. | 2010-07-07 | ||
| HOLD | Arc Energy Trust | AET.UN-T | 19.860 | 50/50 oil and gas. Have some interesting plays, particularly in Northeast BC where he can see good strong production growth. Will be converting some time later this year. Spending capital on processing of natural gas so distribution could possibly be cut. | 2010-07-07 | ||
| DON'T BUY | Superior Plus Corp | SPB-T | 13.100 | Very old trust with the original business being propane. Diversified into drywall, pulp chemicals and energy contracts. Were paying down debt about 18 months ago but started making acquisitions in propane. Feels they are too risky for him. | 2010-07-07 | ||
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| Comment | Just Energy Income Fund | JE.UN-T | 12.740 | Quite successful selling natural gas and electrical contracts to homeowners. Key driver for them will be the US where they have been for a couple of years. Had some problems in the US because of legislation on how contracts are sold as well as people losing their homes. | 2010-07-07 | ||
| HOLD | First National Financial | FN.UN-T | 16.280 | Originate and then sell mortgages. In Q1 they reported lower mortgage origination than analysts had expected. Cut distribution in anticipation of conversion. Some concern that volumes will drop on mortgage originations. Management owns more than 70% of the shares. Good company. | 2010-07-07 | ||
| DON'T BUY | Penn West Energy Trust | PWT.UN-T | 20.580 | Traditionally had problems with capital efficiencies, replacing barrels they lost through natural decline. Made an interesting deal with a Chinese company to exploit some of their land that they couldn't handle. Expecting a cut in distributions when they convert. Would like to see them improve profitability and capital efficiencies. | 2010-07-07 | ||
| DON'T BUY | Fort Chicago Energy Partners | FCE.UN-T | 10.410 | (Market Called Minute.) Great asset in the Alliance pipeline. Better names out there. | 2010-07-07 | ||
| BUY | Pizza Pizza Royalty Income Fund | PZA.UN-T | 6.680 | (Market Called Minute.) Business is gradually getting better as we come out of the recession. | 2010-07-07 | ||
| HOLD | FP Newspapers Income Fund | FP.UN-T | 4.800 | (Market Called Minute.) Big in Manitoba and includes Winnipeg Free Press and Brandon Sun. Founder owns about 51% of it. | 2010-07-07 | ||
| TOP PICK | Becton Dickinson | BDX-N | 74.470 | Medical devices. Selling into emerging markets where per capita spent on health care is very small. Generates a lot of free cash flow. Raised dividends over the last 37 years. Grown revenues from 2000 at 8% per year. Debt to cash flow is under 1X. Very stable business. | 2010-05-13 | ||
| TOP PICK | Republic Services Inc | RSG-N | 30.100 | 2nd largest waste management. Highest EBITDA in the company's history at 31%. Paying down debt. Expects a share buyback or dividend increase later this year. | 2010-05-13 | ||
| TOP PICK | CML Healthcare Income Fund | CLC.UN-T | 10.670 | (A Top Pick March 25/09. Down 22% excluding distributions.) Medical laboratories. US holdings pulled them down. Won't have restructuring costs going forward. | 2010-05-13 | ||
| Comment | Goldcorp Inc | G-T | 46.470 | Gold mine in Mexico and a joint venture with Barrick. Not hedged. Not the highest free cash flow yield among the senior golds so he prefers Barrick (ABX-T) or Newmont (NMC-T). Dividend of about 0.37%. | 2010-05-13 | ||
| BUY | Barrick Gold | ABX-T | 45.760 | Dividend under 1%. Good free cash flow. You own this one because you want exposure to gold as an alternative currency. | 2010-05-13 | ||
| BUY | Artis Real Estate Investment Trust | AX.UN-T | 11.500 | Western Canadian focused. One of the knocks was that they had too much exposure to Calgary office space but has done a great job diversifying. Payout ratio of 82% and is coming down. | 2010-05-13 | ||
| BUY on WEAKNESS | NAL Oil & Gas Trust | NAE.UN-T | 11.390 | About 50% each in oil and gas. Have some interesting new oil locations. Recently raised money for their CapX programs. Good management and good strategy. Would like more perfect nation on what their dividend will be in 2011. 9.3% distribution. | 2010-05-13 | ||
| BUY | Suncor Energy Inc | SU-T | 32.840 | In the penalty box because of 2 fires in their upgraders. There will be a turnaround in the refineries this summer. Starting to take out some of the costs from their merger with PetroCan. Trading at about 6X 2011 price to cash flow. | 2010-05-13 | ||
| BUY | Altagas Ltd | ALA-T | 17.590 | Energy infrastructure involved in the midstream business. Have wind power and energy storage assets. Will be converting to a corp. and reduce their distribution to reflect the new dividend that they want to pay. Good price. Can generate about $100 million in free cash flow. | 2010-05-13 | ||
| BUY on WEAKNESS | Crescent Point Energy Corp | CPG-T | 40.740 | Just acquired Shelter Bay assets so they will be a dominant producer in Saskatchewan. Have a good valuation in the marketplace. Would like to see it at $38. Over 6.5% dividend. | 2010-05-13 | ||
| DON'T BUY | Manitoba Telecom Services | MBT-T | 28.870 | Majority of business is in Manitoba. Core operation delivers quite healthy EBITDA in the 46%-40% range. Assets acquired from Allstream are not delivering. Primary benefit from this acquisition was tax pools. Market expects a cut in dividend. | 2010-05-13 | ||
| BUY | Arc Energy Trust | AET.UN-T | 21.830 | Excellent energy trust, one of the few companies that can grow production and cut operating cost. | 2010-02-23 | ||
| BUY | Just Energy Income Fund | JE.UN-T | 13.860 | Sellers of Natural Gas and Electricity contracts. Started in Ontario, now rest of Canada and in US. Business model is scalable. Will convert to a corporation and keep the distribution where it is (9%). | 2010-02-23 | ||
| DON'T BUY | Penn West Energy Trust | PWT.UN-T | 20.870 | One of larger oil and gas royalty trusts. Will have to cut their distribution when they convert. | 2010-02-23 | ||
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| BUY | Freehold Royalty Trust | FRU.UN-T | 16.090 | Eloquent solution. Holders of income trusts in RSPs would be allowed to shift them to another plan like a TSFA. It’s a good solution. A well thought out plan. They will be taxable when they convert. A great little company. | 2010-02-23 | ||
| DON'T BUY | Superior Plus Corp | SPB-T | 13.940 | Started in propane and then took on more. Debt went up when they went on an acquisition spree in the US. Is higher than his threshold for debt. There might be a problem 5 years from now. | 2010-02-23 | ||
| TOP PICK | Canadian Real Estate Investment | REF.UN-T | 27.460 | One of the oldest REITs in Canada and diversified geographically. Good balance sheet, payout ration of 69%, raised dividend over the last 7 years. Management is not flashy, but do a good job. Conservatively managed company. | 2010-02-23 | ||
| TOP PICK | Pengrowth Energy Trust | PGF.UN-T | 11.050 | Has a new leader. One of Canada’s oldest energy trusts. Are particular on where they spend money and have to cut their distribution so they shouldn’t have to do it again. | 2010-02-23 | ||
| TOP PICK | Telus Corp | T-T | 33.940 | 5.5% dividend yield. Average revenue is declining. Growing their data and TV business. Likes it because it is beat up and should grow in 2011. 1% capital appreciation expected this year. | 2010-02-23 | ||
| WEAK BUY | Bell Aliant | BA.UN-T | 25.950 | BCE owns about 44% of it. Not growing revenue, but squeezing costs. Will eventually taken in by BCE. Distribution will be cut when they convert. Prediction of $1.90-$2 dividend after conversion. | 2010-02-23 | ||
| WEAK BUY | Canfor Corp | CFP-T | 8.220 | Specialized printing area. Nice distribution yield, but they are over distributing. They will eventually have to cut. Even with the cut it will be a healthy dividend. | 2010-02-23 | ||
| BUY | Great West Lifeco | GWO-T | 27.200 | Likes the sector. Particular about which name, but they own it through Power Financial. You will get earnings growth and dividend growth. | 2010-02-23 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Good companies are beating estimates on revenue and on costs. CPI shows the consumer is still hurt. Companies that are positioned to take advantage of this will do better. Lot of European countries are talking about helping Greece but there’s no action so until the market sees action it will continue to linger. Trying to find best companies with strongest balance sheets. | 2010-02-23 | ||
| BUY | Canadian Oil Sands Trust | COS.UN-T | 28.800 | A passive investment in Sycrude. One of the members wants to sell its stake and COS may want to buy it. If they don’t, the market will be relieved. If you have a long term view that oil will be strong, then this is a very good company. | 2010-02-23 | ||
| WAIT | Trans Canada Corp | TRP-T | 34.930 | They missed expectations today. They issued a lot of shares. They raised their dividend today. Some worry that there is two much pipeline capacity in western Canada. | 2010-02-23 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 11.530 | Reported good results yesterday. Good growth in oil sands. Will maintain their distribution and most likely stay a limited partnership. | 2010-02-23 | ||
| BUY on WEAKNESS | Parkland Income Fund | PKI.UN-T | 12.420 | Lot of respect for management. One of largest independent distributors of fuel and propane. Would buy on weakness. Reporting results in a week or so. Likes the markets they serve – less competition. They have been growing. | 2010-02-23 | ||
| BUY | Yellow Pages Income Fund | YLO.UN-T | 5.860 | They are getting the message that they have to de-leverage their balance sheet. Announced they will pay $.80 and drop to $.65 distribution plus limit themselves to small acquisitions. | 2010-02-23 | ||
| BUY on WEAKNESS | Bank of Nova Scotia | BNS-T | 47.150 | Increased regulation is an issue that all banks face. BNS very well run. Broad international exposure. Have a stake in two mutual fund companies. Would like to see it pull back a little. It’s logical that they will eventually try to buy all of CI. Likes National Bank. | 2010-02-23 | ||
| BUY | Bonavista Energy Trust | BNP.UN-T | 24.470 | (Market Call Minute) About 68% waited in gas. Will convert to a corp. and provide a dividend as well as modest growth. | 2010-02-23 | ||
| HOLD | Cineplex Galaxy Income Fund | CGX.UN-T | 19.090 | (Market Call Minute) 70% of theaters. Great market share. Doing well with Launch of 3D movies. Continues to hold. | 2010-02-23 | ||
| BUY | Vermilion Energy Inc | VET-T | 33.650 | (Market Call Minute) Already paying tax on international operations. | 2010-02-23 | ||
| BUY | Keyera Facilities Income Fund | KEY.UN-T | 25.390 | (Market Call Minute) Process gas and store various products. Have pipelines, 44% payout ratio not including special distribution | 2010-02-23 | ||
| VAGUE | Macquarie Power Income Fund | MPT.UN-T | 7.070 | Infrastructure trust. Spinning out Leisure world. Will take a hard look at Leisure World. | 2010-02-23 | ||
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| Comment | Manulife Financial | MFC-T | 19.340 | Their variable annuity business got them into trouble. | 2010-02-23 | ||
| DON'T BUY | Boston Pizza Royalties | BPF.UN-T | 12.300 | Management are selling some shares. They will be faced with taxes in 2011 at 26-30%. | 2010-02-23 | ||
| BUY | Enbridge | ENB-T | 46.100 | A Core holding. A well managed company. Long history of paying and raising dividends. Growth from new pipelines and their diversification into other businesses, such as a solar farm. | 2010-02-23 | ||
| BUY on WEAKNESS | Westshore Terminals Inc. | WTE.UN-T | 15.680 | Coal loading facility. In news because they renegotiated a contract with Teck. WTE will now get a lower rate from Teck but will get more volume. No debt, buy on a pull back. $15.10-15.20 | 2010-02-23 | ||
| PAST TOP PICK | Davis & Henderson Income Fund | DHF.UN-T | 17.090 | (Top Pick Jan 16/09, Up 7%) Maintained distribution. Trimmed his position a bit. Will have to cut distribution 25-30% as they convert their company. | 2010-02-23 | ||
| PAST TOP PICK | Republic Services Inc | RSG-N | 27.660 | (Top Pick Jan 16/09, Up 8%) Still likes it. Paying down debt. Can either buy back shares at end of year or increase dividend. | 2010-02-23 | ||
| PAST TOP PICK | K-Bro Linen Income Fund | KBL.UN-T | 14.950 | (Top Pick Jan 16/09, Up 47%) Great little company. Low payout ratio, can convert to corp. and continue to pay distribution. | 2010-02-23 | ||
| BUY | New Flyer Industries Inc. | NFI.UN-T | 9.830 | Urban bus manufacturer. Facilities in Winnipeg and Minnesota. Has dominant market share and winning a fair share of new orders. New CEO is very impressive. Generates a lot of cash flow. Almost 12% yield should be sustainable. | 2009-12-03 | ||
| BUY | Marsulex Inc | MLX-T | 10.500 | Provide environmental services in the recovery of sulphur and does a lot of work with refineries. Outlook is quite good as refinery regulations just increased. Market is a little bit concerned that Shell may want to close their Montreal refinery where they are participants but this is not a big concern. 7.1% yield. | 2009-12-03 | ||
| BUY | The Data Group Income Fund | DGI.UN-T | 5.550 | Prints and publishes various material. Customers include Canadian Tire and Shoppers Drug Mart. Have been hit hard by the recession. Have a very high yield. Over distributing at about 109% payout ratio and market is already pricing in a distribution cut. | 2009-12-03 | ||
| BUY | Northland Power Income Fund | NPI.UN-T | 11.000 | Electrical generating assets, primarily from hydro, wind and biomass. Have long-term contracts for all of their facilities. No exposure to spot markets in Ontario or Alberta. Payout ratio of about 85%. Great, long-term asset. | 2009-12-03 | ||
| WEAK BUY | Canadian Apartment Properties | CAR.UN-T | 12.950 | Starting to get interesting at these levels. Had a problem with underestimating amount needed on CapX for apartment restorations but are now addressing this. Have free cash flow payout at about 107%-108% but should be stable for the next 2 years. | 2009-12-03 | ||
| Comment | Davis & Henderson Income Fund | DHF.UN-T | 16.010 | Distribution is safe. Has about an 82%-83% payout ratio. Have diversified outside of the cheque business, which is declining. Have invested in Biologics and mortgage brokerage software. Looking for a distribution cut to take into account taxes and possibly more growth acquisitions. | 2009-12-03 | ||
| BUY | Vicwest Income Fund | VIC.UN-T | 16.200 | 2 divisions. 1) Agricultural storage products and 2) building products. Huge opportunities for growth in international markets for grain storage because of loss/damage. Margins were higher last quarter because of buying lower priced steel, which they sold at higher prices. Payout ratio of about 65%. | 2009-12-03 | ||
| BUY on WEAKNESS | Toronto Dominion | TD-T | 66.080 | Very strong franchise in Canada but concerns are with their US assets. | 2009-12-03 | ||
| WATCH | Consumers Waterheater Fund | CWI.UN-T | 3.770 | Water heater rental business is very regional. 17% distribution. Recently cut distributions. Have some big debt coming due early 2010. Getting more competition but with new housing development in Ontario they have more chance of growth. | 2009-12-03 | ||
| TOP PICK | Telus Corp | T-T | 35.010 | Telecom and recently was granted the right to sell Apple iPods that will create further revenues. Also invested in a new network for wireless and sharing the cost with Bell (BCE-T). Just issued new bonds at very attractive rates, which takes away from higher-priced bonds they issued years ago. Trading under 4X cash flow. Looking for a dividend increases in 2011. | 2009-12-03 | ||
| TOP PICK | Superior Plus Corp | SPB-T | 13.560 | 8.25% corporate bond due October 27/16. More debt than he likes with senior debt at 2.4X EBITDA, so prefers bonds to the equity. | 2009-12-03 | ||
| TOP PICK | Canadian Helicopters Income Fund | CHL.UN-T | 9.220 | Largest helicopter transportation company in Canada and cover mining, forestry and utilities. No debt and $2 a share in cash. 12.25% yield should be sustainable. | 2009-12-03 | ||
| PAST TOP PICK | RioCan Real Estate Investment | REI.UN-T | 18.290 | (A Top Pick Nov 20/08. Up 59.03%.) Had a nice run up but would be more cautious about adding at these levels. | 2009-12-03 | ||
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| PAST TOP PICK | Morneau Sobeco Income Fund | MSI.UN-T | 9.490 | (A Top Pick Nov 20/08. Up 37.78%.) Still likes. | 2009-12-03 | ||
| PAST TOP PICK | K-Bro Linen Income Fund | KBL.UN-T | 13.120 | (A Top Pick Nov 20/08. Up 42.13%.) Still likes. | 2009-12-03 | ||
| TOP PICK | Black Diamond Group | BDI-T | 14.000 | 3 divisions. 1) Oilfield camps, 2) oilfield tool rentals and 3) temporary workforce accommodation. Converting to a Corp. Very low payout ratio at about 31%. Good revenue. Good growth potential because of what is happening in the Horn River area in B.C. Just announced a partnership with an aboriginal group. | 2009-09-17 | ||
| TOP PICK | Computer Modeling Group Ltd | CMG-T | 15.900 | Specializes in heavy oil software. Global clients. Management owns about 16%. No debt. Revenue is like an annuity in that it keeps coming in. 4.6% yield | 2009-09-17 | ||
| TOP PICK | Cargojet Income Fund | CJT.UN-T | 6.000 | Provides overnight time sensitive air cargo in Canada. Trades at a cheap valuation. Management owns about 25%. Payout ratio of about 28% and expects a special dividend in Q4. 50% market share and gradually getting more business. | 2009-09-17 | ||
| PAST TOP PICK | Colabor Income Fund | GCL-T | 9.990 | (A Top Pick Sept 19/08. Up 17.27%.) Very strong food distributor in Quebec and expanding into Ontario. Converted to a Corp. but still maintain the dividend. | 2009-09-17 | ||
| PAST TOP PICK | Parkland Income Fund | PKI.UN-T | 10.100 | (A Top Pick Sept 19/08. Up 18.28%.) Retail gas distribution in Western Canada but has expanded into Ontario. Well managed. Will probably acquire some of the Suncor (SU-T) gas stations that have to be divested. | 2009-09-17 | ||
| PAST TOP PICK | Morneau Sobeco Income Fund | MSI.UN-T | 8.450 | (A Top Pick Sept 19/08. Down 13.91%.) Pension benefits consulting industry. Generates a lot of free cash flow. Acquired some tax losses so when they convert to a Corp. they won't be fully taxed. Still a Buy. | 2009-09-17 | ||
| DON'T BUY | Jazz Air Income Fund | JAZ.UN-T | 3.520 | Think they'll have trouble maintaining the dividends. Have to negotiate their support agreement with their parent, Air Canada. | 2009-09-17 | ||
| BUY | Davis & Henderson Income Fund | DHF.UN-T | 14.000 | Originally did cheque printing but have supplemented this with various other businesses such as software for mortgage brokerages. Good management. Yielding of about 13% will probably be reduced when they convert to a Corp. | 2009-09-17 | ||
| BUY | Crescent Point Energy Corp | CPG-T | 37.700 | Focused on oil especially in Saskatchewan. Strong portfolio of assets. | 2009-09-17 | ||
| BUY | Arc Energy Trust | AET.UN-T | 19.150 | Quality company but about 50/50 oil and gas. Although natural gas prices are not encouraging, over the long-term he is looking for much better pricing levels. | 2009-09-17 | ||
| BUY | Canadian Oil Sands Trust | COS.UN-T | 29.080 | Pure oil play based on the Syncrude oil sands. | 2009-09-17 | ||
| BUY | Bonavista Energy Trust | BNP.UN-T | 20.720 | Quality company. Recently acquired more natural gas assets. Very good operators. After they convert to a Corp., dividends will be lower than current distributions. | 2009-09-17 | ||
| Comment | Penn West Energy Trust | PWT.UN-T | 15.250 | Equally weighted between oil and natural gas. Historically have grown through acquisitions. Had difficulties with their capital efficiency ratios and maintaining production. Starting to turn around. Some interesting projects in some of the older legacy oilfields in Alberta. Starting to look at it more seriously. | 2009-09-17 | ||
| Comment | Provident Energy Trust | PVE.UN-T | 6.350 | Oil/gas trust that also have some midstream assets that process natural gas. Have properties in Canada and US. Have been selling properties to reduce their debt levels. | 2009-09-17 | ||
| DON'T BUY | Shaw Communication (B) | SJR.B-T | 19.400 | Strong company with a history of raising dividends. More expensive than its peers. Would like a better entry point. | 2009-09-17 | ||
| BUY | Consumers Waterheater Fund | CWI.UN-T | 4.820 | Facing pressure from a new competitor that is getting into the water heater business. Getting to a level where he is getting interested. Market is pricing in a 20%-25% distribution cut. | 2009-09-17 | ||
| WAIT | Shoppers Drug Mart Corp | SC-T | 43.320 | Waiting to see what new reforms the Ontario government is going to have in pharmacy regulations. | 2009-09-17 | ||
| TOP PICK | Morneau Sobeco Income Fund | MSI.UN-T | 9.000 | Benefits/pension consulting firm. Also has an employee assistance program. One of the few companies that has revenue growth. Low payout ratio. Made an acquisition with some tax pools so won't have full taxing in 2011. Industry has some consolidation happening. | 2009-07-06 | ||
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| TOP PICK | Marsulex Inc | MLX-T | 10.430 | Industrial services for refineries by helping to remove sulphur, dealing with spent acids, cutting out petroleum coke, etc. Also sell chemicals to water treatment facilities. Markets sulphur-based products in Atlantic Canada. Long-term contracts. Refineries are processing more heavy oil, which helps them. Recently increased dividends. | 2009-07-06 |
