Algoma Central Corp. (ALC.TO)

They will have spent $500 million by 2016 replacing their ship vessels and are going to have one of the youngest fleets in the world. This company is going to have better ships, more fuel efficient and will be able to load faster. He sees earnings, probably by the end of next year, getting up to a normalized $1.50 a share. You are only paying 10-11 times earnings. Also, have other assets that they can unlock, including about $100 million of real estate. Yield of 1.74%.

Greatest tanker fleet and in shipping of all the commodities. A good dividend. It has downtime in the winter. They might get to a higher level shortly due to a partial fleet modernization.

Moves ships across the Great Lakes. The problem is, it is so cold it is going to be a late start to the season. Didn’t have a good 2013. Management was disappointed in how things went. Lousy start to 2014. Ships should be moving stuff already but they can’t. Assets are terrific. They are improving all the ships. Moving all the right products, grain, iron ore, salt, etc. A wonderful business that you can’t duplicate. Continues to buy this for new clients. Waiting for a bad quarter, and if that happens he will be buying a lot more. Yield of 1.8%.

Essentially a monopoly shipper on the Great Lakes. They ship a lot of dry goods. One of their big products is salt. Feels the stock can earn somewhere in the $1.20-$1.50 range this year and next. Trading at around 10X earnings and close to Book Value. Have modernized their fleets. This is a wonderful investment and would buy below $15.

The biggest operator of bulk carriers on the St. Lawrence Seaway. This is a small cap underfollowed by analysts and, therefore a little bit illiquid and you have to be careful. Balance sheet is okay. Recently bought some more ships and of course that raised some debt. Stock has performed very well. Expect earnings per share growth this year will be probably 11%-12%. Very solid business.

Ordered new ships and have got them. Having a fight with a former shipbuilder who didn’t deliver the ships on time and are hoping to get some cash from that. A monopoly player on the Great Lakes with iron ore, grains, coal and heavy stuff. He loves monopoly businesses and businesses that have growth into the US. Trading at a reasonable valuation compared to the railroads. Thinks it will earn $1.25-$1.30 this year, which is about 10-11 times earnings. Also, have some real estate. Thinks this is a double over the next 5 years.

(A Top Pick July 31/12. Up 21.69%.) Had a 10 for 1 split. A shipping vessel company that also owns real estate. As the North American economy improves, there is more stuff to ship. You could see $20 on this stock.

(Top Pick Nov 21/11, Up 28.42% Total Return) Fairly illiquid company. Great way to play the economic recovery.

Shipping companies don't tend to have a great return on capital. There is good stewardship there. This is a labour of love more than a great business.

Trading at only 8X earnings. Trading at book value and only 30% to replacement value. The dominant shipper on the Great Lakes and St. Lawrence. Have all brand-new ships. Thinks it's worth $150-$160.