Eaton Corp. (ETN)

(Top Pick Jun 5/14, Down 7.72%) He was surprised. It went down on the oil sell off. It got unfairly punished. It is an industrial, cyclical and they all got hit hard with the risk off market. He sold it. He is not adding to industrial exposure at this point. There is lots of buffer for their dividend.

(Top Pick Jun 5/14, Down 6.18%) He lightened up on industrials in the portfolio. Analysts see a 20% upside on this one.

He has been waiting to buy it. It sold off because of end market exposure. 13 times next year’s earnings. It is reasonable and he would buy here. He is now nibbling away at it.

They are into heavy trucks. It is a capital intensive space. He would stick with it. There are lots of good industrials in Canada, but in terms of US industrials it is a pretty good company.

Play on non-residential construction in the US. Nice dividend. Electrical is a big component. Well positioned for a pickup in non-residential building.

(Top Pick Aug 28/13, Up 18.76%) Electrical infrastructure. Construction and utility. Outlook is very strong over the next couple of years.

US ranks 143^rd in terms of construction spending right now. That is not going to last and the number is going to go down. Did a sizable acquisition recently so now sales are 60% in the electrical business. Thinks there is a strong chance of getting mid-teens EPS growth for the next few years. Very reasonable multiples. Yield of 2.63%.