FirstEnergy Corp. (FE)

(A Top Pick Sept 19/14. Down 4.11%.) SHORT. Closed his position and bought back his shares. What you see in the marketplace is a rotation sometimes between the more cyclical names that he thinks will do well in the longer-term, and the more defensive names.

(Top Pick June 17/14, Up 4.32%) The stock was cheap and had a nice yield. On balance it was a nice cheap utility stock that should benefit from low interest rates. It held up quite well. He has been selling mature utilities recently.

(A Top Pick June 17/14. Up 7.36%.) Stock was cheap and trading at its BV as well as having a nice yield. He also liked having exposure to the US. At the time he was convinced that the Fed was not going to raise interest rates.

SHORT. 60% of their capital structure (debt and equity) is debt, so that portion will be very sensitive as interest rates go up. He feels US interest rates are very likely to start going up early next year. In addition, 20% of their business is unregulated.

Stock had a huge fall from grace since 2009. Had actually reached up to about 2.5X BV, and has now fallen back down to its current BV. FMV of about $48. Dividend yield of 4.24%.