Global Railway Industries (GBI.TO)

Railroad renovations. In this kind of market, he is trying to find companies that will do well even if the US goes into a recession. Just made an acquisition of a company that got a $101 million contract with Via Rail. Very knowledgeable management.

Plays on the infrastructure/capital-spending theme that will drive a lot of stocks over the next 5 years. Buying small private businesses such as train brakes, undercarriages, doors, etc. for rails. Thin margins but they seem to be doing OK. Prefers Greenbriar (GBX-N). Rails have been under spending on capital and this has to be resolved in the next few years.

(A Top PIck Sept 13/05. Down 43%.) One of their new operations completely fell apart this summer. Feels it is still worth $2.50.

Doesn't think they will recover. Had bad results and had excuses and initially investors believed them. He is currently short this company.

This is a bit out of the resource box. Had hit a bad quarter and people didn't have the patience to wait for the story so took a big drop. Likes it for the 3/5 year long term. In a great sort of niche business. Very profitable company. Good price.

Was worried that it was going to have problems because of steel prices, but it is doing extremely well. Had some integration issues, but thinks they are through that. Good price.

One of the "real return on capital" companies. Spent $3.5 million on restructuring. A fantastic return on capital.

A consolidator of the small, fragmented maintenance companies and suppliers. Strong management. Trades at 10 X.