Manulife Financial (MFC.TO)

This spring was a recognition point in a downtrend. He does not think you will make a big score, but be wants to see it go above $14 then you might be all right. If it fails to go up it will just drift down into the trading range.

Have some great businesses and a great Asian franchise. The stock has run up. Management has indicated that in 2016 they are going to get returns of equity of 13% and earnings of about $4 billion. Why would you want to be paying a higher multiple for that right now?

(A Top Pick Dec 19/11. Up 37.28%.) Have been getting out of products that are particularly vulnerable to fluctuations in the equity and fixed income markets that the old annuity type products where. Have a growing mutual fund segment. Particularly well-positioned in Asia. Good management.

(A Top Pick Dec 28/11. Up 31.81%.) You always have to buy these things when it is the darkest. Have a great growth profile outside of North America. Have really tightened up their hedging strategy last year. He has taken a little bit of money off recently.

Has been coming to life lately. Newman management has done a good job at trying to decrease the sensitivity to equity markets and interest rates, but the exposure is still there. Because the economy globally is not picking up, central banks have felt the need to keep interest rates lower than they should be. She prefers staying in banks.

He can see a bit of an attempt of a base being built. If it breaks up through $14 with volume and stays there for at least a week or so, he would be bullish, but until then you have to be very careful.

It is not moving up because of two things: equity prices and they are just not earnings the returns on the fixed income side of the portfolio. They are trying to do as much as they can to grow the business and are expanding there and it is becoming a much larger part of their earnings stream. He holds this rather than SLF, which he prefers.

Doesn’t like the insurers in general. The problem is they have real issue in the asset side. With rates so low and forecast so low for the future they have real headwinds and she would not put any money into it.

(Market Call Minute.) Will still be contingent on interest rates and equity markets but you could buy a little bit here.

Expects that people will be speculating on a recovery in the share price. He would like more certainty on future projections of earnings, dividends, etc. Prefers the banks.

It is on his radar. Thinks there just might be enough time that it has worked its way out of being a value trap. A small starter position of 1.5% might be acceptable, but you will need a strong equity market.

Pretty much exactly the same as Sun Life (SLF-T) in that the dividend appears to be pretty safe. The one thing that is improving slightly is the probability of them doing a sizable acquisition (ING’s Asian insurance) on highly dilutive terms. Could face an actuarial review, so there could be a further write-down of $0.55 this quarter. Held hostage to bond yields.

(A Top Pick Oct 17/11. Up 14.7%.) Series 2. (MFC.PR.B-T) 4.65%. A perpetual preferred share with a possible call date March 19. Still likes and thinks it will get up to $25-$26.

(Top Pick Oct 28/11, Up 22.43%)

Preeminent insurance company both here and in the US. Has been having a tough time because of risks taken to increase earnings. They have been in a retrench process and until the process is completed we don’t know what the core earning power really is. Until we know that, it is difficult to put a valuation on it. However, it has been trading at or below Book for quite a while so this is a good place to start. Doesn’t see a lot of upside in the short term unless interest rates move sustainably higher or until they can show core earnings are a lot higher.