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Stock Opinions by Dan Bastasic

BUY
A perfect trust. It has over 95% of the ad market in Canada, over 90% renew their subscriptions. Recently acquired SuperPages which increased their dominance. Have had a good run in the last little while. Still an attractive play. Have some efficiencies they can capitalize on with their latest acquiaition.
communications / media
STRONG BUY
Payout ratio is between 80% and 85%. Yield is 7.1/7.15%. Very well diversified and stable cash flow producing company. 2 sides to their business. 1) Crude oil pipeline and gathering system which they have some flexibility in increasing tolls on. 2) Recently acquired a natural gas liquids extraction plant of which 80% is take or pay contracts. Expects distribution increases going forward.
oil pipelines
WAIT
Has about 70% market share in Canada. In a highly fragemented, very competitive furniture industry. Poor results last quarter because of margins being squeezed. Launching a mattress brand and the market is concerned on how they'll do relative to Sleep Country (Z.UN-T). Wait for the 2nd quarter results.
merchandising / lodging
DON'T BUY
A Canadian REIT that exclusively invests in US property. Has 37. Well diversified in 13 states. Has $51 million preferred equity interest in a Bank of America building in San Francisco. Has done a good job of increasing distributions. Have had a bit of a run up over the last month and it's now fairly valued.
investment companies / funds
BUY
A medical imaging company. Has a very stable component which is the laboratory business. The growth side is their MRI imaging.
other services
DON'T BUY
A classic case of elastic demand. In the last quarter or so, their costs have increased, and were unable to pass the costs on through higher prices. Had a dramatic hit to their sales numbers.
investment companies / funds
TOP PICK
(A Top Pick May 27/05. No change.) A very attractively valued trust. Excellent growth opportunities. Yield about 7.5%. Excellent management. Conservative payout ratios.
property mngmnt / investment
PAST TOP PICK
(A Top Pick May 27/05. Up 8%.) Still likes. Represents good value anywhere between $24 and $26, so it's fairly valued at this point.
oil / gas
TOP PICK
(A Top Pick May 27/05. Up 5%.) Very good value.
investment companies / funds
BUY
In terms of risk/reward, this is one of the best royalty trusts. Well diversified. Conservative payout policy. Well run. Will be affected by any decrease in oil prices. Many of these trusts are pricing in $50/55 oil.
oil / gas
BUY
Feels they've cleaned up their act. Their accounting numbers are much better than they were in 2003. Most of the fees that were involved in their restructuring will go away this year which will improve cash flows. The warehouse sector in the US is improving. Probably undervalued at these levels.
investment companies / funds
BUY
A private, independent operator of gas stations. Higher crude oil has affected their margins as there's a lag between the time crude oil goes up and the time when they can pass on the increases. The opposite is also true. There's an opportunity for good value at these levels.
merchandising / lodging
TOP PICK
Excellent in terms of diversification. Very stable. Good payout ratios. Likes the valuation at these levels.
pipelines
BUY
65% payout ratio. Have diversified in the last couple of years through acquisitions and so should experience quite a bit of growth going forward. Free cash flow in relation to free cash distributions is close to 90% and is lower than what he would like to see but should be able to grow into it with their new acquisitions.
wholesale distributors
DON'T BUY
In long term care facilities. Demographics show that age 70 plus are growing at 2 X the general population. Since 2001, they have had steady declines in occupancy rates. Payout ratio is very aggressive. A lot of risk in this name.
property mngmnt / investment
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