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Stock Opinions by Ravi Sood

TOP PICK
Top Short Has not seen anything to prove to him that they have any sort of proprietary technology and yet there is so much built into the stock. Had declining revenues and operating losses for several years. No clear technology advantage over anyone. Doesn't think they can deliver on any of their contracts.
misc industrial products
TOP PICK
Potash play. A very large extremely profitable potash project in West Africa, Magminerals will be spun out as an independent company and will be valued about $4 per share giving a huge premium on today's price. Also have residual operations of forestry and power generation worth about $1.50. Gives close to $5.50/$6 per share of value. You won't capture all this as it will probably trade at discount, but it gives a huge upside from the current price.
other mines
TOP PICK
Huge coal asset. Assets are in Botswana but the company is serving an electricity-starved market of South Africa. Have huge negotiating power and will probably be locking in a contract and allow them to build their power plant at very profitable levels. The power business will be worth $26-$30 a share. In addition to the power business, they have enormous residual coal reserves that will make a very profitable standalone operation.
electrical utilities
PAST TOP PICK
(A Top Pick Nov 17/06. Down 1%.) Acquired by Penn West Energy (PWT.UN-T)
oil / gas
PAST TOP PICK
(A Top Pick Nov 17/06. Note change.) When it converts over to a corporate structure, it will be able to maintain its level of distribution. A fabulous target for private equity.
Financial Services
PAST TOP PICK
(A Top Pick Nov 17/06. Down 10%.) Acquired by Advantage Energy (AVN.UN-T).
oil / gas
DON'T BUY
Investors have to look at this one very carefully. Thinks they have very little in proprietary technology. They are virtually a reseller of off-the-shelf technology. History has a lot of black eyes.
electrical / electronic
STRONG BUY
Big believer in this company. Paying a virtual 10% dividend yield. Stock dropped because 1) market is weak 2) there are a few very large sellers looking for liquidity 3) didn't make huge acquisitions as promised and 4) numbers were a little bit disappointing. Fabulous entry point.
medical services
BUY
Very good company. Interesting space to be in. The turnaround in share price of the drillers has probably preceded the fundamentals. Fundamentals over the next several years look incredibly strong. Prefers drillers that have a yield such as Precision Drilling (PD.UN-T). Good entry point.
oil / gas field services
BUY
Just completed their merger, which created a lot of confusion with people trying to value the stock and hedge funds being involved trying to play the arbitrage. A wonderful second derivative way to play a rebound in financials. It fell with all the financials even though it is not a financial. Fabulously well run and well capitalized. A good one to salt away without the catastrophic risks of financials. Good for long-term.
publishing / printing
BUY
Not a typical income investment as it is more speculative than others. At a very interesting level. Should be able to see significant capital gains. 11.5% distribution is safe and they have a very low payout ratio.
oil / gas
DON'T BUY
Thinks that in the short term, gold equities are going to be weak. Not a good entry point. Over owned.
precious metals
BUY
Represents an interesting entry point. Doesn't think it will get close to its previous highs in the next 2 years but expect to get your dividend and some capital appreciation.
banks
WEAK BUY
Prices of iron ore are currently very high. This one is now at a good value and there are others that are higher leveraged plays that would be more attractive. His favourite would be Baffinland Iron (BIM-T), which is on the speculative end.
Financial Services
COMMENT
This company has a portfolio of power generation projects. Very well managed and strategic projects. More attention will be put on companies such as this. Could be a very interesting investment proposition in the next 2 or 3 years.
electrical / electronic
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