James Leung

(A Top Pick Jan 27/06. Down 24%.) Was hurt quite a lot because of the perception that currency exposure would hurt. Valuations are compelling. Probably one of the best operators in the specialty hospital business. Cash flow is very secure and their currency hedge protects this until 2008. Payout ratio is 85%.

Bleach manufacturer. Once Clorox hedges come off they will be able to raise their prices. Recently diversified into the consumer health sector by becoming a contract manufacturer for Johnson & Johnson (JNJ-N), Pfizer (PFE-N), etc. Distribution of 10.6%.

Mattresses are big-ticket items. A recession resistant type of business. Management always under promises and over delivers on their financial results. Payout ratio has decreased since their IPO to about 75%. Will probably expense some costs because of their Quebec acquisition.

(A Top Pick Jan 27/06. Up 2.5%.) Expect the synergies from their last year’s acquisition will come through in the next 6 months. Payout ratio is very comfortable at 85%.

(A Top Pick Jan 27/06. Down 13%.) Hurricane hit one of their plants last year so they had to undergo some downtime and raw material costs have gone up. Believes these issues are temporary. 14% yield is pricing in any risk factor.

7% yield which is considered quite low. Same store sales growth has been spectacular. Has not been lower than 6% in the last 10 years. One of the problems he has is the expectation of the price. Holds only a small weighting. If you have a diversified portfolio, it is probably OK.

Largest theatre chain in Canada. Have some concerns on the overall health of the entertainment/theatre industry.

Weighted a little bit more are on the gassy side. Continuing to make acquisitions, so the percentage will change. Payout ratio is very comfortable so shouldn't be affected too much by changes in gas prices.

Provide rentals of drilling related equipment, mainly hardware and software. These services are in high demand. High ROE of about 23% for the past five years. No debt. Low payout ratio of about 50%.

Low priced beer. Likes the management. If the big brewers become active, there is a competition risk and they would have to adjust accordingly. Sold his holdings when the valuation went up.

1 of 3 lottery ticket providers in Ontario. Downgraded to a secondary provider on a contract with the state of New York. Until they have some clarity as to what they can do to replace the loss of revenues, he would stay clear.

World's largest producer of calcined petroleum coke. Managed to earn a comfortable margin in 2005. In 2006, the volumes are off a little bit but they also have very strong commodity prices. Have a currency hedge in place for a couple of more years.

One of the premier income trusts. Yield is about 6.5/7%. Valuation is still very fair. Working on some good activities for their clients.

A major nursing home operator in North America. 80% of the earnings come from the US. Converting to in income trust which could result in a $28/29 price. Have one of the best franchises in the business. Occupancy rates are very good. Margins are high.

Very high quality assets. 75% natural gas. Have had some recent drilling success. Have hedged a lot of their natural gas exposure.