Jeff Black

Markets. Has been quite conservative for a while and had his concerns on terms of equity exposure at the lower end of his policy ranges. Bond market portends weaker times. We wouldn’t be getting the QE 3 to the degree we have if there wasn’t a lot of concerns. Has a large cap bias versus small caps. Expects to see more earnings revisions. Cash holdings for clients is in the 25%-40% range.

This is in a good sector and very well-positioned to benefit from Viterra assets which it is acquiring. Company is currently having a Dutch auction but he wouldn’t sell into it. The fact that they want to buy back stocks is not a bad thing.

He is basically out of all US financials. This has been on a pretty strong run, aided and abetted by all the US policy moves. Feels there is still a number of risks in US financials.

Thinks they did well in buying Merrill Lynch and acquiring some good financial assets. Like all US financials they benefited from all the stimulus, Tarp programs, etc. There is a risk element in their debts.

Has had a pretty good move of late and has initiated a dividend, which is a good thing. Generating free cash flow. Good management. He sees challenges for the tech sector in general.

Good dividend payer. Not a particularly high grower. Not cheap at this point with the stock price being bid up in order to get the dividends. Stable and relatively low volatility going forward.

There is a reasonable amount of activity with relation to their voting and non-voting shares. Good dividend. One of the few that have really shown a lot of transparency in terms of dividend increases going forward.

Has had a reasonable move of late off their lows. There is some support currently in the stock now with the company announcing a Normal Course Issuer Bid so there will be some buying support there. New CEO is taking a hard look at a lot of future projects. With his view of a possible economic slowdown, oil could subside and could see it easily trading in the low to mid $20’s as it did not that long ago.

Price is significantly lower than it has been for a number of years. But the company has materially changed as well. Significant change in operations. Have a new CEO. There are a lot of headwinds in the space they are in. Not participating that much in the convergence to mobile. Thinks they will be economically sensitive in a weaker macro environment. If you own, consider triggering a loss. You only have to be out of it 30 days to reposition at a new ACB and be patient for a turnaround over the next few years.

(A Top Pick Oct 14/11. Up 10.17%.) Good dividend and last year they did increase it. Likes the sector for its defensive nature. With the Cdn$ above par, it is not a bad time to accumulate this one. Important to have healthcare exposure.

(A Top Pick Oct 14/11.) His clients have from 25% to 40% in cash positions.

(A Top Pick Oct 14/11. Down 13.68%.) Views this as insurance. Feels gold shares are undervalued relative to bullion. With this one, you stay in Canadian dollars so you don’t have to take any currency risks. Reasonably diversified and the top 10 names account for 70% of the basket. Starting to pay a modest yield.

Natural gas. Has had a bit of a rebound. Certainly influenced by the weather. There is an enormous supply which would point to prices being stable to down. Doesn’t think there is any strong catalyst to suggest that you are going to see a material movement in price going forward.

If you own, you are going to have to be patient. It was disappointing somewhat that they rebuffed Lowes (LOW-N) advance. Haven’t executed well on a variety of strategies. Doesn’t see the sector having a lot of wind at its back going forward. The housing boom is moderating.

Feels the infrastructure space is a good one. Reasonable income here and conservative growth going forward. He prefers to participate through the parent Brookfield Asset Management (BAM.A-T).