Canada has done an extremely good job of acquiring companies in the US in the utility sector. Something like 70% of this company’s earnings comes from the US. Management has done an excellent job. They have a target of increasing their dividend 10% per year over the next 5 years, and possibly longer. Dividend yield of 4.6%.

He really likes management. They’ve done an excellent job over the last number of years of increasing production per share and cash flow per share, largely from internal organic growth. Has a good growth profile over the next 5 years. His only problem is that valuation is relatively quite high at the moment, although it deserves it. (See Top Picks.)

Hurricane impact? In the International segment, which represents just over 30% of their earnings, the Caribbean is actually quite small. The biggest exposure is Jamaica, which he doesn’t think was particularly hit. He wouldn’t be unduly concerned. He likes this bank very much at these levels.

He would recommend this at these levels. The average multiple tends to be just short of 12X earnings for the banks. The acquisition in the US was a good move. Over time, it will make investors feel more comfortable that there is some diversification out of Canada. Feels there is some room for multiple expansion. Dividend yield of 4.9%.

Management has done a very good job of concentrating assets in their 2 key areas. Had some nervousness over the balance sheet, but that is improving. He is a little more bullish on oil, than natural gas, but he would buy this today. (See Top Picks.)

This is his biggest holding amongst the banks. He really likes management, which has done a really good job. Dividend yield of about 4%.

The world’s largest producer of methanol, but it tends to track energy prices broadly. Feels there is excellent demand growth over the next number of years, which this company will participate in. They’ve done all of their greenfield expansion over the last number of years, so will be generating a lot of free cash flow in an environment where he expects methanol prices to be between $350 and $400 over the next 5 years. Dividend yield of 2.3%. (Analysts’ price target is $57.)

Has been a disappointing performer and selling at a discount. There was a lot of worry amongst investors and some analysts about the balance sheet because of their building of the new mine Serra Morro, which is now 90% complete, and will increase their cash flow 20%, if not 30% when it is in full production. People are worried it might breach their debt covenants, resulting in an equity issue, but he heard they had hedged 60% of next year’s gold production, and 70% of copper production, at prices above what they had budgeted for. In addition, Serra Morro will see them increase their silver production by about 40%. Dividend yield of 0.8%. (Analysts’ price target is $3.50.)

The lowest cost gas producer in Alberta. He really likes management. They’ll produce BOE’s next year close to 120,000 a day with 53 employees, where over the last 5 years it was between 50 and 55. Very efficient. Natural gas prices have been improving lately. Dividend yield of 6.4%. (Analysts’ price target is $30.)

Market. There was no change in the rate by the Fed, but the market clearly interpreted this as dovish, and there was a market rally. The market is very fixated on the short term, but Janet Yellin is seeing rates as staying unusually low for a long period of time. She also said that if the fund rates go to 2%, they are going to do more quantitative easing and add $4 trillion of bond purchases. He thinks the market will be comforted by that. Thinks today’s is very short term. Expects dividend paying stocks, which is his specialized area, will be particularly attractive relative to current long-term bond yields. Central Banks are beginning to realize that negative interest rates have negative consequences for banks, pension funds, insurers, etc.

A very high beta name in terms of the potential for oil price increases. The balance sheet is not good. They have stretched out maturities which is at least encouraging. You need higher oil prices to make money in the stock. He has a $70 target for oil prices in the next couple of years.

Qualities to look for in companies? You are looking for a strategy that makes sense and that they can enunciate clearly. Also, looking for a strategy that is well thought out, consistent, and if the circumstances in the industry change, how adaptable are they.

This has had a huge recovery. It has been a rough ride over the last couple of years. Management has done a very good job of improving the balance sheet and thinking the long-term. They have long life assets that are outstanding.

This is a good, long term hold. The company has been well-run. Expects we will get an acceleration in global growth as we go into the 1^st half of next year, which will generally be good for commodities.

He would classify this as a “hold”, but has a 2-3 year timeframe in mind. You need higher prices. The company has done a good job in putting its balance sheet back in shape. It is a relatively low cost operator in the SAGD area. He likes this on a longer-term basis, but currently it is not one of his favourites.