TOP PICK
(A Top Pick Sept 30/04. Down 3%.) Spinning out the rolling mill side. $6 billion in sales which will clear $2.8 billion of debt. This company is as big as Alcoa, yet trades at a multiple point discount.
TOP PICK
It is a little more volatile than some of the other banks. Dividends have been increased by $0.05 a share indicates better earnings going forward. Loan loss provisions are greater than all the possible loan losses. This gives a hidden positive factor.
DON'T BUY
Would stay away from this one. When you don't know what management is and prices going against you, you're better to step back and find out what's really there.
BUY
Banks are trading at about 60% of the same price earnings multiple of the market, so not a problem. Not a bad place to be for long term stability.
WEAK BUY
The problem is that they have a $30 price increase in the price of newsprint which takes a moving it from $600 to $630. This is priced in US$, so are actually receiving less in Cdn$'s than they were a year ago. Good fundamentals, but has a little more debt than he would normally like.
WEAK BUY
Very thinly traded. Like the other banks, it's cheap, a good multiple point cheaper, but doesn't have the same growth profile and diversification. Probably not a takeover candidate. Prefers the bigger banks.
DON'T BUY
Financially stretched. Management is making great strides in turning it around. Trading at about 15 X 2 years out earnings. Would rather buy it higher up, knowing that things have turned.
BUY
Has the most steady stream of earnings growth of all the banks. Has increased their dividend again. The 5 year history of dividends show that it has grown at 5% compound per annum.
DON'T BUY
Had some accounting problems which still have to be resolved. CEO just left which raises some question marks.
BUY
Heavily levered to the price of copper and as copper has been dropping, this is affecting this stock. Believes China will continue to grow, so base metals should continue strong.
BUY
Reasonably optimistic on this. Coal prices include some spot prices as high as $130, but the trusts are pricing coal at $100. Be careful as the throughput to China is going to drive the price.
BUY
Their favourite in the oil stocks. Trades around 4 X cash flow and has an Oil Sands property coming on stream in about 3 or 4 years.
DON'T BUY
Now trading above its asset value. Investors hope that Brascan will get a much better price for Noranda. They hold a little bit, but have been selling some down.
DON'T BUY
A spin-out from Fairfax. Cheap, but you have to be careful with the property/casualty insurers.