PAST TOP PICK
(A past Top Pick Sept 30/04. Up 11%.) Throws off a lot of free cash flow. Dividend yield is around 6%. Could be a dividend increase.
BUY
Earns about $1 and is paying out $1 which is considered very high and risky. They have a big plant in Washington State where they are getting better prices and those contracts roll in 2005. In 2006/2007 can see an incremental $0.40 in earnings. Good dividend.
DON'T BUY
They can't even tell you what they earned last year. Based on price to hope.
BUY
An interesting play. A lot of the valuation is coming from development of a property out in Saskatchewan. Uranium is hitting a new high. His net asset value would be around $6, of which $4 comes from the new mine. Some risk involved.
BUY
Has almost been trading lockstep with the price of oil. Trades at about 4 X cash flow while its peers are at 6 X. Have a major Oil Sands play which is a couple of years away, which will provide further upside.
BUY
Statistically cheap. Very heavily into oil. Just picked up a large portfolio of offshore properties off the UK from Encana. Prefers Canadian Natural Resources which has a mix of gas and oil.
BUY
Likes the yield and that they have the nuclear power plants in Ontario. Watch the McKenzie Delta pipeline where they are in competition with Enbridge trying to get something big.Likes the yield and that they have the nuclear power plants in Ontario.
BUY
Watch the McKenzie Delta pipeline where they are in competition with Trans Canada trying to get something big.
DON'T BUY
Took a drop when they spun off Fraser papers. Have cleaned themselves up to be pretty much oriented strand board. A commodity cyclical which can be risky.
TRADE
Making an interesting acquisition.
BUY
Based on street estimates, it's trading at around 10 X earnings which is reasonable value. All depends on where nickel goes.
DON'T BUY
Have been losing assets when Brandeis left. Have to be careful.
BUY
Has a few products, but has one primary product in diabetes. If he gets it right, and the animal studies come through in humans, thinks the stock will go from $1 to over $10. The good news is that it has 2/3 other products coming up behind it, so if it drops, will only go down to $0.50.
WEAK BUY
Drilling in the North Sea and has had some success. The last couple of wells were not as good as the market expected. They now have to raise money to drill more. Expect they will have to put themselves up for sale. Wouldn't pay more than $3.25.
TOP PICK
This may be one of the best 2 or 3 stories in Canada. They rent oil drilling equipment to the oil/gas companies and get a day rate. They are going to double the drills which could double the revenue, but not doubling the share count. Gross yield of about 7.4%.