TOP PICK
25% of their profit growth is coming from Mexico which is taking advantage of the cross border movement of funds between the US and Mexico. Outlook for Mexico is terrific as the GDP growth is greater than both the US and Canada. Good long term potential.
TOP PICK
Versus the Canadian Pacific, this one has North-South routes as well as East-West. It goes all the way to Mexico city. Thought the BC Rail acquisition was great because the deep port at Port Rupert will provide one day shipping advantage compared to Vancouver.
TOP PICK
A demographic play of aging population. Free of debt. More into the property management side of the business. Cash flow is getting to a point where they may institute a dividend.
BUY
20% of their revenues are in Asia, so a good way for investors to get access to the Chinese market. Attractive dividend yield and it is rising. As they get rid of their low margin products and focus on their new products, the growth will come.
DON'T BUY
Not big believers in the auto companies as most of their profits come from the finance arm rather than car manufacturing. Would rather play the auto parts such as Uni-Select in this sector.
DON'T BUY
The big red flag is that the auditors are not going to sign off on the financial statements. With rising interest rates, the spread narrows. This stock will continue to get hit.
TRADE
This bank has the higher retail margins. Also less exposure to the US. Banks may just go sideways (or even down) over the next year because the growth is not there.
BUY
Yield is just over 2.5%. Located in Spain, but biggest growth is from wireless in Latin America. Still has a long way up that it can go.
DON'T BUY
The news is that they can grow 50% a year for the next 5 years which would be difficult to do. Their valuations show the stock is worth $50/70 range.
BUY
Looks a little undervalued right now, given its long term potential. They don't do much work on oil stocks.
PAST TOP PICK
(A Top Pick June 8/04. Down 7.5%.) A wide ranging stock in that the bid/offer spread is very wide and it is very illiquid. Have some really good new products. Still buying.
PAST TOP PICK
(A Top Pick June 8/04. Down 15.5%.) Tied to the economy. Just increased the dividend. Still likes. A good entry point.
PAST TOP PICK
(A Top Pick June 8/04. Up 14%.)
DON'T BUY
Spreads are starting to tighten on financials. Even though their profits were up in the last quarter, you have to think about what's going to work out down the road. Paying more in dividends than they actually earned.
DON'T BUY
Small fish in a big pond. IBM is their biggest competitor, so that's who they have to beat out to get access to the US market in a big way.