BUY
A premier motor company. Where the yen goes is also a factor in their earnings. A top performer as a manufacturer of cars and can gain market share.
DON'T BUY
In a tough market investors go to the big caps like this, but they only made their numbers last time because they divested some holdings. Backlog was down. The length of their contracts is decreasing. Offshore companies is taking away a lot of their bussiness. Trades at 16 X earnings, so not excessively expensive.
DON'T BUY
A great bank, but it's expensive. Has a low yield relative to the rest of the companies.
BUY
Likes the banking group as a whole. Has a good yield and not expensive on a P/E or Price to Book basis. Has a lot of excess capital.
BUY
Have a good franchise on the retail side and their big mistake is that they have not cut the costs and made it work. Had really good growth on their wealth management side.
BUY
An excellent bank. A smaller bank, so subject to some issues in trying to grow. Pays a good dividend. Lots of capital.
DON'T BUY
Gerry Scwartz is a very smart man with smart people working for him. Concerned that some of the biggest plays in private equity have been going on since 2000 and Onex has not been a part of any deal. Has lots of cash.
TOP PICK
Office products and basically a B to B through catalogues. No retail stores. Largest in the US. Top 4 players own about 18% of the business, so it's not fragmented and can see a lot of organic growth in the industry. Sees a continued growth in white collar jobs. Also moving into a lot of their own branded productswhich is good for margins/volumes.
TOP PICK
The industry as a whole has been in a difficult time. A lot of the stuff has been discounted in the stock. Trading at a very cheap multiple. Lots of cash and a high dividend yield. Good long term hold 4/5 years.
TOP PICK
Not expensive and pays a good dividend. Has a great wealth management business. 2nd best Canadian retail franchise. Going into the US through Bank North is very risk averse and makes a lot of sense in the long term.
BUY
Becoming increasingly bullish on smaller energy/oil names that do have unhedged production. Could go $3 higher longer term.
TOP PICK
In disease management sector in the US. Signed 2 trial deals with CMS Medicare and if successful could open up a 42 million person population for this company. Valuation is somewhat stretched but in the fragemented area they are in you will see sustainable growth on the top and bottom line of 30/35% foir the next 4/5 years.
BUY
In an excellent position to be buying at this point. There has been a sell off with the spin off of their rolling division. Outlook for aluminum is very bullish and could see it trading at the $0.90/0.95 level in the next 52 weeks. Also, any decrease in energy prices will be another catalyst.
WAIT
Uranium has been one of the top performing commodities. In today's down market, it was up a couple of $'s. If you want to have exposure to uranium, this is the only company you can own. Trading at over 30 X earnings. Would wait to see if uranium prices drop.
TOP PICK
Very well diversified. This year 65% of their EBITDA should come from zinc as well as metalurgical coal and the remainder coming from copper, etc. Opportunity comes from the met. coal and zinc. Met. coal has been priced in at $125 per metric ton. Zinc inventories are starting to be drown down.