WAIT
A very well run company. Generating an awful lot of cash at these prices. Outlook for the base metals market next year is a bit softer because the economy is going to be soft. Wouldn't be in a huge rush to own, but over time shareholders will be rewarded.
SELL
Trying to bring a small mine into production and his experience with small mines is that they never make you big money.
BUY
Will probably buy more. This company is really a warrant on gold. They felt that the price of gold was going up and they bought gold deposits that weren't economic at current prices. When gold goes up they'll sell the companies. Highly speculative.
TOP PICK
Potentially the most profound onshore exploration discovery he's seen in 20 years. In the Keg River platform in Northern Alberta. If he's wrong it could easily be a $2 stock, but if he's right, it could be a $20 or higher stock. Hard core frontier exploration. He expects to own until it is proven to be a success or failure, probably by this time next year.
TOP PICK
Attracted to the fertilizer market generally. Has the potential over the next 3 years of being the lowest cost producer of phosphate fertilizer in China. Very thinly traded. Don't chase it. Expect to own it for a couple of years. Expects to own this stock for 2 years.
DON'T BUY
On a short term basis, would prefer Procter and Gamble (PG-N). Earnings have been coming down on Colgate. This year earnings will grow about 8/9% and probably better next year.
DON'T BUY
They continue to take market share. Have expanded their product line to take share, but some of the product is lower margin which has impacted their earnings. The whole discount space is being impacted by the rising gas prices.
TOP PICK
In tough markets, focusing on companies that have strong enduring assets producing strong cash flow. Sales of about $44 billion and about $8 billion in cash flow. Good TV assets, cable network, movie production, etc. Their AOL has 20 million users which creates $8 billion of business and has $2 billion of cash flow. In decline, but they are trying to migrate to an advertising portal.
BUY
Has a premium valuation. Have done a fabulous job. Will continue to grow, but a little pricey. May go down before it goes up.
DON'T BUY
An encryption company. Have signed a US defense contactor where they get a royalty. No visibility as to where/when these deals are going to be consumated so difficult to know what to pay for it.
TOP PICK
One of the best growth companies in the Canadian equity market. Has a unique combination of cable and wireless assets. Knocking the ball out of the park.
DON'T BUY
Not one of his favourites. Made some acquisitions in the last couple of years and driven their top line and the profitability, but there has been so many difficulties in the semi-conductor stock performance. Still too early to be in this sector.
DON'T BUY
Still scratching his head over what Sun will do with their acquisition of Storage Tech. Loaded with cash, but that's about the only thing they have going for them.
TOP PICK
Has $2 billion in sales. Knee and hip business. Likes this business. Great demographics with an older population. Wonderful cash flow earnings growth. Limited competition so reasonably stable.
DON'T BUY
Great brand internationally. However, growth is almost nonexistant. Missed on the power drinks, water, etc. People are not drinking as many soft drinks as before. Would buy Pepsi (PEP-N) instead.