BUY
If you get it at fair value, you get a 9/10% return. Have given a very bold forcast for their coming fiscal year and are really looking at double digit growth. Doesn't expect a special dividend, but a lot more in share buy-back.
DON'T BUY
Be very careful with this one. Really served a niche very, very well. Data over cell networks and data capability are now everywhere, so their niche is slowly getting squeezed.
WEAK BUY
2nd fiddle to Cisco (CSCO-Q). Probably stronger with the wireless customers. A business you can own, but he prefers Cisco which has a better franchise, better history on ROE, less volatility and is also fairly valued.
TOP PICK
Acquired Macromedia which has the Flash Player. They are all about getting animation in video out through the internet. Profitability metrics are phenominal. Good growth products.
HOLD
Things are getting better after a couple of tough years. The travel industry is recovering. The real upside here is from the business jets. Could get to $4.50, maybe $5.
HOLD
In a transition now. They need to reposition from the old technology to the new internet based technology which they are doing. The flip side of that is they are having to spend over the last couple of years. Competition is getting more fierce. Has a lot of free cash flow giving them a lot of options. Can't see a lot of upside.
TOP PICK
More a case of holding for the $55 cash bid rather than buying. Has lots of oil and is trading very cheaply. Thinks there will eventually be a spinout of a junior oil by the current management which will create value.
BUY
Likes the management and asset base. Price has gone up quite a bit in the last couple of months. The potential is in the large land base and all the assets they have.
HOLD
Had some bad luck lately, but they'll overcome that. He likes the company. Buy for the long term rather than the short term. Fairly valued, but not over valued.
TOP PICK
"A" Shares. Right now, this airline stock looks compelling. The airline business is recovering. People are travelling again, the economy's good. Even though the oil prices are high, they are able to pass on a lot of costs. Aeroplan is worth $2.3 billion to them.
WEAK BUY
Had some rough patches lately. Biggest claim to fame is licensing of their technology to Boston Scientific. They continue to be successful, the problem is, what do they do for an encore. Sales are set to decline. Have a good cash position and hopefully they will come up with a new product that will be successful. High risk and potentially high reward.
BUY
Their fortune is riding on the whole energy complex. In a unique position to take a big market share. They should continue to do well.
TOP PICK
Very stable cash flow. High profit margins and a lot of free cash flow. Able to control their costs and leverage their economic growth. Have been able to do 5/6% growth.
BUY
High energy prices have been holding them back. Aluminum is very well controlled, so their challenge is to be able to control their costs and make it available for more products. A long term holding.
WEAK BUY
Has 2 big projects, one in Columbia which has not doing as well as expected. The Canadian project is doing quite well. The real attraction is the enhanced oil recovery projects. A bit of a high risk situation.