DON'T BUY
A retailer that buys products from bankruptcies, foreclosures, etc. He avoids retailer income trusts.
TOP PICK
A play on Canadian Infrastructure. Recent study showed Canada had $100 billion deficit in infrastructure. This company’s products include drainage systems and they produce steel and polyethylene products for bridges. Has 50% market share in Canada. Payout ratio is about 62%. Has increased distributions many times.
TOP PICK
Livingston (LIV.UN-T) is merging with PBB Logistics (PBB.UN-T) and the synergies will be very high. The toughest part will be integrating their IT systems.
TOP PICK
Livingston (LIV.UN-T) is merging with PBB Logistics (PBB.UN-T) and the synergies will be very high. The toughest part will be integrating their IT systems.
BUY
A gas weighted Royalty trust. Has pulled back over the last few months. Likes natural gas and would use this as a buying opportunity. Will probably be taken over in 2006 or 2007.
DON'T BUY
Has sharp declining oil/gas assets. Reserve life will decrease over time.
DON'T BUY
Has been negative on this fund since inception. The underlying power assets are not a 30 year a power contract.
DON'T BUY
Decreased his weighting in his funds. Could see the growth slowing in their propane business. Has now gone into a few other businesses. Doesn't think you will see much growth.
SELL
This one was very strong out of the gate but since then has dropped back. Their business is in yarn and had focused on the higher end materials. It was more of a fad and a lot of inventory was bought last year. Although the demand was still there, there is still a glut of inventory. Recently increased their distributions and are probably paying for it right now.
DON'T BUY
This is a junior REIT which has a higher cost of capital, so they can’t buy the best properties in the best locations. Taking above average risk owning this one.
HOLD
Most of his holdings is in his index linked funds and he has sold most of his positions of his active funds in the last two months. Thinks that coal prices have hit their peak. 2006 will be okay, from a distributions standpoint but 2007 and onwards looks a little more cloudy.
BUY
One of his favourite business trusts. After the government made their announcement on trusts, this one moved from $24 up to $30. Since then, hedge funds have been unloading their positions so the fund is down on the short-term but it should be okay long-term.
PAST TOP PICK
(A Top Pick Sept 23/05. Up 24%.) A good play on the oil sands. A lot of exposure to the trucking and the drilling activities around that area. Just made a nice acquisition of Pe Bend (PBN-T).
PAST TOP PICK
(A Top Pick Sept 23/05. Up 3%.) A Conservative Way to play the ageing population. Has expanded into the US in a joint venture with Industrial Alliance (IAG-T). A good, long-term, core holding.
TOP PICK
(A Top Pick Sept 23/05. Up 2.5%.) Has a slower decline rate of its reserve life. He also thinks the reserve life will grow over time. The fifth largest coal bed methane producer in Canada. This has a less sharp decline rate in underlying assets.