BUY
Makes ingredients for pharmaceutical companies. Just acquired a US company called Douglas Laboratories, the leading manufacturer of supplements that are sold to practitioners and health food stores. An accretive acquisition and the best company in the US. The beginning of a consolidation in a highly fragmented market. Good, long-term hold.
BUY
Down 30% since July because 1) they announced that they had hedged a good portion of their production foreword and 2) natural gas has come down from a spike. A fabulous company. Prospects for it are excellent.
WAIT
The premier and best run food company in North America. Has been falling because 1) they have been expanding their superstores in eastern Canada which required new distribution outlets and 2) the threat of Wal-Mart creating lower margins. Wouldn't touch the stock here but would wait until it starts going down.
BUY
This is in the proper area of income trusts, i.e. the stable, slow-growing part. He would not be buying the highly cyclical trusts because he is worried about an economic slowdown coming.
BUY
More of an emerging story then an old story. Went through a couple of years where they had production disappointments. Lately, they have been making some good acquisitions, good production gains and their refining and marketing have been very good for them lately. Continues to be one of the cheapest if not the cheapest majors in the world.
WEAK BUY
Doesn't own any of the eastern Canadian forest stocks, but starting to warm up to them. They seemed to be bottoming out. There has been overcapacity in the east, but the big producers have been taking this out. Cnd$, low commodity prices have been working against them. If you are a speculator, the worst is probably over. These companies have decimated their balance sheets so they are high risk.
BUY
His current favourite financial name. Wouldn't hesitate to buy even though it’s near its all-time high. The best managed life insurance company in North America. Great growth prospects in the far east.
WEAK BUY
Up until they announced they were going to make a major acquisition in the last couple of weeks, was a name that he highly favoured because they had good exploration potential, good balance sheet and were strong in refining and marketing. That’s starting to change now as it will stretch their balance sheet quite a bit. With preferred Petro Canada (PCA-T).
BUY
An anomaly in that it is at growth utility company. Expects it to do more in the acquisition trail. Has an attractive yield. Historically, it has performed alongside the banks.
BUY
Has been a relative laggard in the base metals area this year. The outlook for nickel is improving. Their proposed acquisition of Falconbridge (FAL.L V-T) would be very positive for them.
BUY
At this price, he is looking at holding a core of position, but trimming some of the excess of this stock from his portfolio. If you don't all night, he wouldn't hesitate to buy. The outlook for uranium is excellent. Some hedging came off in 2005 and more is to come off in 2006 with the final amount coming off in 2007.
TOP PICK
Likes gold now that it is going up. This company is the best managed and the best assets and it doesn't hedge.
TOP PICK
We have to start looking beyond our borders in the banking area. English banks generally sell at lower multiples and have higher yields. This one is an international bank.
TOP PICK
A specialty property casualty insurance company. Sells at a lower multiple than most. Recently was the seller of the Cincinnati Reds. Well-managed and good assets.
HOLD
Has been his favourite metal stock all along. Has the best management, the best assets and in the right places, being coal, zinc and gold. Starting to get a little pricey, so considering taking a little bit of private while continuing to hold his core position.