DON'T BUY
Not a fan. They don't have that much growth.
BUY
A US based trust. They provide a key ingredient in the aluminum smelting process. There had been concern that some of Alcoa workers would go on strike. At these levels, it offers reasonable valuation.
BUY
Originally started off with one gas generated facility but has expanded into wind power. Likes management.
TOP PICK
Pays about 6%. Have properties in western Canada, France, Netherlands and Australia. Low payout ratio. He is forecasting a 10% distribution increase. Very good at creating value. Good management. Low debt.
DON'T BUY
Currently tuna prices are very high. For the first half of the year, their payout ratio will be 100% or a bit more. Concerned that if they raise prices on tuna, revenues will decrease.
BUY
A pipeline trust. There were a lot of concerns as interest rates rose and it got hit more than was necessary. Good value at these prices.
BUY
Dominant player in the cheque industry. Although cheque usage is declining 3% or 4% per year, they are managing it by some creative ways. Down because the overall market is down. Acquired a software company unrelated to their more business. Good value.
TOP PICK
A very stable business. Declined along with other business trusts. Very strong organic growth in both Canada and US. Have landfill in Ontario that could be called on for Toronto garbage, which could be an upside. Solid management. Payout ratio 85/80%.
BUY
If oil prices stay were they are, this trust will do well. Has grown dramatically through the years, both organically and through acquisitions. Have a shorter reserve life than the average.
DON'T BUY
Thinks metallurgical coal prices will go down to $95/99. Have been hit by a lot of cost increases. Would be more interested if it fell to the $30 level.
DON'T BUY
About 80% gas focused. With lower gas prices, he is concerned they may have to cut back on some of their capital spending.
TOP PICK
85% of revenue is from hospital laundry services. The rest is hotel services. Recently made an acquisition in Victoria. A business with long-term contracts. 80% payout ratio. Reasonable debt.
HOLD
Getting cheap at this price. Estimated production is 8000/8200 BOE’s a day. If it stays down at this price, it could be a takeover target.
BUY
A US based trust. They own facilities that do uncomplicated day surgeries. Payout ratio of 85/90%. Trading at 7.5 X cash flow which is a good price. Expect they could buy more specialty hospitals in the US.
WEAK BUY
They are benefiting from lower natural gas prices. World sugar prices could rise, but Canadian prices are protected so there is not much upside is there would be in raw commodity sugar.