BUY
Good management team.
BUY
Good management team. Have been successful in integrating their acquisitions.
DON'T BUY
Just reported and their results are way off due to declining DVD sales.
DON'T BUY
A distribution business that is a low margin business. Cyclical. Expects there will be more downside.
DON'T BUY
There has always been a concern that it is highly concentrated in northern Alberta that has a very limited window when they can drill. High payout ratio.
DON'T BUY
Basically a gas play. High payout ratio.
BUY
A large trust. Challenging to replace production, but it has a huge land suite. Likes it.
WEAK BUY
Has about 60 stores in Alberta and British Columbia. Prefers Liquor Stores Income Fund (LIQ.UN-T), which is larger. They expect to grow through accretive acquisitions. Still in the process of integrating 8 companies.
COMMENT
Lightened up on power and pipeline trusts, which are the most interest-rate sensitive. Interest rates are now very close to peaking, which would create some interest in these again. Defensive in nature with stable income.
BUY
The premier energy services company in Canada. Continues to add to its fleet. Moving into the US. Very attractive yield. Good management.
DON'T BUY
With the recent increase, he has lightened up his position. A good trust, but their margins can be quite volatile. Fully valued.
DON'T BUY
Not a fan of distribution businesses. The largest hard wood distributor in Canada. There have been some improvements in its revenues but it is a thin margin business. Has cut distributions. Payout ratio is too high.
COMMENT
Had an intermediate cycle bottom in July and we are in a rotational bear. An official bear is not here until most of the subgroups have violated the July lows, so technically it is still a bull market. Major trend lines have not been broken. However, we might have had the first Down leg, but won’t know for sure until the bear is violated. The average investor should just stay long, grin and bear it. Thinks it will go higher through the fall. See what happens when we get there.
DON'T BUY
Any commodity sensitive stock is going to be a trading stock and very few of them are growth stories. The MACD has a higher low, which is positive divergence, so you are possibly going to get a rally from here. Would look for a rally in order to get out of it as opposed to buying.
BUY
It violated a long-term trend line about 14 months ago so there has been a bear and he thinks it is in a long A, B, C correction. The MACD shows that it is rising, meaning it has reached its low. He would be buying. It has not established an uptrend, so to protect yourself put a stop at the last low.