TOP PICK
Generating well over $1 billion in free cash flow. Aluminum is one of the few metals that have some good organic growth. Major beneficiary of the growth in China. Earnings where a tad disappointing today, but they should continue to generate great earnings.
TOP PICK
A great defensive company. Recently sold its learning division. Well positioned in the global economy to benefit from the increasing use of technology to access information. Not exposed to the consumer.
TOP PICK
Gets about 75% of its revenues from the Japanese insurance market and about 25% from the US. Japanese results were poor in the last year because of a change on the regulatory basis. Will continue to grow its cash flow and earnings in the 15% range. A good way to play the resurgence of growth in Japan.
PAST TOP PICK
(A Top Pick Sept 22/06. Up 6.4%.) Largest independent mutual fund company in Canada. Well-suited for demographics. Still likes.
PAST TOP PICK
(A Top Pick Sept 22/06. No change.) Got whacked on its recent earnings announcement. Quite a messy quarter. Still feels it's a great way to get international diversification with the safety of a New York listing.
COMMENT
Dropped almost 25% today. Announced terrible earnings. Could trade down to its tangible book value in the $5 range. Has major issues facing it. Tech sector is starting to recover, but the communications sector outlook is not as good. Would not sell today, but would wait 2 or 3 weeks and evaluated it then.
BUY
Demand for energy infrastructure is going to continue to increase. Price/earnings ratios for these companies are above historical averages, but still resemble investments here. Likes the dividends.
HOLD
A great company. Fairly reasonably priced, particularly compared to the banks. The premium that insurance companies in general have traded at has shrunk.
HOLD
Had a lot of issues, as its US expansion was not going well. Made a deal with Rite Aid so things are looking a little better. Still some risk. Wouldn't buy.
BUY
5% to 7% return plus 3% to 4% dividends on a long-term basis is a reasonable expectation. This would be her 3rd choice in the banking sector.
PAST TOP PICK
(A Top Pick Sept 22/06. Up 13.8%.) Latest earnings were very impressive. Best railroad in North America. Taking market share from trucking. Still likes.
BUY
A great long-term investment. 2nd time in 12 months they have increased the dividends. With no changes coming in income trusts, companies with high dividend stocks and able to increase them consistently will be where investors go.
DON'T BUY
Not one of her favourite banks. Continues to have issues in finding its niche within the Canadian market.
HOLD
Really likes the Demarais companies. Well-managed company. Good assets. The one wrinkle is the rumoured takeover of the Putnam assets in the US. If that happens, there could be some weakness that would give a buying opportunity.
COMMENT
Telecommunications sector is entering a very competitive phase. Prefers BCE (BCE-T) with its higher dividend yield and cheaper multiple. There are a lot of positive expectations built into the stock price and she would rather be in the lower valued company.