TOP PICK
The institutional favourite. Have taken their corporate hedges off over the last several months and will benefit fully from a rise in the price of gold. Largest producer in the world. Very diverse product portfolio. Under owned by institutions.
TOP PICK
Integrated agricultural operations including soybeans, other types of oil seeds and fertilizer. Less than 25% of their business comes out of the US. Big beneficiary of the weak US$. A play on the long-term pricing power expected in agricultural products.
TOP PICK
(A Top Pick Jan 8/07. Up 14.3%.) A global growth leader. Infrastructure for internet has to change to support the growth in bandwidth. Growing in 7 out of 8 geographical regions. 8 out of 9 of their major product areas are growing at 15%.
PAST TOP PICK
(A Top Pick Jan 8/07. Up 16.6%.) Has 45,000 digital displays throughout China. The #1 digital advertising company in China, growing at over 100%. Still a Buy. He got stopped out in August.
PAST TOP PICK
(A Top Pick Jan 8/07. Up 34.2%.) Other stocks met his tests more closely, so he has just sold his holdings. Getting more volatile.
COMMENT
Likes companies that not only meet his business test but also leads from a price perspective. Prefers Barrick (ABX-T) (See Top Pick) and Agnico-Eagle (AEM-T). The latter has great growth prospects and an extremely large shareholder base in the US.
BUY
Prefers companies that meet his business test as well as leading from a price perspective. Has great growth prospects and an extremely large shareholder base in the US. (Also see Barrick ABX-T, his Top Pick)
DON'T BUY
The oil/gas energy trusts is a space that is really challenged. This one has a lot of property, but may not have the capacity to go and find a lot more production. Prefers to be outside of Canada until the political situation settles out.
BUY
A poster child for the type of company that is doing well in this market. Not economically sensitive. Has just been approved in China giving them lots of opportunity there. Have consistently beaten the estimates and the estimates are consistently rising.
WAIT
Uranium - When you look at the way stocks are trading in this space, at this point you are betting on a turnaround. Long term picture is good but a very volatile space. He would stand clear for now and wait for some buyers to come back to the group and see some strength.
BUY
The agricultural space held up very well through the month of August. This company is not cyclical and is more secular by nature, which he prefers. There is a long-term opportunity here.
BUY
Likes their exposure outside of Canada. He expects the strong market for energy will continue. (They own Petrominerales (PMG-T)).
BUY
Roughly 70% of sales are outside of North America. Not economically sensitive. Market is paying higher multiples for steady growth. They have a wonderful product portfolio.
DON'T BUY
Has a reasonable weight in energy, but basically outside of Canada. Has focused on integrated companies with an international presence. Conventional oil/gas producers in Canada were under performing global companies and with Alberta’s talk on royalty taxation, they have dropped even further.
DON'T BUY
A great business, but the problem is they have a heavy gas weight of about 45%. LNG poses of real problem for the gas producers.