TOP PICK
A Canadian multinational company. Manufacture vitamins and supplements. Acquired a German company that had a European painkiller, which they expect to expand into North America. Strong organic and earnings growth.
TOP PICK
Brazilian mining company that had bought Inco. 2 biggest products are iron ore and nickel. Iron ore is in huge demand and can see pricing going up by 30% in the next year. Nickel demand is also going through the roof. They are in the right places at the right time.
TOP PICK
The leading managed care company in the US. They were a growth stock, but the valuation is now one of a value stock. Company is rebuilding its image and is also showing very strong earnings growth. Earnings should be $3.50 this year, $4 next year and $4.50 in 09. Has a 22% ROE. Cheap stock with a high growth rate.
COMMENT
For investors looking for growth in the telco sector, but not for a value investor.
BUY
Rising Cdn$ has negated a lot of the rise in the price of oil for a lot of companies. This is also a gas company, which has not helped them. Also kept missing its projections. New CEO will probably make the company much more investor friendly. Outlook for this company is quite good.
DON'T BUY
This has been one of the best stocks on NASDAQ. Had a good run and the valuation got a little high. Their most recent earnings release and comments indicated that things are going to slow. Too early to stick your toe in the water.
PAST TOP PICK
(A Top Pick Nov 14/06. Up 23.6%.) Winnipeg newspaper whose revenues and profits are growing. Safe distribution. 12.5% distribution. Still a buy.
PAST TOP PICK
(A Top Pick Nov 14/06. Up 6.4%.) Considering what has happened to financials, he is very pleased with this one. Have increased the dividends at least twice. Still a buy.
PAST TOP PICK
(A Top Pick Nov 14/06. Down 13%.) Compared to a lot of financials, this is not too bad. A specialty property casualty insurance that has very high return on equity. Extremely profitable. Once the financials bottom out and start acting better, he could see it getting back to $35. Still a buy.
DON'T BUY
Stock had a huge run over the long run and in more recent times, has started coming off. The growth they were showing was unsustainable and the valuation was very high. Going into a weaker economy, they are vulnerable to their cheaper competition.
DON'T BUY
Wouldn't touch any US bank at all right now. Feels we are just seeing the tip of the iceberg.
DON'T BUY
Not a fan of this one. Haven't got their act together yet. They were the leading cell phone company at one time but have gotten themselves into trouble. Lost a lot of market share domestically and globally. In the meantime, Nokia (NOK-N) is going gangbusters and stealing market share from them.
BUY
Going gangbusters. Stealing market share from everybody. Also getting into the services business, so are becoming a software business as well as a hardware business.
DON'T BUY
It was by far the best performing Canadian telco for a long time, however growth rate seems to have shrunk quite a bit. Doesn't deserve the premium multiple it was getting. It now seems to be Rogers (RCI.B-T) who is the hot guy in wireless.
BUY
Favourite mining stock after Companhia Vale Do Rio Doce (RIO-N) (see Top Picks). All their commodities are priced in US$’s and reporting in Cdn$ has to hurt. The drop in stock is a great opportunity. Doesn't see a lot of weakness in metal shares looking forward.