Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Michael Simpson, CFA commented about whether MTL.TO, HEQ.TO, PZA.TO, AG.UN-CSE, DAY.TO, BLX.TO, CSH.UN.TO, AVF.TO, GMP.TO, Y.TO, COS.TO, CET.TO, TFII.TO, BA.TO, PMT.TO, XRE.TO, ERF.TO, IPL.TO, LIF.TO, HR.UN.TO, CLC.TO, FEL.UN.TO, CPG.TO, ARX.TO, OBE.TO, ZAR.TO, WCN.TO, KMP.UN.TO, PKI.TO, REI.UN.TO, AX.UN.TO are stocks to buy or sell.
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BUY
3 good balanced and diversified energy trusts would include Arc Energy (AET.UN-T), which is evenly weighted between oil and gas, Crescent Point Energy (CPG.UN-T) at about 78% oil and a great play in Saskatchewan or Enerplus Resources (ERF.UN-T) with oil sands and exposure. All 3 are excellent value right now.
Michael Simpson, CFAOwned
oilgas
DON'T BUY
He is more biased towards active management. The problem with an indexed REIT, you are getting very big representation from some of the bigger Canadian index weightings such as RioCan (REI.UN-T). He likes to also own some US, European and other REITs. Deals and managed REIT fund will do better than a passive index.
E.T.F.'s
BUY
Primarily natural gas weighted. Cut their distribution in December. Debt levels are a bit higher than he likes. He owns it for leverage to natural gas. Distributions should be sustainable over the short and medium period. Likes it at this price.
Michael Simpson, CFAOwned
oilgas
COMMENT
Primarily wire line in Atlantic Canada. Line erosion seems to be stabilizing. Made an acquisition of Bell Nordique giving them a small wireless exposure in northern Quebec and Northern Ontario. Some concern that they might sell their entire stake of their 42% holding of their parent company BCE (BCE-T). He doesn't think they will.
Utilities
BUY
Largest trucking firm in Canada. Have various different divisions. There have been concerns about their debt level heading into a slowdown. Has also been hurt by the strong Cdn$. Plan to sell some real estate and a waste management division in Quebec to help their debt. At these levels it's a good buying opportunity. 19.4% yield makes him a little nervous.
Michael Simpson, CFAOwned
Transportation
BUY
Have directional drilling tools. They get to the target quickly and save money. Majority of wells being drilled in Western Canada are horizontal. Have operations in different areas of the US and may be looking at opportunities further south. Conservative payout ratio and balance sheet. Good price.
Michael Simpson, CFAOwned
oilgas field services
BUY
Has an approximate 40-year reserve life. With increased cash flow, they can increase distributions or be bought out. Either way you benefit.
Michael Simpson, CFAOwned
oilgas
BUY
Increase distributions a couple of months ago giving over a 9% yield. These yellow pages are a lot different than the one in the US. Have a dominant market share at 90%. Have good collaboration with Google. Have the best margins of any directory globally. Cheap as he has ever seen it.
Michael Simpson, CFAOwned
communicationsmedia
BUY
Recently met with management. Very conservatively run with no debt or A, B, C commercial paper. They are building their wealth management business and are very good at serving their clients through trade executions. Doesn't think there will be any negative surprises.
Michael Simpson, CFAOwned
investment companiesfunds
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