TOP PICK
One of the biggest global gold companies. Likes the outlook for gold for now. Mining stocks in general have lagged the commodity and he is expecting a catch-up. Very high assets and situated in safe countries.
TOP PICK
This is not a “current earnings” story. Currently trading at around the value of its real estate holdings. Looking for 1 of 3 things. 1.) Will turn around in the next year or two, probably starting later this year. 2.) The Weston family takes it private through George Weston (WN-T). 3.) Sells the company. Downside is limited, but the upside, even though it takes a year or so, will move very fast.
TOP PICK
Has been acting better lately. Focusing more on natural gas. Old CEO was over-promising and under-delivering. New CEO is under-promising.
PAST TOP PICK
(A Top Pick march 13/07. Down 20%.) Only bank that has said what their asset backed commercial paper is. Took a 25% write down on it.
PAST TOP PICK
(A Top Pick march 13/07. Up 55%.) Was acquired. Bought it because of their ethylene and their refining and marketing.
PAST TOP PICK
(A Top Pick march 13/07. Down %.) Biggest brokerage firm in Japan. He wanted exposure to Japan. Unfortunately, they got involved with the US subprime market. Sold his holdings quite some time ago.
BUY
Pretty much a pure UK bank. Also has a life insurance company. On the very conservative side of banks. Well capitalized. Loan portfolio has been very conservative. Sold off in sympathy with global banks. Just reported excellent earnings and raised their dividend.
COMMENT
Swiss company. Largest herbicide/pesticide company and 3rd largest seed company globally. Agricultural area is the right place currently. Earnings have been doing very well.
COMMENT
Very diversified company. More than half of its earnings come from outside the US. However, a big part of their operations is GE Finance (GFN-A), which could be directly or indirectly involved in some of these large loans. This has affected the stock price. Looking out 1 or 2 years, this stock could do well.
COMMENT
Likes the gas stocks better than oil. Gas is going up on real fundamentals, while oil has a lot of speculative fever. This is the highest quality company in gas.
BUY
Biggest manufacturer of high quality vitamins and supplements sold directly through practitioners as opposed to health food and drug stores. Made some strategic acquisitions lately that have been accretive to earnings and will be great for long-term growth. Selling off their ingredient business and will use the proceeds for further acquisitions. Great name longer term.
COMMENT
Cheque printing, etc. Steady growth. In this kind of market, this is the kind of business you want to be in. Just took a big drop but he doesn't know why.
SELL
Wouldn't be in the banking sector of all. With all the products going up on the banks, they have nothing to replace them for growth.
DON'T BUY
One of the biggest investment banks in the US and tied into the bad loans etc. There is also declining volume, underwriting and new issues are basically nonexistent.
BUY
Very good performer lately. To him, this is a long-term annuity. Just announced that they have more reserves than previously thought. Payout will continue to grow. 7.1% yield.