DON'T BUY
The guess is whether people are going to be coming back and buying Maple Leaf products. Be cautious as you are counting on them getting back to the volumes and pricing they had before.
HOLD
Leases aircraft. Have financing out beyond a year. Cut their distribution in order to rebuild the balance sheet and make sure they have adequate capital. He is comfortable with this but the motion is against it at the moment.
HOLD
Guidance for next year is basically flat cash flow. Moderately stable. With a sustainable 8% yield, he would continue to Hold.
BUY
Hedge fund investors wanted to acquire at $39 so stock went up. That is now off the table so it has pulled back. Always paid $1 whether earnings went up or not. Earnings are finally up this year over last and going up in the next couple of years and dividends are forecast to increase.
COMMENT
Delaying their Long Lake project until 2010. Not economic at these levels. This delay will help them build the balance sheet. Extremely low multiple. Prefers Talisman (TLM-T).
HOLD
Statistically cheap. People are worried that in a recession advertising is cut back. Think the stock price is more than reflecting any cutback in advertising. There are no near-term financing issues.
BUY
Very solid balance sheet. Well above the minimum capital level.
DON'T BUY
Huge debt. A lottery ticket. Not for the faint of heart.
DON'T BUY
Stock went up with the price of corn and when corn came down, the stock fell too. They are curtailing potash production and it looks like they are going to have to drop prices. Even though it looks cheap, wait.
COMMENT
Natural Gas: Gas storage inventory is comparable to where it has been over the last 5 years. However, industry is not using as much in the slower economy. Also, some people can substitute oil for gas. Unlikely to see a run-up unless there is an extremely cold winter.
COMMENT
Trades at a discount to Canadian National (CNR-T). An economically cyclical stock. With the economic slowdown, their volumes are going down. On any hint of an economic recovery, rails are definitely going to be there.
DON'T BUY
Short term, commodities will have a difficult time because of the economic environment. Long-term, demand will go up and may take 1 or 2 years to happen. Prefers other oils because he is not sure where this ones growth will come from. Also had some issues with their oil sands projects.
DON'T BUY
Doesn't particularly like the story. Lots of competition on the smart-phone side and they will have difficulty with this. A lot of their business comes from the enterprise side with corporations giving their employees Blackberries. Fairly valued at this level.
DON'T BUY
Very little growth in this industry and may have even less than a lot of their peers. Have issues on their pension side. Have to spend a lot of money to upgrade on their wireless side. Prefers Rogers (RCI,B-T).
DON'T BUY
In the short-term, it is going to have a very difficult time. Fording acquisition was very costly and their balance sheet is probably in distress. They may have to sell off more assets. You need the commodity market to come back full steam. Dead money for a little while.