TOP PICK
Well-managed. Top assets. Low cost. Slight amount of debt. Just built a brand new oil sands project and he hopes it operates at $29 a barrel. Have planned hedging with all sorts of businesses they can shuffle around in order to get at their debt. A core long-term hold.
TOP PICK
7.75% 2015 Bonds. Yielding 13%. Stripped the Cuban and African risks out in his calculations and doesn't believe it comes back on the balance sheet. Fixed price, fixed volume contracts on coal Western Canada fully covers interest and bond repayment.
TOP PICK
Bonds. 20% yield doubles his money in 4 years. Some international country risks. Colombia is one of the better countries in Latin America. Never defaulted on risks. Very under leveraged company.
PAST TOP PICK
(A Top Pick Jan 17/08. Down 57.6%.) Was trading at 2X cash flow. Very cheap if the world had worked out all right. Major shareholder bought them out.
PAST TOP PICK
(A Top Pick Jan 17/08. Down 8.1%.) Because of some political risks he sold his holdings last summer. Currently too expensive because of political risks.
PAST TOP PICK
(A Top Pick Jan 17/08. Down 78.4%.) Sold a big chunk of this at about $17. The only base metal stock he owns.
DON'T BUY
Uranium is floating between $50 and $70, which is a fair price. This company is 100% pure exploration. Found an extremely rich pocket of uranium in Saskatchewan. Looks like it is real and it is mineable. Don't pay too much for it because it will be a long time before it becomes a mine. Probably fairly priced.
DON'T BUY
Trusts are being phased out in a few years but it does not mean trust structures are going away, they are just going into public pension plans. For individual investors, he thinks trusts are overvalued. He would prefer something like ProEx (PXE-T) for growth gas assets at a cheaper price.
DON'T BUY
Gold trades on inflation. Despite the hoarding of money, lower interest rates and printing of money there is no inflation yet. Could be in 2 or 3 years time. His valuation on gold is neutral. Has a problem with Barrick as production comes off in 4 years. He wants a company that produces gold cheaper and has a growth profile.
DON'T BUY
Very well managed company. It is the one company that paid its way into the Bakken shale but hedged and did it intelligently. The only problem is that the market is not giving you a discount for the hedge and you're not getting it that cheap. Would prefer something like Ryland Oil (RYD-X) or Painted Pony (PPY.A-X).
PARTIAL BUY
Have done phenomenally well. Strategy wise, he doesn't know if gas today is a low. There are technical reasons why it could sit at the current level for the better half of this year. Thinks this is one of the companies that will come of it so you could nibble away at it.
WATCH
Found nickel play but right now it is not quite big enough to justify a mine. It is still a good enough story that they can go into the area and if they find 1 or 2 more deposits than it is a mine.
DON'T BUY
In this global economic de-leveraging, he would prefer companies without debt.
DON'T BUY
Multi-million ounce gold deposit ready to go. Waiting for one permit. Venezuela has tipped over on the risk spectrum. Finds it very difficult to have any clarity on what is going on there.
COMMENT
Tax-Free Savings: The $5000 deposit available for each person should be taken advantage of. You could have stocks in here, but if you have an income product, stick it in.