DON'T BUY
Coal prices came in much higher than expected after Christmas. As a resource person he has to follow the stock but management failed on the last 4 transactions. Now they have to go through asset sales. Huge amount of uncertainty here. Total speculation on the price of commodities. Prefers Westshore Terminals (WTE.UN-T).
BUY ON WEAKNESS
Most coal has to go through this company's terminals. $75 million in cash. Huge dividend. Slightly expensive at this point and he would prefer in the $8-$9 range. 8.8% distribution yield.
DON'T BUY
One of the great trusts but because of the hedging and the implied stability, it never got cheap enough.
DON'T BUY
Huge debt load and we are in a debt crisis. It could be a take-out any day of the week and it could go up 100% but you are 100% speculating that this is going to happen. Costs are very expensive.
DON'T BUY
Extremely well run company. Slightly more expensively than the rest of the group because it was actively hedged in the sector. The problem now is what are commodity prices going to be as they come off their hedges. Would prefer Progress Energy (PRQ-T).
HOLD
(Market Call Minute.) Great company but fully valued.
DON'T BUY
(Market Call Minute.) Needs an enormous amount of cash to do what it is doing in Eastern Europe. Fully valued.
DON'T BUY
(Market Call Minute.) Coming out of a trust structure is facing a lot of headwinds. Doesn't like this one.
COMMENT
(Market Call Minute.) He is neutral on oil prices right now. If you are playing this trend, the trend is on but you need to put in risk management to stop yourself out if things go the other way.
COMMENT
(Market Call Minute.) Natural gas should be at the bottom of the cycle but he is not expecting too much on the upside. Thinks it gets back to $6-$7 long-term.
BUY
Very steady unexciting business but right now bland is pretty good and the yield is pretty good and will probably stay that way for a couple of years. Over time, the landline business is being eroded.
BUY
Just announced a nice discovery of oil off the coast of Norway. With the bank lending freeing up and commodity prices so hot it is possibly a takeover target again. Looking forward to it getting back to $25.
BUY
Everybody needs one predominantly natural gas producer and one predominantly oil producer and some play on the oil sands in their portfolio. Once you have this, he is not sure owning multiple names gets you very far. Good company and has low cost compared to the industry.
DON'T BUY
Balance sheet is not as strong as some of the others. Not one of his favourites.
BUY
Very stable cash flow and is recession resistant. Dividends on income trusts right now are very attractive in relation to bond prices.