COMMENT
Asset value right now is about $15-$18, about the price of the current stock price. If you believe we have a decent economy and coal, zinc and copper prices go higher $35 would be possible.
HOLD
Balance sheet is better and they will be increasing their dividends June 15. His problem with the beer side is that the North American demographics don't set up very well. Under 30 is only growing by about 1%.
COMMENT
Cdn$: Has been very much tied to the price of oil in the short term. It might be due for a little bit of a pullback but longer-term he can see it printing back to $0.90 to $0.95 in 5 years.
BUY ON WEAKNESS
Nickel, coal and oil with the nickel and oil being primarily in Cuba. You have a Cuban discount but also assets trading below half their value. He would like to buy at $4 but it does not seem to be going back to that.
HOLD
Small oil producer with some Calgary real estate. Also had Elbow River gas marketing, which had some bad debts and wrote them off. Have a lot of cash. Asset value is about $5. Expect they will go private. 21.8% yield.
HOLD
Prefers Eldorado (ELD-T) or Iamgold (IMG-T), which have better production profiles. They seem to have their act together again. A good Hold until you can get out at higher prices that he is expecting.
COMMENT
Prefers Agrium (AGU-T) but owns both. Agrium is a little more diversified.
TOP PICK
Genesis Trust vs. 5-year Canadian government Bond. This is a pairs trade going Long on Genesis Trust and Short the 5 yr Canada bond.
TOP PICK
(Preferred A.)Likes what he sees in the food space now. There is a tightening in grain prices. USDA reports that the planting ratio for corn and soybeans have been hitting all-time lows. 6.25% yield.
TOP PICK
Agriculture income fund. Payout ratios have been declining year over year. Very proactive management.
TOP PICK
Top Short Five year Canada bond. This is a pairs trade going Long on Genesis Trust and Short the 5 yr Canada bond.
BUY ON WEAKNESS
Teachers Pension has been liquidating this stock. Interesting book value of about $20 and 6% dividend yield. He might buy back in if it pulls back a little.
DON'T BUY
They still need to get their act straightened out. Give it a few quarters to perform. Massive overhang in terms of the number of short sellers getting into it. Also some technical issues.
COMMENT
Convertible debentures ETF. He likes some of the REIT and Power convertibles, which are good spaces to be in. He avoids ETFs because he prefers to be more selective. This one is exposed to the US convertible space, which is more volatile.
WATCH
Limited partnership. Have utilities. Best asset base in terms of power plants and utilities. Massive overhang because they are carving out some of their best assets to Capital Power. It's a whole mishmash of assets. He would wait to see what happens to Capital Power.