TOP PICK
(A Top Pick Aug 14/08. Down 4.25%.) Very solid/diversified underpinnings in the “have to have” information markets. Includes financials, legal and scientific. On the verge of having increases in profitability and looking for earnings of $2.50 in the next year. Cash flow could be $3.75-$4 a share. Developing “next generation” terminals.
TOP PICK
(A Top Pick Aug 14/08. Up 0.65%.) Converted to a corporation but maintain distributions and have $2.2 billion of tax pools for protection. 1700 drilling opportunities that should last a number of years and we should see production increases.
TOP PICK
Agriculture. Recently made an acquisition in Australia, which will give them some grain handling exposure. 2nd largest oat global processor. Produce some nitrogen fertilizers. Selling at less than Book Value. Strong balance sheet.
PAST TOP PICK
(A Top Pick Aug 14/08. Up 0.55%.) Expecting some good profitability. Expanding internationally. Well managed.
COMMENT
Interest Rates. Longer-term there is going to be pressure on interest rates to go up. With the amount of paper that the US is going to have to put out to finance their deficits there will be tremendous pressure to move rates up. This would also affect interest rates globally.
BUY
Well managed company. His outlook for energy long-term is positive. Distribution is a little bit high but doesn't think there is a danger of being cut. (See Top Picks.)
DON'T BUY
Problem with playing fertilizer stocks directly is that commodities can be extremely volatile. There are other ways to participate in the agricultural sector. (See Top Picks.)
HOLD
This is one of the benchmarks in the energy industry. Selling at a reasonable price at around 6X forecasted cash flows. Also have large tax pools. Well capitalized and good prospects going forward.
BUY ON WEAKNESS
Insurance companies were torn down during the financial crisis but on recovery have been leading the way up but was not on the basis of very solid underpinning. A tremendous company but still some possible disappointments in earnings going forward. (Added to his positions at $9 but would look at it at around $20.)
COMMENT
Fairfax Financial (FFH-T) holds 20% of this company. Not sure that they could have any influence on keeping this company out of bankruptcy.
SELL
Closely tied to the demand for coal. If you own, consider taking some profit, as he is not sure how sustainable the current demand is and if the economy is strong enough to maintain the prices.
HOLD
Hotel REITs. Hotel vacancies are way up and will become taxable in 2011. If you sell your holdings now you are selling at the bottom of the cycle. Hopefully there will be some recovery in the next couple of years and his tendency would be to Hold unless you have some were the balance sheet is vulnerable.
DON'T BUY
Given his view that there could be a setback in the commodity markets and that the economy is not as strong as what people are reading into it he would be hesitant to Buy at this time.
DON'T BUY
Telcos are pretty much in a dogfight, not just with wireless, but also landlines, television etc.. New competitors are starting to come into the market with Internet protocol television. Rogers’ outlook going forward is a little bit soft. Prefers Cogeco Cable (CCA-T), which sells at a severe discount to most of the major players and expects it will catch up before there is any significant appreciation by the majors.
DON'T BUY
Have made a remarkable recovery but have been doing so by selling off pieces of the company and diluting old shareholders. What we have seen lately is over exuberance in the market, which may not be well founded.