TOP PICK
Outsourcing services and consulting assistance integration. Latter business has suffered in the recession but they have been getting new contract wins in the US. Have grown their backlog so there is good earnings visibility.
TOP PICK
Hedged 2/3rds of their 2009 natural gas production at about $9 and about 45% of 2010 at over $6 so that is protecting their cash flow and capital spending program. Gas at $3 is way out of whack with the price of crude. With a significant decline in drilling and a pickup in industrial activity, gas prices should start to move higher next year.
TOP PICK
Diversified Aerospace and industrial products. Have leading divisions such as Carrier, Otis Elevators and Pratt & Whitney. Good management team. Uniquely positioned because of their aftermarket sales, which should cushion their earnings with any decline in original equipment demand. Will also benefit from infrastructure spending and emerging economies. 2.7% dividend.
PAST TOP PICK
(A Top Pick July 21/09. Up 9.22%.) Just reported good results. Acquired EDS last year and integration is ahead of schedule. Still sees a lot of upside margin improvement. Demand in the US and China has stabilized although some concerns in Europe.
PAST TOP PICK
(A Top Pick July 21/09. Down 5.08%.) Still likes this one long-term. Largest wireless player and still have the highest R2 (?) and the lowest churn. Their exclusive rights to the iPhone will benefit them long-term.
PAST TOP PICK
(A Top Pick July 21/09. Up 4.38%.) Still likes. Have a very good position in emerging markets.
BUY
Wireless and wire line services. Will probably correct relatively less in any pullback so this would be a safe and defensive name. 6.2% yield.
BUY
Pipeline network spans across North America and also has some power plant interests. Recently did a big equity issue to fund their growth projects for the next 2 or 3 years. Near term dilutive until these projects come into stream and start to contribute to earnings. 4.7% yield.
HOLD
Metallurgical coal, copper and zinc. Has had a huge run from its lows. Global economies are on the path to recovery led by emerging markets so demand will improve over time. There might be some near-term profit taking.
BUY
One of the largest gold producers in North America. If you want gold exposure for the long-term, this is fine. During inflation concerns, people turn to hard assets. She has no concerns for the next year or two. Alternatively you could look at iUnits Gold S&P/TSX ETF (XGD-T).
BUY
If you want gold exposure, rather than picking just one name, which is all the large-cap gold producers. This gives you more diversification.
BUY
Pipelines in Western Canada. Very stable earnings stream. 10% yield. Doesn't have commodity exposure and will be paid regardless of the prices.
BUY
5% yield is attractive. Recently did an issue, which Brookfield Asset Management (BAM.A-T) took 51% of. Very highly regarded management.
COMMENT
Manulife (MFC-T) versus Great West (GWO-T)? Manulife is much more equity market sensitive as it has a higher portfolio of guaranteed variable annuities. Great West has much less exposure and their guarantee is not as aggressive. Manulife’s new management team has decided to de-risk the business and build up capital, which is one of the reasons they cut the dividend. Good exposure geographically.
COMMENT
Manulife (MFC-T) versus Great West (GWO-T)? Manulife is much more equity market sensitive as it has a higher portfolio of guaranteed variable annuities. Great West has much less exposure and their guarantee is not as aggressive. Manulife’s new management team has decided to de-risk the business and build up capital, which is one of the reasons they cut the dividend.