PAST TOP PICK
(A Top Pick June 29/09. Down 7.3%.) Thought the growth margins would start gravitating back towards 30% and last quarter they did. If you X out all the unusual items they did about $.13. They will do about $.50 so this is one of the cheapest stocks out there.
PAST TOP PICK
(A Top Pick June 29/09. Up 20.5%.) In the Montney region and one of the best shale gas plays in North America. Have Storm Ventures Int., which may go public and they have Horn River as well.
BUY
Good infrastructure play. Likes the way they run their business. More on the front-end engineering and design. Cheap.
BUY
Owns a 7% overriding royalty interest in Iron Ore Company of Canada as well as a 15% direct interest. Distribution is sustainable and shouldn't be affected by their current version to a corporation. 5.3% yield.
BUY
Oil sands with a 40-year project life. Built and in its ramp phase. There are complications as you get to the ramp phase. Just did an overhaul of their water and injection facility and over the next few weeks he expects they will be back on track. Had some balance sheet issues that they resolved with an equity issue. Very volatile.
BUY
One of the highest margin gold companies globally. Did a large acquisition, which will grow their production profile. Very solid balance sheet. Believes gold will continue to go up and this company will benefit.
COMMENT
Gold. All-time high was $1032 set about a year ago and he believes it will break through this. If it does it should continue up to the $1200-$1300.
COMMENT
Top performer of the mid-cap golds out of the bottom of the market. Fixed a lot of their issues and have a very good growth profile. Also an attractive acquisition candidate. A little more expensive so would prefer an Eldorado (ELD-T) to this one.
COMMENT
A lot of exposure to residential construction. Had some issues because of their finance arm but they managed to get through it okay but the ability of their customers to buy have had difficulty getting financing. Would prefer the dealership companies such as Toromont (TIH-T) or Finning (FTT-T). If you have a 5 or 10-year view it could be a good entry point.
BUY
Incredibly cheap. Looking at the 22-year dividend history is one of the best dividend growers in Canada. Very predictable stream of growth. 2.6% yield.
COMMENT
South American mining exposure is more cyclical and more depressed than Toromont (TIH-T). Also their UK heavy equipment operation is experiencing a lot of competition right now.
BUY
Went through a harrowing experience last fall. Had some issues distressed balance sheets. Sold off their ING Canada holdings. Given the run on pure banks, insurance companies might be better opportunities at this time.
BUY
If you are looking for a great long-term stock, this has one of the best records in the oil patch. Very well run. Have a growth path that is looking pretty good. Building the Kearl project, and integrated oil sands project. He would slightly prefer Suncor (SU-T) but you can't go wrong with either one. A long-term play. 1% yield.
BUY
One of the best stocks to own in Canada over the next 3 to 5 years given the combination between Suncor and PetroCanada, asset sales and the focus on their oil sands operation.
DON'T BUY
Very large Chinese company with government ties. Enormous presence in the aluminum and industries. Looking to diversify their metals. Expect they will look for assets in Australia or Africa. Expect aluminium to come in the later part of the cycle and is not reacting that well at the moment.