TOP PICK
(A Top Pick March 3/09. Up 37%.) Have about $200 million in cash and securities. Extraordinarily well run. Have a small piece of the Voisey Bay royalty and merchant banking operations that have given them spectacular gains.
TOP PICK
Merchant banking operation for the non-public opportunities that come in. Good valuation. Likes their agricultural focus.
PAST TOP PICK
(A Top Pick March 3/09. Up 204.6%.) Acquired by Royal Gold (RGI-T).
TOP PICK
Likes the US geothermal space. They get very generous subsidies. Focus is not to find geothermal but to finance, build and operate geothermal plants. This company has the best range of experience in this space. $150 million cash.
PAST TOP PICK
(A Top Pick March 3/09. Up 171.1%.) Still likes.
DON'T BUY
Has one of the better geologists in the Pacific Northwest. Focus on Lucky Shot is a mistake. Could find a joint venture partner who would come in and develop without them having to do it. Doesn't think they have the experience/capacity to develop it themselves.
BUY
Principally focused in the Dodsland/Viking light oil play in Saskatchewan. Very competent management, which has a acquiring/exploit focus. Important to budget 5 to 8 years for it to gain enough weight to make you money.
COMMENT
Oil and Natural gas. Thinks these will be very, very good businesses. Still the possibility for sharply lower natural gas prices because of burgeoning US production and reduced industrial demand. A lot of it will depend on how oil/gas companies will be allowed to report reserves on a going forward basis and whether or not the current liquidity driven rally declines.
COMMENT
Likes these people a lot but would caution that he is not very optimistic on either copper or zinc prices in the near term. Good balance sheet and good free cash flow. Be prepared to own for 2 or 3 years.
COMMENT
Gold. Fairly valued. Well run company. Primary area is New Zealand. Growth is in the Philippines, which presents both technical and political challenges. Balance sheet had been extremely strained but recently did an equity offering.
BUY ON WEAKNESS
Royalty and tax regime is very complex but is overcome by the very competent management team. Very large multi-phased deposit. Would prefer it in the $1.70-$1.80 range. Probably a takeover target in 5 to 10 years.
TOP PICK
Sees the banking system in the US as starting to stabilize. Tarp money has been paid back. Expect there will be a very robust M&A season coming, which will benefit them. Also have Merrill Lynch and Countrywide, 2 very sound companies. Trading at 70% of Book. Things it has earning powers of $2.50-$3. Won't be without hiccups.
TOP PICK
Manufacturers small engines for heating and cooling systems. Replacement cycle of about 15 years. Housing starts in the US released it about 15 years ago and we are now getting into the replacement cycle. Also the motor sign out up to 70% more efficient so there is encouragement by governments for replacements.
TOP PICK
In the mechanical/construction services business so they are very much part of the stimulus program. Only a third of stimulus money has been spent so 2010-2011 should be a good time for them. Trading at about 12X 2010 estimates. Very little debt. Have $10 a share in cash on the balance sheet. Have had 10 consecutive quarters of earnings surprises.
PAST TOP PICK
(A Top Pick March 11/09. Up 69.1% excluding dividends.) Competes very well against Visa (V-N), its major competitor.