TOP PICK
One of the best banking restructuring stories in Europe. At its core it is really a retail bank. Not involved with investment banking. Forced to acquire HBOS in 2008, which gave them lots of cost synergies. Just announced they will be profitable in 2010. Could possibly go up 30%-40% in current environment. Cheap.
TOP PICK
Windows 7 has done very well and they booked $1 billion in revenues in the last quarter and have another $2 billion they can book in the next little while. Several new products coming out in 2010. Expecting great benefits from the Yahoo deal.
TOP PICK
Almost 6% yield and has great ability to increase its dividend. Trading at about 12% free cash flow yield.
PAST TOP PICK
(A Top Pick March 26/09. Up 53.8%.) Still likes. Great balance sheet and lots of cash. Made several good acquisitions during the downturn. Kept its margins up. New router product should be very good.
PAST TOP PICK
(A Top Pick March 26/09. Up 22.2% excluding dividends.) Trading at one of its lowest historic multiples. 3% yield. The pure pharma companies are suffering from a lack of new drugs but this one is well diversified.
PAST TOP PICK
(A Top Pick March 26/09. Up 58.1% excluding dividends.) A lot of their competitors disappeared. Investment banking is not going away. Well capitalized.
BUY
This is a heavy oil side after the split up of Encana (ECA-T). Great management and great prospects. Low cost producer. Oil in the long-term is going to go higher but you need to own good companies.
DON'T BUY
Prefers Goldcorp (G-T) or Agnico-Eagle (AEM-T) as its cash cost production is too high at around $480 and the growth profile is relatively flat.
HOLD
Great bank in Western Canada and has done very well. Canadian banks are now trading at the higher end of their multiple ranges. If you want higher upside, look to banks outside of Canada. (See Top Picks.)
HOLD
Has done incredibly well. Grabbing market share from the other US auto companies and this should continue. Balance sheet is getting better through their cash flow generation. Not trading at an extreme multiple. Expects it has a good 15% more to go.
DON'T BUY
Short Bond Index ETF. Being in bonds allows you to have stock risks as it gives much lower volatility. Short-term rates are going to go up, which will have an impact on shorter dated things but if you own a corporate bond fund such as XBD-T, you will have less volatility without negative rates of return.
BUY
Have lots of capital. There will be some volatility for the next little while. Great franchise in Canada and US and a growing franchise in Asia. Likes the prospects in 3 to 5 years from now.
BUY
Trading at a very low multiple with a decent yield. Have the ability to grow over time. Will be able to make acquisitions in the US where their insurance industries did not do as well.
BUY
Not cheap at these levels but a very consistent company.
BUY
Low cost producer at around $400. Great growth profile from 2010-2014.