10% annual earnings growth in the next 5 years is very achievable. Free cash flow will be fairly significant because of upgrading of stores in the last 10 years so he’s looking for dividend increases. Expecting 10%-12% returns.
Because of past deals, they should have growth of about 40% in cash flows over the next couple of years. Have significant amounts of cash and credit lines, which he expects will result in another deal.
When it converts to a corporation it will be a hybrid with very decent dividends. He can see 5%-6% dividend over the next 3-5 years and grow their operations at about the same amount assuming $75-$85 oil prices.
GoldCorp (G-T) or Barrick (ABX-T)? Barrick is cheaper on a historical valuation basis but got hit on Australia’s plan to impose 40% on profits. 17% of its revenue is from Australia. He is looking for 30% growth in cash flow over the next 3 years.
Fairly good chance it'll earn in the $6 area next year and if it gets back to the 15X multiple you are looking at a $90 target. Selling at a much lower historical PE ratio than it has.
Energy producer with coal power being their major source. Should earn in the area of $1.25 this year and possibly $1.40 next. Very healthy dividend of over 5% giving a double-digit return. Decent entry point.
Had traded between $42 and $44 because of fears of what might happen in Ontario. Has since taken a big drop to the $35-$36 area. There is a fear it will spread to other provinces so suspects it will be stuck in this range for a while. Dead money for the next several months.
Results have been disappointing over the last few quarters. Will be coming out with new results this week. In the doghouse at the moment. Earnings are hard to project.
