TOP PICK
Medical devices. Selling into emerging markets where per capita spent on health care is very small. Generates a lot of free cash flow. Raised dividends over the last 37 years. Grown revenues from 2000 at 8% per year. Debt to cash flow is under 1X. Very stable business.
TOP PICK
2nd largest waste management. Highest EBITDA in the company's history at 31%. Paying down debt. Expects a share buyback or dividend increase later this year.
TOP PICK
(A Top Pick March 25/09. Down 22% excluding distributions.) Medical laboratories. US holdings pulled them down. Won't have restructuring costs going forward.
COMMENT
Gold mine in Mexico and a joint venture with Barrick. Not hedged. Not the highest free cash flow yield among the senior golds so he prefers Barrick (ABX-T) or Newmont (NMC-T). Dividend of about 0.37%.
BUY
Dividend under 1%. Good free cash flow. You own this one because you want exposure to gold as an alternative currency.
BUY
Western Canadian focused. One of the knocks was that they had too much exposure to Calgary office space but has done a great job diversifying. Payout ratio of 82% and is coming down.
BUY ON WEAKNESS
About 50% each in oil and gas. Have some interesting new oil locations. Recently raised money for their CapX programs. Good management and good strategy. Would like more perfect nation on what their dividend will be in 2011. 9.3% distribution.
BUY
In the penalty box because of 2 fires in their upgraders. There will be a turnaround in the refineries this summer. Starting to take out some of the costs from their merger with PetroCan. Trading at about 6X 2011 price to cash flow.
BUY
Energy infrastructure involved in the midstream business. Have wind power and energy storage assets. Will be converting to a corp. and reduce their distribution to reflect the new dividend that they want to pay. Good price. Can generate about $100 million in free cash flow.
BUY ON WEAKNESS
Just acquired Shelter Bay assets so they will be a dominant producer in Saskatchewan. Have a good valuation in the marketplace. Would like to see it at $38. Over 6.5% dividend.
DON'T BUY
Majority of business is in Manitoba. Core operation delivers quite healthy EBITDA in the 46%-40% range. Assets acquired from Allstream are not delivering. Primary benefit from this acquisition was tax pools. Market expects a cut in dividend.
TOP PICK
A minnow among the beer makers. No cash on the books. Revenues went down about 11% in the last quarter but they seemed to have turned the corner.
TOP PICK
Thinks it can triple/quadruple from this level. Losing money for years but have started to turn a profit. Their smart phones are starting to sell. Cash flow of about $450 million last quarter giving them $8.5 billion in the bank with about $3 billion of debt. Expect they will split into 2 in the next year, which could give some kick to the stock.
TOP PICK
Very speculative and very dangerous. If they have difficulties with their bonds, it will hurt them. Could turn out to be an excellent play highly risky.
PAST TOP PICK
(A Top Pick May 1/09. Up 62.5%.) Good management. Revenues went down above 40% in the last quarter. Think they can triple from this level. Still a Buy.