PAST TOP PICK
(A Top Pick Dec 3/09. Down 7%.) Had thought capital market business would have been a lot stronger. Sold his holdings.
TOP PICK
Fast food chains. Best consumers product company in Canada. Own many franchise brands in malls. ROE is consistently in the high 20’s. Trades at about 10X earnings. No debt. Have so much cash that he expects they will institute a dividend in the next 3 months. Low-risk growth stock.
TOP PICK
Oilfield services. Expect this sector will put up really big numbers in Q3 and this is his favourite. About a 40% ROE. Over 5% dividend yield.
TOP PICK
Provide broad basket of real estate services globally. About 8% yield. Expecting strong guidance going into 2011.
HOLD
Of all the property/casualty companies, this would be his favourite. Exceptionally well managed.
BUY
Financial services. Superbly run company. Excellent predictability from quarter to quarter. Could easily have been one of his Top picks.
HOLD
Mortgage insurance. Has had kind of a muted performance but a lot of the market has been quiet over the summer.
BUY
Focused on very rapid production growth. A lot of the junior names have been out of favour over the summer and have just started to come back to life.
BUY
Essentially a software reseller/distributor. Stock looks really cheap and he is tempted to get involved with it. Metrics look pretty attractive.
BUY
Owns intellectual property rights and charges a fee. Looks like the build-up of royalty fees is becoming quite strong.
BUY
Very good track record on return on capital and bringing on production. Well positioned. Good head towards $5-$5.50 by next April.
BUY
Looks like a good turnaround story. New management. Pretty cheap. Thinks it's a winner. But unrealistic to expect it at $1.50 in 12 months.
HOLD
Medical software. Positive earnings but last quarter was a little bit on the weak side. Still a little bit of a “show me” aspect here.
COMMENT
Jr. natural gas in Quebec. A horizontal well came in with poorer results than expected and stock took a big hit. Not a lot of predictability to future levels of production. Extremely speculative.
DON'T BUY
Good bank and likes the new management. Not a high-growth bank. Nice dividend. Would prefer National Bank (NA-T) or CIBC (CM-T).