COMMENT
Have had great success in innovating and coming up with new leading edge products. $26 a share net cash on the balance sheet and trades at about 17X earnings. The time to buy this stock would be on a pull back in the market.
BUY ON WEAKNESS
A way to get exposure to agricultural sector. Longer-term, a great play. Currently space is quite heated up so some stocks have had a decent run so wait for a pullback.
TOP PICK
Newspapers in decline but this one has a community-based newspaper (versus a national) as well as Harlequin romance novels in the US. Selling their stake in CTV Globemedia, which will lead to a significant cash infusion that is worth over $4 a share.
TOP PICK
Private equities. All the insiders have fairly large positions, which he likes. Misunderstood, under followed opportunity. NAV are (primarily casino/gaming assets) is basically at BV of about $18 a share.
TOP PICK
Aeroplan is one of the leading loyalty programs globally. In a growth phase. Have some expansion opportunities. 4% dividend and generates a lot of free cash flow.
PAST TOP PICK
(A Top Pick Oct 8/09. Up 18.41%.) Still likes.
DON'T BUY
Have a great deal of earnings sensitivity to equities and credit markets. A 10% move on equity market has a 30% impact on their earnings. Doesn't like investing in situations like this.
COMMENT
S&P 500 VIX (Volatility Index) Short-Term. This is a means of protecting on the downside and if you feel the market will be reversing, it is a tool that could be used. He prefers using Shorts on equities or ETFs. You could also use Put Options as protection.
BUY
His preferred way of playing agricultural. A way to play but not get directly in the volatility of the underlying commodity prices.
DON'T BUY
S&P/TSX Base Metals ETF. Sensitive to economic variables. We are only part way through consumer de-leveraging. Economy is being propped up by artificial stimulus, which has a finite life to it. This is one he would consider Shorting but prefers using underlying companies instead.
PAST TOP PICK
(A Top Pick Oct 8/09. Up 13.32%.) Still likes.
PAST TOP PICK
(A Top Pick Oct 8/09. Up 5.36%.) Still likes.
N/A
What a big turnaround in the markets since the spring. The double dip is a memory. You can’t loose for commodities. It’s rare to see all asset classes going up together. In the long run something has to give and he believes that over time bonds and gold will trend down. Gold and bond prices have gotten ahead of themselves. There were no earnings warnings heading into the third quarter. Profits are going to remain strong. If we have a 5-10% pull back in stocks, bond holders should move into stocks.
TOP PICK
Copper demand from China will increase at 4% / year over at least the next decade. Have really good copper assets. Depressed price means it’s a good time to buy. Lots of cash on the balance sheet. How many top quality copper companies are left in Canada.
TOP PICK
He started buying CP and saw Warren Buffet buying a railroad at 20x earnings. Algoma is 10x earnings this year. Dramatically undervalued even with this run-up. Dividend increased every year since 2004. Limited shares available so don’t place market orders.