(Top Pick Apr 5/10, Down 20.59%) Traffic management. Great balance sheet. Wrote off a lot of good will this quarter. Insiders own 22% of the company. A lot of upside. In the past two years his companies have skyrocketed but a few haven’t moved and these are two of the top picks. Management keeps on buying more of the company. Expanding their reach. Were talking about government investing in infrastructure. A good company in this field.
Has not moved since he bought it. As compared to others, this is 30 billion in revenues. They were loosing money in the recession but are making money now. Balance sheet is getting better. Management has a solid understanding of what they need to do. As economy improves, they should do much better.
(Top Pick Apr 5/10, Up 15.71%) Satellites. Management seems to think acquisition will be immediately accretive. Likes the management. Revenues were increasing, cutting the debt. There is not a lot of conflict in products. It will come on a lot of other analyst’s radar screens.
Markets: Is like a value investor. Looks for companies or sectors that are beaten down. Must have gone down at least 33% in last year. Looks for a sector out of favour. People are moving back into the market. There is a tendency when the market is out of favour, people run from it. It is harder for him to find opportunities in this environment. People tend to make the same mistakes again and again. There are good reasons to be skittish. They have not dealt with the problems in the market – liquidity, debt load, hedge funds.
Isn’t that familiar with the company. This is the time of the year that gold retraces its footsteps. He has zero gold companies on his watch list. Sees very few bargains in the commodities right now.
Put it back on the watch list about 2 months ago. Not as favorable as many of the smaller banks. Prefers C-N, although more risk. If it went under $10 or $12 he would be much more impressed. He is looking elsewhere, however.
Never completely trusts the company. It is a real dinosaur in his way of thinking. What will it cost to get rid of the yellow pages. He put it back on the watch list a while ago and may buy back in again. This stock would be part of his diversification strategy. Has bought it twice and dumped it.
Natural gas: is a great play, although it has gone down recently. He owns Pengrowth and is happy to collect the dividend, although he would not buy it right now. It’s a contrarian play. It has to rise eventually. It is a supply/demand thing.
Having difficulties with solar operation. If they spin it off there are all kinds of questions about what shareholders will receive. As economy recovers it is a real bell weather. Longer term it should do well. It remains on his buy list.
Gold and Silver: Both had tremendous moves. People are looking in other areas. If you are looking for a better kick, gold stocks are better than gold itself. Gold and silver are not particularly exciting to him right now.
“Risk on” and “Risk off”: It’s a new term from 2010. Risk on means you are willing to take more risk – it is a good time to take more risk. Risk off means it is time to be scared and people flee to American treasuries. Diversification covers this anyway.