TOP PICK
Had a great earnings report but the stock is down to below where it was before this report. Trading at 12-13 times earnings. Very cheap.
COMMENT
Market. There was a lot of fear last week. You could see it in prices as well as the way the market reacted. Almost everything was oversold. Friday and today felt quite a bit more normal. His equity portfolio has about 18% gold and 17% cash. Expect there will still be volatility over the next 3-4 months as Europe and the US economy is sorted out.
HOLD
Changing itself from a little bit of a conglomerate. In the process of selling off their real estate. This one is under the radar with no coverage on Bay Street, which is why it is cheap. 10% dividend. Just reported a quarter which was a little ahead of his expectations.
COMMENT
Coal. Has come down enough that it is looking interesting. All coal stocks have retreated quite a bit. Ramping up production. All Junior coals in Canada are incredibly cheap. Quite volatile.
BUY
Current price is about as low as it is going to go. 8%-10% production growth for at least 10 years. Probably the best senior oil sands play. Highest percentage of US ownership of a Canadian oil so it tends to swing more as US investors trade more than we do. Cheap.
DON'T BUY
Dual class share structure is a problem that he expects gets fixed in the next few years. Not his favourite. Not cheap enough for him.
DON'T BUY
The acquisition of Equinox will make them 20% copper and 80% gold. Doesn't own this one because it is too big. Prefers Goldcorp (G-T), which also has a bit of silver. (See Top Picks.)
COMMENT
Look at this in the spring when it was under $14. Is back to this price again with much higher old prices. Some healthy skepticism on Bay Street that they can bring the mine into production on time and under budget but they have done it so far. A little perplexed why the stock doesn't perform better.
COMMENT
Looking at this to see what to do about their preferreds and bonds. Thinks it is possible they will eliminate the dividend down the road. Expects the company will survive and will be a free cash flow generator and pay back all their debt. Go to the short-term bonds if you want to be in this company.
PAST TOP PICK
(A Top Pick Sept 2/10. Up 22.33%.) Probably has the single best pipeline of locations to drill. Bakken was very wet this spring but have put that behind them now. Production number last week was a little above expectations.
PAST TOP PICK
(A Top Pick Sept 2/10. Up 26.16%.) Strip shopping malls. Able to make cheap acquisitions in the US now. Good management.
TOP PICK
(A Top Pick Sept 2/10. Up 8.41%.) Likes the growth as a result of some of their acquisitions. Has the most profitable US retail system of any Canadian bank. Very well managed. Get 1.8 million new customers with their latest acquisition.
COMMENT
Coal, copper and zinc. Trading at quite a cheap valuation. Based on where economies are going, he feels a value is now is probably in the low to mid $50’s.
DON'T BUY
This is controlled by Kazakhstanis now, which is a relative market against it. Expect it will continue to lag.
BUY ON WEAKNESS
This is the rig side of drilling in he is more interested in the fracers and pressure pumpers now i.e. the specialty drillers. These would include Calfrac (CFW-T) and Trican (TCW-T), especially on pullbacks.