Markets. Looks at the current situation as an opportunity. In spite of all the noise and fear, he is not seeing a breakdown economically, such as a failure of a European bank. Has been a painful couple of months in the market. Cyclical stocks have been absolutely hammered.
Has been light on financials, particularly US, but down here, you have more than discounted some of the worst situations. Valuations, relative to BV and earnings are discounting very bad news going forward.
You would get a better upside play out of Manufactures Life (MFC-T) but would also be taking on more risk. This is fine. You have to remember that when bond yields fall, this is more of a problem for lifecos. There are names with more potential upside.
Gold stocks have lagged the move of bullion. He has been switching a little bit of money out of gold. Cheap, relative to where it has been historically. Smart management. There is growth ahead but he would be more inclined to play the midsize companies.
If you are buying banks at this level for the yield, which is higher than what do we get on bonds, that is fine. Earnings growth will be a little bit slower.
Safe in this type of environment because of study earnings, but finds the valuations somewhat rich at a 13 multiple. Growth is slow down a little because of drug legislation.
Has been adding to his drillers at these prices. Valuation of the Canadian stocks is at a big discount to the US. With oil in the current range, drilling activities are still taking place.
Has been adding more to his holdings recently. Has a lot of growth in the Princess area. This is a high-growth Junior-midsize company. Mix of oil and gas. Have delivered on production targets quarter after quarter.
Have put together 3 quarters in a row where they have started to turn around. Finally getting their act together. Great international growth. Well-positioned domestically in North America. Have controlled the market leverage much better.
A lot of the cyclical stocks have come under big pressure. This one has been missing some of their production estimates and earnings for this year but thinks it will ultimately be acquired. Expecting it to get around $12 a share.
(A Top Pick Sept 09/09. Down 55.12%.) Finally seeing some decent reviews on the 7 operating system. Valuation at only 4, 5 times earnings. There may be some disappointment in the current quarter. Risk in the next quarter or two until the earnings traction can pick up but if all you do is stabilize.
2 merger deals fell through so it has come off dramatically. Copper prices have not broken down and are hanging in exceptionally well. Great shot at these levels.