BUY
50% oil and 50% gas with properties in Canada, US and Asia. Marcellus in the US is interesting. Much cheaper than some of the other large integrateds. Just announced a joint venture with Total (TOT-N) in one of their Asian properties. Valuation is good.
WATCH
As the economy improves, they will have room to raise its dividends and grow its earnings and cash flow. Besides present industrials, it has gone into wind turbine and solar. Interesting company to watch.
COMMENT
Toronto Dominion (TD-T) or Royal (RY-T) for a long-term hold? Royal just sold their US retail operations while TD continues to expand and is attracting a lot of deposits. Would prefer TD because of less trading activity but a very hard question as they are both very close.
COMMENT
Toronto Dominion (TD-T) or Royal (RY-T) for a long-term hold? Royal just sold their US retail operations while TD continues to expand and is attracting a lot of deposits. Would prefer TD because of less trading activity but a very hard question as they are both very close.
BUY
At the head of a huge web where they invest in a whole suite of smaller companies. Prefers to own this one. Trades at a discount to NAV. Dividend is less than 2% but expecting this will get increased over time. For a higher dividend you would go into one of their smaller holdings.
DON'T BUY
Airline with some of the smaller regional Cdn routes. Load factor is quite good. Yield of 14%. Will have to spend money on new planes in the next little while, which will increase their debt. He would prefer Cargojet (CJT-T).
COMMENT
About 60% gas weighted. Balance sheet is a bit stretched and they may have to raise equity or do a high yield debt issue Some of their oil plays haven’t gone as well as they would have liked.
COMMENT
Cash. The amount you hold depends on your risk tolerance. To take advantage of volatile markets, you may want to have 7%-10% in cash.
TOP PICK
Medical testing labs. Expansion into the US has been a disaster and CEO and COO were let go. The Cdn business works fine and generates a lot of cash flow. Expect the US assets to be sold. Expect a new permanent CEO by November. Trading at about 10-12 years historic lows at about 8.2X cash flow. Will be paying $0.75 dividend for the rest of 2011.
TOP PICK
Juices and sauces. Recently made a US acquisition. Very good ROE. Clean balance sheet. Debt will temporarily go up 2.3-2.4 times EBITDA.
TOP PICK
Credit bureau. #1 or #2 in all markets they are in. 2% dividend yield. Trades at about 8X cash flow. 17% ROE. Benefits from a credit contraction as banks do a more thorough research. Expecting more dividend increases.
PAST TOP PICK
(A Top Pick Sept 10/10. Down 11.52%.)
PAST TOP PICK
(A Top Pick Sept 10/10. Up 53.37%.)
PAST TOP PICK
(A Top Pick Sept 10/10. Up 6.7%.)
COMMENT
Market - Holding a lot of cash. Expects people will be selling everything, the good with the bad. There are a number of quality projects that will be available at a discount. We still need to find one big copper mine a year just to keep up with production. On gold we have to find 85 million ounces a year just to match production. Industry can’t keep up with demand, so if you can find a company with a real legitimate discovery, you are set to do well, regardless of the macro stuff.