BUY
Cut Their dividend so he thinks it is safe. Trades at around 7X earnings and at a discount to the group of large cap integrated oil companies. On their way to proving themselves again but will trade at a discount until they prove themselves out to the people. Good price.
BUY
Rail business is a great story. Have brought down their costs and have done a lot of mergers. Much more environmentally friendly than trucking. If you are thinking about this for the long term, this is a nice place to be.
BUY
One of the large conglomerate mining companies globally. One of the great things is that when they are thinking of major investments, they're looking for return of capital. Over the long-term, he feels a commodity cycle will hold in. Have some really great assets.
DON'T BUY
Trading at around 4X earnings now. Sold his holdings a while ago. Have not been clear about how they are running their company 2 CEOs. Have not executed very well in the last little while and the competition has taken over, which he feels will continue to happen.
DON'T BUY
Used to hedge a lot of their gas but those hedges are coming off a gas is at a very low price. There is lots of gas because of shale and LNG. If you are owning gas, you need a low-cost producer. (Prefers Tourmaline (TOU-T).)
DON'T BUY
Mexican cement company. This is a difficult environment for cement companies, especially in the US where there is not a lot of growth. Debt to EBITDA is about 7.2 times and they have to bring it down to 7 by the end of the year. Made a bunch of acquisitions, which they still have to work through.
DON'T BUY
GE Capital grew so rapidly, it overshadowed the rest of their businesses and gave it a very high multiple. Capital is now slowly being wound down and you are looking at the core businesses, which are industrial. You don't want to pay 25X earnings for an industrial company of rather 10 or 15 times.
DON'T BUY
The merger with Petrocan is coming along nicely but they are a higher cost producer and there's still not much transparency. Prefers Imperial Oil (IMO-T) and Cenovus (CVE-T).
TOP PICK
Almost a 3% yield. Trades at 9X earnings with a free cash flow yield of about 11%. Great balance sheet. Windows8 and their phone are great products. Every time an android phone gets sold, they get $5 because of their licensing.
TOP PICK
Trades at 10X earnings. 4% dividend yield. Have done a very good job of branding themselves in the US and more than 50% of their revenue now comes from the US. Chrysler Financial was a very astute acquisition for them as people in the US pay down their cars.
TOP PICK
Largest Spanish telecommunication company but only get a 3rd of their revenue from Spain. One third comes from the rest of Europe and the rest comes from Latin America. Trades at about 9X earnings and about 10% free cash flow yield. The key is Latin America which is their growth area.
PAST TOP PICK
(A Top Pick Nov 25/11. Down 54.01%.) Still likes.
PAST TOP PICK
(A Top Pick Nov 25/11. Down 33.74%.) Still likes.
PAST TOP PICK
(A Top Pick Nov 25/11. Up 19.06%.) Still likes.
BUY
Good assets. Expanding with storage facilities in Denmark, Polaris pipeline coming on and big potential for expansion in Swan Hills area.