- Page 1/3
- Next Page
COMMENT
Markets. Focusing on the economic data coming out of the US, which is fairly strong. Jobless claims are best it has been since February, railcar loadings are improving and consumer confidence is very strong. This may be an indication that the US is decoupling from what is going on in Europe. Looking forward to a fairly good Q4 as well. Cdn$ looks undervalued.
DON'T BUY
Fantastic company with a terrific suite of assets. Doing very well in this environment with all the drilling for natural gas. Have concerns about where natural gas is going in the future. Reserves are off the charts, storage is off the charts and the price is low. Too volatile a sector for him.
oil
gas field services
STRONG BUY
Not sure why it has been beaten up so much but may have to do with a recent acquisition and concerns on how they are going to integrate it. 3 of the worst performing stocks this year are financials, pharmaceuticals and technology. Very, very cheap valuation. Raised its dividends 10 years in a row.
biotechnology
pharmaceutical
DON'T BUY
Management has stated that the dividend is safe “for now”. 7.5%. If the market gets worse and interest rates continue to go lower, anything can happen. Just announced they are going to change their US business. Wouldn't be a buyer of any insurance company right now until you get a good feeling that interest rates are going to rocket higher.
insurance
BUY
Very hard and complex company to understand. Involved in making additives for food as well as in the trading business. Does like that they are the biggest supplier of soybeans to China and over time, China is going to need more and more soybeans. Very cheap on a PE basis trading at a Price to Book Value of 1. Has raised its dividend 30+ years in a row.
food processing
TOP PICK
Underperformed BCE (BCE-T) and Telus (T-T) over the last few years and they are due to catch up. Talking about increasing dividends, paying out cash flow and buying back shares. People are spending more and more money on smart phones. Like a utility, but utilities are trading at much higher valuations. 3.8% yield and expected to grow to 4% in January.
Cable
TOP PICK
Focused on garbage and waste hauling in North America. Last quarter disappointed in terms of the US division, but he thinks that was a combination of one-time items. Valuation is very attractive. Management says they are going to focus more on shareholders. Expect a dividend increase as well as share buyback.
Transportation & Environmental Services
TOP PICK
2012 looks to be a better year so he thinks dividends will be increased. Benefit from low natural gas prices, which is their main input. Balance sheet has improved. Sugar prices have dropped, which is good for them, as a lot of times they have to buy sugar on the open market to meet demand. Yield of 6.6%.
Consumer Products
