N/A
Markets: A bit of a rotation into cyclical stocks and this put pressure on dividend stocks. REITs have had a run but net operating income will remain and higher valuations are indicative of higher net asset values.
BUY
Sees considerable up side. There is single tenant risk in Magna. 5.7% yield should be able to grow.
HOLD
Continues to like the mid-stream sector. Primary concern is that there might be less volume flowing through pipelines. Have until 2015 to book up the pipeline.
BUY
Best rail operator in North America with very high margins. Longer term you can’t argue with it.
DON'T BUY
Concerned about longer-term growth prospects. Majority of profits are from wire line profits and more and more people are opting out of having a wire line.
BUY
Acquired a bunch of nursing homes in Ontario yesterday. Street is optimistic. Longer term it should work out for them. The portfolio has not reached its potential. Possibility that in 3-5 years they could be $8-10. They could get acquired, too.
DON'T BUY
Is fine. He has concerns about longer-term growth. Gas prices are low and people may not want to lock in.
DON'T BUY
Doesn’t own lifecos. We have had volatile equity environments and interest rates have been low. This will continue so it will constrain growth. He would prefer to own banks. MFC would be better than SLF in the lifeco space is you must own it.
BUY
Really likes it. Has a dominant market share in eastern Canada. Ship building contract. A non-rent controlled market. Manufactured housing is not CMHC eligible yet but it is just a matter of time. Lots of room for dividend growth.
WEAK BUY
Has some concern about the business. Horizontal drilling on their properties has higher decline rates. As they decline it will put pressure on the company to go out and make acquisitions. Potential room for dividend increase.
BUY
Dividends are sustainable. We’ve seen a huge change in fundamentals across the board. That is manifesting itself through the office sector. Rents are starting to roll a lot higher. Good exposure to western Canada. You want to hang onto it. Ability to grow AFFO and distribution.
TOP PICK
Good company and they will hold it because they think the dividend will be increased quite substantially. Contract they will renew with TCK at considerably higher prices. It could eventually be taken out by TCK. The one thing that could go wrong is that it is a pretty expensive stock. Rival terminals could not take business away for 4 to 5 years.
TOP PICK
Relatively limited exposure to Canadian consumer. Good opportunity to grow outside of Canada. Just raised money a few weeks ago. Longer-term value is $60-65 range.
TOP PICK
Likes it because it is good relative value. Acquisitions that would require regulatory approval in US. Name that gets 8% free cash flow yield and payout ratio less than 40%.
PAST TOP PICK
(Top Pick Nov 11/11, up 29.66% Total Return)