DON'T BUY
Dependent on potash pricing, which is dependent on the agriculture economy. Feels it has been weakening a little bit lately and investors are probably preparing for a bit of a downturn.
COMMENT
Good business. Dominant in everything they do pretty much. Have been around for 80 years or so. Very well run. Have a lot of debt but are paying it back. As they pay this debt down, the equity value will improve. Will eventually be a nice dividend paying stock.
COMMENT
Fantastic company. Very well run. They acquire little niche brands in foods, fixes them up, apply economies of scale to them. Their costs are higher because of food price inflation but offsetting this with accretive acquisitions. Not interested in increasing dividends, preferring to retaining earnings for more acquisitions. 6.8% dividend is safe.
COMMENT
There is a lot of nervousness around oil fields services and drillers in particular. The gas price obviously does not help. Also the oil drilling cycle is coming to an end. Be careful.
COMMENT
Have a plant that treats contaminated soil and produces a lot of cash when it is running. Hasn't been running lately but they are going to start running again. A lot of cash on the balance sheet. Trading for roughly cash value right now. There is a lot of hair on this story. In the environmental space and they got in trouble with the US government but that has pretty well gone away now.
COMMENT
Bank stocks give some nice dividends. Finds their business models are inscrutable so he doesn't follow them closely. 4.85 percent dividend.
COMMENT
Very well run company. Stock has done very well lately. Dividend is close to 6%. You won't get capital gain on this but the dividend is safe. Much less volatile than the broader equity market.
BUY
Very interesting technology. They make a superior wireless access point that is very, very fast. Demand is going to grow quickly. Low risk.
BUY
This is the perennial cheap stock. People are reluctant to pay and multiple that it deserves, given its growth because of nervousness on the housing market. A solid company. Management owns a lot of the stock.
TOP PICK
Makes technology for insurance claims adjusters to help assess the value of damaged articles. They have just merged with the #2 player in the industry giving them strong technology and a good database. They recently managed to get a contract with the 3rd biggest insurance company in the US. Management owns a lot of stock.
TOP PICK
A brilliant little company based in Calgary that invests in royalties. Loves royalties. Right off the top, you get paid before anybody else. They invest looking for a 16% return rate off the top. If revenues go up, royalty payments go up, but only 6% and the same on the downside. Will probably increase their dividends again this year.
TOP PICK
Owns and operates hotels in smaller communities such as Fort McMurray, Red Deer, Regina, everywhere where commodities are hot and business is booming. Management owns a lot of stock. Making very accretive acquisitions on hotels that are in financial difficulty. 8.4% yield.
PARTIAL BUY
This one has been following the course of most commodity sensitive stocks. Chart shows a strong downtrend. Currently it is right in the resistance and this is not a place to give away the stock. Don't Sell. If you like, you can pick away at it.
HOLD
The chart shows an area of congestion for all of 2011 and then it broke under in the beginning of this year. He feels this is near a low and we are now into support.
COMMENT
Chart shows a up pattern on the beginning of the year. Even though it had a nasty day today, the uptrend has not been violated. Has to get through about the $1.25 area before it can be considered a breakout. If you know the fundamentals and this matches them, it could be okay. (See Top Picks.)