COMMENT
He would love to buy a uranium company. Most of the uranium companies have debt loads that are too high for him. Those that have uranium in countries such as Russia always concern him about corruption. Also, the government could change the rules and say they want a bigger piece of the action.
COMMENT
Too big for his interests but feels that gasoline will be an integral part of the economy for many years. Surprised that it has such a low dividend.
COMMENT
A small bank. It won't catch the public eye in the same way as the big banks. Doesn't know the financials well enough to know if there is a possibility of the dividends increasing. All the Canadian banks are too expensive for him.
COMMENT
Has owned this for about 5 years but it has done nothing but go down. Lost money in 2009 but in the last 2 years they have done a great turnaround with about $30 billion in revenues. It is very diversified. If they regain their mojo, he can see the stock going to over $20. He could also see it as a takeover candidate.
COMMENT
Economic indicators. As a contrarian investor you pay attention to these? He doesn't focus on individual economic indicators but more on the general economy. Right now, debt levels of different countries are key. Also interested in money supply and how it has expanded.
PAST TOP PICK
(A Top Pick April 25/11. Down 9.92%.) Plastic and metal fabrication in China and Macau. Selling for less than half book value. Over $20 million in the bank. No debt. A year ago, they lost $4 million in their quarterly earnings and this year lost $400,000. A real negative is that sales went down 31%. Usually when this happens, the company takes a huge bath. This didn't happen, which shows management is looking after their costs. Still likes. Remains on his Buy list.
PAST TOP PICK
(A Top Pick April 25/11. Up 4.31%.) Small California regional bank. Pays a $.03 dividend every quarter. About 25 insiders have bought in the last 6 months. Was profitable every year during the recession. In 2011 they had more profits than any year since 2007. One negative is that they just about doubled their share count, which will hurt the upside.
PAST TOP PICK
(A Top Pick April 1/11. Down 1.39%.) Went down quite a bit because it took a $7 million loss one quarter in the form of amortization and goodwill, not cash. They are in the traffic flow space. $1 million in debt and $20 million in cash.
COMMENT
Management has said they will make a profit in the last 6 months of the year. In the past, they have overpromised and under delivered and he hopes that doesn't happen this time. Record profits in agriculture in the US and Canada. This company has record revenues but continue to lose money.
COMMENT
He prefers stocks that have stabilized towards the bottom or maybe have gone up a little bit. The gambling space is a very fascinating space and he thinks it is going to open up more in future. US is going to change their regulations at some point in time.
COMMENT
This one is way above his price point so he has no interest in it. The auto recovery is certainly on. This company has a lot of potential.
COMMENT
Good dividend payer but it didn't attract him enough to buy. Sugar prices can vary so much over time. A good one to watch in the same way that natural gas is a good one to watch. When prices are way down, then at some point they're going to come back up. Not cheap enough for him.
SELL
Medical systems in the cancer field. Company has done brilliantly. Trading up near record levels. If he has stocks that have done really well, he is looking when to get out. Insiders have been selling. Book value is about $12.
HOLD
If the owned this stock, he would Hold it. It is at a reasonable valuation. Generally seems to jump when there are rumours of a takeover. He doesn't see the downside risk as extreme as a lot of people because they had a huge amount of cash and no debt. Their markets are expanding overseas. Has been sniffing around at this one. He expects there will be more bad news.
COMMENT
Impressive company but not impressive enough to buy. Have a number of problems that they still have to deal with. Has the potential of a good turnaround play.