Has just added more to his position. Extremely undervalued. Horizon was shut down for a while because of production problems but is now fully back on line so you have the heavy oil side looking awfully good. Good production development growth. Not as levered to natural gas as they used to be so generating great cash flow. Good story. Cheap. Wouldn’t see $40 as being overly expensive.

He is not nearly as negative on financials as a lot of others. Cdn banks are trading at a bit of a premium compared to all the global banks and earnings growth is slowing down a little. However, dividends are safe and probably growing and earnings are growing single digit. This bank has done really well with its international diversification. Has gone more into wealth management as well. Great purchase in the low $50’s.

Have gone through a painful restructuring over the past couple of years and are slowly starting to emerge from it. It’s a more competitive business than it used to be. Growth is going to be more cramped because of US entries coming in. Also, input costs are going up which they are unable to pass on to the customers. Valuation is still high. The best the stock is going to do is go up at the rate of growth of earnings, which he thinks is a single digit rate.

Likes it but hasn’t been adding much to his holdings recently. Coal prices are still under a bit of pressure. Great copper exposure.

Likes this one. The financial services arm has improved. The core business of turbines, power generators is a great area to be in. Probably slowing down a little as infrastructure spending is slowing down. Fairly valued now. Single digit earnings grower so wouldn’t expect a big return off it. A safe stock. 3.25% dividend yield.

Trading at a quarter of its BV. It could be a slow turnaround for a lot of these types is stocks. They’ve had production issues as well as the fact that the price of coal has fallen pretty dramatically. With these guys, you get higher production costs, mine problems as well as lower prices and the valuations have all imploded as well. However, he has been accumulating some of these names such as Peabody (BTU-N) and Cliffs Natural (CLF-N), which makes a lot of sense. Very cheap.

Outlook in 12 months? He has added to his holdings recently. 2 things are big negatives for this company. Falling stock market and falling bond yields. Their hedging programs are protecting them much more than he used to. Operations are starting to do better. Core operating earnings are probably running around $1.20-$1.30 a share, which gives you less than a 10X multiple. Can see leverage upside from improvements in the market generally. Risk/reward is great. 4.6% dividend yield.