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Healthcare. Overall, this is a space you have to be in. He has trimmed back his healthcare allocation because valuations have gone too high and he is waiting for a pullback.

COMMENT

A month ago, the banks were doing tremendous but then came off in March. If you like this one and have done your work, it is just as good as any of the other banks. 4.83% dividend.

DON'T BUY

Not as familiar with this one as he is with some of the US investment banks. Has a lot of exposure to Toronto, which are mainly commodities. This is a smaller shop so they don’t get the bigger deals. Should be doing fine on the bond deals but there is concern about exposure to the commodity sector.

DON'T BUY

Got fed up with the potential for their return going forward, which he thinks is going to be restricted because low interest rates are here for years and years to come. You can’t go too far wrong with this because valuation is cheap. Dividend is completely safe. ROE is coming back. Feels there are better opportunities in the financial space.

COMMENT

Stock is down because, although it is growing, it is slowing. Everybody hates when they hear slowing growth. It is not going to grow its earnings 50% any more; it is back to a normal 5%-10% earnings growth. What he likes about this one and the whole US banking sector is that the housing market is improving, US consumer is improving, banks are flush with cash and they are now allowed to buy back shares. Prefers the safety of a Wells Fargo (WFC-N) or a J.P. Morgan (JPM-N) but he would have no problem adding this one as a 2nd or 3rd U.S. Bank.

PARTIAL SELL

Terrific company with a strong brand name. Clean stores. Always busy. His problem is the valuation. You have to really believe that it is going to continue to grow at these levels to afford a 25X multiple. If you own, consider taking some profits.

BUY

A Top Pick the last time he was on the show. He likes the sector of apartment buildings. Good management. Wonderful company and it is just getting started so it is going to be volatile. You own this one for the 7.5% distribution.

HOLD

Had a nice pop when it announced that it was going to issue a special dividend. Nice dividend yield. Not a lot of growth but will probably grow with GDP demand every year. Essentially has a monopoly business in Canada.

COMMENT

This has been on an unbelievable tear. US energy stocks have done way better than Canadian producers. Everybody’s worried about the heavy oil differentials and the Keystone. Maybe it’s time to switch to a Canadian.

TOP PICK

A serial share repurchaser. Not just in batteries anymore but have lots of other products including razors, suntan lotion, feminine products. Disposable type products which he loves. Much cheaper valuation than its peers. Just instituted a dividend. Buying back a lot of shares. Earnings are going to grow 10%-15% this year and he can see this happening for the next 3 years because of the free cash flow they are generating and the new innovative products they are coming out with.

TOP PICK

Stock came off last year because the market was concerned about its risk with Amazon, however it is buying back shares. Bought $1 billion worth of shares in 2013. Reducing its share count hand over fist. Clean balance sheet with $5 net in cash. Opening more stores and there is room to grow outside of the US and Canada. It will benefit from the resurgence in the US housing market.

TOP PICK

People hate this company because of how much they pay out in compensation but, the bottom line is that they are trading below book value. They are generating so much free cash flow Warren Buffett just gave his seal of approval. Company plans to buy back 80 million shares, which is over 15% of its market cap.