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Markets. Up until the last week or so, he felt that there might be a correction on the US market and we would get one too and, since we are not up that much, we didn’t deserve to get one. With the gold rebound yesterday, energy looking a lot better and differentials narrowing substantially, those stocks are cheap. So for the 1^st time, they could pull back and we might hang in better. If the US falls, we will fall but not as far.

Energy. We are entering a period of seasonal strength for energy. Implications for earnings is that the 3^rd quarter will be quite strong and some 2^nd quarter earnings will be strong as well. We have WTI narrowing to Brent. Brent is -2% for the year and WTI has basically just come up to it. Also,Western Canadian Select, which is what most of the Canadian guys get, was $47 at Christmas time but is now at $94. It has doubled. Stocks have not doubled, they are basically flat. Lastly, the light spread has narrowed. A lot of the guys have a lot going for them and it is not reflected in the stocks, until just recently we are starting to see them move. They could run a fair long way.

Would you still buy this today or would you buy a U.S. Bank such as J.P. Morgan (JPM-N) or Wells Fargo (WFC-N)? US banks, price to book, are slightly cheaper so if you believe strongly in a US housing and economic recovery, you should buy a U.S. Bank. He still likes this one, which is his favourite.

Prefers this over other US banks because in a relative sense, of the large multinationals, this has the largest exposure to a housing recovery. To be fair, there is probably a write-off coming so it is currently right around tangible Book. Even still, that makes it roughly half of a Canadian bank on a price to book ratio basis.

REITs have been hit and are down 12% since last August. If you want to own a REIT, you get 4%-5% dividend. H&R bought Primaris’ mall assets moving them from being primarily industrial/commercial. Market didn’t like this because now it is a mixture of everything. However, rates are going to go up over the next few years and you need a growth REIT because you are going to lean into higher rates. You need something that is going to grow its distribution to hold the price and this is one of the better ones to do that.

In the event of a turn down of Keystone, this is a little more vulnerable than alternatives that you could buy. Essentially all your eggs are in one basket. Also, thinks there are more vulnerable because it is the stock that Americans come up to buy first, it’s big and its liquid and it’s the oil sands play. However, he thinks Keystone is going to get approved so Americans might come up here and start buying energy stocks again.

This is the safe senior play in gold, in that it has lower costs and is the better one to own if you are not so sure of gold prices. He sees gold at $1300-$1400, in and about where we are now. Doesn’t see the $1000 anymore. It looks like the ETF selling is coming to an end.

This is his only gold holding. Had gotten beaten down with all of the others but has come back. Relatively low cost but has quite high production growth. It can grow its way through flat prices and will still show higher cash flows. It also doesn’t have any significant debt. Good management. Buy it under $7 but a year from now it should be $9.

This is in the camp like Barrick (ABX-T), where it has a lot of leverage to the gold price on the upside. If you believe in $1400-$1500 gold, this should go to $7-$8. Their big African mine has been problematic right from day one and the market is not willing to pay in advance and costs are not low.

Made a nice purchase of a multi-unit residential property consisting of apartments and town homes communities. The stock is really only down because it has REIT in the name. With the US purchase, it can grow. Yield of 6%.

(A Top Pick Aug 20/12. Down 21.87%.) This REIT hasn’t done anything particularly wrong. When people sell down in a sector, small caps get hurt most. Good management. Still a Hold.

(A Top Pick Aug 20/12. Up 1.29%.) His thinking a year ago was that energy stocks were cheap and this one was well run with probably 8%-10% production growth over 10 years. It applies now because it really hasn’t moved so he still likes it.

(A Top Pick Aug 20/12. Up 13.98%.) Bought this on a dip. This was followed by another dip in the fall and now we have another one. All of those were on slight earning misses. It is still innovative and is about 40% to Europe, which means Europe is now a positive. Still likes.

Short-term trading vehicle? Under $40, this is pretty attractive. You may not get an increase over 3 months; it might take till the end of the year. The last half of the year will be a fair bit better. We seem to be entering a period of seasonal strength, which might help to underpin things and will manifest itself better in the 3^rd and 4^th quarter earnings.

Best capital ratio and the lowest PE. What’s wrong? It’s Aero Gold. Aimia (AIM-T) has signed a deal with Toronto Dominion (TD-T) and this bank has the right of 1^st refusal with the deadline in early August. Stock is $7-$8 away from its 52-week high when all the others are at their highs and is strictly due to this. Approaching 10% of their earnings. Expects it gets resolved and if they do their own card, lose some business and with a 3%-5% hit, thinks it will go to $80-$81.