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Markets. He is bullish; however, thinks the market has had a nice run. Expects it will be higher than where it is now. It’s like 2 steps forward and 1 step back. Canada is relatively cheap and once we get the resource stocks moving, oil, gas and materials, our market will do quite well until the end of the year. Oil and gas are the 2 cheapest sectors. They are just not responding, certainly to the higher oil price. You have to be patient. He sees a lot of mergers, acquisitions and share buybacks.

Explorer/producer in the North sea. Likes what they are doing. It is very key that they did this $275 million financing. They paid up 9.5% at a bit of a discount price. This frees up all of this money for them to pay off their very restrictive bank lines. NAV is anywhere up to around $1.50, indicating it has garnered a lot of respect. Thinks it will go higher.

Involved in nonstandard automobile/motorcycle insurance as well as home insurance. BV of around $14.37 but Tangible Book is $13.50. No debt. Overly capitalized by over $35 million. Stable management. Basically Canadian, but their big driver is Europe. 25%-30% growth. Will probably earn about $1.30 next year. Have an option of putting in a dividend, free cash flowing or buying back stock. It could be a $20 stock. You have to be patient.

Oil/gas servicing. Involved in the transportation side in both Canada and the US in the oil and gas industry. Feels they could become an acquisitor, consolidator by taking out a lot of mom-and-pop operations.

Leases aircraft to a lot of the major mobile carriers. Have over 100 planes. Dividend of 6.46%. Recently wanted to improve their balance sheet and use money for consolidation. BV of around $20. Did a share offer at about $14, which was a little upsetting. Stock went down below $13 but is now working its way back up. Good management.

North sea oil producer. Feels it has an NAV of $3-$3.50. They were under a lot of pressure. When they took over Valliant energy and paid it off in stock, a lot of the Valliant shareholders liquidated their stock. In the Greater Stella, the 1^st well came in at over 10,000 barrels a day and they have 3 or 4 others, which got people all excited. The Valliant acquisition took them up to a higher level and it should be and could be a takeover candidate, but it is no longer a small cap, it is now a mid-cap, which should gather a lot of people’s attention. Cheap.

Energy services sector is the cheapest in the TSX. Beauty of this one, along with the others, is that most of them are paying dividends. This one pays 4.5% plus. This company is the largest in the coiled tubing in Western Canada. Have also done a great job in acquisitions and integrating. The company is a sitting duck to be taken over in the next 12-18 months. Regardless of where oil is, services still have to be maintained so companies like this will all do well in this environment.

This one is in the penalty box. It operates out of Egypt. Have hired a new president. This is a work in progress. Has an NAV of around $0.17. Egypt seems to be a place that is still in turmoil but he doesn’t think it is getting any worse. Where they have been producing is off the beaten track, not in Cairo. Just picked up a new property in the Gulf of Suez which should be quite interesting. We are approaching the tax loss selling season, so a lot of people may be selling, which could offer an opportunity for anyone interested.

On the macro side, we are seeing a lot of Americans coming in to Canada and there is only a finite amount of business to be done here. With the Cdn$ at $0.97-$0.98, there is still a lot of cross-border shopping. This one is trading at about 1.2X Book, but 1.3X Tangible Book. Have been paying out a dividend of around 10%, but a lot of that is used in the war chest they have. Also, their top line along with their bottom line has been declining.

Acquired the Pinto Valley mine in Arizona and the stock went all the way down below $2. Thinks copper should hold in at $3-$3.30. This is almost a pure North American copper play. Thinks this company goes higher.

(A Top Pick September 10/12. Down 12.51%.) On the service side of drilling, equipment, etc. When it went down, he bought more at $3.01. Pays a dividend of about 5.5% . Excellent management. 50/50 Canada and the US in terms of production.

(A Top Pick September 10/12. Up 48.27%.) Well run company. Similar to Home Capital (HCG-T), nonstandard mortgages. Trimmed his position because it became well over 10% of his portfolio. Expect it will go higher. Cheap.

(A Top Pick September 10/12. Down 21.93%.) Heavy oil. Pays a fairly hefty dividend and it looked like they would not be able to pay it, so the street turned negative. He bought more at $1.75. Doesn’t think the dividend is going to be cut.

Oil/gas servicing. He owns over 10% of this company. Good management. Probably in a growth mode, particularly in Western Canada. This company will benefit from any major expansion out West.

Had bought this as a deep value US company. Primarily known for its Gorilla glass, which is used virtually in everything. Very well run company. Terrific balance sheet. Pays a good dividend. His target is $18-$20. Could be a takeover target because of all of its patents.