BUY ON WEAKNESS

Low beta ETF. These ETFs have been all the rage and have been fantastic in difficult markets. Things are changing right now. Thinks they should come out with high volatility ETFs. Everyone should have one low volatility ETF. There’s a place for this. These are defensive if market turns down.

BUY ON WEAKNESS

If you look at what they do: household products. They have no trouble raising prices and they are moving into emerging markets. A great buy.

DON'T BUY

Once a company starts to pay out a dividend, the growth of the company is pretty much over.

BUY

Europe, France, Ireland. Great stock chart. Likes them. 4.2%

BUY

14% Potash – not that big of a deal. Viterra purchase will help them so they have retail. Gave profit warning and dividend increase at same time recently.

DON'T BUY

Basically just potash. Because of Russia issue, he is not a buyer.

HOLD

Difficult last two quarters. Canada, US and Argentina. Constantly fighting to keep their market share. Can’t see any dividend increase here. Company needs to get their act together.

TOP PICK

Keen on global infrastructure sector. Well managed, great second quarter. A company that manufactures and builds airports and railway stations. Buy sea ports and mining infrastructure. He is big on this area and thinks there is nothing but growth coming.

TOP PICK

$3.9 Trillion under management. They manage another $10 Trillion in a risk management business. They are always going out there and buying the competition.

TOP PICK

Prefers that it is equal weight. That is the way to go. They will outperform cap weighted ETFs. REITs can still refinance at great rates. This whole interest rate thing has been way over done for REITs here.

N/A

Economy. Debt ceiling in the US is a bigger story than the budget slowdown. Democrats and Republicans can’t seem to agree and 2 years ago, when they had to raise the budget ceiling, they created so many problems and delayed it so long but it is something that has to be done. US have a lot of difficulty there and they are in trouble and they have to take care of this on a longer-term basis, and start to balance the budget. If he is looking to sell anything, he might be looking to sell before it gets potentially worse. Most of his buying is in November and December although sometimes he will buy now. However, if there is a showdown again, and it should hit the markets, that means he will be getting better prices.

COMMENT

Sold his holdings recently. This is in the gaming industry, with nearby beaches. Has a long history of doing well. Decreased the debt load, but there are a lot of difficulties. Have been losing money and they stopped paying a dividend. Because the stock price has gone down so much, it could get kicked off of the NYSE. If this happens, there will be a lot of selling as it could go down another 30%-50%.

N/A

Precious metals. This is a fascinating area. Mostly small miners/exploration stage and they are crying out because it is so difficult to raise money. About 600 of them have less than $250,000. This is really bad for the sector, but it means there will be less exploration coming on and less mines coming into play. In terms of supply/demand, this is good for gold. Some of the major miners are cutting back on the mines that they were going to bring on stream as well as closing some mines, which is also good for gold. At this time, there is nothing of major interest to him.

COMMENT

An excellent sector to be looking at. A lot have been beaten down. This one has recently had a tremendous run. A lot of these companies do well when the economy does well. He doesn’t know the financials on this one that well, but one that he does follow more closely is Nordic American Tankers (NAT-N). The CEO keeps saying how well they are doing and yet it is not reflected in the stock price. But they also have a huge debt load, which scares him.

PAST TOP PICK

(A Top Pick August 16/12. Up 77.79%.) Thinks this could go to the mid-$30’s. Have to deal with a lot of different lawsuits. Company is profitable and the capitalization ratio is good. At some time he thinks they will increase the dividend but they have to get regulatory approval first. Getting kicked out of the Dow, which means the stock price could come down a bit more, but longer-term it should go up.