REITs. Is this a good time to look at this section and would you go the ETF way? He prefers to cherry pick companies rather than using ETFs. If he can get 3 or 4 companies in a sector that he feels are the best players in the sector, to him, that is better. Also, you pay once when you buy and once when you sell, you don’t pay annual fees.
On his Stock Watch list. He knows there have been some agreements between management and some of the investors, which he feels bodes well for the company. At this point in time, he is not willing to jump in. They still have to deal with some internal things before it would be of more interest to him.
This was the wireless arm of France Telecom. He has a target price of $27.34. If it takes 10 years to get there, it is still a huge, huge gain. Management has said they want to maintain the dividend at €0.8 through 2014. This is the biggest player in France and they are also in Spain and Poland and growing in Africa. Some of the negatives include having too much goodwill and too many intangibles on the balance sheet.
Has really moved along on their turnaround. New management moved operations from Calgary to Kansas City. Let a lot of staff go and lowered the breakeven. Sold off all the non-agricultural sector. About $12 million in the bank. No debt on the balance sheet. Next year or two could do very well by them.
Of all the financials he has bought, this one has done the worst but is still up very, very nicely. Great capitalization ratios. Pays a dividend of $.03 a quarter but they just announced a special dividend of $.02. This indicates management feels the company is doing very, very well. His target price is better than a double.
(A Top Pick August 16/12. Down 31.32%.) Felt that this one was a mistake. There are a lot of people that are concerned that they may cut the dividend. Not sure what he should do with this one.