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COMMENT

A couple of years ago this was pretty challenged with some balance sheet concerns. They turned things around. Good company. Had a huge move so he is a little bit cautious on it. Prefers the Enterprise Group (E-T).

oil / gas
BUY on WEAKNESS

Out of all the Canadian banks, this would be his Top Pick. From a long-term perspective, they have outperformed all their competitors. Really well-run bank. Moderately bullish on banks, but you buy them when they have pullbacks. This one is trading near a 52-week high. He sees better opportunities elsewhere.

banks
COMMENT

Railways are a really good sector to invest in. Have unique assets that are very tough to replicate. His favourite in the sector is Norfolk Southern (NSC-N). Most of them are trading at 52-week highs.

Transportation
BUY on WEAKNESS

Really well-run business. Went through a few problems in the financial crisis, but now have a really good assortment of really good industrial businesses. Good long-term stock. If you don’t own, wait for a bit of a correction.

electrical / electronic
BUY on WEAKNESS

Pharmacy benefits business. Taking market share. One of his smaller holdings but has held it for a long time. Had a huge run over the last 5 years but is now just going through some digestion. In a trading range over the next year or so.

Business Services
DON'T BUY

Likes the overall business, but the debt has kept him away. Certain aspects of their business are very cyclical. They need to raise a little bit of equity and get the debt concerns away from investors.

INDUSTRIAL PRODUCTS
BUY

He put on a position last year as he thinks that over the next 5 years the C series is going to be a huge winner for them. Have been a few delays in development, but have good customers that come into buy. Airbus is doing everything in their power, including cutting their prices to almost nothing to keep Bombardier out of the market as they are petrified that this will be a standard in that part of the market.

transportation equip & components