COMMENT

Sell Bonavista (BNP-T) and buy Enerplus (ERF-T)? Bonavista has done relatively better and has always been a well-run company so he would hesitate to leave it.

COMMENT

Same-store sales, particularly in the US and to some extent in Canada, have been negative. Offset a little by some new bigger box wine stores they have been trying to open. However, this cannibalizes some of their other stores. Pays a very generous dividend of 7.68%. Unless things change around for them, he is not sure how long that dividend will be sustained.

COMMENT

Just announced a 2-for-1 stock split. Feels we are in a very positive timber cycle right now, particularly with US housing beginning to pick up. These cycles tend to go for years. You could wait for a pullback, but over the next few years, timber stocks in general are going to do very well.

PAST TOP PICK

(A Top Pick Dec 21/12. Up 50.16%.) Still sees value in this. Right now, the lifecos in particular, are in a cycle where, going forward, there is going to be more operating efficiencies. They are very cost conscious now. Also, expects there will be some operating leverages as the volume of business continues to expand. If interest rates start to rise, that is good for lifecos.

PAST TOP PICK

(A Top Pick Dec 21/12. Down 22.63%.) Still likes this. This is a case where the parts are worth more than the whole. Management has been divesting a lot of assets. Prices they have been getting have been pretty good. New Management is very focused on capital allocation and going to projects with more immediate returns.

TOP PICK

(A Top Pick Dec 21/12. Up 12.27%.) Has been making great strides in getting its Book in order. Have some big development projects coming up. They were criticized for taking on the Constancia project in South America because of the large capital costs. Have done a lot lately to defray the fears of how they are going to finance. Did a streaming deal with Silver Wheaton (SLW-T), which means they get capital of front today to help them. Issued some unsecured notes to raise capital. Next year should be a much better year for them with projects coming on.

BUY ON WEAKNESS

Auto cycle continues to be in a recovery phase. This one is extremely well-positioned to take advantage of that. US consumer has a little bit more disposable income now. With more stability in the European economies, car companies, and the parts makers will continue to do well. Another 10%-15% drop and he will be seriously looking at this.

N/A

Tapering. When this happens, what effect will this have on Canadian and US stocks? In the last year or so, just the threat of tapering has caused markets to have a hiccup. It has tended to be fairly short-lived. Really believes markets will take a hit when tapering begins to phase in. However, he does not think they will begin tapering until they’re fairly convinced that the economic recovery is strong enough to exist on its own merits. If anything, it should present a bit of a buying opportunity.

COMMENT

Last quarter had a slight miss and that was because shipments were quite a bit lower than people had anticipated. This is something that can always be made up in the next quarter. Demand for coal seems to be coming back to a great extent. He finds this a very expensive stock, trading at a very significant multiple to cash flow.

DON'T BUY

A stock like this can be very sensitive as to how people feel about what spending is going to be like, especially around Christmas. We are entering a very, very competitive retail landscape. Although this has very good customer loyalty and very good store positioning, more and more of their lines are going to have severe competition in the next couple of years.

DON'T BUY

There is a chance for a dividend increase. Their dividend is fairly small relative to their cash flow. The problem he has with Canadian railroads is that they have done so well and so fast. Trading at 20X earnings which seems to be fairly aggressive in an industry that can grow a whole lot more than the GDP of the economy they sit in. Trading at more than 4X BV.

BUY

Prefers Bank of Nova Scotia (BNS-T) because of their international diversification and their tight, tight credit and the Royal Bank (RY-T), which seems to be firing on all cylinders. This is an area where he is going to continue to hold his bank stocks. Would have no hesitation in buying this bank.

COMMENT

Prefers Bank of Nova Scotia (BNS-T) because of their international diversification and their tight, tight credit and the Royal Bank (RY-T), which seems to be firing on all cylinders. This is an area where he is going to continue to hold his bank stocks. Would have no hesitation in buying banks.

BUY

This is his primary holding in the oil/gas area. Expects there will be significant capital appreciation. It is such a well diversified company with the oil sands, upstream and downstream operations and their retail operations.

COMMENT

Latest report indicates the Australian takeover panel would force this company to raise its bid to $9.56 per share. Because the bid has gotten so competitive, he would not be a buyer of this one today. He is going to wait and see what happens on the acquisition and then how well the integration goes.