Markets. US has had an incredible run and even Canada, outside of the base metals and gold, had a pretty good run as well. Sentiment numbers indicate investors are pretty bullish. Typically, when you get to that kind of an extreme, you are ripe for a near-term pullback but thinks it would be pretty shallow and short-lived. Conditions for stocks to go up are still pretty good. Global growth is continuing to improve. We have low interest rates and a commitment from central banks around the world to keep them low. There is nothing really threatening in the way of inflation. More defensive, lower volatility of cash flow and higher yielding stocks tend to be much more interest-rate sensitive and don’t have the growth opportunities. If you give up little bit in yield, you can often have companies that have much more economic sensitivity and ability to function in a growing economy. In Canada, there are still opportunities in the financial and energy sectors.


Have a new CEO and a new focus. Great properties that they are getting no value for because of miss-execution. Have narrowed down where they are going to put their capital into 5 specific areas. Increasing liquids, natural gas and oil components to get a higher value. Going to spend less to produce the same. A “show me” story. Yield of 1.54%.

oil / gas

(A Top Pick Nov 29/12. Up 32.87%.) Investment thesis is that the world needs more planes which is in a very strong cycle. They are the leaders in simulator training. Suffered lately because of pullbacks in military spending, especially in the US, but they are a more cost-effective way of training and people are starting to realize that. Also, acquired the world’s largest global pilot training business. Can see a secular tailwind to this. Fastest-growing airlines are the Asian ones, which have an outsourcing pilot training model. Dividend yield of 1.93%.

transportation equip & components

Didn’t have a great year. A lot of sales come out of the US and Europe. Times are still tough in Europe. Their recreation and leisure side, which has been doing quite well, suffered from a very wet spring. Re 2014, things continue to improve in Europe. Developed new products that are being well received, If there is normalization in the weather, bicycle sales should have much better year. Also, expanded into Brazil which offsets some of the seasonality. Dividend yield of 3.29%.

Consumer Products

High quality diversified REIT with a pretty good yield of 7.5%. Suffered with all the REITs since spring. Question is going to be what the cash flow is worth to people. Thinks the dividend is sustainable. Growth is going to be harder to find than it has been in the last 2 years. Had been trading at very high multiples that allowed them to buy properties, bring them in and get a lift.

property mngmnt / investment

Recent drop really has nothing to do with the company. This company has decent growth ahead of it. Has been a little bit slow in drilling in the US in the last year or 2, but looks like this is going to improve. Also, there is the LNG build out in Canada, which they are tendering and building rigs for. Over the next couple of years, it looks pretty good. Reasonably priced.

oil / gas field services

Inter Pipeline (IPL-T) or Manulife (MFC-T) for a long-term hold? This one is on energy infrastructure with pipelines in Alberta. Good business and growth opportunities in delivering diluent to the oil sands. Expensive but steady returns. Have some growth prospects. As interest rates rise, this is going to suffer.

oil pipelines