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COMMENT

Inter Pipeline (IPL-T) or Manulife (MFC-T) for a long-term hold? Feels this one is expensive as well. Operating earnings are getting better. This benefits from markets and interest rates, both going up.

insurance
SELL

Sold his holdings a long time ago, but obviously too early. Feels the valuation at 19X earnings is too high, and if you own, he would consider selling.

Transportation
DON'T BUY

A slow growth name. They are trying to build out their fibre to the home, which is very expensive to do. Have pension issues and need a lot of capital for the fibre to the home build out. Not particularly cheap. 7.1% dividend yield and doesn’t see a lot in the way of increases right now. Expect this would be very interest-rate sensitive.

Utilities
DON'T BUY

They sell liquor in Alberta and BC as well as in one of the states, possibly Kentucky. Facing some competition in BC, which he thinks is a political issue, as well as in Kentucky. Having to reinvest more in their stores to make it more appealing. New CEO is probably figuring out how he is going to right the ship and we should know in early 2014. Won’t be raising the 7.7% dividend and there could even be a cut.

merchandising / lodging
DON'T BUY

He has never held or used this. Generally the premise is to add additional income by basically selling your upside in terms of the banks. Canadian banks are not that volatile, so the premiums you get for selling are not that high and you are giving away your potential upside.

E.T.F.'s
COMMENT

Potash pricing mechanism falling apart did not help the stock. However, this company has the advantage of potash being only a portion of their business. Have a big retail network they have built out as well as having all the other nutrients. Thinks this company will pay off over time. Clearly, potash is a question mark in the industry and there is more potash capacity coming. No near-term catalyst that he can point to at this time.

chemicals
COMMENT

Telcos are good businesses that are very stable with good cash flow. There has been the build out of the voice but there is still the build out of the data. There are some definite headwinds. Penetration rates in terms of wireless are high and can still go higher. Also, a lot of headline risks. They are in a bit of a bun fight with the government around new entrants and competition. Still feels there is slow growth there.

Cable