Had a decent run and thinks this will continue. Sold his holdings in the high $20s and then bought back in on a deal they did to buy Harlan Financial Services in the US. This opened up their US core technology position in US banking and broadened their reach in credit unions and US banks, allowing them to cross sell. Feels the stock is now priced for that to work and now they have to execute. 4.5% dividend.

other services

(A Top Pick Nov 29/12. Up 52.83%.) Sold his holdings as he was a little concerned that the execution going forward was a little too priced into the name. Good company and have done a fabulous job of acquiring other companies and building out a good concentrated asset base. Light oil producer and he is now looking towards heavy oil and natural gas producers.

Oil and Gas (Integrated Oils)

(A Top Pick Nov 29/12. Up 98.97%.) Likes where they are competitively positioned. Returns have been good and asset growth is turning around. You also have the benefit of these special dividends. Wouldn’t add to it at this point but would Buy more on pullbacks.

Financial Services

Has been buying at these prices. Definitely a higher risk. Has a higher yield. Balance sheet is at the high end of where he would like it to be. Good properties and good management team. The knock on the company is that there hasn’t been production per share growth but the asset base is there and it looks like they are focused on turning that around. Also, as gas prices firm up, it will benefit.

oil / gas

Likes but doesn’t know if he would add to his holdings at this price and at this time. Have long-term growth prospects. Should be able to grow its dividend by 10%+. Have just cut guidance a little for 2014. Feels this is just a project timing issue. It will be fine over time. A higher multiple stock and will get hurt when interest rates go up.

oil / gas pipelines

Likes this bank. Had a pretty big run up since the last quarterly earnings so doesn’t know that he would jump into it right here. Well-positioned for the Canadian marketplace. The majority of their business is in the West, which is doing better. In commercial loans which is doing better than residential. Wait for it to come back a little bit, but if you don’t own, you could own half a position.


Utilities for it for a 5 year plus outlook? This is one of the most interest-rate sensitive sectors. From a short-term perspective, they could bounce because they have been hit so hard. Next week there is a fed meeting where there is a 50/50 chance of tapering. It will be interesting what comes out of the tapering as well as the markets reaction. People are more used to the idea now and the fed has gone long way to explain that there is a difference between tapering and tightening. You may actually see a relief rally in these types of stocks if they taper. Problem is going to be in the growth of utilities and he thinks that is going to be a challenge.