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WATCH

High-quality stock in a bad place. It will certainly be a survivor in a downturn of commodities but all of their major commodities, including coal, copper and zinc are all facing tough times. This will work itself out as more money is not going to new mines. In a couple of years, there will be a deficit in copper. This hinges on what your thought is on growth acceleration in Asia, China, specifically. Tough call. 3.7% dividend yield.

Mining
COMMENT

High quality company. Asset management is a good spot. Feels it has the ability to continue to take market share. The knock has always been that it is expensive. It will probably always be expensive because it is such a high-quality operation. You could make an argument for holding it here. If the market continues to do well, they will do well.

investment companies / funds
COMMENT

Stock has done incredibly well and the company is doing well. The airline cycle is going on and hasn’t been ruined yet by putting on more capacity and irrational competition. We are seeing additional capacity coming on but, so far, the demand is there. It is quite possible that it continues to move up from here.

Transportation
COMMENT

On the sidelines with this and has been for quite some time. Brought in new management and high level compliance people and are going through all the motions that they need to go through to fix the company. Didn’t have a lot of issues in the US and that might start to improve. This will be a long-term turnaround and a “show me” story.

contractors
COMMENT

Looking at this one again. Have done a very good job but has had a good run and is expensive.

misc industrial products
BUY

High-quality, light oil producer. Certainly one of the higher valued, but one that has delivered most consistently over time. Hasn’t recommended this one recently because it has had some issues around growing its production per share. Going forward, feels it will have some production per share growth in the next year. 6.8% dividend yield.

oil / gas
BUY

A play on US housing. It has 3 components. 1.) An asset manager for institutions that want to invest in that. 2.) Land development business. 3.) Single-family rental portfolio that it’s built out with over 2000 homes. If you break down these 3 components and compare it against companies in those spaces, the valuation looks reasonable. Thinks the story will follow out along the US recovery, which he thinks has a few more years in it.

REAL ESTATE