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Good company and interesting at this level. Probably not a bad entry point. A multi-industrial with exposure to aerospace and non-residential construction. Great management team. Exceptional track record of M&A growth. Some people have been concerned about the elevator market in China. This company will continue to take share in the aftermarket service business of elevators.

Sold his holdings late last year. Operationally this is a great business. Good management team. Going through a $4.5 billion CapX program in the Maritimes. There is value here for a business that is trading 17X, and where he thinks earnings will grow in the mid to high single-digit. It seems a little rich to him. He would be looking to buy this in the low $30s if you could get it.

A large energy infrastructure company in the US. Manager doesn’t take any salary. All of his income is from distributions. The knock on this is “Is it too big, and can it grow.” Competent management. Feels the business is well worth more than it is today.

New CEO has done a good job in cleaning house and bringing in new top level management and re-establishing trust. Management would like to re-shift the business from minority interest and infrastructure assets, to a pure E&C (energy and construction) business, and grow the oil/gas segment. If you back out the concession assets, the core E&C business trades at stub value of around 5.5X. It is going to take some time for this strategy to turn things around. He would prefer WSP Global (WSP-T) or Stantec (STN-T).

A multi-industrial. Unique in that they have the industrial exposure as well as a healthcare technology segment. Both segments have very good growth prospects. One of the best management teams he has ever met. CEO is retiring, but COO is stepping in, so it will be a smooth transition. Historically, the company has given 11%-12% EPS growth, 15% free cash flow growth and 15% dividend growth. Not expensive. They can do an M&A up to about $12 billion. Accruing so much cash on the balance sheet that you are either going to get a special dividend or they will go out and do a large-scale M&A. Yield of 0.51%. Feels the stock could be worth north of $85.

The issue people have worried about is over the top and core cutting, and what that means for the traditional cable business. They have shown that to have the pipeline infrastructure, the last mile connection to the house, is still very critical. Signed a deal with Netflix to substantiate that. Largest US cable/broadcast operator. Thinks the Time Warner acquisition is done. Yield of 1.65%. A $70 stock in 2017.

A service provider that services 2 sectors, transmission/distribution and pipeline. Both segments have significant growth behind them. A cheaper way to play some of the pipeline companies in the US. Top-notch management team with a great track record of organic growth of 10% EPS. If they can do M&A, that would probably add another 2%-3% to that, so you are looking at a business that can give you 10%-15% return. With a flat multiple, this is worth north of $50.

Investing. Still finding value in REITs, up 8% year to date. He is seeing dividend vs. Gov’t of Canada rate is a very wide level. So these REITs are not expensive at all. Large Caps attract more of the foreign investment. It had dipped for a while, but the interest is coming back. We average 8%, but it is 18% in the US. He thinks, though, that you will see some of the capital coming back to Canada. If the economy in North America continues to improve then it will be very good for REITs. REITs are a little less sensitive in the past to interest rate spikes.

He can’t get over the amount of student debt so it must be parents funding accommodation. These apartments are very luxurious. He thinks it is a challenging market in this environment. He is waiting to see some of the new developments and how they fill up. He likes the US hotel space and industrial space, which are directly linked to the economy.

He has never seen a stock move so much on a proposed buy back in shares. He does not think that is what is really moving the stock. There was confusion when they bought up Primaris. They since showed that transaction was an excellent one. Announced a large residential development on Long Island, NY. He wants to see them mature, so until then thinks they will be range bound.

20% of assets are in the US. They are related to 10 year bond in terms of interest rates. Their debt is quite low so you don’t have to worry much about it. He thinks there will be more and more people coming into this space, although this one may have gotten a little ahead of itself.

There seems to be a fear that rates are going to rise, but he thinks not for some time. Many investors think interest rates will affect large cap REITs negatively, but he thinks they are a little too concerned. He loves the properties, but has been taking profits at these levels.

Quebec focused small cap REIT. You have to have a thesis on Quebec and the growth prospects for their economy. But post-election things are looking quite stable. They are trying to reduce their leverage, but raised their dividend recently. He likes the former, but not the latter when they have a high payout ratio. Thinks the dividend is safe, but they will get less institutional buy in.

The name means Canadian properties, not Northern Canada. Have one of the most attractive balance sheets in the space. It is a very safe REIT. Exposure to the energy market which is still booming.

He sold out of it and moved to another name in the Top Picks. He likes the industrial markets, there is good momentum and the yield in this one is safe.