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This would have been a buy earlier in the year in the lower $20’s. Now it looks like it has woken up from the dead. A little bit rich here, but is probably one of his favourites. Good set of assets and good management team. You probably should wait for the stock price to cool off.

One of those companies that can benefit from a rising interest rate environment. The only thing that has kept him away from this company has been the comparison of its valuation multiple relative to the multiple of the banks. The banks actually work out cheaper. While interest rates are still low, there is more leverage to generate more cash flows from a bank than a company like this.

Has been able to reinvent itself, and focus on the consumable areas. This is going to be a positive on a go forward basis in terms of their operating margins. However, he would like to see proof in the pudding.

Spinning off tons of cash. One of the largest senior producers in Western Canada, and produce about a million barrels of oil a day. Phase 2 expansion in Horizon as well as its thermal projects, gives it a really good line of sight for amping up its production with another 250 million barrels by 2017. This will mean an extra $2 billion per year of free cash flow available, which could be used for increasing dividends or further asset purchases. Also, have a nice handful of royalty assets that could be spun out. Yield of 1.89%.

On the cusp of a transformational acquisition, the $43 billion purchase of Covidian (COV-N). This changes their headquarters with a tax inversion deal, making Covidian a 30% owner of the new Medtronic. In order for a tax inversion to take place, you have to own at least 20%, so maybe the extra buffer of 30% will appease regulators, and keep everybody happy. This would allow them to have foreign profit, somewhere in the realm of about $14 billion, and be able to re-disperse them among their existing shareholders. A good line of sight for a growing dividend, further share buybacks, as well as future tuck in acquisitions. This deal would make them the biggest and most diversified medical devices company globally. Also, developing a series of new products. Yield of 1.97%.

One of the most important key suppliers to the death care industry, in supplying caskets and cremation equipment to funeral homes. Own 70% market share in bronze and granite memorials. In the US there are a higher number of people that are opting for cremation, about 36%, which is forecasted to grow to about 56% in 10 years. Yield of 1.03%.

Markets. It is difficult to see where anything is going to come out and really hit the markets. There could be an adjustment of 10%-20%, but it is going to be short. The markets are going to come back. You could have volatility, but there is nothing out there that is going to push us into something like we had in 2007-2008. Generally earnings have been great and he thinks that is going to continue. Feels the US recovery is real and is going to continue to carry on.

This is probably the cheapest he has seen at about 4 basis points for the MER versus 250 basis points for a mutual fund. There’s certainly nothing wrong with this, and is a very good product.

Canadian ETF with US stocks giving a Canadian dividend tax credit? The reality is that any foreign dividend comes through as “income”, and you can’t avoid that. He would normally buy this one, which is hedged.

This is lightly traded, but it doesn’t matter. You’ll be fine. The Covered Calls are treated as capital gains. A good product.

In a TFSA account, is it better to buy ETFs or individual stocks? Which stocks or sectors would be a smart bet for a long-term hold? He would recommend an ETF, because how many stocks can you buy in a normal sized TFSA account? ETFs gives you diversification, and avoids the risk of an individual stock. Consider XIU for the Canadian and XSP as well as some of the competitor products from Vanguard. As long as they are good, broad-based ETF’s, you’ll be fine.

This has done very well, and he would have no problem with holding this. He doesn’t buy this because he already has exposure to banks through covered calls, which he prefers.

Allow Puts to be bought for protection? This could be an interesting idea, but the problem is that this ETF doesn’t have options. What you could do to protect gains is to just put in a Stop order.

Likes this product. Only 50% of the stocks on this have Covered Calls against them, so you still have the upside of the other 50%. You are really doing this one for the income, not growth.

(A Top Pick July 5/13.) There was some lingering turmoil going on last year in Europe. He wanted to wait to see what happened, so he just parked the money.