Latest Stock Buy or Sell? Make More Informed Decisions!

A controversial name. Feels the outlook is very strong. Made a transformative acquisition last year when they bought Poker Stars. Have a dominant position in online poker and gaming globally. Online gaming is prohibitive in most of the US states, and there has been a lot of speculation that that is poised to change. Very solid business fundamentals. Generating very solid free cash flow. Thinks the outlook for this business is quite good.

Likes this company. Sold their 90% holdings of Canada Bread to a Mexican company. Have taken the cash, paid down a lot of debt and have started to buy back some stock. There is speculation that going from 20 manufacturing facilities down to 5 will be a real benefit to their margins and will start to return some of that cash to shareholders.

The only satellite radio provider in Canada now. They have a licensing deal with their US sister company to use all their content. Has come under pressure in the last year or so, but on some short-term issues. A really good subscription based business. 2.6 million subscribers in Canada. 7% of the population use it. 65% of all new cars sold in Canada have the technology preinstalled and are able to convert 1 of 3 of those people as new users. There is also the used car channelling that they can go after. Thinks it is worth upwards of $8 a share. Dividend yield of 6.84%.

His favourite lumber company. The fastest growing lumber company in North America, maybe globally. Have been very acquisitive. Transformed from being a largely Canadian-based lumber company to a North American company. Operating in the US, they have much lower labour costs and access to cheaper logs.

Leading global designer and manufacturer of interior & exterior doors. Was previously listed in Canada and then was bought out by a US private equity firm which put too much debt on it. It went bankrupt, but has now come back as a public company in the US. Very exposed to the North American housing market. With the US housing downturn, they have made 11 acquisitions, cut costs and become much more efficient. Good pricing power.

Markets. Everybody is waiting for the US earnings season. Their big financials are coming out in the next couple of days. He continues to be optimistic on the US. The longer it takes before there is a correction, the more likely there is going to be one. It’s just a question of how volatile it is going to be, but that is something you prepare for by using bonds so that you don’t live in fear of volatility, but take advantage of it. Very little European exposure, but he is about to go back in. Regarding the weaker Cdn$, he wants to be hedged. This whole issue of oil is very much a geopolitical event, not a supply/demand issue, and it could change virtually overnight, and you could get a rise in the Cdn$. Not that he expects it, because all of these hedges are basically against a decline in the US$, which he doesn’t expect is going to happen. Instead of buying US equities in US dollars, he is now going back to things that are hedged.

An ETF that would best weather interest rate increases? He would be looking at one of the low cost dividend ETF’s like iShares S&P/TSX Equity Income (XEI-T). This is about 20 basis points. In this interest rate environment, he has quite a bit of Money Market that he is sitting in, because he knows at some point rates are going to rise and you don’t want to be in any long-term bonds.

Gold. He doesn’t hold any gold at all. It surprises him that gold is not bound at $900 an ounce. He has been negative on gold for years. If the US$ is strong, and shows no real indication of weakening, why would you expect gold to go up. Gold seems to have stabilized here and could be a trading vehicle.

This is above 65% US large caps and about another 10% of UK large caps. Basically it is a large cap Index, so he doesn’t know that you are going to be getting that much diversification. If your objective is to go globally, he doesn’t know if this would be your best choice.

VIX ETF’s? This is a bad time to be holding these. These things are a gambling device, not an investment device. This is for day trading or weekly trading, but there really is nothing to these things. He doesn’t use these.

This removes the fluctuation of the Euros. This strategy makes perfect sense, especially when they are doing this quantitative easing. We know what is going to happen to the value of the Euro and what has already been happening, and it could quite likely end up at parity with the US$. This is a smart move. It’s the only way to play Europe, with a hedge.

This is actually the leftovers of the income trust fiasco of a few years ago. They have now added a whole bunch of other components, such as corporate and government bonds. The only thing is that you should never trust yield. If you are looking at just the current yield, you have to go back into the web sight of the ETF provider. They are very candid about what is in their funds. Look at the yield to maturity and the credit risks, and then see what the trailing yield is. You want to see the “yield to maturity”.

Natural gas. He is not a big fan of natural gas and he really doesn’t see any reason for it to be going up. There is lots of the stuff.

(A Top Pick March 20/14. Up 16.24%.) They call this AlphaDex, which means manager input plus indexing. Fairly expensive relative to other ETF’s because of their approach to things. This was almost a Top Pick for tonight.

(A Top Pick March 20/14. Down 0.29%.) Sold his holdings because he was worried about the European currencies.