We are getting closer to the time when the US banks will be taking a leadership position as the Fed starts to tighten. That is a matter of great debate as to when. When that happens, the money centre banks will participate, and perhaps become a leadership group. This is not a bad choice, but feels that Citigroup (C-N) is probably a little better positioned to benefit from a recapture of the valuation spread.

The company is more attractive than its stock. Global leasing is improving really dramatically, and this company is in the midst of that improvement. Stock has moved quite nicely and now trading at about 18X earnings. They don’t pay a dividend. He would rather play this on the other side, through a REIT, and get some distributions.

CSX (CSX-N) or Union Pacific (UNP-N)? Using this as a constructive way of playing the strength of the US economy is proving not to work out. The US economy is not as strong as some had thought. They have a headwind in coal where about 20% of the revenue comes from that source. Oil only represents about 2%. Union Pacific is probably a little better run in terms of operating ratios, but a little more expensive. He would probably pass on both of these.

CSX (CSX-N) or Union Pacific (UNP-N)? Using CSX as a constructive way of playing the strength of the US economy is proving not to work out. The US economy is not as strong as some had thought. This one is probably a little better run in terms of operating ratios, but a little more expensive. He would probably pass on both of these.

A very well diversified company. They have their aerospace side where they’ve had a few missteps over the last couple of years and had to go back to the drawing board. Have also had a little bit of trouble internationally. They own Otis and Carrier which are tied to residential and commercial buildings. They’ve also had trouble in China which has slowed down. There had also been management problems. When he saw the changes that were being made, he felt that he would stay with the company, thinking that the market might build back in some of that multiple spread that was lacking. That is exactly what happened. At this point it is probably fairly fully priced. However, they are starting to gain some traction in their technologies.

Dropped about 10% off its highs. This is in the face of some of their competitors reporting results that have largely been panned by the market. This company’s results were quite good. The opportunity on this company is immense. There is a lot of runway here. A lot of the 10% fall back is market related. A little bit of nervousness because of their peer group. Longer-term he feels this is a stock that is going to do quite well.

Right now this is more if a consumer and diagnostic company. Has done quite well. Is very, very steady. Have increased their dividends 43 years in a row. A nice holding for somebody who wants to buy something and just stay with it over the long-term. However, the valuation is not cheap. Well-managed and should do well over the long-term.