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Wendy’s is still affiliated with it. He is dissatisfied with the takeover and the new structure. He does not like stocks at 35 times earnings. He took profits from Tim Horton’s and moved on. He is going to watch from the sidelines for a meaningful correction.

There is no revenue growth whatsoever. You are paying for a company that is gushing cash like nobody’s business. The PE is not outrageous. They are buying back stock. It needs to shrink to improve. He would not be surprised at some financial engineering coming out of the company. They may streamline by selling off some assets.

Water-related Companies. He does not own any. It is the most precious commodity, but it is almost free. There has not been an interesting water play in some time.

They are buying 12 leases off Target. He used to own it and sold, but perhaps should not have. He is excited that they started to buy back stock. They are generating cash they don’t know what to do with. Marks Work Warehouse worked out well for them. He likes what they did with the real estate spin off. It has not gotten as cheap as he would like it to be. If it did he would be all over it. If you own it continue to hold it.

Likes it. People aren’t drinking as much as they used to, but PEP-N has a big consumer food and packaging business. He owns DPS-N instead. You can’t go too far wrong owning one of these beverage companies.

Started buying in 2011. He is pleased with the performance. It hit a speed bump recently and it was a time to accumulate more. Earnings hit a wall because of currency. It has a good outlook going forward. Asian and especially China are the next areas of growth for them.

Hips, knees and extremities. Demand will grow 4-6% over the long term. They have not yet expanded outside of North America. People are getting older and the number of 60 year olds is getting wider and they wear out their hips and knees. They don’t have a lot of pricing power, but have certainty in the need for the products. It sold off recently from currency exposure. The value is quite reasonable here. They have a great track record of increasing dividends and buying back stock.

He likes the barrier to competition. There were two lousy snowfall years in a row. The market is worried people won’t come out next year. This is now a year round resort. They have strong pricing power.

He thinks the US railroads need some shaking up with the model used with CNR-T and CP-T. It is still small enough for an activist to come in. Then you would have the potential for a triple. In the meantime it is generating lots of free cash flow.

Economy. A lower energy price is a tremendous advantage globally, putting a lot of money back into people’s pockets, so that they can buy other things and pay down debts. Doesn’t think enough credit was given as to how much this helped the global economy overall. Thinks there is going to be inflation. 1% or 2% is not a problem, but if it gets up to 10%, it is a problem. Interest rates are going to go up. At some point there is going to be inflation. These are things that governments are not considering, they are just worried about now and the not too distant future, and not looking further out. At some point, if interest rates go up, it is really going to hurt certain parts of the economy. It is going to hurt a lot of the debt that is at low rates.

They are talking about selling off some of their rail, but they have to watch that they don’t sell off the jewels in order to have the money to finance the possibles. That would be a major danger. He would be very wary as there has been a certain amount of dilution. They were smart in eliminating the dividend, but had waited a long time.

There is a whole host of companies in drilling. The difficulty right now is that so many of these companies have crappy balance sheets, because they levered up when times were good. This can be a good sector to invest in, but you have to watch because a lot of the companies have revenues that are going way down, while the debt level is staying the same or going up.

This has been doing tremendously well. They do have a lot of debt, and their debt load is a little bit scary for him. If he owned this, he would be thinking of paring back or selling. We are also moving into that time of the year when stocks do not do that well.

Just reported results and they were alright, but nothing to write home about. The company has been retooling and cutting costs. It is a leader in France, which to him is very important. They pay a very handsome dividend.

This is a Korean company that is in the gaming business. At one point they were very successful. They have a lot of money in the bank and revenues are coming down. They need the next big game. Sold his holdings for a tax loss. It didn’t meet the standards that he had set and it wasn’t moving in the right direction.