DON'T BUY

It is a rig company and so is suffering badly. It is bleeding cash right now. It is too early to get into the oil related sector and this is a risky type of company.

PAST TOP PICK

(Top Pick Aug 18/14, Down 16.67%) They are in the midst of a huge restructuring. They are spinning out their lighting division. He thinks they will perform much better as three companies.

PAST TOP PICK

(Top Pick Aug 18/14, Down 19.49%) It is only down 20% because their refining and marketing business is making a ton of cash flow and they are able to pay their 6% dividend. He feels they will proceed to make acquisitions.

PAST TOP PICK

(Top Pick Aug 18/14, Down 11.10%) It is trading at half its breakup value. He expects it to double over the next 3 to 5 years. No debt and cash.

BUY

Dutch insurance company with a lot of business in North America. Trading for half of its breakup value. The company is solidly capitalized. You get a cheap valuation and great dividend yield. There is huge upside and minimal downside.

COMMENT

The dual class share structure means he would not be purchasing it. It has become a world class competitor. It is consistently well managed. Their acquisitions have rewarded investors well.

DON'T BUY

It is under pressure because of fear they may have to raise capital and cut the dividend. This might be in the cards. European banking regulators may be cracking down in a big way. He prefers others as this bank as some geographies that will put them under pressure. DB-N is a preference.

BUY

They have owned the desk top for a long time. Over 90% of businesses still use Windows. MSFT-Q is morphing its business to annual fees and subscriptions. There is plenty of room for dividend growth. They fumbled on some acquisitions in the past, overpaying for some things, but they are a dominant player globally.

COMMENT

Microsoft is no further ahead on the mobile side for acquiring this one. NOK-N got a decent price for the handset business. There are better places on the tech side to be. However, they are debt free and just might make this thing work.

WATCH

They are going through an internal restructuring. They have had declining revenue and earnings. They are buying back shares to keep the earnings per share afloat. They have gone through massive changes over the decades and come out well. He would buy this one if it went to $140.

DON'T BUY

Because of high fees, and new transparency rules, they will have pressure on them. CIX-T is going to be a survivor. They have done a great job and will continue to do so.

BUY

An amazing sales machine. They have great margins. They will be subject to the transparency rules coming into force next year. Companies like this will figure it out.

DON'T BUY

5% dividend. These banks survived the financial crisis. The dividend is secure. Other banks are more attractive because they have a wider scope.

TOP PICK

Just an amazing company. Their growth has slowed, but they are still at mid-single digit growth. $25 billion of net cash. Over 3% dividend that will be increased 10% per year. He is comfortable with the new management coming in. He thinks new blood will be helpful.

TOP PICK

That gorilla glass is on high end TV sets and on fiber optics. They are in high end ceramics and high end glass. They have net cash on the balance sheet, great free cash flow, and a great growth curve ahead of them over the next 10 years.