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This is kind of a leveraged play on high yielding common share. Some of them are really good.

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now Manulife would be his favourite.

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now this would be his favourite.

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now Manulife would be his favourite.

There has been some weakness recently and it looks like there is some very good value at this point.

Has a pretty healthy PE ratio. Dividend yield of 7%+ and ranks pretty well on his metrics. However, analysts have been bringing their estimates down recently, so he would be careful in the short term.

This is like having 2 faces. One side retail and one side real estate. It looks like it is reasonable value on a real estate basis, and that you are buying the rest of the operations for free. Doesn’t rank really well on a P/E basis as a retailer, but as real estate it looks quite reasonable. Analysts have been increasing their estimates on this. Looks interesting here.

Great company. Selling at less than 13X on a earnings basis and the debt is very, very low. Also, pays a decent dividend. Earnings have been a little disappointing, but think that is a short term blip. Have a very well thought out strategy for delivering earnings to the companies. A great entry point.

Large coal export facility in BC. Just cut their dividend because the coal business is in trouble. This rates pretty high in his ratings. It has a low PE. China does need our metallurgical coal, so they will utilize these terminals.

Default mortgage insurance providers. Likes the dividend yield of 5.66%. Cheap on a PE basis at about 8X. Also, trading below BV. There is a large Short position on this, which could result in a very nice upside as the Shorts are focusing too much on the valuation of the housing market. There are definitely pockets in Toronto and Vancouver, but doesn’t feel this is a problem for this company.

Has a below market multiple at about 15X. They have about $4 per share in cash. Analysts keep on increasing their estimates to catch up to what the company is actually doing. 5.5% dividend yield.

Markets. Tries to take out as much market risk as he can, so doesn’t have forecasts for the market. Believes in having a structure in place with Longs and Shorts so that he can effectively eliminate a lot of outside events that occur. Most people understand the concept of Buy Low-Sell High. When you are shorting, you are effectively taking these 2 events and reversing the order of them, so you are Selling High and Buying Low. That is really what the essence of a short position is. By having a Long position and a Short position, typically within the same industry, he can take out market risk and can also take out a lot of industry specific risk. For example airline stocks were uniformly hit by bad news today. When you have a Long and Short position you can take out the airline specific risk, and what you are really left with on a Pairs Trade is that stock specific risk. No one can really time the market, so if you always have insurance in the form of shorting in place, when markets are rising very sharply, it causes a break in performance, but you really appreciate it when there are downturns and your Short positions kick in.

Hasn’t had a great performance over the last 12 months, but he is still very positive on it. Probably the largest provider of ATMs in Canada and Australia, and #3 in the UK. An interesting cash business and a very cheap valuation. Likes the yield. Payout ratio is probably in the 50s-60s, so the dividend is sustainable. What has really hung the stock of late has been the performance in Australasia, and Australia particularly where they introduced Tap and Pay. Thinks this is a one-off reduction in their growth rate. ATMs have just had an increase from $2 to $3 which flows to their bottom line. Had a very good Q3. A great, long term story.

He is Long this stock and Short the Bank of Montréal (BMO-T). In 2001, Guardian sold its mutual fund business to BMO in exchange for 5 million BMO shares. It has been sitting on those for the last 14 years. He put this trade on in 2009 when Guardian was trading at a 25% discount to its value in the BMO shares, so historically it was trading at about a 25% premium. Regardless of what the market conditions did, he saw a 50% upside if it returned to normal levels of trading, relative to the BMO holdings. Essentially he has a 3.5% position in this with a 3%-3.5% Short position with BMO, so it is relatively market neutral. The Guardian is less liquid than the BMO, so if he decides he wants to vary his not market exposure, it is a lot easier to trade BMO. He will vary this trade to a variety of conditions.

Just came out with some very good results, and also bumped up their dividend 40%. This company takes a royalty position in companies that can’t get bank or other forms of financing. An interesting business because it is kind of a play on venture capital, but in a different way then you would in a venture capital fund. They have about 33 names in the portfolio. He still likes this. Dividend yield of 9.4%.