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This has been a rock star. It weathered the Aug/Sept volatility really well and is back to new highs again. A very strong price momentum and scores in the top 10% for him. A stable stock. Not overvalued, despite being at all-time highs. Benefiting from a tailwind of high US employment.

All of these types of stocks have had a rough go with the Valeant (VRX-T) saga, and this one falls into that same category of being a rollup stock using high priced currency to buy other businesses with the prospects that they will grow into the cash flow. Overvalued by any measure. Not something he would own.

Dividend is probably more stable now that they are offloading their Allstream division. One of the problems is that they are keeping a fair amount of the pension liability on their books, even after the sale. Not a bad company, post this divestiture. Good yield which he thinks is safe. A good valuation on EBITDA.

The stock has fallen enough that valuation has gotten better, but it is one of those stocks that is perceived as a very safe, defensive security. A lot of the fund flow out of cyclicals has found its way into stocks like this. Price momentum is poor. He has a small position in the fund that looks for sustainable yield. Dividend yield of 6.6% which is sustainable.

Doesn’t see this as a takeover target. Their balance sheet is fine and has no net debt. Valuation is reasonable, but the problem is they are in a fight with the Albanian government over a tax dispute, so their bank accounts were recently frozen. Albania is where all their assets are. Very bad price momentum. Has this as a small Short. This is not something he would hold.

One of his larger holdings. It has been one of those stocks that people seem to want to perpetually sell because it is always going up. That is a poor reason to sell. They keep beating on earnings. Very strong 25% ROE. Scores in the top 10% for him on value. Momentum has always been strong. Quality management.

(Market Call Minute.) Too volatile to be Short. It has terrible value momentum and volatility characteristics. This is a levered bet on crude.

(Market Call Minute.) Good on a price momentum basis, bad on an ROE and value basis. Big yield, but he wouldn’t feel safe in owning it.

(Market Call Minute.) This has suffered from a slowdown out West. It is the middle of the pack for him. Has an okay yield. There is no compelling reason to own this when some of the other banks are trading at some of the same valuations.

(Market Call Minute.) A Story stock that has gone bad. Always expensive. He would not hold this.

(Market Call Minute.) New CEO. He will watch to see if they can turn it around. Not something he would own.

Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. A general contractor. A diversified revenue mix. They are in industrial residential wastewater. Scores really well on value with very strong price momentum. Great ROE at 23%. Cheap on a free cash flow basis. Solid balance sheet with about 25% of their market cap in cash. Dividend yield of 5.43%.

Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. Located in the Bakken. What is remarkable is that for an oil stock it scores in the top for him against all of their stocks, energy or not. Decent ROE. They make money at these oil prices. Have a lot of running room. The only knock is that they have a fair bit of debt, which gives them leverage to a rising oil price, but also increases the risk. Dividend yield of 4.84% which appears to be sustainable at current prices.

Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. You can still make a lot of money in a poor industry, and this is an example of that. 4^th largest printer in North America. They score absolutely Tops on valuation. Very strong ROE. Good price to free cash flow. Trades at about 5X EBITDA. Their strong balance sheet and cash flow generation has let them diversify into packaging. Dividend yield of 3.16%.

Markets. Earnings season is largely behind us and the numbers came in largely as anticipated. For the 3^rd quarter year-over-year, earnings were down about 2.5%. If you exclude energy, they would have been up about 5%. Now the market is looking for a rate hike, which is expected will be raised in December. She thinks they should. US employment picture is very healthy and it is time to start normalizing the interest rate environment. Now the focus is on the pace of interest rate increases. She thinks it will be very gradual and very well telecast. There are no inflationary pressures, so there is no need to do it at a very quick pace. Energy and the US$ have been the 2 headwinds in the US. Expects the US$ to be relatively strong, because it is the only central bank globally that is going to raise rates. 10 year US Treasury bonds are the highest, so it is attracting a lot of cash flow into the US. She is not anticipating the appreciation that we have seen over the past year. That comparison will start to ease as we go into 2016 along with energy prices, so profit growth in 2016 should be much better than in 2015.