DON'T BUY

A good company in the casino business. Has a positive disposition towards the area in the long-term, but right now you do not want to touch the stock. Macau continues to be a big black hole.

DON'T BUY

Good solid gas, and an increasing oil producer now. On all commodity companies, you want to make a call on where you think the commodity is going forward. Made a big acquisition about a year ago, just before things started to turn down, which left them with a bit of a levered balance sheet. Given today’s prices and were he thinks they are going in the short term; he would hold off on buying this.

WEAK BUY

A really solid biotech company. Well diversified with a number of products. (See Past Top Picks.)

BUY

Real estate management based out of Toronto. They run closed-end funds for multi-institutional clients. Have started to do some direct real estate projects for shareholders. A good US presence and smart real estate investors. The stock is undervalued and this is a good buying opportunity. There is great upside in the US. Dividend yield of about 2.9%.

DON'T BUY

World’s largest commercial aerospace manufacturer. A good solid company over the long-term. but is cautious on it in the short term. We have just gone through a great commercial aerospace upside cycle in the last 7-8 years. Their 4th quarter was a concern. He thinks they are starting to lose sales. Would be interested at the $100 level, but at these levels he is cautious.

HOLD

Biggest methanol producer globally. Well-run, but with a slowing global economy, it is an area you want to be a little cautious of.

PAST TOP PICK

(A Top Pick Dec 10/14. Down 20.17%.) Just reported and had an excellent, excellent quarter. Had the best year in history. This would be his top pick in the biotech area. Trading at a crazy 6X PE despite having reported the best year in history. The global leader in HIV medication and hepatitis. Has just gone through the most successful drug launch in history. Trading at only 6X earnings.

PAST TOP PICK

(A Top Pick Dec 10/14. Down 20.8%.) Fundamentally the company is doing really well. 3rd biggest auto parts Company globally and the largest in North America. Trading at a crazy 7X PE, and under 4X EBITDA. 2.6% dividend yield. Super cheap. Thinks this will be up 50% in the next year.

PAST TOP PICK

(A Top Pick Dec 10/14. Down 26.57%.) Healthcare company. Has a lot of upside because they are developing a drug for treatment of hypertriglyceridemia. It should hopefully go into phase 3 trials by next year. Technically it is starting to outperform now. New CEO. A table pounder at this price.

COMMENT

For a 3-5 year hold? Good, solid healthcare conglomerate. There are very few companies with an AAA debt rating, and this is one of them. Because of that, they have low cost of capital which enables them to do a lot of things on the M&A front. A good solid hold for 3-5 years.

COMMENT

Their debt is pretty well termed out to 2020. Likes the stock and would be one of the “go to” names he would buy. Excellent assets in Canada, as well as in the Eagleford in the US. Outstanding management. It will be volatile in the short term because it has a fair bit of debt, which concerns people, but will be one of the survivors.

BUY ON WEAKNESS

Outstanding retailer and has made some very astute international acquisitions. Likes this long-term and would be a buyer on a pullback.

BUY ON WEAKNESS

The biggest provider of buses in North America. Stock has had a huge run up. Likes the company but finds it overvalued. Wait for more of a pullback.

DON'T BUY

A rollup health care services company. Had a high profile last year and people made a lot of money on it, but in the last 6 months there has been a lot of negative news. Has concerns about the management set up. Not sure they have the structure in place for it to be a successful long-term business. He would want to see better execution for a number of quarters.

WAIT

This should make it through the energy situation, but they have some debt on the balance sheet and they are a small company, relatively levered. Sit back, wait and watch for 6 months, before jumping in.