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Markets. He doesn’t see big pain. Doesn’t think we are extended that much. The stock market is different than economics and whether Canadians with mortgages are extended, which there is some of, he doesn’t see cratering. By sector it is difficult. Energy and materials have their own drum. If you have a view that oil is going to $45-$50, which he does, it is pretty back end loaded. Thinks energy/oil stocks are ahead of themselves, and there are some bad inventory numbers coming in the next month or so, where you might get an opportunity to pick away. Has almost no weight in oil, so he will be looking. Likes financials, consumer discretionary and industrial, where there is value stock by stock, but not the whole group.

His favourite pipeline. Has the best earnings growth over the next 5 years of 8%-10%. They have said they would increase the dividend commensurate with earnings. He likes both those things. The worry is that as they grow, they do equity issues and debt financing and they keep doing them, and there is going to be more equity over time, which might blunt it a little bit. Dividend yield of about 4%. Would add at under $45. Thinks it will be in the mid-$50 by the end of the year.

Very east/west in geography, and is looking to extend down more into the US, which is why it makes sense for them to acquire Norfolk Southern (NSC-N). They have a higher cost base, so if they spread that over an acquisition they become a bigger beneficiary. Not a bad place to hide. Being more Canadian, it is a little more exposed to energy, grain and a slower economy. Prefers the geography and lower costs of Canadian National (CNR-T), which he owns, along with CSX Corp. (CSX-Q).

If he owned this, he would sell it. This is the Torstar of radio. The radio business is in decline, which you can see in their numbers of having 12 to 14 quarters in a row that radio is down. They’re okay for now, but if that trend keeps happening, then the 10% plus dividend will eventually be brought into question.

Sold his holdings a couple of years ago. It’s mostly in Mexico with a small part in Northern Ontario, which has been pushed out to 2018-2019. Good operators, but just didn’t like the macro view. Had some cost overruns a couple of times. Looks like there is value and it should be trading at $2.50-$3 to make it equal to the others, but there has been 2 years of lagging valuations. Not terrible, but it goes sideways and will only move up after seniors move and if gold went to $1400-$1500.

Gold. Kind of flat. Would be interested if it got back into the mid $1100. Stocks have had a better run than the price of gold so far this year, so thinks stocks are a little ahead of themselves.

Thinks there is another 10% or so and sees it getting into the low $50 area. Winning a lot of contracts. If they sold Highway 407, they would get around $20-$22 in cash. He could see them paying a $5 one-time special dividend if that happened. If you crystallize a full 3^rd of the current price, you have a very much below average valuation on the E&C business. They will definitely be a beneficiary of any infrastructure stimulus spending by the federal government.

Has been painted by the same brush as Valeant (VRX-T) even though they don’t have the same business model. It is down 10% today and it didn’t do anything wrong. They are mostly in Europe, however, it is somehow viewed as a mini Valeant. It should really be a place for Valeant money to go to. Every quarter that they are able to demonstrate their model, he thinks the valuation goes up and the earnings are going to go up. There is probably even a short-term trade in this.

(A Top Pick March 16/15. Up 25.53%.) The integrateds, in Canada, US and Europe are trying to shore up their balance sheets and using the low energy prices to sell the convenience stores that don’t have the gas stations. There is a rumour that they are close to buying Sunoco stores, so there appears to be more targets than there were a year ago. Can see another 15% in this for the following year.

(A Top Pick March 16/15. Down 5.13%.) Has an 8-9% organic growth over the next 5-year model. A lot of new drugs are coming on. Every time it dips to $50, he adds for new clients. Dividend yield of 3.5%. Looking for high $50-$60 in the next year.

(A Top Pick March 16/15. Up 20.8%.) Had a 2 for one stock split. Sales in China were awesome with something like 35% more basketball shoes. Sold his holdings last fall, almost at the peak, when it was trading at 30X earnings. Still pretty highly valued. Would prefer it in the low 20X earnings.

A bit too expensive. Finally missed their numbers, so it now has a lower valuation which seems to be permanent. You might have to be really patient, but wait for another little miss and buy it the next morning. Good company with still lots of growth and lots of new stores.

Because of the Québec base and lack of growth, he wouldn’t go to this.

Energy? Crescent Point Energy (CPG-T) is the only thing he owns. Prefers oil to gas. This one has growth in Saskatchewan and Utah, and nothing in Alberta. You actually have to look at pipelines and where they are going. It looks like we are a while before another one is built. He wants to be safe for now, and would rather give up 10% now, and then chase a little bit after it started moving.

Owns some of their convertible debentures, which will eventually become stock. Thinks it is going to be a little more difficult to repeat their success going forward. They will make small tuck-in acquisitions where they can, and you will get the dividend plus a tiny bit of growth. Valuations are relatively fair right now.