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A higher risk name in that that they grow through acquisitions. Last year they did a big acquisition that is going to change their geographic exposure, making it much more international. Have taken on a lot of debt to fund that acquisition. She’d rather wait and see how things progress.

(A REIT for income purposes?) This is a commercial REIT with a lot of large commercial buildings across Canada, as well as some retail operations in the US. Dividend yield of 6.2%.

Auto OEMs is a very highly cyclical business. Some are saying that North American auto production is near peak levels. Not expensive, trading at single digit multiples. However, when things turn down, earnings can come down quite a bit. Usually you try to buy these early on in their cycles.

This has taken over Saks Fifth Avenue and will be rolling out those stores this year. Expanding into Europe. A very competitive environment. The Bay is more of a real estate play than anything else. Doesn’t feel that traditional retail is a long-term secular growth area.

This has had a really nice bounce off its lows. It is very crude oil levered. She thinks it will survive.

Magna (MG-T) or Linamar (LNR-T)? Doesn’t own either, but if she had to choose, she would lean towards this one. The stocks have not participated very much in this rally. This one’s North American operations are doing quite well. The real leverage is in Europe where the margins and the content per vehicle are lower.

Magna (MG-T) or Linamar (LNR-T)? Doesn’t own either, but if she had to choose, she would lean towards Magna.

This has done pretty well. They are good operators. There has been moderating square footage growth from prior years which has been beneficial to all grocery retail players. She prefers Loblaw’s (L-T) because of the drug retail component.

This is a large cap diversified biotech company. Higher quality than most. If you have a long-term time horizon, this should do fine.

A large integrated company based out of the US. An excellent long-term core holding. She tends to stay with Canadian ones for energy exposure. This company can take advantage of the low point in the cycle to buy assets at attractive prices. As a refiner, they benefit when commodity prices go down. Pretty good dividend yield of about 4.3%.

Has had a really nice rally year to date with the gold price recovery. Thinks the stocks are a little ahead of the commodity. There is political uncertainty which would be beneficial for gold. If the US$ weakens, that would also be beneficial for gold. Her preference is to own the actual commodity, or the Central Fund of Canada.

Acquiring St. Jude Medical to enhance their stent products, and Alere, which is a diagnostic company. The stock pulled back when they announced the St. Jude acquisition, as it is quite large. The company will probably have to issue some equity to fund both acquisitions. She really likes management. This is an attractive entry point.

The company is going through a major transition from growth by acquisition to try to pursue organic growth. A difficult industry environment at the moment. With their change in strategy, it may be too soon to step in. Has a lot of debt, and may have to sell some assets.

Trading at a very attractive valuation, just over 11X earnings. Price to Book is below 2X, which typically trades above 2X. Consistently generates an ROE in excess of 15%. Acquired City National last year which increases their US exposure. Like all the banks, this has been increasing its dividends. She expects earnings growth in the 5%-7% range. Dividend yield of about 4.2%.

The world’s leading appliance maker. North America accounts for just over 50% of their earnings, with about 25% coming from Europe, 20% from Latin America and 7% from China. Penetration rate is about 79% in the US. Replacement sales accounts for about 50% of industry sales, and the company estimates that that peaked 2005-2006, and the average life for an appliance is about 10 years. Very long-term secular growth. Yield of about 2.3%.