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A very good management team, but not so certain he likes the structure. They go to businesses needing capital and will have a preferred equity dealt to them. They’ll get a distribution on that, which creates a yield for investors in this company. They’ve had 5 underlying businesses that have been a little challenging, which is putting pressure on the yield. Over the last 3-4 years, there have been a lot of Special Purpose Acquisition Companies coming into the market, who specifically raise money to buy private. There is more and more capital chasing less and less great companies. It is going to be harder and harder to find deals. He’d be happier buying at around BV of $18-$19.

Predominantly oil with very good assets. There are a couple of problems. The main one is that they have been a serial issuer of equity. The last one was around $19, so you are going to be bumping up against that level going forward. The yield is not very much right now, so you are kind of in the middle of nowhere right now.

His preferred names would be Toronto Dominion (TD-T), J.P. Morgan (JP-N) and the Royal Bank (RY-T). Has a little more appetite for US exposure. He likes the shape of the yield curve in the US and expects Net Interest Margins to expand. There is nothing wrong with owning this, and it will give you a lot of torque to the upside, especially if the energy market improves.

You generally see energy stocks leading a little in anticipation of higher oil prices. Then you see higher oil prices followed by energy services companies. Likes energy services companies, but not sure he would buy at this price. If it pulled back $1-$2, he would be pretty excited. His preferences would be Secure Energy (SES-T) and Canadian Energy Services (CEU-T).

(A Top Pick April 5/16. Up 37.7%.) (Preferred Shares.) He had an opportunity last year in the rate reset market as people were selling preferred shares off in fear of rates going to zero. Still feels there is upside. Thinks they will call this in 2018 and you still get the 6% yield. If they don’t call it, then you will get reset into a yield that is higher than what you are getting paid now.

(A Top Pick April 5/16. Up 21.5%.) (Preferred Shares.) This was bought out by Lowes, which originally was not going to call the preferreds, but they came back later with a $24 offer.

(A Top Pick April 5/16. Up 54.8%.) A really, really good business. Just sold his holdings, not because there was anything wrong with the business, but there is just less upside going forward and he needed capital for other investments. Fully valued now.

This is yielding 7%. When it resets in 2021, it is an 8.5% yield, which is attractive. It is expensive in after-tax dollars for the company, so they might have an incentive, if rates go up, to call this preferred.

An OK business. It’s a marketer on energy. One of the knocks has been leverage on the balance sheet, so they de-levered the balance sheet over time. However, it is a business that is on a treadmill for life, a lot of churn. Clients leave and you always have to acquire new ones. Prefers, Crius Energy Trust (KWH.UN-T) which trades at a significantly cheaper valuation and gives a 9% yield with a 58% payout ratio. Thinks the market is undervaluing the assets. Also, it has no debt on the balance sheet.

If there was one stock that he had to pick to hold forever to beat the TSX every year, it would probably be this one. A good area to be invested in.

A business he likes because it is an environmental play. They sell fibre glass storage units for gas stations. The big play here is that old storage tanks were installed 20-30 years ago, and are made out of steel, and which are leaking into water tables. There is no debt on the balance sheet. Generates over 8% free cash flow yield. It made so much cash last year, that they had to pay a special distribution.

A great company with a great management team, and a low-cost producer. It is significantly more gas weighted and he prefers something that is more oil weighted.

(Preferred Series B.) Toronto Dominion (TD-T) just rejected an offer to buy their retail division. You are getting paid a 6.5% yield, that resets into 7.5%. Still thinks there is upside.

Radio station with specialty channels. They also own a children’s program. Feels the balance sheet is stretched and that the payout ratio is a little tight. Feels it is a trading stock in the $12-$13 range. Doesn’t see the business as being sustainable long-term. Prefers something with growth such as DHX Media (DHX.B-T), however you will be giving up some yield.

Satellite communications and drones. There is a lot of buying in the large-cap names in Canada, and this is where you are going to get more upside because valuations are more attractive. They make all the intelligence that is in the drones. He sees growth in the business. Valuation of 12X, which is very cheap. It was beaten down last year because of tax loss selling, and has bounced back already. Well positioned going forward given its quality. About a year ago, they got clearance from the US government to set up a US company. The majority of their manufacturing is done in California. Dividend