DON'T BUY

This has come off but is still too expensive. It is rare for him to buy a stock over $10.

COMMENT

They had three working mines, now two. When you have a major catastrophe in a mine, people often jump out. This company has been around for years and years. That shows a certain staying power. He likes to invest in companies that have been around for at least 10 years. He doesn’t know their financials, but they have managed to stay around, which suggests that they are likely to stick around.

RISKY

The other portfolio in his company owns this. He does not (yet). He looked at a lot of shipping companies, and Diana is the one they want to play. Every company in this sector has a huge debt load, but he thinks this has a high upside along with high risk.

DON'T BUY

He doesn’t buy into companies that don’t have revenues or very likely revenues in the near future. He’s always worried about dilution and debt loads.

WATCH

This came under new management 6 years ago, the new manager has been hitting his targets pretty well. The main mine back then was in Russia and Gallender was concerned about the political risk. Their sustaining cost is low. Then the company paid way too much for another mine. It is now producing and he has started watching it again. It has a debt load of about 1.5 times revenue, which is not terrible for a mining company but is a concern.

DON'T BUY

This would have to come down a long way for him to have interest in it. The overall market has been very strong, it is not clear which way the market will go in the future.

COMMENT

He sold out of Kirkland too soon. It has one of the lowest cost gold mines in the world. It has gone up 140%. (Analysts’ price target is 25$)

TOP PICK

He’s getting a 5.5% dividend with a 73% payout ratio. They have good cash flow but a higher debt load than he likes. He thinks that their troubles in the United States are behind them. (Analysts’ price target is 9.67$)

TOP PICK

They are into electronics technology, primarily for trucking, oil and gas. They had a difficulty with their main contrast, lost a lot revenue but he believes they will become profitable again this year. He’s looking for a future price of about $5 and change (it is currently $1.55) (No analysts have provided a price target.)

TOP PICK

They are into setting up IT systems for companies, including security. They have had major troubles. They violated their financial covenants last August and it looks like they could violate them again. This is a very high risk stock. The stock trades around $2, used to trade at $30. They appointed Joel Trammell as the new CEO at the end of the year. He was on the Board for two years before that and bought many shares when he came in. He has turned around two companies. He teaches CEOs what to do. (No analysts have provided a price target.)