DON'T BUY

His own research indicates they're playing accounting games with discount rates for their pensions as well as share buybacks. So, he won't touch it. Offers a little growth, but not price appreciation unlike with software companies.

COMMENT

How do you calculate free cash flow? Simply, CFO (cash flow from operations) minus cash dividends paid minus capital expenditures. If it grows over time, you have an unusual company that merits a closer look.

BUY

It got an upgrade today from UBS, and rose 3.7%. The consumer space is getting killed by e-commerce, but Unilever has countered this trend by making strategic acquisitions. Last 5 years, total returns have been 15% vs. P&G's 2%. Unilever has mroe than 50% of its products in emerging markets which trust brands, so they can grow. Beta is low, because they deal in consumer staples. Has owned it for a long time.

TOP PICK

Just made an acquisition in Europe where they are growing to become more international. It's a cash cow--they bankroll payroll deductions before IRS payments so they make the interest. 3.3% dividend yield. Stock fell way too fast, so here's an opportunity. (Analysts' price target $65.02)

TOP PICK

They make refrigeration for ice rinks and warehouses across North America. Acquired Atlantic and Quebec Caterpillar dealerships which boosts their pricing power. He will own this for a long time. (Analysts' price target $63.29)

TOP PICK

Quasi-equity company that owns toll roads, airports and cell towers in Italy, Chile, Brazil, Poland, Spain, France and elsewhere. 4.3% yield and 10% dividend growth. A steady grower. (Analysts' price target: Euros 29.20)