PAST TOP PICK

(A Top Pick August 1/17 - Down 27%.). Has had a few issues. They run portfolio investments. Their problems only affect 10% of their businesses. He just picked up a little of this stock today as it is getting crazy how cheap it is now. A dividend yield now of 10%.

HOLD

There is a lot of debt but pretty stable assets. It is becoming increasingly difficult to build pipelines and they have them. They own pretty good franchises. Maybe a little overleveraged but it will be largely taken care of. Many US and international investors are taking money off Canada because of the stupid things our Government is doing.

DON'T BUY

Massive agricultural supplier. He is looking at it to buy. The issue is that the commodities they sell are under price pressure. Potash, that is the biggest part of the business, is interesting because goes through these periods that are great but now they have to fight for market share. There might be some stabilization now. One great business to keep an eye on.

BUY

US banks have positive outlook now. The curve flattering now might be not the best for them. A US government that us pro-growth favors them.

DON'T BUY

High profile IPO last year. Have to be careful with them. Small company. Good business model. Great revenue model. The stock is not going up unless there are short-term positive catalysts.

BUY

High yield that is sustainable. Some non-core assets they are looking at to sell to reduce the leverage. Dividend is sustainable.

DON'T BUY

A company that has done very well over time. A competitor from Europe might be coming back and they could take market share. Highly valued here.

DON'T BUY

One of the best natural gas producers in Canada. Energy was a huge underperforming last year. The gas sector under a lot of pressure given the Government refusing to build pipelines. Might be a little expensive but coming off and maybe becoming attractive. A weak buy.

DON'T BUY

19% yield. The street expects a cut here. Change in the media business is affecting them as an old-time media business. They look cheap now. Hasn’t done a lot of work on this name. There is risk here.

COMMENT

What company do you prefer CN Rail (CNR-T) or TransCanada (TRP-T)? He likes both. Near term he likes a little more Transcanada (TRP-T) as it is an asset class that is in shortage now. CN Rail (CNR-T) took the cost cutting a little too far and is struggling a little but long term they are a great business.

COMMENT

What company do you prefer CN Rail (CNR-T) or TransCanada (TRP-T)? He likes both. Near term he likes a little more Transcanada (TRP-T) as it is an asset class that is in shortage now. CN Rail (CNR-T) took the cost cutting a little too far and is struggling a little but long term they are a great business.

TOP PICK

Large cap that is the number two health insurer in the US. Long-term holding in the fund. Growth strongly. One of the solutions to rising health-care costs. Trades at 14 times next year earnings. (Analysts’ price target is $274.63)

TOP PICK

Providing power in Central America. They are bringing down the price of power in Nicaragua. Management is doing an outstanding job. 17% cash flow yield so lots of upside here. Dividend Yield if 4.2% (Analysts’ price target is $26.00)

TOP PICK

A company with no revenue now. Drug developer. They are into phase 3 trials. A $33 million market cap company with half that in cash in their balance sheet. Probably going to be taken out by a large pharma once the drug is approved. (Analysts’ price target is $5.21)