Bullish on the railways in general. CNR had a bit soggy earnings. (Due to the forestry sector). The rails have an increasing advantage over the highway trucking sector, because they are more efficient.
Likes cp over CN because of their product mix, and the acquisition they made in the mid-west of the US is going to turn out to be very smart over the long haul.
A bank with a global franchise, that has been beaten up this year. You can't go too wrong. The dividend is over 5%, you're buying a world leader at 10 times earnings. There might be some short term pain, but historically banks haven't gone below 8 times earnings, so you have some protection.
Deals in rare earths and zircomium. Has a market cap of 1/2 a billion. Trading at 15 times earnings. Not a big cap or well established. Don't use the rainy day money, but worth it for a "flyer".
Then $28.67
Buying more of it. It's a non-traditional mortgage business. A market the the banks have always found difficult. Their credit loss is very low. The price earnings multiple has move towards the bank range.
Thinks it's going to be a steady grower.
Then 39.08
It's been a roller coaster ride. Have ongoing problems in Asia with their gold property. They've got a radio active clean up problem in Port Hope. They've got cigar lake water filtration problem in Saskatchewan. So the stock sold off. (Plus the spot uranium prices have peaked.)
But... Uranium is a long story, not a short story. In the next decade the demand for Uranium is going to sky rocket.
If you are holding a stock for the long run with reserves it will do well.
Then 18.22
People believe the price of oil over the next year are moving down, which is why that even though the price of oil has doubled, TLM has only gone up 7%.
They have an emerging major play in South America that doesn't get a lot of recognition. The stock should be trading in the mid 20's and it surprises them when it doesn't.
There has been no noise from potential bidders, however people (and he) believes that there is "another shoe to drop". Believes an enhanced bid will emerge that the board will find difficult to turn down.
Thinks depending on the royalties, it will have an impact. Extracting oil from oil sands is the most expensive method to produce oil. If the royalties are too high then the producers may look elsewhere.
Wait for the royalties to be announced before buying.
They have a couple of billion dollars in asset backed paper. Believes there will be a value placed on the paper. Right now it's all being lumped together. If the bank was to totally write off the paper, the after tax hit on their book value would be around $6.00, the stock has already dropped $10. So he believes that the worst case scenario has already been built into the stock price, and he is buying now.
Likes the stock, thinks the recent acquisitions have been smart. They've got the metals that everyone wants. He thinks the base metals are an Asian story, not a US story, so the US going into recession won't be as significant as it would have been.