Latest Stock Buy or Sell?
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Today, Bill MacLachlan commented about whether BA-T, TRP-T, L-T, CNR-T, TECK.B-T, NTEL-T, PPL-T, PD-T, HR.UN-T, ACE.H-X, GIL-T, LIF-T, HSE-T, CWB-T, NA-T, MFC-T, GWO-T, G-T, K-T, X-N, BAM.A-T, SCL-T, BNS-T, ATRL-T, SU-T, RY-T are stocks to buy or sell.

TOP PICK
Royal Bank
Thinks they are the strongest financial institution in Canada. Has a tremendous franchise. Thinks their US assets are manageable. Incredibly cheap at 9 X next year's earnings. Yield of 5.6%.
banks
TOP PICK
Suncor Energy Inc
Good cash flow. They have a tremendous advantage in their reserves.
integrated oils
TOP PICK
Canada's largest engineering company and they operate globally. Infrastructure is a key building block in governments’ attempts to stimulate the economy. No debt and lots of cash. ROE is about 27% for 2008.
contractors
PAST TOP PICK
Bank of Nova Scotia
(A Top Pick May 30/08. Down 36%.) Hadn't expected the meltdown to be as extensive, pervasively or as quickly as it was. Was overdone. Canadian banks are an excellent place to be. Buy.
banks
PAST TOP PICK
Shawcor Ltd. (A)
(A Top Pick May 30/08. Down 55%.) Very involved in the oil industry so got hit with the cutbacks. Great ROE. Should continue to do well over the long haul. When it starts to recover, that will be a good sign that major companies are planning to increase their cap X again.
oil / gas field services
PAST TOP PICK
(A Top Pick May 30/08. Down 49%.) Their exposure to the US high-end office market took the stock down. Very high quality assets. Consider tax loss selling.
management / diversified
COMMENT
United States Steel
Have gone through hard, hard times but are now much leaner and meaner and more efficient. Thinks there will be a lot of volatility before the details of infrastructure come out.
steel
DON'T BUY
Kinross Gold
Gold stocks have under performed the commodity. He feels that gold stocks are very overpriced. Priced to $1000 to $1200 an ounce in gold. If you want exposure, you are better to buy gold itself through an ETF such as SPDR Gold (GLD-N).
precious metals
DON'T BUY
Augusta Gold
Gold stocks have under performed the commodity. He feels that gold stocks are very overpriced. Priced to $1000 to $1200 an ounce in gold. If you want exposure, you are better to buy gold itself through an ETF such as SPDR Gold (GLD-N).
precious metals
BUY
Great West Lifeco
You should be quite safe. Likes this company. He owns Power Corp. instead, which owns this company. Very conservatively managed.
insurance
BUY
Manulife Financial
Disappointed that they hadn't protected themselves given the PPN notes they were selling. Financially strong, arguably the strongest financial institution in North America. Safe dividend. Very well run company. Good price.
insurance
DON'T BUY
Although they have cut dividends in the past, he doesn't think they are at risk here. Most of their business is in Quebec, which will be hit at least as hard as Ontario. Prefers others.
banks
DON'T BUY
Has had a very difficult time. Their focus is primarily in the west and primarily in the resource area.
banks
BUY
Husky Energy
Quite optimistic about this one. There is always the possibility of it being taken over by its primary shareholder. Conservatively managed. Excellent balance sheet. One of the more conservative ways to play the energy situation.
oil / gas
DON'T BUY
Real Return Bonds: Have been eviscerated over the last several months because “real return” is your return after inflation. Inflation expectations were high 6 to 9 months ago but have fallen off a cliff since deflation became a possibility. High-quality corporate bonds will give you a better return.
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