Likes the food business. Will probably take a while to get it through $11 but as a way of playing the food business, it is one of the few and very well run companies that should do better.
(A Top Pick Feb 1/08. Down 34.1%.) Merger with the Montreal exchange was a good move. All the other exchanges in North America are getting hammered but this one is doing well.
Gold is the one commodity in this uncertain world that people are going to have demand for. The increase in the US$, of which gold is really just the flip side, is simply unsustainable.
(A Top Pick Feb 1/08. Down 90.2%.) Doesn't like the sector and doesn't think there is a lot to drive this to get a whole lot better. Extremely speculative.
Canada's premier rail company. We are in a tough economic environment and rail is an economically sensitive sector. Performance going forward will be somewhat dependent a turnaround the overall economy. This has already been priced into the shares with the pullback it has had. If we stay at this level, the stock should do well.
Have segregated funds, which they guaranteed the performance that you get all your money back after 10 years. Didn't do a lot in the way of hedging so their exposure to the market is considerable. However, if this market turns around, this company could be one of the best performing financials on the way up.
Holds Great West Life (GWO-T), which has less exposure to the market than Manufacturers Life (MFC-T). Also has the Investors Group (IGM-T). This is a way of investing in the market, leveraged to the market and if there is a turnaround this should do better than the market as a whole.
Chapter 11 would be the last option they would go for. They have a little ways to go. You would need to see the car companies completely wiped out. Their financial services is a millstone around their neck.
Market share and margins are really the issue. The only businesses in the financial services that have done well are the exchanges. There are 40 different alternative trading platform systems in the US, which will be hurt even more than this. Has a global reach and involved in a wide product mix.
Q: Should I borrow to invest in dividend-paying vehicles? A: Although he himself has done it in the past, it has never worked out and he has never seen it work out. Specifically, you are borrowing short to invest long.
One of the best energy companies in the country but he is not bullish on energy at this time. His one concern is that they always seem to get themselves into the worst PR jams.
A bet on a company that is highly leveraged to the price of energy. At $40 a barrel, oil sands is hard pressed to make very much in the way of money. If you think oil is going to go back to $75 (which would take something extraordinary) you will get more bang for your buck because production cost is higher.