(A Top Pick July 25/08. Up 5.5%.) In and out of this with a net gain of 96%. Currently out of gold because he thinks the relative value of oil producers merits consideration. Will go back in when oil balances in his portfolio.
Convertible Bond 4.75% due in 2012. You are getting $.40 on the dollar while adding to your oil content. Have $180 million in cash, which is enough to pay their debt.
One of the biggest oil companies in Canada and he thinks institutional money will come in. Should have a good rebound in the next couple of months. Expecting distributions to increase as oil prices firm up.
(A Top Pick July 25/08. Down 35.1%.) Agriculture ETF. Has had a 35% move on the upside since October. Net asset value has improved and he thinks it will catch up.
If they can make it through this tunnel, they'll have quite a bit of leverage on the way back up. Copper has been having a nice bounce. If it goes above $2 he'll start considering the metals.
The only way demand for energy can be met is through nuclear. Uranium is a very good long-term play. You could start adding a little bit if you have a long-term spectrum.
Stagflation: Commodity prices are firming up ahead of the stock market. Will this put pressure on companies with margins if these companies if the prices firm up too much? Yes. People have to reposition their portfolios differently and be prepared for much higher inflation and much higher economic times.
If you have a long-term horizon, drilling will pick up at some point. It has to come back. Probably not a bad time, but when will there earnings show? Thinks it's still early.
Conversion to a corporation has already been built into the price of the stock. Income from trusts is a nice added benefit but he is not buying these for income. You have to realize the importance of the tar sands to the global economy. Consider them as long-term investments.
Trading at $.72 and cash value is about $.93. He prefers their convertible bond, which gives him a good way to sit on cash. It is trading at $.40 on the $1. (See Top Picks.) US refinery produces jet fuel and the margins on this are good because of a lack of producers.