TOP PICK
BCE Inc.
Strong cash flow and very stable. Growing wireless. 6.1% dividend and board of directors has pledged to raise it.
telephone utilities
TOP PICK
TC Energy
Just did a $1.6 billion stock issue that has put the stock under pressure. Will be shipping in their Keystone pipeline 1 billion barrels of oil sands oil a day into the US Midwest forever. Gives you a stable and rising dividend.
oil / gas pipelines
TOP PICK
Grocery stores. Took advantage of Loblaws (L-T) difficulties to increase Ontario market share. A lot of the plazas and malls where their anchored tenants, Sobeys, are located are owned by Empire or through their captive Crombie REIT.
food stores
PAST TOP PICK
Finning Int
(A Top Pick June 10/08. Down 35.33%.) Biggest Caterpillar distributor globally and geared to mining and oil. Went down with commodities but was oversold. Tremendous business in parts replacement and maintenance contracts. With commodities picking up machinery is getting sold again. A Buy.
wholesale distributors
PAST TOP PICK
Power Corp
(A Top Pick June 10/08. Down 25%.) Got the whammy of the IGM Investors Group (IGM-T) not being able to sell mutual funds for 6 months and insurance companies taking hits on their portfolios. Both of those segments are coming back. Terrific track record of growth and dividends.
mngmnt / diversified
PAST TOP PICK
(A Top Pick June 10/08. Down 25.94%.) There is still growth in wireless. Have a tremendous market share in cable. 3.9% dividend might be boosted.
Cable
COMMENT
Agrium
Fertilizer story is quite interesting. Potash (POT-T) just announced they are cutting back on production because farmers are refusing to buy at the high prices. He is very bullish on the farm companies in the long run but not necessarily for this year. Globally there are shortages of grain and could be one bad harvest away from disaster. Eventually demand will grow.
chemicals
SELL
Media space is a very tough one right now. Newspapers are suffering from declining advertising lines and readership. In the TV space a pay-TV provider went out of business today and local stations are closing down. High debt. Sell as a tax loss.
Broadcasting
COMMENT
Market was concerned last winter that they had taken on too much debt and would have to default. Was successful in replacing $4.5 billion, which has restored stability to the balance sheet. Has been a bounce back in mineral prices. For them to make a lot of money their bet on coal will have to make a lot of money. Stock is probably fairly valued.
Mining
BUY
Nexen Inc
Good company. Considered buying but chose Canadian Natural Resources (CNQ-T) instead.
oil / gas
BUY
With their oil sands exposure this has good upside potential.
oil / gas
COMMENT
Newalta Corp
Oilfields waste management. Because of the lack of drilling there is less guck to clean up. Rig count is very low. Converted themselves from a trust to a corporation, which resulted in a reduction of pay out to shareholders. If there is a resumption of full-scale drilling in the rig count goes up they will benefit. 3.9% dividend.
Transportation & Environmental Services
BUY
Suncor Energy Inc
Have made a very good deal with PetroCanada (PCA-T) and is advantageous to the shareholders of both companies. Very well positioned to go forward. There will be a lot of oil coming out of the oil sands and this will be a prime beneficiary.
integrated oils
DON'T BUY
Produce a lot of flyers/weekly shopper news. Depends on what you think of the ink on paper business and a lot of people don't like it very much. Craig’s List, etc. on the Internet are cannibalizing a lot of their business.
publishing / printing
DON'T BUY
West Fraser Timber
Before dimension lumber can gain any momentum there has to be evidence that more homes will be built in the US. Inventory of unsold new homes has been declining somewhat but the number of new homes being sold is very low. There is also the political situation regarding softwood lumber.
west coast forestry