COMMENT
Markets. Feels the correction is here. After the run we have had in the 1st quarter, we will go through a bit of a normal consolidation correction phase. There might be a pullback of 5%-10% and a bit of consolidation over the next month or 2 and then expects the upward projection will continue. Doesn't expect an increase in interest rates in 2013.
Unknown
DON'T BUY
Lukewarm on the lifecos. They've had a pretty good run from the beginning of the year. Given the increase in 10 year yields, it doesn't translate into an increase in share price. There will be better opportunities. Dividend is likely sustainable, but certainly not growing.
insurance
DON'T BUY
Poseidon Concepts
Her concern is the high level of margins and in a very competitive business the product is not particularly proprietary. Expects to see a lot of new competition coming in, which will put some downward pressure on margins. Trading at around 7X compared to peers at around 3 or 4. 8% yield.
0
BUY
Very high quality oil weighted company. Attractive 6.6% dividend, which is sustainable. Manage their balance sheet and production quite well. Fairly active aging program. Payout ratio of only 52%.
oil / gas
DON'T BUY
Enerplus Corp
Sold her holdings about 1.5 years ago. Very solid dividend yield of about 10% but there is concern about the sustainability of it. Very large capital program of about $800 million this year. Have high-quality assets but they do require a fair amount of capital to get the growth and production.
oil / gas
HOLD
CML Healthcare
Very stable business and feels the dividend is secure. Regulated by the Ontario Ministry of Health saw has a very stable cash flow stream. About 90% payout ratio. Growth opportunities are limited so doesn't expect a ton of growth. 7.1% yield.
other services
HOLD
TC Energy
Share price performance will be somewhat range bound over the next few months because there has to be some resolution on items such as the northern leg of Keystone as well as the ruling on the tolls on the mainline. Also having discussions around the New York power market. Once these issues are resolved you will see some decent price appreciation.
oil / gas pipelines
PARTIAL BUY
Very high quality holding. On a valuation perspective, it is not cheap but looking at the operating fundamentals and the growth pipeline there is visible growth in the underlying distribution and cash flow stream, so not a bad time to pick away.
Utilities
PAST TOP PICK
Altagas Ltd
(A Top Pick Apr 8/11. Up 23.2%.)
oil / gas
PAST TOP PICK
(A Top Pick Apr 8/11. Down 21.61%.)
publishing / printing
PAST TOP PICK
Waste Connections
(A Top Pick Apr 8/11. Down 11.12%.) Had an unexpected change in their CEO. As the market gets to know him, they will like him which will be positive.
Transportation & Environmental Services
TOP PICK
Keyera Corp
Midstream infrastructure space. Strong management. Very high quality assets. Very strategic in being able to go end to end on the NGL value train. Will benefit from the continued focus on NGL’s great track record. Strong balance sheet. A sustainable and growing dividend.
oil / gas
TOP PICK
Cenovus Energy
Growth trajectory was very dramatic givingabouta14% annual growth rate. High quality operators with lowest cost operations. Also has downstream refining operations. Yield of 2.6%.
oil / gas
TOP PICK
Had been in the penalty box for quite a while because of the very aggressive management team with poor integration of assets. New management is much more operationally focused and cost conscious. Just acquired some high margin assets. 5.9% dividend yield.
property mngmnt / investment
COMMENT
Markets. It has been a wonderful start to the year and has been a tremendous quarter. Cooling off is pretty much to be expected. He is more curious about what will happen in the summer months. End of October - early November last year there was fear in the market and complacency was really pushed out of the market. That was a great time to be buying. Europe problems are no longer on the front burner. Because of complacency in the last few months, the market is not as attractive to a contrarian as it was.
Unknown