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Market Outlook He feels the market is back to dot.com type valuations -- 14 times EBITDA and all time highs for marketcap to GDP. Historically at these valuations you could see zero to negative returns on average for the next 10 years. At the trough of the 2008-09 market collapse, valuations plunged to 8 times EBITDA. Not every part of the market is necessarily over valued, but defensive areas like utilities and value stocks are very expensive. Investors could look to energy, but they are in a perennial down trend. Financial, industrial and consumer staples are middle ground areas that are still affordable.

He looks for good price momentum, good valuation metrics, and a stock price is not volatile. This stock is in the middle on every metric. They are expensive based on current sales. The dividend looks safe. The challenge is that management is financial engineering their results and it is running out of room. He would need to see sales improve before becoming interested. Yield 3.2%

A challenged energy company. Really cheap on a price to book basis. The problem is that most energy companies have no positive price momentum and earnings are not yet growing. Cash flow is beginning to improve, but it is too early to get back into yet.

He does not own this one, despite the earnings metrics looking solid and there is no net debt. They missed on a recent quarterly earning, but not a bid deal. They are trading at 7 times cash flow and 7 times EBITDA. He would like to see the ROE improve a bit. Price momentum has picked up so he will be watching it.

A cyclical that is a reasonably priced industrial. He holds it primarily for the dividend with a 43% payout ratio. There are no issues with the balance sheet and it trades at 11 times earnings and 7 times EBITDA versus the market at 14 times. Price momentum could be better, but the valuation is compelling enough to own it. Yield 6.7%

He does not hold this currently. It is in the middle of the pack in terms of valuation metrics, especially since it holds a higher level of debt.

Competition from Teck? Teck has announced it will potentially be increasing shipments in competition against them. This has moved the valuations right to the top of his list of buy prospects. It trades at 8 times earnings. A cheap cyclical stock with a low dividend payout ratio. Most of their coal them move is for steel manufacture than for thermal purposes, so it seems like the environmental concerns are over blown. Yield 4%

More upside? He took profit a while ago. It has great price momentum, but the low ROE, high valuation metrics, and high debt levels make it look very expensive. He would like to see it pullback before buying in again.

He owns this. You really own this for the dividend -- yield 6.5% and 80% payout. It is trading at 7 times earnings and 4 times cash flow. The challenge is typical for all traditional auto makers, lower sales and increased competition, but the metrics are compelling to own it.

A small to mid-cap energy producer. It trades at 1/10 of book value. However, they are subject to reserve valuations. The problem is their debt. The market is concerned about bankruptcy risk at these valuations. ROE is still low.

(A Top Pick Feb 14/19, Down 36%) Their mine in Arizona is running into delays. This is really a call on copper prices. Copper prices are starting to rebound and with housing construction accounting for 40% of copper demand, the recent uptick in housing starts is also supportive. We could see another leg up on this run. It is currently neutral for him, but he will watch for upward price momentum.

SLB-N is trading flat despite beating earnings recently. He actually has a small short on this one. The valuation is not compelling, trading at 15 times cash flow and only 6% ROE. They need to see day rates improving.