News

Issue 22 – A Flying US Housing Market

US home prices are up 10 percent, sales volumes are rising, and both inventories and foreclosures are down 25 percent. The last time the US housing market experienced double digit gains was in 2006. Furthermore, home prices have been rising in all 20 largest cities… View full commentary in PDF

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Issue 21 – Earnings and Buybacks

Three weeks ago we wrote about the first quarter earnings season and compared the results of the members of the TSX and the S&P 500. Now that the first quarter earnings season is concluded, we would like to update the results…  View full commentary in PDF

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Issue 20 – Telus Corners Ottawa

In 2008, Ottawa decided to set aside a portion of each spectrum auction to new startups. Ottawa thought this would break the dominance of Rogers, BCE, and Telus. However, Ottawa’s plans are being jeopardized as the startups are now under financial pressure and looking for White Knights… View full commentary in PDF

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Issue 19 – The Need for Infrastructure

Palos continues to see energy infrastructure as a good investment. The Palos funds hold positions in Keyera Corp (TSX: KEY), Enbridge Inc (TSX: ENB), Pembina Pipeline Corp (TSX: PPL), Gibson Energy Inc (TSX: GEI), and AltaGas Ltd (TSX: ALA), all of which reported outstanding results for 2013 first quarter…  View full commentary in PDF

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Issue 18 – Suncor a Dividend Champion

Suncor (TSX:SU) announced a 54% dividend increase and a $2 – billion share buyback. Management has been saying for the past 24 months that they will be focusing on creating shareholder value. It is now very clear that SU’s intentions are to grow and return income to shareholders… View full commentary on PDF

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Issue 17 – US GDP

The US economy grew slower than expected in the first quarter. The Bureau of Economic Analysis reported on Friday morning that real GDP grew at 2.5% on an annual basis, compared with expectations of 3.0% growth. This follows growth of 0.4% in the fourth quarter of 2012, also below expectations. The details, however, are not […]

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Issue 16 – Our American Cousins

In the past twelve months, Palos reduced exposure to real estate investment trusts (REITs) that own Canadian assets and employing the proceeds to buy REITs with US exposure. Our action was driven by three main components… View full commentary in PDF

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Issue 15 – Gold not Much of a Gold Medal

Palos Income Fund By Charles Marleau   Palos has been underweight the gold sector for the past two years. The TSX has approximately a 7% weighting in gold equities, compared to 1% for Palos.  In the past few weeks the gold sector has further fallen out of favor, with sell-side research such as Goldman Sachs […]

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Issue 9 – Vroom Vroom….

Magna International Inc. (TSX: MG) designs, develops and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles. MG is a core holding in the Palos funds… View full Commentary in PDF

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Issue 8 – An IPO Champion

February 2, 2013 Palos wrote about an initial public offering (IPO) for a company called American Hotel Income Properties (TSX: HOT – U). Palos participated in the IPO, and the new issue started trading on February 20th, 2013… View full commentary in PDF

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Issue 7 – A Shining Star among the Lifeco’s

Industrial Alliance (TSX: IAG), an investment by the Palos Funds, reported a strong fourth quarter which was well above the street estimates and compared favorably to the results of its peers. Some of the strong results came from a one-time securities gain and hedging gains… View full commentary in PDF

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Issue 6 – Suncor, a difficult quarter

Suncor is one of the Fund ’ s core positions . Unfortunately it reported fourth quarter results that were below street and Palos expectations. Specifically, Suncor’s operating cash flow came in below what Palos was estimating… View full commentary in PDF

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Issue 5

Canaccord Genuity Corp. and National Bank Financial Inc. are leading the initial public offering of American Hotel Income Properties (AHIP). Palos had a one-on-one meeting with management a few days ago. AHIP’s strategy is consistent with our view — you need to be creative in the REIT space for valuations on traditional REIT’S have crept […]

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