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Earlier Discussion

Talk to a top-ranked stock picker Add to ...

Steve Hansen, analyst with Raymond James Ltd., joined us for a live discussion Wednesday. Mr. Hansen was ranked No. 1 by StarMine in its 2011 awards for his accuracy in identifying winners and losers in the diversified industrials sector. He widely covers transportation and agriculture - and answered your questions on selecting stocks within those arenas.

The following is a full transcript of the discussion:

11:55 Darcy Keith - Good morning every one and welcome to this live Q&A discussion with Steve Hansen, analyst with Raymond James Ltd.

11:57 Darcy Keith - We'll be getting his picks and outlook for transportation and agriculture stocks - two hot areas on the TSX right now. It should be an interesting discussion.

11:57 Darcy Keith - Hello Steve, thanks for joining us today

11:57 [Comment From Steve Hansen]/b>

Good to be with you today.

11:59 Darcy Keith - We'll be starting in just a moment, but in the meantime, here's a link to the 2011 StarMine analyst winners.

11:59 Darcy Keith - And here's the link to Canada's top stock pickers by industry. You'll see that Steve was ranked as No. 1 for diversified industrials.

12:00 Darcy Keith - Just to start things off, I'm wondering if you have any general comments Steve on the equity market right now. Is the Canadian market reaching overvalued territory?

12:02 [Comment From Steve Hansen]/b>

Good question. The short answer is no, at least not within the broader Industrials universe. We continue to see a number of high quality enterprises within our landscape that still boast very attractive earnings multiples.

12:02 [Comment From Wes ]/b>

is CP looking like a value pick as a hold for the next 20 years?

12:03 [Comment From Steve Hansen]/b>

We are constructive on both CN and CP within the Canadian landscape. To be fair, CN is the better railroad. If I could only own one, it would be CN (without question). That being said, CP is currently beat up on a number of transitory issues that make the valuation very compelling.

12:04 [Comment From Steve Hansen]/b>

My colleague in the US is also very constructive on several of the US Class I railroads (KSU, CSX, etc.)

12:05 Darcy Keith - Just as a follow up: CP also announced a quarterly dividend hike a few days ago, following CN's hike several weeks ago. Do you think the railroads have further room to hike dividends at this juncture?

12:06 [Comment From Steve Hansen]

Over time, without question, but not in the near-term. CN, of course, has an impeccable reputation from this standpoint, having raised its divvy for 15 consecutive years...

12:06 [Comment From Steve Hansen]/b>

Both railroads boast an impregnable competive position that, when coupled with their pricing power, will lead to furthy divvy increases over time.

12:07 [Comment From Rick ]/b>

Hello Darcy and Steve. I would like to hear Steve's take on Mullen and ConAgra. Thanks.

12:07 [Comment From Steve Hansen]/b>

Remember that in a high fuel price environment (have you seen diesel prices lately???), railroads win out :)

12:09 [Comment From Steve Hansen]/b>

Mullen is a trucking outfit that my colleauge in Calgary covers given its heavy degree of leverage to the western O&G sector. That being said, it has gone through a great deal of change of late with recent acquisitions. Unfortunately

12:10 [Comment From Steve Hansen]/b>

In general, we view the name as fairly valued at current levels.

12:10 [Comment From Steve Hansen]/b>

ConAgra is not a name I cover specifically, but I can give you a sense for my view on the broader Ag complex if that helps.

12:11 Darcy Keith - Sure Steve, that would be great

12:11 [Comment From Steve Hansen]/b>

Our macro view is that the world will increasingly struggle with a number of large, often competing, secular forces that i tend to describe as 'the Clash of the Titans'

12:12 [Comment From Steve Hansen]/b>

That is the competing desires to Put Food on the Table, Feed in the Barnyard, and Fuel in the Gas tank.

12:12 [Comment From Steve Hansen]/b>

Unfortunately, for consumers, this is likely to lead to higher, sustained Ag commodity prices over time, with large doses of embedded volatility

12:13 [Comment From Steve Hansen]/b>

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