Viewing Expert John O'Connell, CFA | StockChase
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Compiling comments that experts make about stocks while on public TV.

Viewing Expert

John O'Connell, CFA , Chairman and CEO

Davis Rea


Date Signal Chart Symbol Company Opinion Price
2017-07-25 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Energy. Eventually oil has to be significantly higher than what it is currently trading at. Oil/gas companies in the US have been saying they can produce oil at $30-$40 a barrel. They looked back at one of the top ranked US companies, Pioneer, which lies in the middle of the Permian Basin.  They found their cash flow from operations from 2006 to 2016 were an accumulative $15 billion. Capital expenditures were $16.5 billion. That was with oil at around $78 a barrel. There was only one year where they produced positive cash flow from operations. They funded this through stock issues, debt and selling assets. That is a history of what some US and Canadian companies do. They traditionally sell assets, dilute shareholders, borrow more money, and hope for better times. They say costs are lower and productivity has improved. We are seeing a leveling out of productivity out of 3-4 years because of technology improvement. A lot of these companies sold some great Crown jewels, and have been drilling hoping for better days. Saudi Arabia and most OPEC countries need oil that is in the $80 price range, and probably higher. North American companies need at least $60 oil, just to be treading water.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
_N/A
2017-07-25 TOP PICK Must be logged in to use chart ACN-N Accenture Ltd.

The largest consulting company globally. It has morphed very nicely over the last 5 years, and has become the leading consultant towards the Internet and Cloud computing. Cloud computing is really just getting going. Companies need a lot of help in terms of analysis, and how to go about doing it and how to implement it. This is a huge free cash flow generating machine. Dividend yield of 1.9%. (Analysts price target is $133.50.)


Price:
$128.950
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 COMMENT Must be logged in to use chart ALA-T Altagas Ltd

Will the deal in the US go through? He owns the receipts, which is the right way to play this. If the deal doesn’t go through you are buying the receipts at $29 which pays a 7% dividend. If the deal doesn’t go through, you get $31 back. He thinks the deal will go through. Things are quiet because it is going through the regulatory hearings.


Price:
$29.160
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 COMMENT Must be logged in to use chart BCE-T BCE Inc.

This has held in pretty well as all good dividends paying stocks did. The big issue with big telcos in general is that half their earnings, interest, tax and appreciation comes from their wire line business. That business is dying slowly. Their offset to that has been acquisitions, boosting their dividend greater than their earnings through tax strategies, their mobile strategy and their forays into advertising and sports content. This is just above investment grade and he would not call it a safe dividend stock.


Price:
$58.170
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Unknown
2017-07-25 COMMENT Must be logged in to use chart BIR-T Birchcliff Energy Ltd.

Should they buy Altagas’ Gordendale plant? He would be surprised if they would purchase it. A lot of energy companies try to run asset-like programs. He doesn’t think Altagas would want to sell the asset.


Price:
$6.270
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Unknown
2017-07-25 PAST TOP PICK Must be logged in to use chart CELG-Q Celgene Corp

(A Top Pick July 6/16. Up 31.77%.) This is still a Buy. It has cancer drugs that work. Very, very profitable. Amazing balance sheet. Very, very strong management team.


Price:
$136.440
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 PAST TOP PICK Must be logged in to use chart DIS-N Walt Disney

(A Top Pick July 6/16. Up 11.12%.) A quality name, a quality franchise and well diversified. They create incredibly valuable content that has very, very long shelf life. Their parks, hotels and movie businesses are booming. He believes ESPN will eventually sort itself out. This is still a Buy.


Price:
$106.420
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 COMMENT Must be logged in to use chart DOL-T Dollarama Inc.

This has done an exceptionally good job of moving up the food chain and increasing prices to $5. The strengthening Cdn$ is going to help a little, because they source a lot of their product internationally. A very, very well-run company. The one company that is not susceptible to the Amazon (AMZN-Q) potential problems. Trading at a pretty rich valuation.


Price:
$123.050
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
No
2017-07-25 COMMENT Must be logged in to use chart ENB-T Enbridge

Has owned some of this for a long time, and the only reason he hasn’t sold it is that he doesn’t want to pay the tax. The company has been treading water and is down about 7% year to date. It has been pursuing a growth by acquisition strategy, and doing it by raising its dividend to attract investors, and selling stock to pay for the dividend. They have been selling stock endlessly for 10 years now. They’ve exhausted the investment community. Very, very complex balance sheet.


Price:
$52.130
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 PAST TOP PICK Must be logged in to use chart FB-Q Facebook

(A Top Pick July 6/16. Up 42.24%.) There is a lot of running room and you can still Buy it today. Trading at pretty reasonable valuations.


Price:
$165.280
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 COMMENT Must be logged in to use chart FM-T First Quantum Minerals

An exceptionally volatile stock. It produces copper in dangerous parts of the world. Lots of companies are having problems these days with governments, not getting good enough deals. You have to be really careful. This is going to track the Chinese stock market pretty carefully. The company is well-run. Has a lot of debt. If you are going to invest in stocks like this, make sure it is the appropriate amount in your portfolio and don’t own too much.


Price:
$14.000
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Unknown
2017-07-25 COMMENT Must be logged in to use chart GE-N General Electric

Probably interesting, but it does have a “cash flow versus liability problem” for the time being, based on its dividend. It sold off a lot of assets so it pared its balance sheet to pay down debt. It is struggling through the problem of selling one thing, and making sure what they have allows them to grow. It has a good dividend, but presently is not earning enough to pay that. You have to question why they are paying a dividend.


Price:
$25.440
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
No
2017-07-25 TOP PICK Must be logged in to use chart GS-N Goldman Sachs

Just reported record earnings and profits. They have a strong capital management team. We have gone through 8 years of a financial mania, conglomeration and low interest rates. At some point that is going to reverse itself and this leading investment bank is going to help the companies get themselves out of trouble that they have put themselves in. Dividend yield of 1.4%. (Analysts price target is $241.50.)


Price:
$221.580
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
2017-07-25 COMMENT Must be logged in to use chart GSY-T goeasy

Why would you want to be lending money to a society that is already one of the most indebted societies of the world, Canada, to the most disadvantaged people that are the least capable of paying their loans? The company makes its money selling couches and TVs, and lending them money to do so. Lending money to generate sales is never a good idea.


Price:
$28.000
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
No
2017-07-25 BUY Must be logged in to use chart KEL-T Kelt Exploration

An exceptionally strong management team. A good solid balance sheet and a low-cost resource. They own a lot of their infrastructure and have access to many different outputs should one break down. Management team has shifted from being an exploration company to more of a development program. They’ve proven up reserves which are very, very substantial, and well delineated. Their natural gas is very liquids rich, and the wells they are drilling have been very extensive. He thinks this company is easily a double in a more normal energy price environment. Really strong management team which owns about 20% of the company.


Price:
$6.560
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes
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