Viewing Expert Jerome Hass | StockChase
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Compiling comments that experts make about stocks while on public TV.

Viewing Expert

Jerome Hass , Portfolio Manager

Lightwater Partners

Address
120 Adelaide Street West, Suite 2400
Toronto, On
M5H 1T1

Contact Info
Telephone: +1 (416) 504-9767
Email:
Website: http://www.lightwaterpartners.com/home.html

Bio:

Lightwater Partners is a Toronto-based  alternative asset manager.  Lightwater  focuses on mid-cap Canadian stocks and long / short strategies.  It manages two funds, the Lightwater Long Short Fund and the Nimble Fund.  These two funds returned 46% and 53% respectively in 2013 (returns net of all fees and expenses).  Lightwater was established in 2007 and it was one of the small number of Canadian managers who earned a positive return in 2008.


Date Signal Chart Symbol Company Opinion Price
2017-02-22 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. With markets going up, it is time to look at alternative assets through using Pair Trades giving some hedging protection for portfolios. The markets have had a heck of a rally since the election on November 8, a good start for 2017. You have to question as to how long this could last. The forward valuation of the TSX index is trading at 16.4X forward earnings. That is the highest it has been this time of year since 2001. If you look at the expectations for earnings growth in Canada, the market is looking for about 24% this year, twice what it is in the US. The VIX, a measure of volatility, has only been this low 3.5% of the time in the last 2 decades. We are a lot closer to the top of the market than we are to the bottom. It makes sense to put some sort of portfolio protection into place.


Price:
$0.020
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
_N/A
2017-02-22 COMMENT Must be logged in to use chart BAC-N Bank of America

Likes the low cost to Book ratio, which is trading at .8X. Compare that to Canadian banks, which are at 1.6X. Also with some of the deregulations that are coming in the US, this bank will be a beneficiary.


Price:
$24.790
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-22 COMMENT Must be logged in to use chart BIOA-N BioAmber Inc

Produces succinic acid, a base for an intermediate chemical or commodity that is used in a variety of things like plastic, polyurethane, and various other things. Generally made from petrochemical products, but their product is made from industrial sugars, which has a lot of advantages such as that it can be produced cheaper. It had 2 equity issues within 2 weeks which the market did not appreciate. The company has taken their knocks and are now cashed up essentially, so there shouldn’t be any more issues going forward.


Price:
$3.450
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 COMMENT Must be logged in to use chart CBL-T Callidus Capital Corp

They indicated taking the company private. There was an update on a press release about a week ago, where they indicated the privatization had 17 expressions of interest. The process started October 31 and the CEO thought it would be about a 6-month process, so by the end of Q2, he expects the process will be completed. Probably worth $2 over the value.


Price:
$18.480
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 TOP PICK Must be logged in to use chart CGX-T Cineplex Inc

*Short* A pairs trade with Cinemark (CNK-N). This is trading at twice the valuation of Cinemark.


Price:
$50.920
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 COMMENT Must be logged in to use chart CJT-T Cargojet Inc

Recently added a small position to his portfolio. He is quite impressed with management. They have 90% market share in Canada. A nice play on Internet growth as people use the Internet for shopping. Results will be coming out shortly, and there should be decent sized results from the Christmas season.


Price:
$48.150
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 TOP PICK Must be logged in to use chart CNK-N Cinemark Holdings

*Long* A pairs trade with Cineplex (CGX-T). This is about twice the size of Cineplex in terms of their screens.


Price:
$43.390
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 HOLD Must be logged in to use chart CRH-T CRH Medical Corp.

This tends to be a serial acquirer, and he generally doesn’t like these. However, in this case he likes management and feels they are very competent.


Price:
$8.570
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
No
2017-02-22 COMMENT Must be logged in to use chart CWB-T Canadian Western Bank

Has a long term Short on this. Looking back to the last downturn in 2008-2009, it took 17 quarters for them to get back to pre-recession provisioning levels. The current downturn in Alberta has been a lot longer and more protracted, so thinks the time horizon for provisions will probably be even longer than 17 quarters and doesn’t think the street is factoring that in.


Price:
$30.410
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 PAST TOP PICK Must be logged in to use chart CXI-T Currency Exchange Intl.

(A Top Pick Feb 8/16. Up 20.45%.) Got their Schedule 1 license as a bank in September. Unfortunately, when the results came out in early January, people were looking for immediate benefits, but it normally takes 3-6 months to see the benefits. He still really likes this.


Price:
$26.990
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 HOLD Must be logged in to use chart ECI-T EnerCare Inc

A name he really likes. This has a 9.1% EBITDA for 2017. Yield is about 5%. They made an acquisition last year on the HVAC servicing side. It was fortunate that the summer was so hot last year. There are still potentially some costs synergies to take out of that. The part he really likes is their sub metering business, a growth business that is not getting any credit from the street.


Price:
$18.790
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 DON'T BUY Must be logged in to use chart EFL-T Electrovaya Inc.

Last summer the company was talking about sales execution of $350 million from 2016 to 2018. He questioned that. They were about a third of the way through their fiscal year and were predicting executed sales of $180 million. First-quarter results came in with only $1.1 million. In November, the OSC put the company under a disclosure review, and so they had to put out a press release rewording the press releases. Also, had to amend their annual information form. Expects there may be a further delay in the roll-out of their mass production. He calculates they are sitting on 4 years’ worth of inventory from their German plant that they acquired. Thinks they are going to have to do an equity issue and there is going to be dissolution of some existing shareholders. There are better places to put your money.


Price:
$2.430
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-22 COMMENT Must be logged in to use chart FLT-CN Drone Delivery Canada Corp

This has a deal with Staples and NAPA auto parts, as well as talking to a Canadian courier company. The main problem is that Canada and the US have not really defined what the rules are going to be for drones. In Canada, you can only fly a drone within your line of sight, but that will change. Feels this company probably has the “first mover delivery” advantage to getting a license.


Price:
$0.000
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
No
2017-02-22 COMMENT Must be logged in to use chart GMP-T GMP Capital Trust Inc

He still likes this. Prefers the preferred B shares as opposed to the common, but likes them both. Given what has happened in the rebound in oil/gas, this is probably one of the most leveraged plays on the street having recently bought FirstEnergy. On top of that, the Wealth Management Group put themselves up for sale in the fall, but some of the costs they had when they took over the McQuarrie group are now coming off the books, so he thinks profitability of the Wealth Management Group is going to go up.


Price:
$4.190
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
2017-02-22 TOP PICK Must be logged in to use chart HCG-T Home Capital Group

*Short* A very crowded short, and he generally doesn’t like to participate in crowded trades, but makes an exception in this case. There are a lot of Shorts on this, because the US hedge funds use it as a proxy for the Canadian housing market. His view is actually quite neutral on the Canadian housing market. There is a lot of runoff in their portfolio, so just to stand still they have to get at least 14% growth in terms of their number of mortgages. This is because banks have gotten smarter at catering to new immigrants to Canada. Dividend yield of 3.91%. (Analysts’ price target is $29.73.)


Price:
$26.260
Subject:
CANADIAN MID-CAPS & LONG/SHORT STRATEGIES
Bias:
CAUTIOUS
Owned:
Yes
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