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Compiling comments that experts make about stocks while on public TV.

Recent Opinions

Generated May 25, 2017 2:10:56 PM

Date Signal Company Expert Opinion Price
2017-05-24 N/A A Comment -- General Comments From an Expert
A Commentary
Zachary Curry

Economy. Global growth is still there, but is starting to plateau. Positive global growth is good for commodities. There has been a good deal of growth in 2016, plateauing a bit in 2017. A “steady as she goes” market, and a “steady as she goes” economy. He is not expecting any wild swings up or down. Oil is trading in a range, anywhere from $45-$55 is a good range.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: _N/A
2017-05-24 N/A A Comment -- General Comments From an Expert
A Commentary
Zachary Curry

US Treasury Bonds? These are viewed as one of the safest things in the world. Any time there is market uncertainty, there is usually a flock to US Treasury Bonds. The demand is there, which is why you see yields come down from the 2.5%-2.6% level to where they are now. He views that as being a bit overdone.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: _N/A
2017-05-24 N/A A Comment -- General Comments From an Expert
A Commentary
Brian Madden

Market. The big Canadian banks are reporting this week. Bank of Montréal (BMO-T) came out with its 2nd quarter numbers today and it was a miss. Their US business was the biggest drag and you could be concerned that the other banks affiliated with the US, will have the same problem. However, they all have different mixes by both geography and line of business. Toronto Dominion (TD-T) has a slightly different business mix, with more consumer lending exposure, as does the Royal Bank (RY-T). He is not expecting huge surprises from any of them. The market expectations are running pretty hot for at least 6 months, if not a 9 month extension by OPEC on the 1st cuts that they agreed to back in November.


Price: $0.020
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: _N/A
2017-05-24 N/A A Comment -- General Comments From an Expert
A Commentary
Brian Madden

Canadian fixed income with US raising interest rates? Interest rates are very, very low, so anyone seeking income are hard-pressed to find competitive income. fixed income serves a dual purpose in a portfolio. First and foremost, it has to be the bedrock and the bastion of capital preservation. Secondly, you use it to generate current income. You have to walk a narrow path, because a spike in interest rates will derail return on your profile. On the other hand, having poor credit risks will also create problems. His solution would be to own high-quality investment corporate credit and keep your duration in a 2-7 year timeframe.


Price: $0.020
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: _N/A
2017-05-24 COMMENT AGT Food & Ingredients
AGT-T
Brian Madden

Sold his holdings a few weeks ago. Ostensibly, they have a lot of good things going for it. They are producers of pulses, beans, lentils, things that are really on trend with health foods. Management has had a consistent failure of executing a plan to street expectations. Their latest quarter had a pretty severe profit warning.


Price: $26.190
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 TOP PICK Altagas Ltd
ALA-T
Zachary Curry

(ALA.R-T Subscription Receipts. 9/4/18.) This is part of a financing that was done in February in a deal to acquired WGL for $8.5 billion. This is scheduled to close in 2018, and subscription receipts are a way to play that. Should the deal fall apart, you get your money back. He looks at this as a “no lose” as you get close to 7% to wait.


Price: $30.590
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 DON'T BUY Aphria Inc
APH-T
Brian Madden

Not particularly comfortable investing in marijuana stocks. An investment has to have a margin of safety around it. The marijuana sector is just too unsettled right now. Also, who is to say that the tobacco industry doesn’t want a piece of the action? They have expertise in lobbying, distribution, marketing, branding, etc. Also, wouldn’t Short it as who knows what heights euphoria could take it?


Price: $5.620
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 PAST TOP PICK Alimentation Couche-Tard (B)
ATD.B-T
Brian Madden

(A Top Pick Aug 29/16. Down 9%.) At that time, they were acquiring CFT Brands. The deal has been delayed until the 2nd quarter. This is a secular grower. They will ultimately get approval from the competition Bureau and the US authorities, and it will be accretive to earnings.


Price: $61.370
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 SELL Bombardier Inc (B)
BBD.B-T
Brian Madden

Something he would never have touched in the 1st place. It is weak competitively. They’ve not had a fresh order for their C series aircraft in over a year. Very highly leverage with about $10 billion of debt on the balance sheet, and only about $1 billion of EBITDA to support that. $2 is a pretty important support level. If that holds, it might be okay, but if it cracks it doesn’t look like there is much support all the way down to $1.60.


Price: $2.160
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT BCE Inc.
BCE-T
Zachary Curry

With rates as low as they are, he is generally positive on the income, however, cautious on the sector because of media content. The real work is around the land lines. Over half their EBITDA is generated from land lines, and he would like to make sure that cord cutting does not accelerate. A large part of the driver on this company is on the income side of things. Sold half his position a long while ago. A good generator of income.


Price: $60.590
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 PAST TOP PICK CCL Industries (B)
CCL.B-T
Brian Madden

(A Top Pick Aug 29/16. Up 27%.) This closed on a meaningful acquisition of Innovia in December, a manufacturer of polymer banknotes. Very profitable company and a long-term growth story.


Price: $303.110
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 TOP PICK CCL Industries (B)
CCL.B-T
Brian Madden

A great growth story. Have grown earnings at a 40% pace compounded over the last 5 years. They are in specialty plastics, in packaging, and in labelling. One of the premier Canadian growth stocks. Just closed on a large deal which should be about 12%-13% accretive to earnings. It gets them into these sexy polymer banknotes, which is under penetrated globally but is growing quickly. Dividend yield of 0.8%. (Analysts’ price target is $337.50.)


Price: $303.110
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 PAST TOP PICK Cerner Corp.
CERN-Q
Zachary Curry

(A Top Pick April 5/16. Up 19%.) Two of his favourite sectors are Information Technology and Healthcare, and this company borders both of those. It is a company in the healthcare space that basically takes records from paper to digital, which is a mandatory event in the US.


Price: $64.360
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Choice Properties REIT
CHP.UN-T
Brian Madden

The anchor tenants, in a large majority of their properties is Loblaws. Where he might be a little more hesitant in a real estate investment trust that has mall-based retailers, it is quite unlikely that grocery shopping will have the same problems. This would be one of the safer REITs. He is quite constructive on equity markets, so has been moving away from REITs with a view that the economy is strengthening and interest rates moving higher. If you have to own a real estate investment trust, this is a reasonable choice, but he would recommend you don’t concentrate too much in REITs or bond proxies generally.


Price: $13.720
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Unknown
2017-05-24 DON'T BUY Canadian Imperial Bank of Commerce
CM-T
Zachary Curry

He would recommend something else. There are better banks out there. He wouldn’t own this one. It has the most in residential mortgages. Prefers something like Toronto Dominion (TD-T) or Bank of Montréal (BMO-T) which have avenues into the US. There is also Royal Bank (RY-T) or Bank of Nova Scotia (BNS-T).


Price: $106.300
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 HOLD Crescent Point Energy Corp
CPG-T
Zachary Curry

They hold high quality assets, but questions the structure of the company and how management really raises equity. Too frequently for him. Any time you do anything, management goes out and raises equity, diluting existing shareholders, making the former dividend harder to pay.


Price: $13.030
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT Cisco
CSCO-Q
Zachary Curry

A kind of “steady as she goes” company relating to Internet infrastructure. Don’t expect dramatic growth, but it pays a good dividend yield. Going forward, all the wireless, technology, routers and switches that are needed for the backbone will grow, but will be slower than in the past. Well-run company and great balance sheet, but you can find other companies exposed to the Internet that would be faster growing.


Price: $31.490
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT Cenovus Energy
CVE-T
Zachary Curry

Feels there is going to be a large overhang on this company for some time. They did a deal with Conoco (COP-N), issued a whole pile of stock and took on a whole pile of debt. That is really the inverse of what he would be looking for. There will continue to be an overhang with Conoco Phillips getting upside. If there is any oil appreciation, they are going to continue to get upside. However, $16 down to $12.80 is a nice downdraft, so you could almost argue that most of that is baked in. If they started to pay down the debt, that would be a really good sign.


Price: $12.860
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 HOLD Walt Disney
DIS-N
Zachary Curry

He likes this and feels it is a good Hold. It is going to have a little volatility based on the overhang with ESPN. Live sports moving to the Internet is going to be an overhang for a while. This company holds a lot of amazing content. They have capabilities to produce great shows and movies, and a lot of ancillaries around that in the form of toys, etc. Perhaps this is one you could Trade. If it gets up to the $113 level, you could Sell, and if it gets down to $90 you good buy it.


Price: $107.710
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Element Fleet Management
EFN-T
Zachary Curry

When the original company split, he was more constructive on this side of the 2. A good business. Incremental revenues on solid, long term contracts. They lost a bit of credibility with the street and need to make it back. If they generate good cash flow, you could see a dividend rise. He is just going to wait and see.


Price: $10.870
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 PAST TOP PICK Facebook
FB-Q
Zachary Curry

(A Top Pick April 5/16. Up 33%.) The biggest dominant player on the Internet with users. They have the audience that is able to tweak the apps that they have. A higher multiple, but they are definitely growing through that multiple at great rates. Good balance sheet.


Price: $150.040
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 TOP PICK CGI Group (A)
GIB.A-T
Brian Madden

Canada’s largest IT service’s provider. They do systems/integration, business process outsourcing and consulting. Has a very wide array of clients, the largest of which would be the US government, but they also cater to big multinationals and telecoms, energy, manufacturing and retailing. They are introducing more and more of their intellectual property into their clients’ solutions. They’ve also been a very good acquirer of businesses. (Analysts’ price target is $74.00.)


Price: $65.970
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Alphabet Inc. (A)
GOOGL-Q
Zachary Curry

He is very keen on this. They are doing great things. On advertising and search, they are taking away from the incumbents and have lots of things in the hopper. Great balance sheet and a really durable franchise. Going forward, the virtual reality and artificial intelligence are going to be really big components for them.


Price: $977.610
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 TOP PICK Goldman Sachs
GS-N
Zachary Curry

In their last quarter, they had some trouble with their fixed income and currency side, and he views that as a “one off”. The stock was down 5%. With the proposed US deregulations and tax reform, that would be even more positive for them. There is lots of M&A going on. This is trading at 12X earnings, compared to the market which is at 17X. Feels they will generate growth of 12% for the next 3 years. Dividend yield of 1.4%. (Analysts’ price target is $251.)


Price: $223.830
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 HOLD GlaxoSmithKline PLC
GSK-N
Zachary Curry

Healthcare is being overshadowed by a whole bunch of things, demographics, government policies, etc. He is fairly constructive on healthcare. One of the few spaces that is not trading at an overvalued market multiple. One of the overhangs is the political cloud, but if you can get past that, it is a positive space to be in, and not expensive.


Price: $42.950
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 COMMENT Home Capital Group
HCG-T
Brian Madden

A company that is rapidly unravelling. They are effectively operating without an executive management team. It’s not normal for a bank or a trust company to press release their deposit book every single day. They are doing that to try and shore up confidence in the business.


Price: $8.990
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Unknown
2017-05-24 COMMENT Intel
INTC-Q
Zachary Curry

The largest chip manufacturer. A good part of their business is declining from traditional PC chips. Their latest acquisition will be positive in the long run. It is a company that makes chips for the autonomous cars. The company uses a good deal of their cash hoard, but they remain in good shape financially and pay a good dividend. He wouldn’t want to bet against this company.


Price: $36.120
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT Coca-Cola Company
KO-N
Zachary Curry

A very strong name. The real question is if they can transition from the soft drink business to the healthier side of the business. Recently they announced some layoffs. Good distribution, but you are going to have to see that transition to healthier snacks.


Price: $45.030
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 DON'T BUY Linamar Corp
LNR-T
Zachary Curry

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.


Price: $62.700
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 COMMENT Mastercard Inc.
MA-N
Zachary Curry

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. This one has a little more international exposure, and is a bit more advanced on the technology side, but Visa is the dominant player.


Price: $120.700
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 COMMENT Maple Leaf Foods
MFI-T
Brian Madden

A large meat processor. This has been evolving since about 2011. An activist investor got involved, and agitated for major changes, which they undertook. Went through a very aggressive 5-year build where they modernized their whole plant network. The modern equipment and machinery has lowered operating costs. Also, they’ve renovated their product architectures. Instead of just being a bulk processor, they’ve moved into some upmarket and higher margin segments.


Price: $34.580
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Unknown
2017-05-24 DON'T BUY Magna Int'l. (A)
MG-T
Zachary Curry

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.


Price: $60.110
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 PAST TOP PICK Magna Int'l. (A)
MG-T
Brian Madden

(A Top Pick Aug 29/16. Up 16%.) The stock faded a little on fears of the auto cycle plateauing. Investors may have forgotten that this is not just a North American auto parts Company, they have a great platform in Europe, as well as growing in Asia. They recently just reported a great quarter. He continues to like this.


Price: $60.110
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 DON'T BUY Martinrea
MRE-T
Zachary Curry

Linamar (LNR-T), Magna (MG-T) or Martinrea (MRE-T)? He doesn’t find the overall environment for auto parts manufacturers very constructive. US auto sales are at their highest levels, running north of 17 million units. This is the 2nd or 3rd year that has been going on. There is the NAFTA free trade agreement in question. Also, auto loans are coming into real focus, which in his view, are not very positive. There is some debate as to how these companies can move from an internal combustion engine to an electric car. This is too dangerous a time to be going in right now.


Price: $11.420
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 TOP PICK New Flyer Industries Inc.
NFI-T
Brian Madden

Just announced a $51 million contract from the Transportation Authority of Santa Clara. They manufacture public transit buses and luxury motor coaches, and are the dominant player in what is effectively an oligopoly. This is a backdoor play on the US as most of their revenue comes from state and local transit authorities. Dividend yield of 1.7%. (Analysts’ price target is $63.00.)


Price: $55.840
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 DON'T BUY Potash Corp of Saskatchewan
POT-T
Zachary Curry

Potash is a really hard commodity to look at. It has a cartel type of mentality. Very dependent on foreign buying. There have been a lot of letdowns with this name. He would steer away from this right now.


Price: $22.260
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT Saputo Inc.
SAP-T
Brian Madden

A very predictable, stable and mature business. Historically, management has been pretty good at finding acquisitions to shore up any gaps in growth rates. A name that always looks expensive, but people are very reluctant to part with their shares. He is pretty comfortable with the business model. Sees better growth prospects in the consumer staples sector. You could be reasonably comfortable with this stock.


Price: $43.640
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 BUY Shopify Inc.
SHOP-T
Brian Madden

On conventional valuation metrics, this looks expensive. There are no earnings, the EBITDA is negligible. Even on next year’s forecast, there is only $.14 or so of earnings and about $14 million of EBITDA. However, this is not a conventional company, it’s a company that is growing its top line at 90% to 100% a year. They have a dominant position in their sector.


Price: $122.300
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Sun Life Financial Inc
SLF-T
Zachary Curry

Had a tough Go in their last quarter with a lot of redemptions in the US on the mutual fund side. He would prefer Manulife (MFC-T) which has a stronger exposure to Asia. Also, their core business of selling insurance is going very well. He doesn’t own either. Dividend yield of 3.9%.


Price: $44.210
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-24 BUY on WEAKNESS Stantec Inc
STN-T
Brian Madden

There had been a huge, huge spike in all of the engineering/construction companies when Trump came out with all his plans on infrastructure spending. When it became questionable as to how much of this pro-growth agenda was going to be enacted, these stocks started to fall off. This company is a good acquirer and has pretty good management. Any pullback would probably be a reasonable entry.


Price: $31.240
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 COMMENT Sierra Wireless
SW-T
Brian Madden

This company reinvented itself a number of times over the years. They are a technology hardware manufacturer. This is best summed up by calling them an “Internet of things”, for all kinds of devices. From a long-term perspective, it is subject to the vagaries of the product cycle and technological obsolescence. He doesn’t care for the volatility and prefers others.


Price: $36.290
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 TOP PICK Stanley Works, The
SWK-N
Zachary Curry

He likes this because it gets him exposure to consumer spending, home renovations and the housing market without having to take on 3 distinct companies. They just sold a component of their locks division, which he views as positive. They have a new component for their tool side, coming out with a battery that works with everything and should generate good numbers for them. A positive balance sheet and some good strength sales in Europe. Dividend yield of 1.7%. (Analysts’ price target is $150.)


Price: $136.180
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Teck Resources Ltd. (B)
TECK.B-T
Brian Madden

A large producer of bulk commodities and base metals. He is not bullish on the base metals, etc. China has been the incremental buyer in a lot of these commodities over the last 10-15 years. Feels Chinese growth is slowing. He is not particularly optimistic on the stock.


Price: $24.850
Subject: CANADIAN EQUITIES, FIXED INCOME & ASSET ALLOCATION
Bias: UNKNOWN
Owned: No
2017-05-24 PAST TOP PICK Tourmaline Oil Corp
TOU-T
Zachary Curry

(A Top Pick April 5/16. Up 14%.) The 2nd largest natural gas producer in Canada. Exceptional management team.


Price: $28.410
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Yes
2017-05-24 COMMENT Visa Inc.
V-N
Zachary Curry

MasterCard (MA-N) or Visa (V-N)? Either of these would be good. They trade at multiples that are generally significantly higher than market multiples. Both companies capture the payments, and the threat of fees going down is low. MasterCard has a little more international exposure, and is a bit more advanced on the technology side, but this one is the dominant player.


Price: $94.810
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: Unknown
2017-05-24 DON'T BUY Westjet Airlines
WJA-T
Zachary Curry

Low interest rates and low fuel prices are great for airlines and are definitely working for Air Canada (AC-T), and to a lesser degree Westjet. He doesn’t own airlines because it tends to be a high fixed cost model. This airline is getting into a low-cost carrier model, following Air Canada. Pilots are coming into a union, and thinks there are a lot of headwinds on this company.


Price: $22.450
Subject: NORTH AMERICAN - LARGE
Bias: UNKNOWN
Owned: No
2017-05-23 N/A A Comment -- General Comments From an Expert
A Commentary
Eric Nuttall

Energy. It has been a challenging year for people investing in energy. He had a good year last year, and was prepared for a better oil market than what we’ve had so far. Had felt that the drawdowns would have occurred faster. While the compliance by OPEC countries was very high, a few took advantage to send oil from their own inventories and ship them to the US. We are at the point where the cut in production should be mirrored by a cut in exports. You combine that with refineries now coming back on line, as well as the US increasing their own exports to other countries. There is still more work to do. There is a despondency among investors. He is basically all in on services, with a few US EMPs. About 80% exposed to the services. We are now at a tipping point of $50 oil in the US, where demand for services exceeds supply. You are seeing huge pricing gains with regards to sand, pressure pumping and drilling. The one area that is benefiting him the most are the US service stocks.


Price: $0.020
Subject: ENERGY
Bias: BEARISH on CANADIAN MARKET
Owned: _N/A
2017-05-23 N/A A Comment -- General Comments From an Expert
A Commentary
David Burrows

Energy. Recently oil rallied from $44 to $51. While that happened, there has been very little reaction on the underlying energy equities. The OPEC meeting is coming up, there are comments from Trump, but the most interesting thing is that energy production has become sort of mass manufacturing. There is a certainty today when you drill a hole. When oil prices started to rise a year ago, energy production came on strong. There is short-term noise, such as Trump saying he was going to sell off part of his strategic reserves. That was not huge in relation to the world’s supply of oil. Investors are starting to catch on that even if we do get prices rising $5, $6 a barrel, you are going to get a supply response that means it is unlikely oil goes $10-$15-$20 higher. History of periods of very low volatility happen during extremely positive markets. In the 1980s and 1990s when there were very strong equity markets, you got extended periods of very low volatility. They happened in bull markets. When you do get volatility, it tends to end very quickly, the market resets, and works its way higher again.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: _N/A
2017-05-23 COMMENT Advantage Oil & Gas Ltd
AAV-T
Eric Nuttall

He doesn’t own a single Canadian oil/gas producer. As a country, we send 99% of our oil and gas volumes to the US. At the same time, Canada is growing production in excess of pipeline capacity, so because of that, both oil and gas are selling at a discount. Capital has left our market and is not coming back anytime soon. There are better names than this in the US.


Price: $9.030
Subject: ENERGY
Bias: BEARISH on CANADIAN MARKET
Owned: No
2017-05-23 COMMENT Align Technology Inc
ALGN-Q
David Burrows

His investment team has been debating this for a year. He really likes the company. This has technology for braces for teeth, that is non-invasive, easy to apply, and you don’t have to be an orthodontist to apply the technology. They are growing very rapidly globally. It has a very large addressable market. It appeals to mature individuals as it doesn’t show up in your mouth. He likes this one and wishes he was a shareholder.


Price: $138.220
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2017-05-23 COMMENT Alexion Pharmaceuticals
ALXN-Q
David Burrows

Biotech can be a big win or a big loss. A lot of companies have binary outcomes, their product either works or it doesn’t. This company recently had a significant disappointment. US investors are not very sympathetic to these types of situations. They shoot first and ask questions later. If you want to own biotech, he would suggest you own a tech with lots of different products, or buy an ETF that gives you a basket. This one is a broken stock.


Price: $104.640
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Unknown
2017-05-23 COMMENT Bank of America
BAC-N
David Burrows

When you’ve gone through 15-18 years of up-and-down markets, people through their experience, start to look for the next major problem. The toughest thing in a bull market is to stay invested. This was at $12 in June/16. It rallied to $25. It is okay for it to sit and rest for 2 or 3 months. In the last two quarters they have had great earnings increases. Their BV is growing at 15%. There is no sign that this is coming to an end. An attractive place to be.


Price: $23.390
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Unknown
2017-05-23 COMMENT Research In Motion Ltd. (US)
BBRY-Q
David Burrows

This has had a great run recently. They have an incredible amount of intellectual property. There is some question that somebody else might like to own this company.


Price: $11.300
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2017-05-23 COMMENT Brookfield Infrastucture Partners
BIP.UN-T
David Burrows

Brookfield Infrastructure (BIP.UN-T) or Bank of Nova Scotia (BNS-T) for better growth? Financials is a group that he has been in favour of for some time, but prefers US to Canadian. If he had to buy one of these 2, he would probably buy this one. It is an interesting collection of assets, but might underperform global markets because of being a more defensive play. As a yield play, it is kind of attractive.


Price: $54.140
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2017-05-23 PAST TOP PICK Blackrock Inc.
BLK-N
David Burrows

(A Top Pick May 25/16. Up 11%.) Asset managers are very attractive. There is an undeniable move for investors to buy Index products, and this is the leader in that space.


Price: $395.970
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2017-05-23 COMMENT Bank of Nova Scotia
BNS-T
David Burrows

Brookfield Infrastructure (BIP.UN-T) or Bank of Nova Scotia (BNS-T) for better growth? Financials is a group that he has been in favour of for some time, but prefers US to Canadian. All banks will benefit if we wind up in a rate rise cycle, but Canadian banks probably less likely. If he had to buy one of these 2, he would probably buy Brookfield Infrastructure.


Price: $76.170
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2017-05-23 COMMENT Blackstone Group LP
BX-N
David Burrows

Within the financial sector, asset management is a sector that he really likes. Once you are managing the assets, you get recurring revenue for a long period of time. This company has about 25% of the money they manage in the hedge funds, with the balance largely been in private equity and alternative assets. A great business. This is something you can own.


Price: $32.470
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Unknown
2017-05-23 TOP PICK CitiGroup
C-N
David Burrows

In the last 3 months, we have seen one by one, markets around the world lift off and start making new highs. This bank gets over 50% of its revenue from outside the US. They have $1.4 trillion in loans outstanding. Have a great credit card business. There is likely to be significant dividend and share buybacks announced in June of this year, because they now have enough capital to return 100% of their earnings back to shareholders. Dividend yield of 1.05%. (Analysts price target is $65.)


Price: $61.710
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2017-05-23 BUY CCL Industries (B)
CCL.B-T
David Burrows

A wonderful company and really well run, but has been a very hard company for somebody like him to own as it is not terribly liquid. If they do the 5 for 1 stock split this Friday, it is going to become a lot more liquid and will be more interesting for institutional investors. They’ve made great acquisitions over time and have done a good job of integrating them.


Price: $307.500
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Unknown
2017-05-23 COMMENT Cenrtennial Resource Dev Inc
CDEV-Q
Eric Nuttall

A very high quality company, where their chairman is a highly-respected gentleman. Because of that, the stock trades at a premium. Just did a financing and asset acquisition. If he had more money to buy E&P, as opposed to the services, this would definitely be on his list, especially at $16. They have pretty strong visible running room. Strong balance sheet and an unbelievably strong management.


Price: $16.170
Subject: ENERGY
Bias: BEARISH on CANADIAN MARKET
Owned: No
Displaying 1 to 60 of 164,611 total entries