Stockchase Daily News RSS The Days Comments by Experts http://stockchase.com/ en A Comment -- General Comments From an Expert <p><span style="color: red; font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>Market.</strong></span><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> The market has basically gone up on thin air since the US elections. Even if tax cuts and infrastructure go through, they take a long time to filter through to the bottom line. The market may be realizing that those things are more difficult to implement than initially thought, and is getting quite stretched. He doesn&rsquo;t think any US policies are going to be able to create strong sustainable growth. We still live in a very slow growth world with some deflationary forces, aging population, excess capacity and we are going to remain in the low interest rate environment. The market has gotten way ahead of itself relative to the growth rate. He is sitting on about 16% cash in his portfolios, way larger than what he has ever had, and waiting for whatever triggers a pullback such as European elections. The best way to make money is to be patient and buy when things are cheap.</span></p> http://stockchase.com/opinions/view/169886 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169886 Savaria Corp <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">One of his biggest positions. A great company. Manufactures accessibility equipment such as stair lifts, home elevators, ramps, vehicle conversions, etc. It is the only investable company on the TSX that gives you exposure to the sector. Very well-managed. The stock is a little pricey, but you are paying for the scarcity value.</span></p> http://stockchase.com/opinions/view/169887 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169887 Input Capital Corp <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A unique business model, and it has only been around for a few years. They give money to farmers in exchange for a revenue stream on canola production. What drives the stock higher is their deployment, i.e., how many farmers can they sign deals with over the next few years. This is usually seasonally. Expects there will be news over the next few months, in terms of how much capital they are going to be able to deploy this year. These are early days, and they are just scratching the surface. There are a lot of canola farmers in Western Canada.</span></p> http://stockchase.com/opinions/view/169888 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169888 Clearwater Seafoods Inc. <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Has very valuable harvesting seafood licenses, and very dependent on the US$. When the dollar is strong, they do well. Very capital intensive, as ships are expensive to buy and maintain. You really have to look at the free cash flow generation over a long period of time. The stock has been treading water for the last few years. Not something he would put in his portfolio.</span></p> http://stockchase.com/opinions/view/169889 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169889 Knight Therapeutics <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Phenomenal management. You have to look at this as a big mutual fund of investments in healthcare and biotech. They are sitting on a ton of cash, and probably just waiting in the weeds for some fallout from some of the other companies in order to make a big move. This is for extremely patient investors. As a long-term investment for your kids and grandchildren, you can&rsquo;t go wrong.</span></p> http://stockchase.com/opinions/view/169890 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169890 Student Transport of America Ltd. <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">An extremely well-managed company. A tough industry with very low growth and a lot of competition. Management is using technology to their advantage to increase efficiencies. They are winning a lot of contracts and reinvesting a lot in the fleet. Doesn&rsquo;t expect a lot of organic growth, or winning contracts from competition. Attractive dividend yield. He owns the convertible debentures.</span></p> http://stockchase.com/opinions/view/169891 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169891 CCL Industries (B) <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Had owned this from $36 to over $200, but sold it recently and bought Winpak (WPK-T) which he likes better. It has more organic growth and trades at a lower multiple. CCL has done a great job integrating acquisitions. A very well-managed company, but finds it very expensive right now.</span></p> http://stockchase.com/opinions/view/169892 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169892 ZCL Composites Inc. <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Underground tanks and storage solutions. He doesn&rsquo;t follow it closely. These things come in big waves, and right now they are on a bit of a roll. Feels it is fully valued here.</span></p> http://stockchase.com/opinions/view/169893 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169893 D-Box Technologies <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A very good buying opportunity. He&rsquo;s been buying at around $0.40. A bit of a lumpy business, depending on where the backlog stands. The backlog has been down a little in the last few quarters, because they haven&rsquo;t announced too many seat deployments. They are working on multiple fronts such as virtual reality, home theatre, but the big upside is going to be increasing penetration in movie theatres with their motion systems. Because there is a big CapX program going on in North America, to replace the seats with recliners, they have developed a reclining seat with a motion system in it. Also, thinks China is going to blast off for them as some point. These things take time so you have to be patient.</span></p> http://stockchase.com/opinions/view/169894 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169894 Andrew Peller <p><span style="color: red; font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick March 22/16. Up 18%.)</strong></span><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> One of his biggest positions for many, many years. Extremely well-managed. They&rsquo;ve grown the business, mainly organically through new products and reducing costs. Also, benefiting from the reform in Ontario, which allows food retailers to sell wine. There are about 75 new outlets now that have to give shelf space to Ontario wine companies. Still a Buy. Under $11 is a good price.</span></p> http://stockchase.com/opinions/view/169895 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169895 Logistec Corp <p><span style="color: red; font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick March 22/16. Down 9%.)</strong></span><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> This has been one of his biggest winners over the last 10 years, going from $8 to $70. However, it has been treading water for the last 2 years or so. Last year was rough with marine cargo volumes being down. They&rsquo;ve expanded some operations, so costs went up. Also, had a terrible fire in Georgia, which basically had them shut down for almost a year. Just came out with a very, very strong 4<sup>th</sup> quarter and announced some acquisitions and new contracts. In 2017 you are going to see this get back on the path of growing their top and bottom lines. This is still a Buy.</span></p> http://stockchase.com/opinions/view/169896 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169896 Ten Peaks Coffee Co <p><span style="color: red; font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick March 22/16. Down 27%.)</strong></span><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> Got a little ahead of itself. Last week they came out with record 4<sup>th</sup> quarter results after some lumpiness through the year, caused by delays in orders by clients. Came out with a solid $.46 EPS for the year under the new accounting standards, which really measures the true profitability of the company. There are high barriers to entry. The only global company that can process 100% organic, chemical free, decaffeinated coffee. They are now exporting all over the world.</span></p> http://stockchase.com/opinions/view/169897 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169897 Park Lawn Corp <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">The only publicly traded company in Canada where you can invest in the funeral and cemetery business. Cemeteries are very valuable assets, because it is very difficult to get new permits. This company is also able to build mausoleums on their grounds, so they have a huge future revenue stream coming. A very well-managed company. A little expensive, but that is because of the scarcity value. You buy this on weakness, and just put it away.</span></p> http://stockchase.com/opinions/view/169898 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169898 Bombardier Inc (B) <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">He doesn&rsquo;t follow this closely. A tough, high-stakes business that gobs up enormous amounts of capital. Good luck on been able to get a decent return on capital. They have a lot of challenges. Up against some big competitors. They still have to get their house in order financially. There is no real free cash flow being generated to speak of. Not a good business to invest in.</span></p> http://stockchase.com/opinions/view/169899 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169899 MTY Food Group <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">He loves the company and management team. Bought this at $1.65 and sold it in the $30s. The stock treaded water for a while. They&rsquo;ve done a great job of acquiring and integrating, however it is a very competitive industry. Most food service stocks are showing negative same store sales growth. Made a big acquisition in the US, which was what drove the stock higher from the $30s into the $40s. Quite expensive at these levels. Prefers others.</span></p> http://stockchase.com/opinions/view/169900 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169900 Shaw Communication (B) <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Probably a decent buy right now. He&rsquo;s been looking at this very carefully for the last 6 months, waiting for the right moment. You have to track their subscriber losses. They are locked in a battle in Western Canada with Telus (T-T), and are having to reinvest a lot of capital into getting the Wind Mobile Sutherland network up to snuff. A good investment for a long-term. You are getting a good yield while waiting for things to stabilize.</span></p> http://stockchase.com/opinions/view/169901 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169901 Ag Growth International Inc <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A great company. One of the few ways of playing the agricultural sector in a sort of safer non-commoditized way. They make grain and fertilizer handling and storage equipment. Growing internationally. Very well-managed. The stock is down because they did a fairly large equity financing at around $54-$55 in the last few months. However, results have been very, very good. It gives you international exposure to needy infrastructure space overseas. A good entry point.</span></p> http://stockchase.com/opinions/view/169902 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169902 Intertape Polymer Group <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Packaging, but in products that are a lot more commoditized than some of the others. Management has done a great job turning the company around. Up against some 800 pound gorillas such as 3M. They are looking for &ldquo;value added&rdquo; products to launch in small acquisitions. They are modernizing and expanding some of the plants. Not a cheap stock, but thinks management is going to succeed.</span></p> http://stockchase.com/opinions/view/169903 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169903 BCE Inc. <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">He is buying at these levels for new clients. A rock solid, extremely well-managed company. The stock is up on days the market is down. It has that negative correlation, acting somewhat bond-like. They have growing businesses, the whole wireless side. This is one you want to own for a long time.</span></p> http://stockchase.com/opinions/view/169904 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169904 Telus Corp <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">An extremely well-managed company. One of the best CEOs in Canada. A great business. He would be buying this in the low $40s.</span></p> http://stockchase.com/opinions/view/169905 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169905 High Liner Foods <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A well-managed company. It is unique, but over the last few years seafood sales in the US have struggled. It seems that when the US$ goes up, the price of seafood goes up also. Consumption per capita doesn&rsquo;t seem to be going up in the US on seafood, even though it is healthier. Thinks it is going to tread water for a while. Not expensive, but quite volatile. You may want to buy when it has a bad quarter.</span></p> http://stockchase.com/opinions/view/169906 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169906 Cargojet Inc <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">This stock has gone up a lot in a short period of time. The company has done a great job revamping its fleet to meet the huge Canada Post contract. Feels it is fully valued now, and would buy it on weakness. Basically has 90% of the overnight air cargo market in Canada.</span></p> http://stockchase.com/opinions/view/169907 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169907 Brick Brewing Company Ltd. <p><span style="font-family: 'Times New Roman',serif; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Very impressed with management. They&rsquo;ve done a really, really good job in turning the company around. It&rsquo;s a very competitive business, beer mainly, but now they have some spirits they are manufacturing, with the rights to sell, market and distribute. The stock is rather expensive, but they&rsquo;ve been delivering good quarterly sales growth/earnings growth. Wait until the earnings catch-up with the stock price.</span></p> http://stockchase.com/opinions/view/169908 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169908 Napec Inc <p>One of the leading construction and maintenance services to electrical and gas utilities. Over 80% of revenues come from the US. They will definitely benefit from more infrastructure spending, but have a huge backlog of work right now. The gas and electrical transmission lines in the US are being replaced and expanded. Made a couple of very accretive acquisitions which should start kicking in soon. Very cheap, trading at under 6X EBITDA. <em>(Analysts&rsquo; price target is $1.38.)</em></p> http://stockchase.com/opinions/view/169909 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169909 Corus Entertainment (B) <p>This is one that you buy, hold and don&rsquo;t let it go. In the large cap space, it is probably the best value out there. Still misunderstood. The largest TV broadcaster in Canada. Everybody is worried about cord cutting and cord shaving, but they bought Shaw Media about a year ago, and now the cost synergies and revenues are kicking in. Over the next 12 months, he expects the company to return to growth. Subscriber growth has already started to go back up thanks to Disney and some of the other specialty channels. They just renegotiated their ad agency contracts, presumably at higher rates. Dividend yield of 9%. <em>(Analysts&rsquo; price target is $13.)</em></p> http://stockchase.com/opinions/view/169910 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169910 Veresen Inc <p>He likes energy infrastructure pipelines and midstream. They are like toll booths and are worth a lot of money. This one is very much misunderstood. Everyone thought they were going to cut the dividend over the last few years. This is the old Port Chicago, which basically owned 50% of the Alliance pipeline with Enbridge, but the company has been radically transformed over the last 3-4 years, and is now a premier gas infrastructure play. One of the cheaper companies in the sector. Dividend yield of 7.4%. <em>(Analysts&rsquo; price target is $16.)</em></p> http://stockchase.com/opinions/view/169911 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169911 A Comment -- General Comments From an Expert <p>Tonight&rsquo;s show was a special on the Federal Budget 2017. Viewers were to call in as to how the new budget would affect them. Out of the 3 panelists, only one, Christine Poole, was actually in the investment area. In the first 30 minutes, there were no questions on any individual stocks, and very little discussion on the market. Also, with 3 panellists, it was very hard to track and cover who was saying what. Because of this, I have decided to forgo doing tonight&rsquo;s show. Bill.</p> http://stockchase.com/opinions/view/169912 Wed, 22 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169912