Stockchase Recent Top Picks RSS Recent Top Picks by Experts http://stockchase.com/ en 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 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 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 Albemarle Corp <p>The dominant player in lithium. He believes we are going to continue to see movement to electric cars. The company makes both types of lithium that go into all the major batteries that are being sold. They&rsquo;ll triple production over the next 5 years. Model 3 is about to come from Tesla. They are becoming mass market and as you run into the beginning of a mine production, share prices tend to do well. It has twice the margin that Tesla will ever have. This will be a growth stock for many years, and they think they can maintain 50% of the market. Dividend yield of 1.2%. <em>(Analysts&rsquo; price target is $115.00.)</em></p> http://stockchase.com/opinions/view/169885 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169885 Bank of America <p>Trading at 1X BV and the multiple of Book is expanding. They have multiple drivers. They&rsquo;ve been cutting costs which has been going on for quite some time. They are getting higher interest rates, giving $600 million of additional revenue last quarter from their net interest margins. They win if there is less regulation. They win if there is economic growth, which they are getting. They win if they can return more capital by way of dividends, which they are now allowed to do. Dividend yield of 1.2%. <em>(Analysts&rsquo; price target is $26.)</em></p> http://stockchase.com/opinions/view/169884 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169884 Adobe Systems <p>The two most important themes and most resilient in this market are technology and financials. Semiconductors look great. Software looks great. This company fits in a couple of key themes. They were the original big software company to go to the Cloud, selling their software by subscription. Today, 82% of revenue comes as a subscription. That is really attractive, because it is pretty predictable. Not only that, but revenues are growing very, very nicely. Revenues were up 22% in this most recent quarter. They should be able to grow revenue at 20% for quite some time, but because they make it and sell it a lot of times, as they grow their revenue, the margins go up. Their margins went to 36% from 31%, and the earnings went up 42%. Not an inexpensive stock, but the leader in software for Digital media, and we are all consuming quite a lot of Digital media. <em>(Analysts&rsquo; price target is $143.50.)</em></p> http://stockchase.com/opinions/view/169883 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169883 American International Group <p>He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. Mr. Icahn has taken a position and he knows value, will perhaps break it apart with the sum of the parts being worth more than the whole. <em>(Analysts&rsquo; price target is $70.)</em></p> http://stockchase.com/opinions/view/169865 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169865 GlaxoSmithKline PLC <p>He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. With markets just off all-time highs, he is looking for defensive plays, not one trick biotech ponies, but ones that have a whole array of meds. This is one of the leaders in therapeutic vaccines, various compounds and strong research development. Also, it has the European tarnish and lower valuation, but their business is outside of that area with about 50% in emerging markets and 25% in North America. A dividend well north of 4%. <em>(Analysts&rsquo; price target is $48.)</em></p> http://stockchase.com/opinions/view/169864 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169864 Chevron Texaco <p>He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. This one meets all that criteria. Oil has dropped over $100 a barrel, down to about $26, and then moved up now to just below $50. As a result, companies are still shutting in production as opposed to expanding, until supply/demand come back into sync. This is a great way to play that. No matter what happens, this company is dedicated to holding up their 4% dividend yield. Also, they have already made a lot of investments such as Indonesia, so CapX is going to be further reduced, and will be able to grow their free cash flow going forward. <em>(Analysts&rsquo; price target is $126.50.)</em></p> http://stockchase.com/opinions/view/169863 Tue, 21 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169863 Parex Resources Inc. <p>An oil company in Colombia. Colombia has been one of the hidden gems in South America. The last couple of Colombian presidents have really brought stability to the country. Very friendly to oil exploration. This company has a great track record with previous companies. Good exploration and growing their reserves and production, and it is cheap. With higher oil prices, this will do very well. <em>(Analysts&rsquo; price target is $22.)</em></p> http://stockchase.com/opinions/view/169838 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169838 Intertape Polymer Group <p>This basically makes tapes. Designs things like Scotch tape, as well as making a lot of tape for industrial use, and for e-commerce. They control costs partially by phasing out older plants and building bigger and more efficient ones. Stock has been a little flat in the last couple of months because of flooding in one of their new plants, but that is fading away now. Dividend yield of 3.3%. <em>(Analysts&rsquo; price target is $27.75.)</em></p> http://stockchase.com/opinions/view/169837 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169837 DIRTT Environmental Solutions <p>You could think of this as a modular furniture company, but it is not just furniture. They do walls, they do the whole design. Give them an empty space, they can get it done. It gets measured and put it into proprietary 3-D design software so you can visualize what it looks like. What is more impressive, is that they basically have it all priced out instantaneously. <em>(Analysts&rsquo; price target is $8.63.)</em></p> http://stockchase.com/opinions/view/169836 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169836 PrairieSky Royalty <p>One of the oil patch casualties that has actually done okay. He likes royalty structures because you don&rsquo;t have capital investment risks, and this one has no debt on the balance sheet. Oil price recovery gives them torque to the upside. During the horrific oil environment of 2015-2016, they proved their ability to generate good cash flow. Dividend yield of 2.7%. <em>(Analysts&rsquo; price target is $34.75.)</em></p> http://stockchase.com/opinions/view/169818 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169818 Toronto Dominion <p>This bank bore the brunt of the negative publicity on the CBC announcement. The reality is, this is a buying opportunity. It is now trading at a multiple that is less than the banking industry in general. Dividend yield of 3.6%. <em>(Analysts&rsquo; price target is $71.50.)</em></p> http://stockchase.com/opinions/view/169817 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169817 BCE Inc. <p>This has come down because there of concerns about slowing demand for services and potentially rising interest rates. You are getting almost a 5% dividend yield, and it is going to grow. It has great cash flow generating ability. He likes their Manitoba telecom acquisition as it gives them more synergy potential. <em>(Analysts&rsquo; price target is $60.)</em></p> http://stockchase.com/opinions/view/169816 Mon, 20 Mar 2017 00:00:00 -0400 http://stockchase.com/opinions/view/169816