Stockchase Opinions

Peter Hodson Alliance Data Systems ADS-N TOP PICK Aug 23, 2005

A little bit of a valuation creation play and a little bit of an income trust play. They have the air miles program in Canada. The Aeroplan went to an income trust and was a huge success. Sees $20 of value for air miles and for a $40 stock feels you can get a $50 handle on it if they go that route. If it goes to $50, would clear out.
$41.270

Stock price when the opinion was issued

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TOP PICK
Their Air Miles makes them a lot of money along with their private label credit cards. Buy in the low $20's and the teens. A good long term buy.
PAST TOP PICK
(Was a top pick on Apr 30/03. Up 21%.) Still likes, but too high now.
DON'T BUY

A horror show with three CEOs in the last 14 months. Even before COVID, this was in bad shape. It was oversold during the spring, but rebounded partly by June. Then the US sunbelt got hit with the second wave, which pushed down this stock. It's a tricky one. It's cheap, selling at 4x next year's estimated earnings, but estimates for it have fallen. It's a value trap. A COVID vaccine will boost this stock, but there are better ways to play the recovery (i.e. Visa or Paypal).