John Kim
Member since: Mar '16
Portfolio Manager at
Aston Hill Financial

Latest Top Picks

They bought Time-Warner in a huge deal, so the big knock against them is taking on debt to do that. Also, can they blend TW successfully? Another knock is not growing their wireless subscribers; it's been slow and uneven. That said, ATT still generates a lot of free cash flow. Their priority is to pay down that debt, which will bring economic value to shareholders. It's simple math. Expect a 10% return + huge dividend of 6%. (Analysts’ price target is $34.28)
The Aetna purchase hasn't officially closed; there's another round of court hearings in July then the judge decides. He expects it to pass. The companies have already integrated. He loves this integration. Low valuation that pays a nice yield just below 4%. (Analysts’ price target is $69.97)
They have a big catalyst coming up at the end of the year with the big Deutsche Bucht offshore wind project in the North Sea which will bump up their free cash flow by a third. With this they can raise their dividend (nearly 5% now) or buy back shares. You should get low-teens returns in the next few years. He expects the payout ratio to fall below 60% in 2020. (Analysts’ price target is $27.17)
(Top Pick Aug 22/16, Up 4.71%) He still likes it. It’s also a Top Pick. It had a drop due to an insider trading case with a significant holder of the stock. It trades at a low multiple. It has a mass of free cash flow that pays down debt. It has a lot of leverage but they can pay it down about 10% a year.
(Top Pick Aug 22/16, Down 9.68%) It was just in the news because it sold its truck load business to TransForce here in Canada. They are a logistics company. They also own an LTL division. People thought XPO’s sale was at a low valuation, but he disagrees.