Scotia Wealth Management
Latest Top Picks
Just raised their dividend by 3% and beat last quarter by 7%. One of the problems with this bank relative to the others is that its netted interest margins are quite low at about 1.7% and they don’t have as impressive an efficiency ratio. However, he likes all the banks in general here. Try to buy it at a moving average line such as a 50 day, which is around just below $58 or $57.70.
This is a higher risk name. Trades at a real discount to the group. Thinks their enterprise value is maybe about 6% versus the groups 8%-9%. Last quarter they did about 38,000 production and are saying their exit rate will be about 56,000. They have a lot of debt.
This is a higher risk name. Trades at a real discount to the group. Thinks their enterprise value is maybe about 6% versus the groups 8%-9%. Last quarter they did about 38,000 production and are saying their exit rate will be about 56,000. They have a lot of debt.
Price target (Originally shown as Distribution in error. My apologies.) Was cut today but he still has a pretty constructive view and a price target of about $6.75. Had a precipitous fall this summer because their payout ratios blew out from a pretty conservative level to about 108% because they issued about 84 million shares. He thinks it was good use of their capital structure because it eliminates some debt and gives them the ammunition to pursue their long-term strategy of acquisitions in a fragmented space. Feels the distribution is safe and his payout ratio target is about 90% for 2013-2014. There is still growth with this name.
Price target (Originally shown as Distribution in error. My apologies.) Was cut today but he still has a pretty constructive view and a price target of about $6.75. Had a precipitous fall this summer because their payout ratios blew out from a pretty conservative level to about 108% because they issued about 84 million shares. He thinks it was good use of their capital structure because it eliminates some debt and gives them the ammunition to pursue their long-term strategy of acquisitions in a fragmented space. Feels the distribution is safe and his payout ratio target is about 90% for 2013-2014. There is still growth with this name.
Spun off Enerflex, which to him was a bit of a head scratcher. Bought it in 2010 and sold it in 2011. Really know accretive value. He would be mixed on this name. Last quarter their Q2 was up 15% which is good and did have a sequential good increase in bookings and a very solid backlog but margins were weaker than expected, which he doesn’t really think is a problem. Margin pressures will abate over the coming quarters. Would prefer Wajax (WJX-T).
Spun off Enerflex, which to him was a bit of a head scratcher. Bought it in 2010 and sold it in 2011. Really know accretive value. He would be mixed on this name. Last quarter their Q2 was up 15% which is good and did have a sequential good increase in bookings and a very solid backlog but margins were weaker than expected, which he doesn’t really think is a problem. Margin pressures will abate over the coming quarters. Would prefer Wajax (WJX-T).
(A Top Pick Sept 22/11. Up 5.71%.) Sold half his holdings at over $44. Feels there is still a lot of deflation coming in prescription drugs. However, the last quarter demonstrated why he likes it. A powerful industry consolidator and a lot of pharmas are going to be able to be competitive. There is a trend towards higher generic usage, meaning more margins for them. Very effective retailers. Good costs discipline.
(A Top Pick Sept 22/11. Up 5.71%.) Sold half his holdings at over $44. Feels there is still a lot of deflation coming in prescription drugs. However, the last quarter demonstrated why he likes it. A powerful industry consolidator and a lot of pharmas are going to be able to be competitive. There is a trend towards higher generic usage, meaning more margins for them. Very effective retailers. Good costs discipline.
(A Top Pick Sept 22/11. Up 91.4%.) Just had another great quarter on really wide crack spreads. Unfortunately that is tied to one contract that runs off in 2013. Management wants to double their EBITDA until 2016 as well as doubling the amount of volumes that flow. Still likes but getting a little pricey.
(A Top Pick Sept 22/11. Up 91.4%.) Just had another great quarter on really wide crack spreads. Unfortunately that is tied to one contract that runs off in 2013. Management wants to double their EBITDA until 2016 as well as doubling the amount of volumes that flow. Still likes but getting a little pricey.
(A Top Pick Sept 22/11. Up 11.67%.)
Convertible Debentures versus Stocks? Convertible debentures tend to be issued by higher risk companies in Canada. On the one hand they are safer because the only way you are not going to get paid is if the company goes bankrupt. But, if the company does go bankrupt, you will lose everything. Compare that to a stock in a company that is not going to go bankrupt. On a little bit of a pullback and a little bit of recession, convertible debentures are probably going to do pretty well but if there is a really big pull back like 2008, convertible debentures spreads are going to dry up. You have to be careful
Convertible Debentures versus Stocks? Convertible debentures tend to be issued by higher risk companies in Canada. On the one hand they are safer because the only way you are not going to get paid is if the company goes bankrupt. But, if the company does go bankrupt, you will lose everything. Compare that to a stock in a company that is not going to go bankrupt. On a little bit of a pullback and a little bit of recession, convertible debentures are probably going to do pretty well but if there is a really big pull back like 2008, convertible debentures spreads are going to dry up. You have to be careful
He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.
He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.
He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.
He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.
Would buy near this level. Thinks he would like it around $15.98, maybe at the 200 day moving average. Have an annual compounded growth rate of near 7%, which exceeds their diversified peers and yet it trades at a multiple slightly below market. 14X versus 16.5X for the market. Have more of a focus on Western Canada with 60% of their portfolio being mainly office. Have had rental growth of about 6.6%.
Would buy near this level. Thinks he would like it around $15.98, maybe at the 200 day moving average. Have an annual compounded growth rate of near 7%, which exceeds their diversified peers and yet it trades at a multiple slightly below market. 14X versus 16.5X for the market. Have more of a focus on Western Canada with 60% of their portfolio being mainly office. Have had rental growth of about 6.6%.
Not growing organically right now but had much better than expected 2nd quarter margins on better-than-expected restructuring. Thinks this can drive earnings for the next couple of quarters maybe. Trading at a fair valuation. Whether you Buy depends on your view of whether they can continue to grow by acquisition. Have done a great job buying and synergistically wrapping them in. Try to buy at $16.85.
Not growing organically right now but had much better than expected 2nd quarter margins on better-than-expected restructuring. Thinks this can drive earnings for the next couple of quarters maybe. Trading at a fair valuation. Whether you Buy depends on your view of whether they can continue to grow by acquisition. Have done a great job buying and synergistically wrapping them in. Try to buy at $16.85.
Thinks there is great growth in this. Doesn’t know of any area that has more visibility of growth than the pipelines and midstream infrastructure.
Thinks there is great growth in this. Doesn’t know of any area that has more visibility of growth than the pipelines and midstream infrastructure.
Thinks there is great growth in this. This is no longer a widows and orphans stock. Has tremendous growth. Doesn’t know of any area that has more visibility of growth than the pipelines and midstream infrastructure.
Thinks there is great growth in this. This is no longer a widows and orphans stock. Has tremendous growth. Doesn’t know of any area that has more visibility of growth than the pipelines and midstream infrastructure.
Good combination of yield, mild growth and relative safety. 99% occupied right now. If you are nervous about an economic contraction, this is a name that would stand up really well. Thinks they will probably hike their dividend as early as this quarter. Probably won’t do an equity raise until next year to finance growth or new acquisitions.
Good combination of yield, mild growth and relative safety. 99% occupied right now. If you are nervous about an economic contraction, this is a name that would stand up really well. Thinks they will probably hike their dividend as early as this quarter. Probably won’t do an equity raise until next year to finance growth or new acquisitions.
Just raised their dividend by 3% and beat last quarter by 7%. One of the problems with this bank relative to the others is that its netted interest margins are quite low at about 1.7% and they don’t have as impressive an efficiency ratio. However, he likes all the banks in general here. Try to buy it at a moving average line such as a 50 day, which is around just below $58 or $57.70.