CEO; Co-CIO & Sr Portfolio Manager at Sprott Asset Management
Member since: Mar '13 · 244 Opinions
He would not buy it. The risk/reward profile is too high. They bet the farm on the ‘C’ series. They are trying to get very large orders from clients. The purchasers want to service them for a long time but it is questionable whether BBD.B-T will be around that long. It makes the prospect of getting more orders much, much more difficult. It is a coin toss.
It is interesting. When oil first declined, the price moved up, thinking there was some temporary benefit. The price of AC-T has now come lower. It has to do with pricing and capacity. There is always a concern with airlines that they won’t manage the business well. The industry has benefited from consolidations. It is looking more interesting here, but he is waiting for it to make a base.
A double from 2012. It came off about 20-25% recently. There is a concern on the asset side about investment of premiums and how much is invested in energy. The second biggest part of their growth was in Asia. Those are the headwinds. The stock eventually will price in the energy piece. He thinks this is starting to look a little more interesting.
He owned it earlier in the cycle. The concern is where you peak. At 18 million units in the US in a year is about as good as it is going to get. They announced a nice deal with BMW last week. It is more of an industry call. He thinks markets will struggle right now as we decide if we are going into global recession.
Markets. A year from now we will not be looking at such low crude prices. It is a classic supply/demand imbalance and since we are not going into a global recession, it will come into balance. The lowering of interest rate has had a 3 standard deviation effect in how fast the currency has gone done. This could hold the bank of Canada back from cutting rates this week. No one wants their currency sliding this quickly.