Stuart Hinshelwood
Member since: Apr '13
US Equities Specialist at
BMO Nesbitt Burns

Latest Top Picks

Owns a pharmacy benefits manager (PBM), sort of the back end of the business as well as a retail storefront. With the changing landscape in healthcare, they have a really nice runway into earnings over the next couple of years. From the PBM side you are going to pick up on the drugs, but also the management of the plans that come to them as there are going to be more people under coverage now and they will have choice of coverage and this company will be relevant to them. Just reported a nice beat in earnings and have reaffirmed their guidance. Yield of 1.57%.
Management team seems to be exceptionally strong. Bought a number of companies over the last couple of years and just completed a big acquisition in Germany which makes them a big, significant, generics distributor in Europe which will be accretive to earnings. Looking out a couple of years, he could see $11-$12 in earnings. Very, very good at execution. Yield of 0.54%.
Organic growth in large cap pharmaceutical companies is something like 2%-3% and in order to offset that, they sell non-core assets and put that money back in their pipeline. This company’s pipeline has Prevnar which they are going to use in adults, as well as a breast cancer drug. These 2 drugs combined he feels are somewhere in the $2 billion range over the next couple of years. Feels the stock is worth $35-$36 on an analysis basis. Yield of 3.25%.
(A Top Pick April 19/13. Up 18.39%.) Still likes. As energy stocks sold off coming into the new year, they were pressured like everybody else. Earnings were somewhat mixed. Valuations are still reasonable, especially since the stock has pulled back.
(A Top Pick April 19/13. Up 21.37%.) They have a railcar business, healthcare technology business, 25% of revenues exposed to energy on the services and pipelines side. Have run off the capital side and earnings are naturally going to be lower. What people miss on this is that it also brings down risk exposure.