Todd Johnson
Member since: May '13
Portfolio Manager at
BCV Asset Management Inc.

Latest Top Picks

(A Top Pick May 22/14. Down 14.7%.) (7.35% bond maturing in 2026.) Pretty much everything went wrong about 9 months ago. Bought this because he felt that over time their new C series would be built and would be quite successful. Since then, their business jet division had some issues and they had to shut down a Lear jet plane project. Their Global 7000-8000 has been delayed. Even their Global 5000-6000 has seen lower sales. Holding this bond going forward should be fine. They face challenges, but feels most of those challenges are in the rear-view mirror. Once they start selling the C series they won’t be spending as much developing or burning as much cash flow.
(A Top Pick May 22/14. Up 14.05%.) This is like a bankers’ bank. It has a big asset service theme. Costs were always running a little bit higher, and there was a bit of a lawsuit with regards to their FX a few years ago. Those things have been settled. Earnings were up about 24% year-over-year in the last quarter, mainly on slight revenue gains, but more importantly on cost cuts. Good leverage to an improving environment. Reasonable dividend of 1.5%, and over time will probably increase this 7%-10% on a total return basis.
(A Top Pick May 22/14. Down 33.35%.) Thinks the selloff has been overdone. This bank trades with oil. 40% of its assets are in Alberta. Last quarter earnings were quite good. It has sub-20 provisions for credit losses, which is well below all the other banks. Trading close to BV, and with a 3-5 year time horizon, it is a great buy.
A specialty asset backed lender. They offer loans between 15% and 20% to companies that are undergoing high growth, or are somewhat distressed in terms of balance sheet issues. Has been growing its earnings roughly about 100% over the year, year-over-year. Somewhat misunderstood. Loan losses have been extremely low. Net interest margins are very healthy. Management has been very disciplined in not taking losses. Very cheap. Trading at about 7X next year’s expected earnings. Dividend yield of 5.8%.
Earnings last quarter were up about 4%, which is pretty good in this environment. He likes their footprint. They have a good core business in the P & C business in Canada. Their capital markets business has been doing very well and is a very profitable entity. That constitutes about 40% of their earnings. Also, have a pretty good wealth management franchise. Trading at a very attractive multiple. Dividend yield of 4.85%.