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Stock Opinions by Stephen Takacsy, B. Eng, MBA

COMMENT
Buying opportunities in tech and renewables. During the pandemic, these two sectors performed exceptionally well. Now there are momentum strategies at work. Big rotation this year from the reopening stocks into value stocks, though he doesn't consider commodities as value stocks because they're so cyclical. Some of that is overdone, some of the cyclicals are ahead of themselves. Renewables have come down significantly, so it's a great time to get into companies like BLX or INE. On the tech side, some of the e-commerce stocks have come way down, though their businesses are booming and will for many years.
Unknown
COMMENT
EV stocks and SPACs in bubble territory. Bubbles always deflate. Monetary conditions have been so slack, one of the unintended consequences is speculative buying. Pure greed at play. Bitcoin has come way down, as there is no fundamental value backing that asset, and the greater fool theory is at work. Fed will be tightening over the next few years, and the speculatives are the first to go.
Unknown
COMMENT
Canadian and US banks. Had the usual rebound after a crisis. Well ahead of themselves. Higher than before the pandemic, which doesn't make a lot of sense. Growth is extremely limited. Good stocks to hold long-term just to collect the dividend. All the good news is baked in, and they should trend sideways. Better opportunities elsewhere for upside as well as the dividend.
Unknown
DON'T BUY
Valuation is sky-high, making it vulnerable to the downside. They tripped up a bit on last year's video acquisition. Very acquisitive. Trading at 5-6x revenue, very rich. There may still be downside. Interesting space, but lots of competition. If it got cheap enough, he'd look at it.
computer software / processing
DON'T BUY

Done well since IPO, very high growth, very rich valuation. Online gambling is really growing, and he had a bit of a problem with that. He prefers Visa and MA, more grounded businesses. Wouldn't buy at these prices.

Technology
COMMENT
Approach to IPOs. Looks at a lot of them, and occasionally participates. It's the question of valuation that matters most at the end of the day. You can't dance at every party. Most valuations are much too rich, so he shies away from them.
Unknown
BUY
Long-term, core position of his. Extremely well managed. High quality, high profit margins, inexpensive at 1.5x revenues. In a soft period, mainly because of lockdowns in Ontario and at airports. E-commerce and retail sales have increased significantly. Extremely temporary weakness. Solid balance sheet, great cashflow.
breweries / beverages
BUY
Whole telehealth sector's come down. Lots of organic growth. He still buys more at these levels. He has faith in the company and its strategy.
0
HOLD
Hit hard by the pandemic. In really good, recovering markets. Problematic balance sheet largely resolved. Should be a big year of recovery. Holds valuable technology, which would easily push the shares to $2-3.
0
COMMENT
Adage that insiders may sell for a number of reasons, but they only make significant purchases for one, which is that they think shares are undervalued. It's a big indicator for him. Also, when a conversion price on convertible debentures is lowered and a shareholder takes advantage of that, it's as though they acquired those shares. When an insider has a lot of skin in the game, they want it to work.
Unknown
HOLD
Don't look at the PE for a company like this. Great business, the pipeline in the sky. More competition is coming. Really good company. Not a cheap valuation. Hold, but keep an eye on the competitive landscape as the industry grows.
Transportation & Environmental Services
COMMENT
When not to look at PE. The E stands for earnings after taxes, depreciation, amortization, interest and lease payments, finance costs, etc. So in a capital intensive business, such as CJT, these items are significant and will depress the E. More appropriate would probably be to look at enterprise value to EBITDA.
Unknown
PAST TOP PICK
(A Top Pick Jun 16/20, Up 37%) One of his biggest positions. Still buying at these levels. Safe way to play healthcare with aging demographics and industry consolidation. Unaffected by the lockdown. Several large, transformative acquisitions. #1 institutional pharmacy player in Canada, with 20% of the market. Launching telemedicine services. Great growth for many years to come.
Healthcare
PAST TOP PICK
(A Top Pick Jun 16/20, Up 72%) Benefiting from migration to e-commerce. Big clients, including global ones. Making acquisitions which are synergistic. High margin, recurring SaaS revenues. Dirt cheap at 2x revenues. Undervalued.
computer software / processing
PAST TOP PICK
(A Top Pick Jun 16/20, Up 75%) Time to buy when fear is greatest and the news is negative. High vacancy rates are slowly waning. Solid balance sheet, safe dividend. Continued demand. Pandemic has caused costs to rise, but government is providing funding. Building new facilities, so company will start growing again.
other services
Showing 1 to 15 of 890 entries