Jason Mann
Member since: May '15
CIO & Co-Founder at
Edgehill Patners

Latest Top Picks

(A Top Pick May 10/19, Down 75%) This looked better two days ago--all energy stocks have been hammered. ERF has a reasonable balance sheet. He sold this. It looked like this had found a bottom at a super cheap 2.5x valuation, cheaper now after the Oil Shock. Big question: When does price momentum start going down? Selling begets selling. He's sidelined on all oil stocks.
(A Top Pick May 10/19, Down 14%) Shippers were up yesterday, Black Monday, because everyone needs to store their oil like Gibson's. But all these companies suffer counter-party risk with their end customers. GEI has done relatively well against peers. Price momentum and valuation are not bad. Offers a 23% ROE. Trades in line with pipeline companies at 11x EBITDA. A reasonable balance sheet and pays a decent yield. He still holds it.
(A Top Pick May 10/19, Down 12%) They're effectively a private equity firm. It's doing well considering markets now. They look to generate a 15% return on their portfolio of energy, infrastructure and power. This market is lining up perfectly for someone with cash. There'll be opportunities for debt rescue or capitalizing companies or buying them outright--Brookfield is good at these. Short term this stock will be painful, but you want own this long term. A good balance sheet. A reasonable price.
A stock that can thrive during and after the coronavirus. PHM is one of the largest US homebuilders. We're now past years of overbuilding. Inventory has burned off and building permits are up. The US Fed just cut rates 0.5% and likely will cut another 0.5% in coming months. Now home purchases should follow. Great balance sheet and cheap at 11x earnings. Pays a small yield, but at a low payout ratio. They can increase that or do more acquisitions. Strong price momentum. (Analysts’ price target is $47.79)
Benefits from the coronavirus. They run a national lab diagnostics and testing business. They have an immediate tailwind from the US about to mass-test people for the virus. Good price momentum, low-vol and trades at a 14% ROE at a so-so 20x earnings. (Analysts’ price target is $112.79)