Opinions by Steve DiGregorio | StockChase
164
Steve DiGregorio

Portfolio Manager

ON STOCKCHASE SINCE Sep 2015

Canoe Financial


Opinions by Steve DiGregorio


Signal Opinion Expert Chart

2017-01-23

N/A
A Comment -- General Comments From an Expert 

Market. Technically, the market looks good, and thinks we are going to do good on the earnings side. On the right side of the ledger, you have all of these political issues including possible protectionism. Also, the French election and BREXIT are going to be huge issues. He is starting to take advantage and bought some energy today. Doesn’t see energy as being involved in protectionism. Looking at the trade balance between the US and Canada, it is very equal. It’s the trade with Mexico and China that the US wants to go after. Volatility is also going to go up, so you want to be positioned in a few areas for that. Gold is one area you want to have a little bit right now. Also, technology will do well as well as the energy infrastructure space.

Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $0.020
Owned: _N/A

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2017-01-23

BUY on WEAKNESS
Alaris Royalty (AD-T)

A very good management team, but not so certain he likes the structure. They go to businesses needing capital and will have a preferred equity dealt to them. They’ll get a distribution on that, which creates a yield for investors in this company. They’ve had 5 underlying businesses that have been a little challenging, which is putting pressure on the yield. Over the last 3-4 years, there have been a lot of Special Purpose Acquisition Companies coming into the market, who specifically raise money to buy private. There is more and more capital chasing less and less great companies. It is going to be harder and harder to find deals. He’d be happier buying at around BV of $18-$19.

Financial Services
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $22.710
Owned: No

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2017-01-23

PAST TOP PICK
Artis Real Estate Investment Trust (AX.UN-T)

(A Top Pick April 5/16. Up 37.7%.) (Preferred Shares.) He had an opportunity last year in the rate reset market as people were selling preferred shares off in fear of rates going to zero. Still feels there is upside. Thinks they will call this in 2018 and you still get the 6% yield. If they don’t call it, then you will get reset into a yield that is higher than what you are getting paid now.

property mngmnt/investment
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $12.360
Owned: Yes

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2017-01-23

TOP PICK
Boardwalk REIT (BEI.UN-T)

A controversial call, because somebody downgraded it recently, which took the stock down a little. The yield is good and he likes management. A pristine balance sheet. Real estate is a laggard area, and he expects that part of the market to improve. Next 2 quarters are probably not going to be great and he is expecting a trough in Q2, which is when you really want to be in this, but you have to be 6 months ahead of that because the market is already looking for this. There is a 20% Short interest on this out of the US. Dividend yield of 4.70%. (Analysts’ price target is $46.68.)

property mngmnt/investment
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $47.030
Owned: Yes

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2017-01-23

COMMENT
Brookfield Property Partners (BPY.UN-T)

Brookfield Asset Management (BAM.A-T) is trying to simplify their structure, so that they are going to just have units sending fees upwards. This is going to be one of those areas. A very well-run company. It will continue to generate yield without too much downside. It has a positive correlation to the US$. This is a global REIT. They can take money out of the US or out of Canada into the UK, etc. A very nice investment and a very well-run company.

REAL ESTATE
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $29.040
Owned: Yes

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2017-01-23

TOP PICK
Cineplex Inc (CGX-T)

He recommends this because there is no interest rate sensitivity. High quality business. It has underperformed for the last 6 months, and thinks people are going to start looking back at quality. The stock just broke out over $52 which he thinks is very positive. They also have a very good slate of movies coming out this year, and have been able to diversify away from just movies. Dividend yield of 3.11%. (Analysts’ price target is $54.82.)

other services
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $52.110
Owned: Yes

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2017-01-23

SELL
Corus Entertainment (B) (CJR.B-T)

Radio station with specialty channels. They also own a children’s program. Feels the balance sheet is stretched and that the payout ratio is a little tight. Feels it is a trading stock in the $12-$13 range. Doesn’t see the business as being sustainable long-term. Prefers something with growth such as DHX Media (DHX.B-T), however you will be giving up some yield.

entertainment services
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $13.300
Owned: No

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2017-01-23

BUY
Canadian National R.R. (CNR-T)

If there was one stock that he had to pick to hold forever to beat the TSX every year, it would probably be this one. A good area to be invested in.

Transportation
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $93.220
Owned: No

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2017-01-23

DON'T BUY
Crescent Point Energy Corp (CPG-T)

Predominantly oil with very good assets. There are a couple of problems. The main one is that they have been a serial issuer of equity. The last one was around $19, so you are going to be bumping up against that level going forward. The yield is not very much right now, so you are kind of in the middle of nowhere right now.

oil/gas
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $15.390
Owned: No

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2017-01-23

COMMENT
Capstone Infrastructure Corp. (CSE.PR.A-T)

This is yielding 7%. When it resets in 2021, it is an 8.5% yield, which is attractive. It is expensive in after-tax dollars for the company, so they might have an incentive, if rates go up, to call this preferred.

management/diversified
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $11.720
Owned: Yes

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2017-01-23

HOLD
GMP Capital Trust Inc (GMP-T)

(Preferred Series B.) Toronto Dominion (TD-T) just rejected an offer to buy their retail division. You are getting paid a 6.5% yield, that resets into 7.5%. Still thinks there is upside.

investment companies/funds
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $4.060
Owned: Yes

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2017-01-23

COMMENT
Just Energy Group (JE-T)

An OK business. It’s a marketer on energy. One of the knocks has been leverage on the balance sheet, so they de-levered the balance sheet over time. However, it is a business that is on a treadmill for life, a lot of churn. Clients leave and you always have to acquire new ones. Prefers, Crius Energy Trust (KWH.UN-T) which trades at a significantly cheaper valuation and gives a 9% yield with a 58% payout ratio. Thinks the market is undervaluing the assets. Also, it has no debt on the balance sheet.

Utilities
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $7.410
Owned: No

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2017-01-23

TOP PICK
Maxar Technologies (MAXR-T)

Satellite communications and drones. There is a lot of buying in the large-cap names in Canada, and this is where you are going to get more upside because valuations are more attractive. They make all the intelligence that is in the drones. He sees growth in the business. Valuation of 12X, which is very cheap. It was beaten down last year because of tax loss selling, and has bounced back already. Well positioned going forward given its quality. About a year ago, they got clearance from the US government to set up a US company. The majority of their manufacturing is done in California. Dividend

computer software/processing
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $72.330
Owned: Yes

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2017-01-23

COMMENT
National Bank of Canada (NA-T)

His preferred names would be Toronto Dominion (TD-T), J.P. Morgan (JP-N) and the Royal Bank (RY-T). Has a little more appetite for US exposure. He likes the shape of the yield curve in the US and expects Net Interest Margins to expand. There is nothing wrong with owning this, and it will give you a lot of torque to the upside, especially if the energy market improves.

banks
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $55.360
Owned: No

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2017-01-23

COMMENT
Peyto Exploration & Develop. (PEY-T)

A great company with a great management team, and a low-cost producer. It is significantly more gas weighted and he prefers something that is more oil weighted.

oil/gas
Steve DiGregorio

Portfolio Manager, Canoe Financial

Price: $28.220
Owned: No

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