Opinions by Bryden Teich | StockChase
22
Bryden Teich

Portfolio Manager

ON STOCKCHASE SINCE Jan 2018

Avenue Investment Management

22
Bryden Teich

Portfolio Manager

ON STOCKCHASE SINCE Jan 2018

Avenue Investment Management


Opinions by Bryden Teich


Signal Opinion Expert Chart
N/A
General Market Comment 

January 12, 2018

Energy? On the back of this global growth, there is definitely room for oil to head higher in 2018. The 2 key questions will be, what will the US supply growth do this year and will OPEC be able to hold their production cuts. At the end of next year, he expects we will be at almost 100 million barrels of oil a day in demand. The price Canadian companies are receiving for their oil is much lower than what the world oil price is. Oil by rail will be another huge story for 2018. He still thinks the bias is for oil to head higher. He is expecting a $70+ handle on oil before the end of the year.

Energy? On the back of this global growth, there is definitely room for oil to head higher in 2018. The 2 key questions will be, what will the US supply growth do this year and will OPEC be able to hold their production cuts. At the end of next year, he expects we will be at almost 100 million barrels of oil a day in demand. The price Canadian companies are receiving for their oil is much lower than what the world oil price is. Oil by rail will be another huge story for 2018. He still thinks the bias is for oil to head higher. He is expecting a $70+ handle on oil before the end of the year.

Unknown
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$0.020
Owned Owned
_N/A

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N/A
General Market Comment 

January 12, 2018

Cannabis. Is it better to go with an ETF or choose one of the current companies? When would be a good time to get in? Not a space he is in right now. He looks for consistent businesses that generates positive earnings. There is a speculative frenzy going on now, so a lot of the shares have gone up incredibly. You are much better to own as a basket, because nobody knows who is going to be a winner.

Cannabis. Is it better to go with an ETF or choose one of the current companies? When would be a good time to get in? Not a space he is in right now. He looks for consistent businesses that generates positive earnings. There is a speculative frenzy going on now, so a lot of the shares have gone up incredibly. You are much better to own as a basket, because nobody knows who is going to be a winner.

Unknown
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$0.020
Owned Owned
_N/A

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BUY
Altagas Ltd(ALA-T) 

January 12, 2018

He really likes the utility space in Canada. It's a sector he feels will do well this year. Made a good acquisition and are almost through the regulatory process, which is just a few more hurdles. Not trading at an expensive multiple, and you are getting about a 6.5% yield.

oil/gas

He really likes the utility space in Canada. It's a sector he feels will do well this year. Made a good acquisition and are almost through the regulatory process, which is just a few more hurdles. Not trading at an expensive multiple, and you are getting about a 6.5% yield.

oil/gas
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$29.080
Owned Owned
Yes

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COMMENT
Amazon.com(AMZN-Q) 

January 12, 2018

It's very tough to own this if you don't own it already. It’s such an incredible company. What they are doing with the Cloud is really incredible.

specialty stores

It's very tough to own this if you don't own it already. It’s such an incredible company. What they are doing with the Cloud is really incredible.

specialty stores
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$1305.200
Owned Owned
No

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TOP PICK

With their recent acquisition, they have close to 7,700 gas bars/convenience stores in North America. Also has a footprint in Europe. It’s still growing its EBITDA at close to 18% a year. It is incredible the amount of synergies they are taking out of these businesses. Dividend yield of 0.6%. (Analysts' price target is $76.)

food stores

With their recent acquisition, they have close to 7,700 gas bars/convenience stores in North America. Also has a footprint in Europe. It’s still growing its EBITDA at close to 18% a year. It is incredible the amount of synergies they are taking out of these businesses. Dividend yield of 0.6%. (Analysts' price target is $76.)

food stores
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$65.130
Owned Owned
Yes

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COMMENT
Bank of America(BAC-N) 

January 12, 2018

Own 2 or 3 US banks or an ETF? The ETF will do well, but Bank of America (BAC-N) is entering a sweet spot in the cycle. There are things they are doing in cutting costs. It has the most exposure to small businesses and US consumer. They’re entering a point where they can buy back a lot of stock and increase the dividend. He would choose this over an ETF.

banks

Own 2 or 3 US banks or an ETF? The ETF will do well, but Bank of America (BAC-N) is entering a sweet spot in the cycle. There are things they are doing in cutting costs. It has the most exposure to small businesses and US consumer. They’re entering a point where they can buy back a lot of stock and increase the dividend. He would choose this over an ETF.

banks
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$31.190
Owned Owned
Unknown

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BUY
BCE Inc.(BCE-T) 

January 12, 2018

Have done a really excellent job in rolling out their 5 network and Platform 5 to the home. This is the most well diversified and consistent business. It’s not trading at an expensive multiple. Pays almost 5% in dividend.

telephone utilities

Have done a really excellent job in rolling out their 5 network and Platform 5 to the home. This is the most well diversified and consistent business. It’s not trading at an expensive multiple. Pays almost 5% in dividend.

telephone utilities
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$57.920
Owned Owned
Yes

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TOP PICK
Blackstone Group LP(BX-N) 

January 12, 2018

This is sort of a quasi-financial name. Just announced they are acquiring Pure Industrial REIT (AAR.UN-T). They are really in the sweet spot of the cycle. All their underlying funds are doing well. There is a huge opportunity for them to grow their infrastructure fund. Dividend yield of 6.7%. (Analysts' price target is $40.)

investment companies/funds

This is sort of a quasi-financial name. Just announced they are acquiring Pure Industrial REIT (AAR.UN-T). They are really in the sweet spot of the cycle. All their underlying funds are doing well. There is a huge opportunity for them to grow their infrastructure fund. Dividend yield of 6.7%. (Analysts' price target is $40.)

investment companies/funds
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$35.390
Owned Owned
Yes

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COMMENT
Cineplex Inc(CGX-T) 

January 12, 2018

It's been a tough year for them. A lot of headwinds that had been building for a few years, finally hit them this year. The suite of movies was not as strong. Has done a great job of diversifying with rec room, which has been a huge success. Their Digital business is really, really great. There are too many headwinds. Dividend yield of about 4%, but are paying out 100% of free cash flow. Don't get sucked in by looking at the dividend yield. If the box office doesn't change, at some point they will not be able to sustain their free cash flow. He is not looking at this one.

other services

It's been a tough year for them. A lot of headwinds that had been building for a few years, finally hit them this year. The suite of movies was not as strong. Has done a great job of diversifying with rec room, which has been a huge success. Their Digital business is really, really great. There are too many headwinds. Dividend yield of about 4%, but are paying out 100% of free cash flow. Don't get sucked in by looking at the dividend yield. If the box office doesn't change, at some point they will not be able to sustain their free cash flow. He is not looking at this one.

other services
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$33.830
Owned Owned
No

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BUY on WEAKNESS

One of the staples in his portfolio. He will add or trim when it gets to certain levels. The issue with rails is that there is a lot of uncertainty with NAFTA. If something negative were to happen on the NAFTA front, rails would certainly be impacted. These are really great, long term consistent businesses, operating in a sort of oligopoly. It's one you want to own over the long-term. He would be a buyer on weakness.

Transportation

One of the staples in his portfolio. He will add or trim when it gets to certain levels. The issue with rails is that there is a lot of uncertainty with NAFTA. If something negative were to happen on the NAFTA front, rails would certainly be impacted. These are really great, long term consistent businesses, operating in a sort of oligopoly. It's one you want to own over the long-term. He would be a buyer on weakness.

Transportation
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$101.040
Owned Owned
Yes

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TOP PICK
CVS Health Corp(CVS-N) 

January 12, 2018

Just made the acquisition of Aetna, which is still pending approval. There is a consistency of the business and they're spinning off an incredible amount of free cash flow and buying back a ton of stock. Had a bit of volatility through the end of the year, because of an article regarding Aetna and the multiple they were going to have to pay. There was also concern about Amazon (AMZN-Q) entering the pharmacy space. This is inexpensive relative to the rest of the market, trading at 12X earnings. Dividend yield of 2.5%. (Analysts' price target is $88.)

specialty stores

Just made the acquisition of Aetna, which is still pending approval. There is a consistency of the business and they're spinning off an incredible amount of free cash flow and buying back a ton of stock. Had a bit of volatility through the end of the year, because of an article regarding Aetna and the multiple they were going to have to pay. There was also concern about Amazon (AMZN-Q) entering the pharmacy space. This is inexpensive relative to the rest of the market, trading at 12X earnings. Dividend yield of 2.5%. (Analysts' price target is $88.)

specialty stores
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$78.780
Owned Owned
Yes

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HOLD
Delta Air Lines Inc(DAL-N) 

January 12, 2018

Doesn't own any airlines right now. Had looked at Air Canada (AC-T) which had an incredible year last year. You could come up with a million and one issues of why you would never want to own an airline, but at the same time you could make an argument that you are in the sweet spot of a cycle for the airlines.

Transportation

Doesn't own any airlines right now. Had looked at Air Canada (AC-T) which had an incredible year last year. You could come up with a million and one issues of why you would never want to own an airline, but at the same time you could make an argument that you are in the sweet spot of a cycle for the airlines.

Transportation
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$59.830
Owned Owned
No

Must be logged in to use chart
COMMENT
Dollarama Inc.(DOL-T) 

January 12, 2018

Had definitely missed the boat on this one. At the level it is currently, it is priced for perfection. But at the same time, they are growing earnings significantly.

Consumer Products

Had definitely missed the boat on this one. At the level it is currently, it is priced for perfection. But at the same time, they are growing earnings significantly.

Consumer Products
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$155.050
Owned Owned
No

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STRONG BUY
Enbridge(ENB-T) 

January 12, 2018

A great level to buy this. After they reported, they hadn't reconfirmed the guidance for dividend growth, so there was uncertainty. There was speculation they were going to have to do an equity raise, which they did. With the Spectra acquisition, their capital program is massive so it’s a highly leveraged company. Adding equity at the level they did was the right thing to do. He bought more when it sold off. A great company to own.

oil/gas pipelines

A great level to buy this. After they reported, they hadn't reconfirmed the guidance for dividend growth, so there was uncertainty. There was speculation they were going to have to do an equity raise, which they did. With the Spectra acquisition, their capital program is massive so it’s a highly leveraged company. Adding equity at the level they did was the right thing to do. He bought more when it sold off. A great company to own.

oil/gas pipelines
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$49.570
Owned Owned
Yes

Must be logged in to use chart
COMMENT
Alphabet Inc. (A)(GOOGL-Q) 

January 12, 2018

It's amazing how incredible the company has been. He wonders if there will be regulations cracking down on the kind of monopoly behaviour they have. This would have to be a lot lower in price for him to own it.

Business Services

It's amazing how incredible the company has been. He wonders if there will be regulations cracking down on the kind of monopoly behaviour they have. This would have to be a lot lower in price for him to own it.

Business Services
Bryden Teich

Portfolio Manager, Avenue Investment Ma...

PricePrice
$1130.650
Owned Owned
No

Must be logged in to use chart
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