Varun Anand
Member since: Jul '19
Portfolio Manager at
Starlight Capital
Starlight Capital
20 Opinions
Latest Top Picks
A data center company more geared to investors that want more growth. European data centers. Europe is about 5 years behind the US in data center build out. They have a big runway of growth. Your growth will come from earnings growth. (Analysts’ price target is $81.00)
It is a good candidate for environmental social governance investing. It is renewable energy. Assets are in Canada and France. They are guiding to a much stronger pipeline in France than originally anticipated. They are going into solar and battery technology also. (Analysts’ price target is $32.32)
He focuses on their cable business. Last quarter they had a 10% increase in growth due to pricing as well as subscriber growth. That is the sweet spot. The market is underestimating the transition of the cable business. (Analysts’ price target is $48.09)
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July 8, 2019
Market. He has a more broad-based definition of infrastructure so it includes data centers, towers and some of the transports. He excludes pipelines. His stocks have under-performed global equities in growth in 2001, 2008 and 2015. Renewable energy costs are falling and especially in a place like India. It is a driving theme there – see the space where he would talk about past picks.
Market. He has a more broad-based definition of infrastructure so it includes data centers, towers and some of the transports. He excludes pipelines. His stocks have under-performed global equities in growth in 2001, 2008 and 2015. Renewable energy costs are falling and especially in a place like India. It is a driving theme there – see the space where he would talk about past picks.
Varun Anand
Portfolio Manager, Starlight Capital
DON'T BUY
DON'T BUY
July 8, 2019
It is an infrastructure conglomerate. They cut the dividend last year by 60%. It was a rough ride. They have since repurposed their terminals and have had some good progress. They sold some non-core assets and paid down some debt. The payout ratio is more sustainable where it is today. It is a volatile stock and be would not recommend it.
It is an infrastructure conglomerate. They cut the dividend last year by 60%. It was a rough ride. They have since repurposed their terminals and have had some good progress. They sold some non-core assets and paid down some debt. The payout ratio is more sustainable where it is today. It is a volatile stock and be would not recommend it.
Transportation & Environmental Services
DON'T BUY
DON'T BUY
July 8, 2019
They are one of the largest utilities in the US. It is about 22 times forward earnings and he is trimming it based on that. He does not see as much growth coming out of it. It is the dominant renewable energy player, especially in wind.
They are one of the largest utilities in the US. It is about 22 times forward earnings and he is trimming it based on that. He does not see as much growth coming out of it. It is the dominant renewable energy player, especially in wind.
electrical utilities
BUY
BUY
July 8, 2019
He really likes the rails. It is basically impossible to build out any more national rail networks. He prefers Canadian rails to the US because they have not been experiencing as much of a volume decline. CNR-T is best in class management. They have more growth opportunities out of their core business. CNR-T and CP-T are his favourite rail picks.
He really likes the rails. It is basically impossible to build out any more national rail networks. He prefers Canadian rails to the US because they have not been experiencing as much of a volume decline. CNR-T is best in class management. They have more growth opportunities out of their core business. CNR-T and CP-T are his favourite rail picks.
Transportation
BUY
BUY
July 8, 2019
Data Center Sector. Equinix is a name he really likes. It is the most popular name. It is more of a defensive business model. In data centers you can whole-sale with a big tenant, or inter-connect where there are thousands of businesses in the same data center, which is what this one is. It has better pricing power in this model. They have a model that you can't really replicate.
Data Center Sector. Equinix is a name he really likes. It is the most popular name. It is more of a defensive business model. In data centers you can whole-sale with a big tenant, or inter-connect where there are thousands of businesses in the same data center, which is what this one is. It has better pricing power in this model. They have a model that you can't really replicate.
REAL ESTATE
HOLD
HOLD
July 8, 2019
It is a large terminal that exports coal. He would hold the company. They just finished a capital expansion phase. The dividend is set up to be increased quite a bit. The con side is that it comes down to coal. There is met. coal and thermal coal. TECK.B-T (met. Coal) is about 10% of their business. They hinted at driving some capacity away from WTE-T.
It is a large terminal that exports coal. He would hold the company. They just finished a capital expansion phase. The dividend is set up to be increased quite a bit. The con side is that it comes down to coal. There is met. coal and thermal coal. TECK.B-T (met. Coal) is about 10% of their business. They hinted at driving some capacity away from WTE-T.
INDUSTRIAL PRODUCTS
WEAK BUY
WEAK BUY
July 8, 2019
This was supposed to be a sleepy, easygoing utility. They did a deal in the US that was not seen that positively. It trades at a discount now. He thinks the discount is warranted due to management, who needs to be trusted. They need to articulate their strategy and then have some wins. He is seeing better opportunities than this one.
This was supposed to be a sleepy, easygoing utility. They did a deal in the US that was not seen that positively. It trades at a discount now. He thinks the discount is warranted due to management, who needs to be trusted. They need to articulate their strategy and then have some wins. He is seeing better opportunities than this one.
electrical utilities
BUY
BUY
July 8, 2019
Unsightly towers are put up all across the country and then carriers put equipment on these towers to transmit frequencies. Once the tower is built there is really no more expense to the company. They collect rent from the carriers. As you add them to your tower, your margins skyrocket. 5-G will be the dominant theme over the wireless space but it will be very lumpy. Carriers will have to deploy small cells between towers. He does not expect this to be the dominant theme in the near term.
Unsightly towers are put up all across the country and then carriers put equipment on these towers to transmit frequencies. Once the tower is built there is really no more expense to the company. They collect rent from the carriers. As you add them to your tower, your margins skyrocket. 5-G will be the dominant theme over the wireless space but it will be very lumpy. Carriers will have to deploy small cells between towers. He does not expect this to be the dominant theme in the near term.
Telecommunications
N/A
N/A
July 8, 2019
Renewable Energy in India. They have a lot of coal fired emissions. It is now economic to generate by solar panels. It makes economic sense. There is no variable cost to solar. A coal plant takes almost 48 hours to start up and it adds to the operating costs. Solar is 10% cheaper in India than coal. Solar power is still only 3.6% of generation in India.
Renewable Energy in India. They have a lot of coal fired emissions. It is now economic to generate by solar panels. It makes economic sense. There is no variable cost to solar. A coal plant takes almost 48 hours to start up and it adds to the operating costs. Solar is 10% cheaper in India than coal. Solar power is still only 3.6% of generation in India.
Varun Anand
Portfolio Manager, Starlight Capital
PARTIAL SELL
PARTIAL SELL
July 8, 2019
US or Canadian Utilities. He would not add simply based on valuation. They are all trading at all time highs. This has been a risk-off trade, a crowded trade, so it is not about growth. He has been reducing them in his portfolio.
US or Canadian Utilities. He would not add simply based on valuation. They are all trading at all time highs. This has been a risk-off trade, a crowded trade, so it is not about growth. He has been reducing them in his portfolio.
Varun Anand
Portfolio Manager, Starlight Capital
DON'T BUY
DON'T BUY
July 8, 2019
He does not consider it an infrastructure stock. The chart is brutal and now the supreme court may be saying they violated rules with bribery in Libya. They may not be able to bid on Canadian contracts for 10 years with the government if they are found guilty.
He does not consider it an infrastructure stock. The chart is brutal and now the supreme court may be saying they violated rules with bribery in Libya. They may not be able to bid on Canadian contracts for 10 years with the government if they are found guilty.
contractors
DON'T BUY
DON'T BUY
July 8, 2019
It is a great company. They are better positioned now. It is about a 5% yield increasing at high single digits. It is an asset drop down model and he prefers companies that develop assets from the ground up.
It is a great company. They are better positioned now. It is about a 5% yield increasing at high single digits. It is an asset drop down model and he prefers companies that develop assets from the ground up.
Energy Infrastructure, Industrials & Utilities
DON'T BUY
DON'T BUY
July 8, 2019
It is a data center company. He does not see the longevity of their business model. He would be on the sidelines. He believes the discount that it trades at is warranted.
It is a data center company. He does not see the longevity of their business model. He would be on the sidelines. He believes the discount that it trades at is warranted.
Financial Services
DON'T BUY
DON'T BUY
July 8, 2019
Their equipment was linked to the wildfires in California last year. It has always been at a discount to the group and it was due to poor safety and reliability figures. This is not their first time being in hot water. He does not want to be involved with these companies. He prefers SRE-N for California utilities.
Their equipment was linked to the wildfires in California last year. It has always been at a discount to the group and it was due to poor safety and reliability figures. This is not their first time being in hot water. He does not want to be involved with these companies. He prefers SRE-N for California utilities.
electrical utilities
BUY WEAKNESS
BUY WEAKNESS
July 8, 2019
He loves everything about this business but it is so expensive. Structural growth, fragmented market, and excellent management team. They have to deliver on absolutely everything at their multiple. It is up 144% in 5 years. He would wait for a pull back in order to invest more.
He loves everything about this business but it is so expensive. Structural growth, fragmented market, and excellent management team. They have to deliver on absolutely everything at their multiple. It is up 144% in 5 years. He would wait for a pull back in order to invest more.
electrical utilities
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