Christopher Blumas
Member since: Jul '19
Vice-President & Portfolio Manager at
GlobeInvest Capital Management
GlobeInvest Capital Management
22 Opinions
Latest Top Picks
Energy infrastructure name. Durable cash flow profile. Overhangs are Line 3 and growth. Tremendous value. Defensive business, and you're paid a fantastic dividend to wait. Valuation's still compelling even if there is no growth. Yield is 6.67%. (Analysts’ price target is $54.88)
His favourite. Not firing on all cylinders right now. Domestic acquisitions, internationally restructuring. Negative sentiment around it. Price multiple is 10x. Building out scale in Canada, increasing efficiencies. Globally, tapping into emerging middle class. Yield is 4.92%. (Analysts’ price target is $77.36)
Plan to break up 3 main platforms, and merge aerospace with Raytheon. Can easily see valuation of 30-40-50% above where it currently is. Yield is 2.15%. (Analysts’ price target is $154.40)
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COMMENT
COMMENT
July 25, 2019
Impact of central banks. Strong year for equity markets. Big catalyst for that has been central bank policy. They tightened in 2018, and global money supply shrank, so they had to reverse course, and markets rallied strongly from there. We're still trying to get back to normal. Challenge is that the economy can't grow without capital.
Impact of central banks. Strong year for equity markets. Big catalyst for that has been central bank policy. They tightened in 2018, and global money supply shrank, so they had to reverse course, and markets rallied strongly from there. We're still trying to get back to normal. Challenge is that the economy can't grow without capital.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
COMMENT
COMMENT
July 25, 2019
Fed rate cut next week? That's one of the three potential negative catalysts for the market. How many will there be and how deep? Could catch investors off guard. He thinks 25 basis points is sufficient. Keep your eye on this.
Fed rate cut next week? That's one of the three potential negative catalysts for the market. How many will there be and how deep? Could catch investors off guard. He thinks 25 basis points is sufficient. Keep your eye on this.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
COMMENT
COMMENT
July 25, 2019
Did they go too far in their previous hiking cycle? Thinks they did. They did it to give wiggle room if the economy weakened. Global growth has slowed dramatically, so decisive action needs to be taken around the world.
Did they go too far in their previous hiking cycle? Thinks they did. They did it to give wiggle room if the economy weakened. Global growth has slowed dramatically, so decisive action needs to be taken around the world.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
COMMENT
COMMENT
July 25, 2019
Mixed bag of big beats and big disappointments. That's the dichotomy between companies that can grow and those that aren't growing. The quarter has been surprisingly strong.
Mixed bag of big beats and big disappointments. That's the dichotomy between companies that can grow and those that aren't growing. The quarter has been surprisingly strong.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
DON'T BUY
DON'T BUY
July 25, 2019
Well run. To make money in the long run, you have to be a counter-cyclical acquirer like Suncor. If you're holding it for income, you might want to stick with it. Resilient cash flow profile. But as a total return growth stock, better opportunities elsewhere. Shareholder friendly. Yield is north of 4%. One concern is oil prices. He'd be more defensive.
Well run. To make money in the long run, you have to be a counter-cyclical acquirer like Suncor. If you're holding it for income, you might want to stick with it. Resilient cash flow profile. But as a total return growth stock, better opportunities elsewhere. Shareholder friendly. Yield is north of 4%. One concern is oil prices. He'd be more defensive.
integrated oils
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
$39.030
Unknown
COMMENT
COMMENT
July 25, 2019
Are Canadian energy names doing enough to explain that, in the future, energy will be more than oil and gas? We're making steps. Western companies are frustrated with the political environment. If it takes too long to become globally competitive, it makes the total return weak. There is value in the energy patch, but if we can't figure out how to ease the pipeline bottlenecks, it's going to be dead money for a few years.
Are Canadian energy names doing enough to explain that, in the future, energy will be more than oil and gas? We're making steps. Western companies are frustrated with the political environment. If it takes too long to become globally competitive, it makes the total return weak. There is value in the energy patch, but if we can't figure out how to ease the pipeline bottlenecks, it's going to be dead money for a few years.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
DON'T BUY
DON'T BUY
July 25, 2019
Avoid this one. Made a plan to do a very large acquisition, because their core line is declining. Allocating capital, and taking on debt, to mask a problem, and that's a red flag. Value trap.
Avoid this one. Made a plan to do a very large acquisition, because their core line is declining. Allocating capital, and taking on debt, to mask a problem, and that's a red flag. Value trap.
DON'T BUY
DON'T BUY
July 25, 2019
Stay away. Retail is tough. At this stage of the cycle, a lot of things they sell are discretionary. If the cycle turns down, he wants to be in something more defensive. Longer term, you have to figure out how they can grow. Domestically constrained, and competition is increasing.
Stay away. Retail is tough. At this stage of the cycle, a lot of things they sell are discretionary. If the cycle turns down, he wants to be in something more defensive. Longer term, you have to figure out how they can grow. Domestically constrained, and competition is increasing.
specialty stores
HOLD
HOLD
July 25, 2019
Really likes, and would buy at current prices. Focused on getting more vertically integrated. Awesome job at getting more efficient. Cost-cutting will drive earnings growth, and it's a lower risk source. Second lever is demand for the commodities. Buybacks and paying higher dividends. Valuation compelling. Volatile, but hang in there.
Really likes, and would buy at current prices. Focused on getting more vertically integrated. Awesome job at getting more efficient. Cost-cutting will drive earnings growth, and it's a lower risk source. Second lever is demand for the commodities. Buybacks and paying higher dividends. Valuation compelling. Volatile, but hang in there.
agriculture
HOLD
HOLD
July 25, 2019
banks
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
$103.800
Unknown
BUY WEAKNESS
BUY WEAKNESS
July 25, 2019
An unbelievable 10-15 year turnaround. A wonderful business. His buy price is $125. Keep your eye on it. Firing on all cylinders. Cloud infrastructure growing like crazy, as is the legacy Microsoft suite. Business model has evolved well to subscriptions. Reasonable multiple, phenomenal company. Wait for a pullback.
An unbelievable 10-15 year turnaround. A wonderful business. His buy price is $125. Keep your eye on it. Firing on all cylinders. Cloud infrastructure growing like crazy, as is the legacy Microsoft suite. Business model has evolved well to subscriptions. Reasonable multiple, phenomenal company. Wait for a pullback.
computer software/processing
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
$140.190
Unknown
COMMENT
COMMENT
July 25, 2019
Top 3 tips on how to build and protect your portfolio. These tips let you stay invested in uncertain times. 1) Figure out ideal mix of growth stocks vs. income stocks. Too easy to concentrate on too many cyclicals, bad balance sheets, and value traps. Really powerful to use extra cash flow to buy when things are down. 2) Know yourself and your investment style. Having some style flexibility lets you respond to what the market's giving. 3) Set sector and single name exposure limits. Easy to let the portfolio drift, and all of a sudden you're overweight.
Top 3 tips on how to build and protect your portfolio. These tips let you stay invested in uncertain times. 1) Figure out ideal mix of growth stocks vs. income stocks. Too easy to concentrate on too many cyclicals, bad balance sheets, and value traps. Really powerful to use extra cash flow to buy when things are down. 2) Know yourself and your investment style. Having some style flexibility lets you respond to what the market's giving. 3) Set sector and single name exposure limits. Easy to let the portfolio drift, and all of a sudden you're overweight.
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
DON'T BUY
DON'T BUY
July 25, 2019
Avoid. Tough sector, as it's unproven. Economics haven't been figured out. Revenues good, profits weak. Still tough to tell who the winners will be. A commodity has global competition. Too speculative. Unlikely that Constellation Brands will put more money in right now, but they will try to exert more influence.
Avoid. Tough sector, as it's unproven. Economics haven't been figured out. Revenues good, profits weak. Still tough to tell who the winners will be. A commodity has global competition. Too speculative. Unlikely that Constellation Brands will put more money in right now, but they will try to exert more influence.
agriculture
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
$46.180
Unknown
DON'T BUY
DON'T BUY
July 25, 2019
Avoid. Fallen angel. Turnaround 2.0. Good job morphing from hardware to software. Thinks that eventually they'll be acquired. Value trap. Fairfax is going to want to get the value up, and then get out.
Avoid. Fallen angel. Turnaround 2.0. Good job morphing from hardware to software. Thinks that eventually they'll be acquired. Value trap. Fairfax is going to want to get the value up, and then get out.
electrical/electronic
Christopher Blumas
Vice-President & Portfolio Manager, GlobeInvest Capital Management
$9.520
Unknown
WEAK BUY
WEAK BUY
July 25, 2019
Really good company. A software consolidator. Likes CGI and Constellation Software a bit better. Organic growth is quite reasonable. Valuation reasonable. Trading at a discount. Buy it to compound capital over the long term. Look elsewhere for dividend income. (Analysts’ price target is $43.00)
Really good company. A software consolidator. Likes CGI and Constellation Software a bit better. Organic growth is quite reasonable. Valuation reasonable. Trading at a discount. Buy it to compound capital over the long term. Look elsewhere for dividend income. (Analysts’ price target is $43.00)
computer software/processing
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