Rating Card

premium

Unlock Expert's Rating and Top Picks Portfolio

Curated by Michael O'Reilly since 2020
1550+ opinions with 4.81 rating (one of the best performing expert)


Stock Opinions by Stockchase Insights

BUY
Parkland Fuel Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PKI is up roughly 5% today as it rejected its largest shareholder, Simpson Oil's, request for a review of strategic alternatives. We continue to like PKI here and while the added executive and shareholder disagreements are not great for the stock, its fundamentals have shown significant improvements. 
Unlock Premium - Try 5i Free

merchandising / lodging
BUY ON WEAKNESS
Open Text
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

OTEX has total debt of $8.84B and net debt of $7.84B. Total debt to equity ratio is 2.2x and Total debt to EBITDA is 5.8x, so debt is definitely high and one reason for lower valuations. OTEX is currently paying a decent yield of 2.77% and looking at payout ratio from free cash flow over the last twelve months is 37%. We do not think there is much risk in the dividend at these levels. While debt is high, interest coverage ratios are more comforting with an EBIT/Interest Expense of 1.5x and EBITDA/Interest Expense of 2.6x. So while debt is at high levels, OTEX is generating enough adjusted earnings to cover payments. OTEX is also expected to see high growth this year and is benefiting from AI tailwinds. While OTEX's current year outlook for growth is good, beyond, 2024 things are expected to slow. The decline in share price it has seen could be attributed partially to debt concerns but also investors shifting to other tech/AI options that have longer runways for growth. 

OTEX shares some slight similarities with CSU and LMN just due to the broad software exposure that all the companies have. CSU of course has a huge suite of software offerings due to its acquisitive growth strategy so there is some overlap. OTEX has a significantly weaker balance sheet and growth outlook compared to CSU and LMN. While OTEX is very cheap right now, but it is fundementally weaker than the latter two and should be substantially cheaper. 
Unlock Premium - Try 5i Free

computer software / processing
HOLD
Adobe Systems
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ADBE has been under tremendous pressure after the most recent earnings release, although the operating results were largely in line with expectations, one of the key reasons for the drop is due to weak forward guidance and the market fear of whether Artificial Intelligence tools could disrupt this business, and negatively affect the growth prospect of ADBE’s over the next few years. ADBE’s management is well aware of this risk and already has some products in place to address this risk (such as Firefly – its generative AI creative tool), the company also has a large repurchase program of up to $25B, which we like. That said, the degree of uncertainty is high here given the risk of technological disruption, we would be okay to hold ADBE here but not a significant position.
Unlock Premium - Try 5i Free

computer software / processing
COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

What is a "Covered Call"?

A covered call involves an investor who holds a long position in a stock, selling call options on a portion of the position they hold. This can be a bit confusing, but one way to intuitively think about it is that the investor is selling the right for someone else to buy their stock at a prespecified price. So, the investor who holds the stock benefits from being paid the call premium while the buyer of the option will only exercise it if the price rises. The ideal scenario for an investor using covered calls is if the option is not exercised which means they get to keep the premium and do not have to sell shares at a loss. In the event that the call option is exercised, the investor is taking a loss by selling shares below their market value, but this is partially offset by the appreciation of the holdings that the investor did not sell calls on.
Unlock Premium - Try 5i Free

Unknown
BUY
Brookfield Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Brookfield has an excellent management team with a great history of successful capital allocation. BN is a direct investor in real asset projects and has a lot of capital to deploy for future growth. It has been one of the best performing stocks in the TSX for several years, however, with the recent downturn in the real estate sector over the past few years, it has been under pressure. But, the real estate sector being a cyclical area is likely to return eventually, and when it does, BN is one of the best capital allocators in the space. 
Unlock Premium - Try 5i Free

investment companies / funds
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We do like HXQ and it is our top pick for a CAD ETF that tracks the NASDAQ-100. We also think XQQ is another good option although it is hedged. XQQU is the unhedged version but it is very new, small and charges a higher fee so we like HXQ better. HXQ is also a 'total return' fund that pays no distributions, and this can be efficient for taxes. 
Unlock Premium - Try 5i Free

E.T.F.'s
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

CRL provides drug discovery and safety testing services and is now trading at 22.6 times' Forward P/E (historical averages range from 19x to 33x). In the last five years, revenue growth was quite healthy, averaging around 12% on average, largely driven through acquisitions. The balance sheet is slightly leveraged, with net debt of $2.8B and net debt/EBITDA of around 2.7x. The company has been growing and repurchasing shares over the last few years. It is a solid company in our view, but as might be expected the valuation is a little expensive given the high quality of the business (not excessive though at 22X earnings).  Based on consensus estimates, sales are expected to grow by 2% this year and then normalize to around 7% over the next few years. Overall, an interesting name with strong growth and healthy cash generation. We would be comfortable owning it. 
Unlock Premium - Try 5i Free

0
COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Market Update:

The US consumer price index (CPI) in March came in hotter than expected, a 3.5% annual gain compared to the economist forecast of 3.4%, indicating the June rate cut becomes unlikely. On the other hand, the Bank of Canada held its interest rate steady at 5%, mentioning it needs to see clear evidence that progress on inflation is sustained before any rate cut. The Canadian dollar was 72.9 cents USD. The U.S. S&P500 ended the week flat, while the TSX was down 0.3%.

It was a mixed week of greens and reds. Materials rose 3.4%, while energy gained 1.9%. Consumer staples and industrials edged up by 1.0% and 0.5%, respectively. Real estate stayed flat while financials slid by 1.1%, while information technology and consumer discretionary both ended the week down 0.8%. The most heavily traded shares by volume were Toronto-Dominion Bank, Crescent Point Energy and Argonaut Gold.
Unlock Premium - Try 5i Free

Unknown
BUY
Coinbase Global
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Coinbase is at the forefront of developing critical blockchain infrastructure and is really the main and only player in the US crypto space. COIN has helped to begin bridging the gap between the traditional finance world and the crypto network layer. For 2024 COIN aims to focus on driving revenue through improving its core trading and USDC (US dollar stablecoin), driving utility in crypto with experiments in payments using USDC and Base (its layer-2 chain), and drive regulatory clarity of the industry.

It launched a layer-2 network on the Ethereum blockchain called Base, which has seen transaction volume skyrocket over the past month, and it now has $1.5B in total value locked. The company continues to innovate by offering a coinbase smart wallet which allows for easy onboarding and storage of private keys for users. Through certain 'on-chain' metrics, we can see that trading volumes have surged in March 2024, and it is possible that Coinbase will have a strong Q1. 

COIN is expecting to report in early May, although the date is not yet confirmed. Overall, as the leading centralized crypto ecosystem company in North America, we like COIN in the current market backdrop.
Unlock Premium - Try 5i Free

Financial Services
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Investors are still fretting about the decline in the backlog, and then its largest shareholder compounded problems by selling a large block of shares. We would remain a HOLD at the current (cheap) valuation and reference this recent answer. We might start picking away with more at the $42 level in any further declines. 
Unlock Premium - Try 5i Free

misc industrial products
BUY
Starbucks
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

 SBUX is a highly dominant consumer brand and is now trading at 20.5x times' Forward P/E (historical averages range from 20.7x to 32x). In the last few years, revenue growth was solid at low double-digits, but the share price has been under pressure recently due to the exposure to China’s market, which has experienced a slowdown in consumer spending. The balance sheet is slightly leveraged with $21.1B in net debt and net debt/EBIT is around 2.1x which is still under control. Due to capital investment to expand store count, SBUX is expected to grow its EPS around 15% this year, which is quite healthy. The company has grown its dividend consistently by around 10% per annum in the last five years. We think SBUX is quite cheap now and would be comfortable buying here. 
Unlock Premium - Try 5i Free

food services
COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Pros of Investing in the US Stock Market:

1. Diverse Opportunities:

The US markets offer a wide range of sectors, including technology, healthcare, and consumer goods. The US is home to mega-cap tech giants that help drive innovation and have a global impact. The US healthcare sector is also of global importance, with large pharmaceutical, biotech, medical devices, and other companies.

2. Liquidity and Depth:

The US stock market is the largest in the world by market capitalization, and it encompasses a variety of of publicly traded companies across different sectors. Its high trading volumes ensure easy buying and selling of stocks. Investors appreciate this liquidity because it allows them to execute trades swiftly.

3. Innovation and Growth:

The US is a breeding ground for cutting-edge companies that drive technological advancements, disrupt industries, and redefine how we live and work. Silicon Valley hosts a cluster of tech giants, startups, and venture capital firms.
Unlock Premium - Try 5i Free

Unknown
BUY
Enbridge
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think ENB remains a BUY for income. The Permian Basin and pipeline JV is fairly big, with ENB committing $350M plus $150M for a 19% interest in the JV. While big, keep in mind ENB's market value is $101B, so it may not be a huge financial impact right away. But certainly these JVs are positive developments to provide longer term revenue and cash flow visibility and growth. 
Unlock Premium - Try 5i Free

oil / gas pipelines
BUY
Nextracker
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We would attribute a lot of the weakness simply to investor boredom and digesting recent gains. In the short-term, NXT can trade in sympathy to interest rate expectations, with rates impacting feasibility of solar projects, so there might be some sentiment around rates weighing on shares. Overall though, the fundamentals remain strong as does the growth and tax credits/infrastructure spending over the next two years should act as a support for demand of their products.
Unlock Premium - Try 5i Free

Technology
BUY
Ovintiv
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

As a predictive question it is of course difficult. OVV is quite cheap and producing nice free cash flow. Positive momentum has returned to the sector. It has room for further dividend hikes. We would be comfortable holding for a while. 
Unlock Premium - Try 5i Free

0
Showing 1 to 15 of 2,029 entries