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

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Stock Opinions by Robert Gill

Method for picking stocks. His firm has a disciplined, rigorous, and consistent approach to investing. Bottom-up investors. Start with the 4,000 investible companies that trade on the TSX. Look for market cap greater than $200M, actively traded and liquid, track record of over 5 years so they can see how companies do over the course of a business cycle. This leads to "research candidates" of 400 companies. Quality filter is applied, which further reduces the field to 120 companies, the "working list". All on the working list have strong balance sheets, good profitability, high return on equity and invested capital, impressive operating margins. When it's time to buy, they apply a valuation filter to the working list. Companies are ranked by quality and valuation. The winner is researched, with results distributed to the investment and management committees. If everyone is happy, the name is added to the portfolio. As long as a company is profitable, they're agnostic as to what industry it's in.
Home Capital Group
Deal with Smith Financial. High quality. Very profitable, offers mortgages at higher rates than banks. ROE is very high. Reasonable valuation, could reach the $50s, possibly room for another bidder. Smith has picked up a good asset at an attractive price.
investment companies / funds
High quality. Manufacturing is in lower-cost geographies, which results in higher operating profit margins and higher ROEs. Strong balance sheet, well managed. Very good time to add. Nice dividend yield.
clothing stores
Air Canada
Difficult business and industry. Capital intensive, lots of government regulation and competition. Not a lot of equity. Confusing capital structure. When the stock pops, take profit and deploy cash somewhere else.
Metro Inc (A)
High quality. Good package of grocery plus pharmacy. Very well run, reflected in ROE of 15-16%, better than most peers. Strong balance sheet, nice dividend. One knock is the multiple of 18x vs. market of 13x. Don't buy here. Wait for a pullback and buy for the long term.
food stores
REITs for the next year. REITs don't really match with how his firm looks at the world, so he wouldn't be putting money into them. They're looking for companies with not a lot of debt, yet able to get high profitability with high ROEs and ROCs. REITs in Canada tend to generate ROEs considerably below stock market average, yet their amount of debt is quite high. They own a limited portfolio of 20-25 names, and they don't need to be in REITs.
Pizza Pizza Royalty
Small cap. Royalty structure on number of pizzas sold, not involved in the day-to-day operations. Safe, stable, and easy. Shares have moved up considerably, wait for a pullback. Ordering a pizza isn't the only game in town anymore, space is competitive. Nice dividend yield of about 6%.
merchandising / lodging
Blue chip. Private equity firm that invests in infrastructure and real estate. Does extremely well. Shares have pulled back, good opportunity to buy. Has confidence in business model and management. Dedicated stewards of capital.
management / diversified
Suncor Energy Inc
Blue chip Canadian energy. All about generating maximum return for shareholders. A good one to own for the long term. Fortunate to own Petro-Can downstream, with plans to expand EV capabilities and convenience store options. Despite frustrations, energy markets seem strong right now. Impressive dividend yield.
integrated oils
High quality, second largest in Canada, top 25 in the world. Well run, likes it. Financial metrics are favourable. He'd buy.
Metrics for evaluating banks. Fundamentals such as strong balance sheet, tier 1 and core capital ratios compared to the industry and peers, ROE, various profitability metrics. Ability to pay the dividend consistently and to increase the dividend and return capital to shareholders.
60% owned by BAM. Renewable energy is highly sought after, lots of demand. In last 7 years, has only made a profit once. Concerned with management decisions. Investments made below cost of capital. Sell, redeploy cash to a more profitable business model.
Provides data to end markets for a variety of industries. Unique. Likes what they do. Capital light. Still, shares have run up. He'll wait until there's a good buying opportunity.
publishing / printing
A Comment -- General Comments From an Expert
Gold. Price of gold is caught in the middle but, overall, he'd be slightly bearish. Not working as well as an inflationary hedge as it has in the past, partly because the Fed's aggressiveness is really increasing the USD, so people are moving towards it instead of gold.
Barrick Gold
If you want exposure to gold, this is one you can buy with confidence. Management doing a good job. These companies don't fit with his firm's view of the world, since their profitability tends to below market average. Despite the pullback, he wouldn't be interested.
precious metals
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