Robert McWhirter
Member since: Nov '00
President at
Selective Asset Management
Selective Asset Management
2501 Opinions
Latest Top Picks
(A Top Pick Feb 07/20, Down 15%) People are travelling less and buying less gas. The additional items purchased in-store after filling up is a major component of their business. Covid turnaround play and you should see higher revenues once the virus fades away. Maybe in a year or two, the government may be more receptive to the bid for Carrefour if the chain is struggling. He thinks the move is soundly based on their previous acquisition and operation strategies.
(A Top Pick Feb 07/20, Up 28%) Still on track for production. They will probably continue to do well. Still good upside for the company. The company trades at a discount due to its geographic location. Well-ranked by model.
(A Top Pick Feb 07/20, Up 7%) The acquisition of Clearwater was well received by investors. It adds to their distribution of sandwich meats and prepackaged foods. Everybody is trying to eat more healthfully, which should be a tailwind. Still holds it and the outlook is reasonable.
Has a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price target is $20.59)
Auto companies continue to outsource engineering and manufacturing. They do assembly. Sales were up 17% with earnings up 98%. 91% earnings growth expected for this year. ROE is around 20%. Has broken out of a 2 year negative trend. There is around a 38% upside potential. (Analysts’ price target is $118.76)
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COMMENT
COMMENT
February 26, 2021
Interest rates. Yesterday the bond rates traded at 1.6%. Rising interest rates means good economic growth. A little rise in bonds is also a good thing. How high should it go? Historically, as long as it does not go above 270 basis points from the low, it's okay. US rates could go back to 3.26% before you get into the pain points, almost a doubling from today. Near term interest rates has caused an intermediate correction in equities of 7%-10% which has happened. Once it's behind us, in the next 2 months, we see a good ride up for small caps and cyclicals. It could be a year for Canada to shine this year.
Interest rates. Yesterday the bond rates traded at 1.6%. Rising interest rates means good economic growth. A little rise in bonds is also a good thing. How high should it go? Historically, as long as it does not go above 270 basis points from the low, it's okay. US rates could go back to 3.26% before you get into the pain points, almost a doubling from today. Near term interest rates has caused an intermediate correction in equities of 7%-10% which has happened. Once it's behind us, in the next 2 months, we see a good ride up for small caps and cyclicals. It could be a year for Canada to shine this year.
COMMENT
COMMENT
February 26, 2021
FANGS. They peaked around November of last year and they are trailing even today. Overall rates will impact on the near term, but the correction depends on which sector you are in. S&P will be less affected than the tech stocks.
Show full opinionHide full opinionFANGS. They peaked around November of last year and they are trailing even today. Overall rates will impact on the near term, but the correction depends on which sector you are in. S&P will be less affected than the tech stocks.
SPECULATIVE BUY
SPECULATIVE BUY
February 26, 2021
An internet protocol telephone system company. A big market is Korea. Their acquisition in process is transformative. The stock has potential 2-3x upside.
Show full opinionHide full opinionAn internet protocol telephone system company. A big market is Korea. Their acquisition in process is transformative. The stock has potential 2-3x upside.
Telecommunications
BUY
BUY
February 26, 2021
Makes puffy cement that has insulating potential that can be used for road beds, bridges, etc. Joe Biden's infrastructure plan is a tailwind. The challenge is that the company has great numbers but they do not frame them properly. Their backlog is approximately $100M. Their sales relative to backlog is $12M. Backlog is 5x. Book of business is twice their backlog. It's also a covid play since once it recedes, the concerns in construction will go away. A great opportunity for them to do well.
Show full opinionHide full opinionMakes puffy cement that has insulating potential that can be used for road beds, bridges, etc. Joe Biden's infrastructure plan is a tailwind. The challenge is that the company has great numbers but they do not frame them properly. Their backlog is approximately $100M. Their sales relative to backlog is $12M. Backlog is 5x. Book of business is twice their backlog. It's also a covid play since once it recedes, the concerns in construction will go away. A great opportunity for them to do well.
INDUSTRIAL PRODUCTS
BUY
BUY
February 26, 2021
They are working with a very large Italian bank that is about the same size as BMO. Working on a program, MarketWall, that will allow trading on mobile. They are adding AI for fundamentals and appropriateness for dividend coverage and risk level. They announced they have all the IPs needed. The company wants to sell this product to other banks through white-label. There is huge volume growth opportunities. In 3 months, hopefully we will get a decision from the Italians. A great opportunity going forward.
They are working with a very large Italian bank that is about the same size as BMO. Working on a program, MarketWall, that will allow trading on mobile. They are adding AI for fundamentals and appropriateness for dividend coverage and risk level. They announced they have all the IPs needed. The company wants to sell this product to other banks through white-label. There is huge volume growth opportunities. In 3 months, hopefully we will get a decision from the Italians. A great opportunity going forward.
BUY
BUY
February 26, 2021
A company that has a software to bring efficiency to the pharmaceutical industry. It helps with work flows. Their strategy is land and expand. Results were better than expected. The sales cycle is long. There is significant upside as they convert to sales and visible recurring revenue. Higher profitability is on the horizon.
Show full opinionHide full opinionA company that has a software to bring efficiency to the pharmaceutical industry. It helps with work flows. Their strategy is land and expand. Results were better than expected. The sales cycle is long. There is significant upside as they convert to sales and visible recurring revenue. Higher profitability is on the horizon.
Technology
PAST TOP PICK
PAST TOP PICK
February 26, 2021
(A Top Pick Feb 07/20, Down 15%) People are travelling less and buying less gas. The additional items purchased in-store after filling up is a major component of their business. Covid turnaround play and you should see higher revenues once the virus fades away. Maybe in a year or two, the government may be more receptive to the bid for Carrefour if the chain is struggling. He thinks the move is soundly based on their previous acquisition and operation strategies.
Show full opinionHide full opinion(A Top Pick Feb 07/20, Down 15%) People are travelling less and buying less gas. The additional items purchased in-store after filling up is a major component of their business. Covid turnaround play and you should see higher revenues once the virus fades away. Maybe in a year or two, the government may be more receptive to the bid for Carrefour if the chain is struggling. He thinks the move is soundly based on their previous acquisition and operation strategies.
food stores
PAST TOP PICK
PAST TOP PICK
February 26, 2021
(A Top Pick Feb 07/20, Up 28%) Still on track for production. They will probably continue to do well. Still good upside for the company. The company trades at a discount due to its geographic location. Well-ranked by model.
Show full opinionHide full opinion(A Top Pick Feb 07/20, Up 28%) Still on track for production. They will probably continue to do well. Still good upside for the company. The company trades at a discount due to its geographic location. Well-ranked by model.
precious metals
PAST TOP PICK
PAST TOP PICK
February 26, 2021
(A Top Pick Feb 07/20, Up 7%) The acquisition of Clearwater was well received by investors. It adds to their distribution of sandwich meats and prepackaged foods. Everybody is trying to eat more healthfully, which should be a tailwind. Still holds it and the outlook is reasonable.
Show full opinionHide full opinion(A Top Pick Feb 07/20, Up 7%) The acquisition of Clearwater was well received by investors. It adds to their distribution of sandwich meats and prepackaged foods. Everybody is trying to eat more healthfully, which should be a tailwind. Still holds it and the outlook is reasonable.
food processing
STRONG BUY
STRONG BUY
February 26, 2021
One of their largest holdings. Makes renewable diesel. They is a US comparable GEVO with a market cap of 2B which is making a plant in South Dakota to make renewable diesel. CMC produces renewable diesel with plants that make 10,000L/hour. Comparing the plants, you get the same output as GEVO expect it costs $80M USD instead of $700M USD. The market cap of CMC is 1/8 of GEVO. The opportunity is there. They must be able to produce a biodiesel with less than 15ppm of sulphur. A massive potential market for existing distribution and even more for additional plants. (Analysts’ price target is $8.00)
Show full opinionHide full opinionOne of their largest holdings. Makes renewable diesel. They is a US comparable GEVO with a market cap of 2B which is making a plant in South Dakota to make renewable diesel. CMC produces renewable diesel with plants that make 10,000L/hour. Comparing the plants, you get the same output as GEVO expect it costs $80M USD instead of $700M USD. The market cap of CMC is 1/8 of GEVO. The opportunity is there. They must be able to produce a biodiesel with less than 15ppm of sulphur. A massive potential market for existing distribution and even more for additional plants. (Analysts’ price target is $8.00)
Energy
BUY
BUY
February 26, 2021
There is the healthcare side with COVID testing in Canadian film and production industry as well as saliva testing geared towards students. There is also the AI side that has good outlook. The cashflow from covid is good. It is at a lower price to market cap than US counterparts.
Show full opinionHide full opinionThere is the healthcare side with COVID testing in Canadian film and production industry as well as saliva testing geared towards students. There is also the AI side that has good outlook. The cashflow from covid is good. It is at a lower price to market cap than US counterparts.
Financial Services
BUY WEAKNESS
BUY WEAKNESS
February 26, 2021
Biden's renewable energy incentives will be a benefit. The backlog is in excess of $100M. They now have enough cash to build out opportunities. They are building rooftop installations in New York, Vermont and other places. Still holds a position.
Show full opinionHide full opinionBiden's renewable energy incentives will be a benefit. The backlog is in excess of $100M. They now have enough cash to build out opportunities. They are building rooftop installations in New York, Vermont and other places. Still holds a position.
TOP PICK
TOP PICK
February 26, 2021
Has a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price target is $20.59)
Show full opinionHide full opinionHas a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price target is $20.59)
contractors
TOP PICK
TOP PICK
February 26, 2021
Auto companies continue to outsource engineering and manufacturing. They do assembly. Sales were up 17% with earnings up 98%. 91% earnings growth expected for this year. ROE is around 20%. Has broken out of a 2 year negative trend. There is around a 38% upside potential. (Analysts’ price target is $118.76)
Show full opinionHide full opinionAuto companies continue to outsource engineering and manufacturing. They do assembly. Sales were up 17% with earnings up 98%. 91% earnings growth expected for this year. ROE is around 20%. Has broken out of a 2 year negative trend. There is around a 38% upside potential. (Analysts’ price target is $118.76)
Automotive
TOP PICK
TOP PICK
February 26, 2021
The price of oil has moved up a lot since November. It could possibly go as high as $100. Mainly a western Canadian oil company. Well completion cost is 40-50% less than their competitors. Dividend of 2% that is expected to grow. Management is bullish with $850M of free cashflow. Sales are up 19%. 3.6x price to cash multiple. Cashflow growth is expected to grow twice as fast as the industry. (Analysts’ price target is $28.46)
Show full opinionHide full opinionThe price of oil has moved up a lot since November. It could possibly go as high as $100. Mainly a western Canadian oil company. Well completion cost is 40-50% less than their competitors. Dividend of 2% that is expected to grow. Management is bullish with $850M of free cashflow. Sales are up 19%. 3.6x price to cash multiple. Cashflow growth is expected to grow twice as fast as the industry. (Analysts’ price target is $28.46)
oil/gas
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