Scott Morrison
Senior Portfolio Manager at Empire Financial Group
Member since: Oct '00 · 146 Opinions
Rating
Big Win
Win
Neutral
Loss
Big Loss
Stock Opinions by Scott Morrison
BUY
Zinc has been lagging the rest of the commodities. Reports indicate that China will be a net importer of zinc as opposed to a net exporter by the end of this year. This company should be a good way to play this commodity.
metal mines
TOP PICK
3rd largest lumber producer in North America. Selling at single digit multiples on an earnings basis. Generating significant amounts of cash flow. Clean balance sheet. Good management. If they got the tarriffs back from the softwood lumber dispute, it would amount to $4 a share which is not factored into the price.
west coast forestry
WEAK BUY
Still in a developmental stage and their fund likes proven assets. Exposed to metallurgical coal and acquiring assets. Okay for a riskier investment.
non-base metal mining
TRADE
Have had a lot of trouble. Lost their CEO. Have to do more research with management before investing. Have some interesting technology. Starting to look interesting.
biotechnology
pharmaceutical
DON'T BUY
A phenominal Canadian company with proprietory technology. Bullish on water purification. Would love to own it but too much future growth is already factored into the share price.
environmental
TOP PICK
Has a dominant position in Canada and is expanding into the US. Management owns about 5% of the stock. Trades at a mid teen multiple. Trucking/transportation business Has been doing very well. Balance sheet is strong enough to allow them to make further acquisitions. Very attractive price.
Transportation
DON'T BUY
Lost a contract with Palm last year which was a big disappointment. Has a lot of cash. Looks like it was oversold, but it is a weaker player in the wireless sector. Has a lot of competition. Until you see a more positive correction, don't buy.
electrical
electronic
DON'T BUY
Have had management problems and are now on their 3rd CEO. In the penalty box.
computer software
processing
DON'T BUY
Doesn't have a producing asset, so not interested. Mr. Friedland has done an excellent job from an investor/relation perspective. Feels there's a lot of hype and risk in the company.
precious metals
TOP PICK
A contrarian pick. Looking at it relative to its peers in the US trades at about 10 X earnings versus a multiple in the teens. Good free cash flow yield. Made a US acquisition last year which should help them show growth this year.
consulting
DON'T BUY
Long term bulls on energy. Missed getting in on this. It has now run too far, too fast. Have to wait for some pull backs.
non-base metal mining
BUY
On their radar screen. Very bullish on the gambling sector. Well managed and management own a lot of it.
computer software
processing
DON'T BUY
Has some interesting technology. Feels that wireless in the short term is a bit over-hyped. Would look at it on any pull-back.
electrical
electronic
DON'T BUY
BUY
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