Michael Sprung
Member since: Oct '00
President at
Sprung Investment Management
Sprung Investment Management
3749 Opinions
Latest Top Picks
(A Top Pick Dec 03/19, Down 26%) The recent incarnation to a unit trust makes sense. It increased their distribution. It has been hurt by the pandemic. Businesses they had holdings, such as Planet Fitness, is now coming back. Going forward, we should see more good news. The yield is good, and growth prospects are good. A fairly unique offering.
(A Top Pick Dec 03/19, Up 20%) Consumer staples have been a good place to be. It is one of the original unit trust companies and one of the oldest companies in Canada. They have benefited from servicing remote communities where there is little competition. They have maintained a good dividend. Management is doing a good job.
(A Top Pick Dec 03/19, Up 3%) A diversified company in terms of types of utilities and energy transportation. They are also in several markets and regulatory environments. Going back to more regular economic activity, companies like this that are stable will represent good opportunities with good yields.
It is a more international bank, especially in South America which should start to do better. They offer a good yield. A very good place to be. Balance sheet and liquidity is strong. It is yielding over 5%. (Analysts’ price target is $68.19)
One of the beneficiaries of the terrible energy market. It is well managed and capitalized. The largest integrated energy companies in Canada. Focused on expense management. It is planning on increasing cashflow in the next couple years. Yield is around 4%. (Analysts’ price target is $25.41)
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COMMENT
COMMENT
December 4, 2020
We see a rotation into value oriented stocks. He thinks it might be too much too quickly though. We saw the economy shut down and he does not think it will restart on an even keel. There is still the logistics of rolling out the vaccine. The shutdown induced economic problems will persist for a while.
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We see a rotation into value oriented stocks. He thinks it might be too much too quickly though. We saw the economy shut down and he does not think it will restart on an even keel. There is still the logistics of rolling out the vaccine. The shutdown induced economic problems will persist for a while.
COMMENT
COMMENT
December 4, 2020
Investors will have a chance to truly invest and look at companies with good management and strong balance sheets. Multiples are extreme for some tech companies and the markets have been led by a narrow set of names. The markets will be better for longer term investors in the times ahead.
Show full opinionHide full opinionInvestors will have a chance to truly invest and look at companies with good management and strong balance sheets. Multiples are extreme for some tech companies and the markets have been led by a narrow set of names. The markets will be better for longer term investors in the times ahead.
COMMENT
COMMENT
December 4, 2020
Energy. If there is any value to be found, it is in the strongly managed energy companies. They will participate in any economic recovery rally. The surviving strong companies have taken advantage of the weaker companies that have gone by the wayside.
Show full opinionHide full opinionEnergy. If there is any value to be found, it is in the strongly managed energy companies. They will participate in any economic recovery rally. The surviving strong companies have taken advantage of the weaker companies that have gone by the wayside.
COMMENT
COMMENT
December 4, 2020
Banks. A lot of investors have been using banks stocks as a means of gaining some yield in a low interest rate environment. Those dividends are still well covered by earnings. Assuming economic pick-up, the banks will benefit from that. Net interest margins are pretty low but with economic improvement, we could see changes in interest rates.
Show full opinionHide full opinionBanks. A lot of investors have been using banks stocks as a means of gaining some yield in a low interest rate environment. Those dividends are still well covered by earnings. Assuming economic pick-up, the banks will benefit from that. Net interest margins are pretty low but with economic improvement, we could see changes in interest rates.
BUY WEAKNESS
BUY WEAKNESS
December 4, 2020
Iron ore has been a popular place to be. There has been big demand. LIF has received an extraordinary payment from an associated firm. Dividend payments could be high for a while. The dividend fluctuates with the performance of the company. The yield has always been attractive. The current price is a little high, but if it pulls back 20% from here, buy.
Show full opinionHide full opinionIron ore has been a popular place to be. There has been big demand. LIF has received an extraordinary payment from an associated firm. Dividend payments could be high for a while. The dividend fluctuates with the performance of the company. The yield has always been attractive. The current price is a little high, but if it pulls back 20% from here, buy.
Financial Services
COMMENT
COMMENT
December 4, 2020
It's had a run since announcing services to Amazon. We have seen a sharp spike up lately. The news has made investors pile into the stock. It might be ahead of itself right now. You could see some volatility on the way up.
It's had a run since announcing services to Amazon. We have seen a sharp spike up lately. The news has made investors pile into the stock. It might be ahead of itself right now. You could see some volatility on the way up.
electrical/electronic
WATCH
WATCH
December 4, 2020
Overall, utilities tend to be inversely related to interest rates. Valuations are high when interest rates are low. The dependable revenues and dividends make it interest rate sensitive. More and more infrastructure projects will be outsourced. They have the ability to participate in that. An excellent company that is well-managed.
Show full opinionHide full opinionOverall, utilities tend to be inversely related to interest rates. Valuations are high when interest rates are low. The dependable revenues and dividends make it interest rate sensitive. More and more infrastructure projects will be outsourced. They have the ability to participate in that. An excellent company that is well-managed.
Energy Infrastructure, Industrials & Utilities
HOLD
HOLD
December 4, 2020
Yield is between 2.6%. An employee benefits provider. A growth industry since companies are more likely to outsources these services. They have expanded successfully to the US. A little expensive currently compared to price to book and ROE. Long term it will do well. If it pulls back 10-15% it would be a buy.
Show full opinionHide full opinionYield is between 2.6%. An employee benefits provider. A growth industry since companies are more likely to outsources these services. They have expanded successfully to the US. A little expensive currently compared to price to book and ROE. Long term it will do well. If it pulls back 10-15% it would be a buy.
Business Services
DON'T BUY
DON'T BUY
December 4, 2020
Has done extremely well. So many packages are being sent. The stock looks quite expensive. The trailing earnings are not that positive. It is at 17x book value. It has a fairly good potential ROE if they get to profitability. Needs to continue earnings growth at a tremendous rate to justify valuation.
Show full opinionHide full opinionHas done extremely well. So many packages are being sent. The stock looks quite expensive. The trailing earnings are not that positive. It is at 17x book value. It has a fairly good potential ROE if they get to profitability. Needs to continue earnings growth at a tremendous rate to justify valuation.
Transportation & Environmental Services
PAST TOP PICK
PAST TOP PICK
December 4, 2020
(A Top Pick Dec 03/19, Down 26%) The recent incarnation to a unit trust makes sense. It increased their distribution. It has been hurt by the pandemic. Businesses they had holdings, such as Planet Fitness, is now coming back. Going forward, we should see more good news. The yield is good, and growth prospects are good. A fairly unique offering.
(A Top Pick Dec 03/19, Down 26%) The recent incarnation to a unit trust makes sense. It increased their distribution. It has been hurt by the pandemic. Businesses they had holdings, such as Planet Fitness, is now coming back. Going forward, we should see more good news. The yield is good, and growth prospects are good. A fairly unique offering.
Trust, Savings and Loan
PAST TOP PICK
PAST TOP PICK
December 4, 2020
(A Top Pick Dec 03/19, Up 20%) Consumer staples have been a good place to be. It is one of the original unit trust companies and one of the oldest companies in Canada. They have benefited from servicing remote communities where there is little competition. They have maintained a good dividend. Management is doing a good job.
Show full opinionHide full opinion(A Top Pick Dec 03/19, Up 20%) Consumer staples have been a good place to be. It is one of the original unit trust companies and one of the oldest companies in Canada. They have benefited from servicing remote communities where there is little competition. They have maintained a good dividend. Management is doing a good job.
merchandising/lodging
PAST TOP PICK
PAST TOP PICK
December 4, 2020
(A Top Pick Dec 03/19, Up 3%) A diversified company in terms of types of utilities and energy transportation. They are also in several markets and regulatory environments. Going back to more regular economic activity, companies like this that are stable will represent good opportunities with good yields.
Show full opinionHide full opinion(A Top Pick Dec 03/19, Up 3%) A diversified company in terms of types of utilities and energy transportation. They are also in several markets and regulatory environments. Going back to more regular economic activity, companies like this that are stable will represent good opportunities with good yields.
electrical utilities
WATCH
WATCH
December 4, 2020
A great company and it has profited from the pandemic. People are becoming more health conscious. It is well-positioned to take advantage of the trend. Earnings still have a ways to grow to make the multiples attractive. Trailing 12-month earnings are .64 cents, which makes it at 36x earnings. He would like to see it more around 25x earnings, around the mid-to-high 20s.
Show full opinionHide full opinionA great company and it has profited from the pandemic. People are becoming more health conscious. It is well-positioned to take advantage of the trend. Earnings still have a ways to grow to make the multiples attractive. Trailing 12-month earnings are .64 cents, which makes it at 36x earnings. He would like to see it more around 25x earnings, around the mid-to-high 20s.
DON'T BUY
DON'T BUY
December 4, 2020
Has always been wary of uranium. It is a highly politicized material and is subject to many factors. Generally a space that is hard to read. It is always just over the horizon.
Show full opinionHide full opinionHas always been wary of uranium. It is a highly politicized material and is subject to many factors. Generally a space that is hard to read. It is always just over the horizon.
integrated mines
DON'T BUY
DON'T BUY
December 4, 2020
Caution is still required for airlines. They are very cyclical and highly capital intensive and unionized. They can be a great place to invest in short periods of time, but he would not invest in it right now. It has run-up in anticipation of being able to fly again. At current prices, he cannot justify its valuation.
Show full opinionHide full opinionCaution is still required for airlines. They are very cyclical and highly capital intensive and unionized. They can be a great place to invest in short periods of time, but he would not invest in it right now. It has run-up in anticipation of being able to fly again. At current prices, he cannot justify its valuation.
Transportation
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