John Zechner
Chairman at J. Zechner & Assoc
Member since: Jan '01 · 3978 Opinions
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Stock Opinions by John Zechner
There will be weakness to finish this year. Is bearish. The economy has been resilient, but Canadian GNP for Q2 was negative, and last week's US job numbers were weak last week and even this morning average gains in the past year far lower than projected. Thing is, companies are not laying off workers, given less migration and the lack of workers. Companies are not adding jobs because of the unknowns by tarrifs. Expects the Fed will cut 3 times and the Bank of Canada goes back in to an easing mode. Valuations are at all-time highs, and so earnings are at risk. He is trimming some tech positions and looking at defensives like telecoms. He questions this so-called broadening trade. Cyclicals will have a tough time going forward. Tech continues to deliver 20% earnings growth, so he maintains a health tech weighting.
Software as a service has done poorly this in this name and others, over fears that AI will take it over. He's been adding shares, though. Is well-positioned over many apps, the mid-20s valuation is reasonable and there are many institutional owners. In AI, we're moving out of building data centres and moving more to the software stage.
Worries over tolling on one of their pipelines has pressure PPL, but are well-positioned for future growth in energy infrastructure where more spending in pipelines looks likely. The dividend is safe. Has a low valuation and pays a decent dividend, though in the penalty box now. Stick with it. Good to buy now cheap.
Prefers Arc over Tourmaline. Arc did a great buy of Seven Generations years ago and are migrating a little to light oil, better growth potential and a much lower valuation. A natural gas play makes more sense than oil now. Is slightly bearish oil with OPEC adding more production (expects oil to break $60). Has sold out of all the productions to buy energy infrastructure.
BN to hold the entire Brookfield family, and BM is at a discount than it has been for a while. BEP trades at a premium among renewables, which have been under pressure from Trump cancelling wind and other green projects. Also, Northland Power is far better than BEP, given NPI's better valuation and growth potential.
BN to hold the entire Brookfield family, and BM is at a discount than it has been for a while. BEP trades at a premium among renewables, which have been under pressure from Trump cancelling wind and other green projects. Also, Northland Power is far better than BEP, given NPI's better valuation and growth potential.
When he called it, the stock was -80% from its peak and trading at a cheap 2x sales. They were looking for potential buyers. Altogether, the stock held promise. The stock rallied to the mid-$20s, but no buyer emerged and reported a few tough quarters. He owns it again when it fell lower. Is generating free cash flow. Something could happen. He will give it a couple of quarters.
Is still growth ahead. Good that they sold the 407 ETR to pay down their debt. Are a pure engineering company, no longer saddled with fixed contracts they'd have to pay for cost overruns on projects. Margins have risen. Are well positioned for new demand for nuclear energy. Is no longer trading at discount to peers, but growth will continue.
Is bearish the semis sector and has been reducing his exposure. The Trump tariffs are a serious risk. Him trying to move semis production into the US won't work at all in the long run. Also, data centre spending has peaked and will slow. Valuations are high. That said, TSX is the number one semis manufacturer and remain a major player here. Also, the geopolitical risks to Taiwan are not good.
