John Zechner
Member since: Jan '01
Chairman at
J. Zechner & Assoc
J. Zechner & Assoc
3126 Opinions
Latest Top Picks
(A Top Pick Dec 28/18, Down 6%) A direct play on uranium. Uranium has been hurt like most commodities. The price of uranium is around 25$. The price has to go higher since the demand is 50% higher than supply. There's just a lot of inventory. Fukushima put a dent in the demand. However, with China consuming more, it will go up.
(A Top Pick Dec 28/18, Down 37%) One of their satellites crashed earlier this year. The acquisition of Digital Globe, that made sense, is a growth area. However, the acquisition was 3B and they are building a satellite system, it wasn't able to pay down the debt. The balance sheet is bad and there hasn't been returns but he still believes in it.
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
It's down but trades at 4 times earnings. He met with management recently and they are launching the satellite network. Using the mix of software analytics and hardware will be a growth area. They are well positioned with a reasonable valuation.
They are buying back stocks and breaking the trend of issuing more equity and growing. They have decent light oil, strong production and good cash flow generation. The energy sector risk is there, but it is a good buy among them.
0
0
0
0
0
Your ReactionSignal
Opinion
Expert
Chart
COMMENT
COMMENT
October 18, 2019
The headlines looked like a negative news day, but it was only a couple stocks like Boeing that weighed the index down. Boeing has earnings coming out next week. It's probably a buying opportunity when the news is bad since there's only two names in the world in the space. You have to look at the free cash flow generation, margins and future growth instead of news.
The headlines looked like a negative news day, but it was only a couple stocks like Boeing that weighed the index down. Boeing has earnings coming out next week. It's probably a buying opportunity when the news is bad since there's only two names in the world in the space. You have to look at the free cash flow generation, margins and future growth instead of news.
John Zechner
Chairman, J. Zechner & Assoc
COMMENT
COMMENT
October 18, 2019
China is still a concern. The focus was on earnings this week. The global economy is slowing with Europe stagnating and China slowing. The US is an exception right now, but it is also at risk of a slowdown. So many people are bearish and there's much money on the sides. Interest rates aren't going up, and inflation is low. Money flow seems to still go to equities.
China is still a concern. The focus was on earnings this week. The global economy is slowing with Europe stagnating and China slowing. The US is an exception right now, but it is also at risk of a slowdown. So many people are bearish and there's much money on the sides. Interest rates aren't going up, and inflation is low. Money flow seems to still go to equities.
John Zechner
Chairman, J. Zechner & Assoc
DON'T BUY
DON'T BUY
October 18, 2019
He's been short this stock this year. Concerns are massive negative cash generation, along with major players entering electric vehicles. Tesla won't own the space. It had the same market cap as GM at one point even though they were producing the same amount of cars in a year that GM produced in a week. First mover advantage that is slipping away.
He's been short this stock this year. Concerns are massive negative cash generation, along with major players entering electric vehicles. Tesla won't own the space. It had the same market cap as GM at one point even though they were producing the same amount of cars in a year that GM produced in a week. First mover advantage that is slipping away.
COMMENT
COMMENT
October 18, 2019
The valuation has gotten so low. Baytex has a lot of Permian oil investments which is good. Debt has come down to 1.5 times. Balance sheet is in much better shape. They are generating free cashflow and can buy back stocks now. 15-20% yield at current oil prices. A lot of the sector looks like this due to supply and demand. Energy stocks are cheap and valuations are ridiculously low. He still likes it, but it hasn't made any money in the last year. (Analysts’ price target is $3.29)
The valuation has gotten so low. Baytex has a lot of Permian oil investments which is good. Debt has come down to 1.5 times. Balance sheet is in much better shape. They are generating free cashflow and can buy back stocks now. 15-20% yield at current oil prices. A lot of the sector looks like this due to supply and demand. Energy stocks are cheap and valuations are ridiculously low. He still likes it, but it hasn't made any money in the last year. (Analysts’ price target is $3.29)
oil/gas
COMMENT
COMMENT
October 18, 2019
investment companies/funds
WATCH
WATCH
October 18, 2019
The stock's been under pressure since the acquisition that investors didn't like. Core growth areas of the Permian basin and having four core production bases has helped them generate a lot of cash flow. They're starting to pay down debt and buying back stocks.
The stock's been under pressure since the acquisition that investors didn't like. Core growth areas of the Permian basin and having four core production bases has helped them generate a lot of cash flow. They're starting to pay down debt and buying back stocks.
oil/gas
DON'T BUY
DON'T BUY
October 18, 2019
Jaded on this. Likes what they have done in the U.S.. However, interest rates are low and going lower. How do you fund long term liabilities with continually falling rates? A negative spread that causes a problem for insurance and banks. It doesn't look like it's getting better. He thinks there might see another cut in December.
Jaded on this. Likes what they have done in the U.S.. However, interest rates are low and going lower. How do you fund long term liabilities with continually falling rates? A negative spread that causes a problem for insurance and banks. It doesn't look like it's getting better. He thinks there might see another cut in December.
insurance
PAST TOP PICK
PAST TOP PICK
October 18, 2019
(A Top Pick Dec 28/18, Down 6%) A direct play on uranium. Uranium has been hurt like most commodities. The price of uranium is around 25$. The price has to go higher since the demand is 50% higher than supply. There's just a lot of inventory. Fukushima put a dent in the demand. However, with China consuming more, it will go up.
(A Top Pick Dec 28/18, Down 6%) A direct play on uranium. Uranium has been hurt like most commodities. The price of uranium is around 25$. The price has to go higher since the demand is 50% higher than supply. There's just a lot of inventory. Fukushima put a dent in the demand. However, with China consuming more, it will go up.
precious metals
PAST TOP PICK
PAST TOP PICK
October 18, 2019
(A Top Pick Dec 28/18, Down 37%) One of their satellites crashed earlier this year. The acquisition of Digital Globe, that made sense, is a growth area. However, the acquisition was 3B and they are building a satellite system, it wasn't able to pay down the debt. The balance sheet is bad and there hasn't been returns but he still believes in it.
(A Top Pick Dec 28/18, Down 37%) One of their satellites crashed earlier this year. The acquisition of Digital Globe, that made sense, is a growth area. However, the acquisition was 3B and they are building a satellite system, it wasn't able to pay down the debt. The balance sheet is bad and there hasn't been returns but he still believes in it.
computer software/processing
PAST TOP PICK
PAST TOP PICK
October 18, 2019
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
Transportation
BUY WEAKNESS
BUY WEAKNESS
October 18, 2019
The pipelines tend to be recession resistant. A toll in the flow of oil that provides some protection. You could get some stock growth, but nothing like very high valuations from 2-3 years ago. However, balance sheet is good, and they pay a stable dividend.
The pipelines tend to be recession resistant. A toll in the flow of oil that provides some protection. You could get some stock growth, but nothing like very high valuations from 2-3 years ago. However, balance sheet is good, and they pay a stable dividend.
oil/gas pipelines
COMMENT
COMMENT
October 18, 2019
Banks are defensive in an economic downturn. The stock over the past number of years has been doing well. They have delivered better in the capital market activity and have narrowed their spread with other banks. He doesn't own any Canadian financials due to interest rates. The dividend is safe.
Banks are defensive in an economic downturn. The stock over the past number of years has been doing well. They have delivered better in the capital market activity and have narrowed their spread with other banks. He doesn't own any Canadian financials due to interest rates. The dividend is safe.
banks
COMMENT
COMMENT
October 18, 2019
More in wealth management than retail banking. They are more exposed to the capital market but less asset liability exposure. The cost is down and earnings have been great.
More in wealth management than retail banking. They are more exposed to the capital market but less asset liability exposure. The cost is down and earnings have been great.
investment companies/funds
WAIT
WAIT
October 18, 2019
They have started to bring down their operating costs. The low hanging fruit has been picked. It's hard to extract costs more without risking safety. Revenue is driven by economic activities that are slowing down.
They have started to bring down their operating costs. The low hanging fruit has been picked. It's hard to extract costs more without risking safety. Revenue is driven by economic activities that are slowing down.
Transportation
DON'T BUY
DON'T BUY
October 18, 2019
department stores
Comments
00000
© Stockchase Inc.
1
Stock saved to your watch list successfully.View Watch List