Latest Expert Opinions

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Opinion
Expert
COMMENT
COMMENT
August 27, 2012

Just finished an acquisition in Argentina which looks like a very promising ore body but people are worried about political risks that are starting to surface in some areas of South America. Have a fairly good production profile going forward and $19 would not be out of the question. Trading at 1.7X Price to Book and 17X forward earnings, which looks pretty good within the area.

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Yamana Gold Inc. (YRI-T)
August 27, 2012

Just finished an acquisition in Argentina which looks like a very promising ore body but people are worried about political risks that are starting to surface in some areas of South America. Have a fairly good production profile going forward and $19 would not be out of the question. Trading at 1.7X Price to Book and 17X forward earnings, which looks pretty good within the area.

HOLD
HOLD
August 27, 2012

Has been flat lately for good reason. People have been worried about lifecos in this environment but it is generally holding its own. ROE has always been better than the rest of the group. Investors Group (IGM) has certainly slowed down in this environment in terms of long-term asset sales they have been making. Also, has exposure to Pardeesa (?) in Europe, which caused some concern. Should weather this period but it is a long-term play. 5.6% dividend.

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Has been flat lately for good reason. People have been worried about lifecos in this environment but it is generally holding its own. ROE has always been better than the rest of the group. Investors Group (IGM) has certainly slowed down in this environment in terms of long-term asset sales they have been making. Also, has exposure to Pardeesa (?) in Europe, which caused some concern. Should weather this period but it is a long-term play. 5.6% dividend.

HOLD
HOLD
August 27, 2012

A good Hold for 3 years or should they Sell? At the current levels, the valuation is quite good but you have to have a 2-3 year time horizon. Low interest rates and mediocre equity markets have not been good for insurance companies.

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A good Hold for 3 years or should they Sell? At the current levels, the valuation is quite good but you have to have a 2-3 year time horizon. Low interest rates and mediocre equity markets have not been good for insurance companies.

HOLD
HOLD
August 27, 2012

Last quarter looked a little better. Interest-rates and equity returns were a little kinder to them but there were a lot of one-time things in that quarter. Overall core earnings were somewhat weak. The “Ultimate Reinvestment Rate Risk” is what he always focuses on for insurance companies. Should improve a lot from here. 6.3% dividend could be in danger but expect they will be very loath to cut. On a valuation basis, he would prefer Manulife (MFC-T).

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Last quarter looked a little better. Interest-rates and equity returns were a little kinder to them but there were a lot of one-time things in that quarter. Overall core earnings were somewhat weak. The “Ultimate Reinvestment Rate Risk” is what he always focuses on for insurance companies. Should improve a lot from here. 6.3% dividend could be in danger but expect they will be very loath to cut. On a valuation basis, he would prefer Manulife (MFC-T).

BUY
BUY
August 27, 2012

Current valuation is fairly compelling. You’ll have to look out a couple of years to see some of their projects come on stream. Recently tried to raise $400 million but pulled that because market was not where they wanted to be. This indicates good discipline on management’s part. Have had some positive drill results on some of their operations. Strong balance sheet.

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Current valuation is fairly compelling. You’ll have to look out a couple of years to see some of their projects come on stream. Recently tried to raise $400 million but pulled that because market was not where they wanted to be. This indicates good discipline on management’s part. Have had some positive drill results on some of their operations. Strong balance sheet.

DON'T BUY
DON'T BUY
August 27, 2012

Uranium and this company have always been very difficult to judge. Just announced an acquisition in Western Australia. Paid very little but not sure what they will have to pay to develop the property. Unless they are absolutely dirt cheap, he tends not to look at uranium stocks.

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Uranium and this company have always been very difficult to judge. Just announced an acquisition in Western Australia. Paid very little but not sure what they will have to pay to develop the property. Unless they are absolutely dirt cheap, he tends not to look at uranium stocks.

DON'T BUY
DON'T BUY
August 27, 2012

All rails have taken a surge up lately and this one particularly after their proxy fight. Sold his holdings. Stock is priced for perfection. It has to go through a few years of anguish. There will be some management problems bringing their operating ratios down. Would prefer Canadian National (CNR-T). Buying a rail is buying a proxy on the economy.

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All rails have taken a surge up lately and this one particularly after their proxy fight. Sold his holdings. Stock is priced for perfection. It has to go through a few years of anguish. There will be some management problems bringing their operating ratios down. Would prefer Canadian National (CNR-T). Buying a rail is buying a proxy on the economy.