Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
September 20, 2012

(A Top Pick Aug 31/11. Down 8.83%.) Automotive parts. The whole auto group is down but this still has plenty of potential. Well-positioned because of governmental regulations on emissions.

Tenneco Inc. (TEN-N)
September 20, 2012

(A Top Pick Aug 31/11. Down 8.83%.) Automotive parts. The whole auto group is down but this still has plenty of potential. Well-positioned because of governmental regulations on emissions.

Gordon Reid
President, GoodReid Investment Counsel
Price
$29.960
Owned
Yes
DON'T BUY
DON'T BUY
September 20, 2012

US rails are not expensive. This one is trading at about 11X with an operating ratio of about 71%. One of the problems with a lot of the rails is coal. Coal shipments are down.

CSX Corp (CSX-Q)
September 20, 2012

US rails are not expensive. This one is trading at about 11X with an operating ratio of about 71%. One of the problems with a lot of the rails is coal. Coal shipments are down.

Gordon Reid
President, GoodReid Investment Counsel
Price
$21.490
Owned
No
DON'T BUY
DON'T BUY
September 20, 2012

Great company and they were sort of priced that way up until early this year and then came out with same-store sales that were a little weak and have had a spotty record since then in terms of an ability to grow on an organic basis. Would prefer it in the low $80’s, which would be a good opportunity.

McDonalds (MCD-N)
September 20, 2012

Great company and they were sort of priced that way up until early this year and then came out with same-store sales that were a little weak and have had a spotty record since then in terms of an ability to grow on an organic basis. Would prefer it in the low $80’s, which would be a good opportunity.

Gordon Reid
President, GoodReid Investment Counsel
Price
$93.150
Owned
No
DON'T BUY
DON'T BUY
September 20, 2012

In 2001, their business was quite diverse. Since then they have gone back to their core competencies. Some of it had been forced because of the troubles that GE Capital had gotten into in 2008. Thinks they are starting to get it right but there is still a ways to go. There are other industrials with better growth metrics.

General Electric (GE-N)
September 20, 2012

In 2001, their business was quite diverse. Since then they have gone back to their core competencies. Some of it had been forced because of the troubles that GE Capital had gotten into in 2008. Thinks they are starting to get it right but there is still a ways to go. There are other industrials with better growth metrics.

Gordon Reid
President, GoodReid Investment Counsel
Price
$22.430
Owned
No
DON'T BUY
DON'T BUY
September 20, 2012

Interesting company and has been a good stock. Trading at about 15X earnings. Growing revenues in the single digits, which always worries him. Well diversified industrial.

Danaher Corp. (DHR-N)
September 20, 2012

Interesting company and has been a good stock. Trading at about 15X earnings. Growing revenues in the single digits, which always worries him. Well diversified industrial.

Gordon Reid
President, GoodReid Investment Counsel
Price
$55.020
Owned
No
SELL
SELL
September 20, 2012

He wouldn’t be as worried about their global growth as he would be in their operational risks. Have had a bit of an erratic ability to provide consistency of earnings. If you own, he would move to another industrial.

3M Co. (MMM-N)
September 20, 2012

He wouldn’t be as worried about their global growth as he would be in their operational risks. Have had a bit of an erratic ability to provide consistency of earnings. If you own, he would move to another industrial.

Gordon Reid
President, GoodReid Investment Counsel
Price
$93.580
Owned
No
HOLD
HOLD
September 20, 2012

Really good quality mature tech choice. A few years ago, management said that with a combination of modest growth and aggressive cost-cutting, they were going to have a 12%-14% target on earnings. Have hit right on. Turned the business into a recurring revenue and a recurring earnings type of business. Valuation isn’t stretched.

IBM (IBM-N)
September 20, 2012

Really good quality mature tech choice. A few years ago, management said that with a combination of modest growth and aggressive cost-cutting, they were going to have a 12%-14% target on earnings. Have hit right on. Turned the business into a recurring revenue and a recurring earnings type of business. Valuation isn’t stretched.

Gordon Reid
President, GoodReid Investment Counsel
Price
$206.180
Owned
No