Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
September 19, 2013

(Top Pick Sep 06/12, Down 19.88%) He got out and was back in. Heavy oil producer that had a problem with an asset. Put them under pressure. Stock has gone down twice. Asset has been written off and other sites are being drilled to make up production. They are doing all the right things. Don’t have a big weight but you could see this grow.

Twin Butte Energy (TBE-T)
September 19, 2013

(Top Pick Sep 06/12, Down 19.88%) He got out and was back in. Heavy oil producer that had a problem with an asset. Put them under pressure. Stock has gone down twice. Asset has been written off and other sites are being drilled to make up production. They are doing all the right things. Don’t have a big weight but you could see this grow.

Jeff Young
Co-CEO & CIO, NexGen Financial
Price
$2.050
Owned
Yes
DON'T BUY
DON'T BUY
September 19, 2013

This business is definitely under pressure. Like a lot of the big box format stores, they expanded and expanded and got into different areas of the market and became over saturated. The former chairman of the board is now back and things have improved. However, at the end of the day, the longer-term thesis is that the store format is to get much, much smaller and it has to address how the online retail businesses are essentially stealing their business. Thinks earnings power is lower over the medium term.

Best Buy Company Inc (BBY-N)
September 19, 2013

This business is definitely under pressure. Like a lot of the big box format stores, they expanded and expanded and got into different areas of the market and became over saturated. The former chairman of the board is now back and things have improved. However, at the end of the day, the longer-term thesis is that the store format is to get much, much smaller and it has to address how the online retail businesses are essentially stealing their business. Thinks earnings power is lower over the medium term.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$39.100
Owned
Unknown
BUY
BUY
September 19, 2013

Likes fundamentally but likes a lower entry point. He has had success in the past by getting in at around $30 and selling it at around $40. Well-run company. Verizon (VZ-N) has just agreed to buy back their wireless business from Vodafone (VOD-Q), so this has them tied up and they have to spin off some assets. Thinks they overpaid. In this environment, AT&T makes sense because they are trying to expand. Have already put $6-$7 billion to work this year. Generates a significant amount of cash flow. From a dividend/income type company perspective, he likes it at this time.

A T & T US (T-N)
September 19, 2013

Likes fundamentally but likes a lower entry point. He has had success in the past by getting in at around $30 and selling it at around $40. Well-run company. Verizon (VZ-N) has just agreed to buy back their wireless business from Vodafone (VOD-Q), so this has them tied up and they have to spin off some assets. Thinks they overpaid. In this environment, AT&T makes sense because they are trying to expand. Have already put $6-$7 billion to work this year. Generates a significant amount of cash flow. From a dividend/income type company perspective, he likes it at this time.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$34.810
Owned
Yes
DON'T BUY
DON'T BUY
September 19, 2013

With this you have to have a call on copper prices. Over the next year he thinks copper prices will essentially stay where they are. Previously this was a pure play copper company. Spun off some assets in the energy patch, but eventually bought back. He questions the way they went about buying and the capital they used and was it necessarily in the best interest of the shareholders. Also, this distracted them from their core business. Assets are okay. Stock is going to be a play on what is happening with the underlying commodity and he thinks copper doesn’t do any more than $4 a pound over the next year. Probably fine for a longer-term holder.

With this you have to have a call on copper prices. Over the next year he thinks copper prices will essentially stay where they are. Previously this was a pure play copper company. Spun off some assets in the energy patch, but eventually bought back. He questions the way they went about buying and the capital they used and was it necessarily in the best interest of the shareholders. Also, this distracted them from their core business. Assets are okay. Stock is going to be a play on what is happening with the underlying commodity and he thinks copper doesn’t do any more than $4 a pound over the next year. Probably fine for a longer-term holder.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$34.600
Owned
Unknown
DON'T BUY
DON'T BUY
September 19, 2013

This has been a complete turnaround story. Trading at 6X forward earnings. They really need to show execution. There is limited revenue growth, limited sales growth and they are trying to chop expenses of the bottom line. He questions if they really change themselves from a traditional hardware business, which is under a lot of pressure, to something that looks more like a software business. Software is only about 5% of revenue and it is going to be very difficult for them to turn this ship around.

Hewlett-Packard Co (HPQ-N)
September 19, 2013

This has been a complete turnaround story. Trading at 6X forward earnings. They really need to show execution. There is limited revenue growth, limited sales growth and they are trying to chop expenses of the bottom line. He questions if they really change themselves from a traditional hardware business, which is under a lot of pressure, to something that looks more like a software business. Software is only about 5% of revenue and it is going to be very difficult for them to turn this ship around.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$21.310
Owned
Unknown
BUY
BUY
September 19, 2013

Interesting company and he has a positive bias on them. He legitimately thinks they can turn their business around from the traditional copier type of PC/hardware business to something that looks more like a services business. Around $10 is a fair entry point for the stock. Your upside over 12-18 months is probably $14-$15.

Xerox (XRX-N)
September 19, 2013

Interesting company and he has a positive bias on them. He legitimately thinks they can turn their business around from the traditional copier type of PC/hardware business to something that looks more like a services business. Around $10 is a fair entry point for the stock. Your upside over 12-18 months is probably $14-$15.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$10.240
Owned
No
BUY WEAKNESS
BUY WEAKNESS
September 19, 2013

Had a tremendous run up, 25%+ year to date. Likes that they are giving money back to shareholders in the form of dividends. Put the dividend up 22% and are buying back stock which he thinks they should be doing. Looking out over several years, they generate a significant amount of cash flow, which can be reinvested into things like Xbox, servers and tools, online gaming franchise and they can broaden out their offering. If it got back down to the $30 range, he would be interested in it.

Microsoft (MSFT-Q)
September 19, 2013

Had a tremendous run up, 25%+ year to date. Likes that they are giving money back to shareholders in the form of dividends. Put the dividend up 22% and are buying back stock which he thinks they should be doing. Looking out over several years, they generate a significant amount of cash flow, which can be reinvested into things like Xbox, servers and tools, online gaming franchise and they can broaden out their offering. If it got back down to the $30 range, he would be interested in it.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$33.640
Owned
No