Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
September 19, 2013

Diversified healthcare company. Recently spun off their pharmaceutical business. Has some decent growth over the next couple of years. Thinks it can get to $42 over a 12-18 time period.

Abbott Labs (ABT-N)
September 19, 2013

Diversified healthcare company. Recently spun off their pharmaceutical business. Has some decent growth over the next couple of years. Thinks it can get to $42 over a 12-18 time period.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$35.340
Owned
Yes
TOP PICK
TOP PICK
September 19, 2013

Asset manager. $800 billion in AUM. Wanted something that wasn’t a traditional bank but had leverage to rising rates as well as equity markets potentially getting better over time. Good valuation. Mispriced as there is a concept that as the Fed tapered there was going to be a great rotation out of bonds and into equities and that this was essentially a bond shop but 55% of their business is equities. Trading at about 14.5X earnings.

Franklin Resources (BEN-N)
September 19, 2013

Asset manager. $800 billion in AUM. Wanted something that wasn’t a traditional bank but had leverage to rising rates as well as equity markets potentially getting better over time. Good valuation. Mispriced as there is a concept that as the Fed tapered there was going to be a great rotation out of bonds and into equities and that this was essentially a bond shop but 55% of their business is equities. Trading at about 14.5X earnings.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$52.400
Owned
Yes
TOP PICK
TOP PICK
September 19, 2013

You are not paying an egregious valuation for this stock. An almost pure play on content. The catalyst that has popped up is that they are going to spin off Time Inc. because it is a lower margin business. Thinks they can monetize the HBO franchise, movies, etc. over multiple years and across multiple geographies. Handset makers and content people all want high quality content. Very low CapX the longer the product exists.

Time Warner Inc (TWX-N)
September 19, 2013

You are not paying an egregious valuation for this stock. An almost pure play on content. The catalyst that has popped up is that they are going to spin off Time Inc. because it is a lower margin business. Thinks they can monetize the HBO franchise, movies, etc. over multiple years and across multiple geographies. Handset makers and content people all want high quality content. Very low CapX the longer the product exists.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$64.400
Owned
Yes
HOLD
HOLD
September 19, 2013

Recently announced some dividends and buy backs. What you need to understand about these companies is that they are not dividend payments but a significant portion of their capital that is classified as agency REITs. The Fed is really intervening in this market, because a portion of that is going into the MBS (Mortgage Backed Security) market. You have about a 17% yield at current levels. From a capital appreciation standpoint, the stock probably goes nowhere, but as long as you have that back stop of the Fed in there, you’ll probably earn that 17% for the next 6 to 8 months, but as soon as we start to see tapering, etc these stocks are going to trade off exactly like they did the last time.

Recently announced some dividends and buy backs. What you need to understand about these companies is that they are not dividend payments but a significant portion of their capital that is classified as agency REITs. The Fed is really intervening in this market, because a portion of that is going into the MBS (Mortgage Backed Security) market. You have about a 17% yield at current levels. From a capital appreciation standpoint, the stock probably goes nowhere, but as long as you have that back stop of the Fed in there, you’ll probably earn that 17% for the next 6 to 8 months, but as soon as we start to see tapering, etc these stocks are going to trade off exactly like they did the last time.

Stuart Hinshelwood
US Equities Specialist, BMO Nesbitt Burns
Price
$23.760
Owned
Unknown