Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
December 5, 2013

Big innovator in the tool business. Invest a lot of money in their business. Great track record of consolidating the tool industry and doing a very good job of it. Growing internationally. Trading at only 12X earnings. Yield of 2.51%.

Stanley Works, The (SWK-N)
December 5, 2013

Big innovator in the tool business. Invest a lot of money in their business. Great track record of consolidating the tool industry and doing a very good job of it. Growing internationally. Trading at only 12X earnings. Yield of 2.51%.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$79.770
Owned
Yes
TOP PICK
TOP PICK
December 5, 2013

This is a play on joint and hip replacements. They are also into hospital equipment such as beds and lights over the beds. Big innovator and great long-term track record of growing the dividends. Yield of 1.67%.

Stryker Corp. (SYK-N)
December 5, 2013

This is a play on joint and hip replacements. They are also into hospital equipment such as beds and lights over the beds. Big innovator and great long-term track record of growing the dividends. Yield of 1.67%.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$73.160
Owned
Yes
TOP PICK
TOP PICK
December 5, 2013

Hoping that this is the next Raging River (RRX-T).(See Past Picks.) Production has gone from 4500 barrels per day to just under 10,000 barrels per day and thinks they will be growing production at a pretty rapid rate. Pristine balance sheet. Not paying a dividend but is growing internally at around 25% production growth per annum per share. Expects to see this at $12 in 12 months.

Kelt Exploration (KEL-T)
December 5, 2013

Hoping that this is the next Raging River (RRX-T).(See Past Picks.) Production has gone from 4500 barrels per day to just under 10,000 barrels per day and thinks they will be growing production at a pretty rapid rate. Pristine balance sheet. Not paying a dividend but is growing internally at around 25% production growth per annum per share. Expects to see this at $12 in 12 months.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$9.500
Owned
Yes
DON'T BUY
DON'T BUY
December 5, 2013

Railways have had a huge run and US investors have been piling into these things. This one has been an exceptionally well run railway and has performed exceptionally well. Right now they are trading at exceptionally high valuations. There is a modest reacceleration in the economy, which gets investors excited. He would be looking for areas where there is some weakness and avoiding the rails right now.

Railways have had a huge run and US investors have been piling into these things. This one has been an exceptionally well run railway and has performed exceptionally well. Right now they are trading at exceptionally high valuations. There is a modest reacceleration in the economy, which gets investors excited. He would be looking for areas where there is some weakness and avoiding the rails right now.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$59.430
Owned
Unknown
BUY
BUY
December 5, 2013

Did a very good job in the past and has grown revenues very well. Just sold an asset in Brazil, which was a little disappointing in terms of what they received. Tried to sell the company which disappointed investors. Could be some tax loss selling in this name right now. This is one that you could buy realizing that there is some money that is stranded in there. Balance sheet has deteriorated a little bit. Pipelines not only need to be built, but need to be replaced and fixed.

Shawcor Ltd. (A) (SCL-T)
December 5, 2013

Did a very good job in the past and has grown revenues very well. Just sold an asset in Brazil, which was a little disappointing in terms of what they received. Tried to sell the company which disappointed investors. Could be some tax loss selling in this name right now. This is one that you could buy realizing that there is some money that is stranded in there. Balance sheet has deteriorated a little bit. Pipelines not only need to be built, but need to be replaced and fixed.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$39.420
Owned
No
HOLD
HOLD
December 5, 2013

Recently sold his holdings. They came out with some pretty disappointing guidance. Thinks they will turn the corner here. They are investing a huge amount of money in research and development. They are investing more money every year than what their major competitor ARM Holding (ARMH-Q) is worth. PC shipment business has been tough. Having some difficulty in the new lines of business. They have been expanding into. Likes the 3.7% dividend which he feels is secure. Good balance sheet. Feels their movement into chips for the cell phone business will be successful but is a lower margin business.

Intel (INTC-Q)
December 5, 2013

Recently sold his holdings. They came out with some pretty disappointing guidance. Thinks they will turn the corner here. They are investing a huge amount of money in research and development. They are investing more money every year than what their major competitor ARM Holding (ARMH-Q) is worth. PC shipment business has been tough. Having some difficulty in the new lines of business. They have been expanding into. Likes the 3.7% dividend which he feels is secure. Good balance sheet. Feels their movement into chips for the cell phone business will be successful but is a lower margin business.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$24.260
Owned
No
COMMENT
COMMENT
December 5, 2013

There is a bit of a trend for the banks in Canada, where they are starting to miss their numbers. Could possibly be a stock split as a couple of the other banks have done that and they are in the price range.

There is a bit of a trend for the banks in Canada, where they are starting to miss their numbers. Could possibly be a stock split as a couple of the other banks have done that and they are in the price range.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$88.820
Owned
Unknown