Latest Expert Opinions

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COMMENT
COMMENT
December 16, 2013

Had a Short position on this for a while. Located in Kenya, Ethiopia and Somalia. Shorted this because it is a new basin so there is a question of valuation and tends to be a bit too frothy expectation. It will take them a while to deliver any meaningful production, possibly 2018, at the earliest. Thinks there could be significant weakness in the share price going ahead.

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Africa Oil Corp. (AOI-T)
December 16, 2013

Had a Short position on this for a while. Located in Kenya, Ethiopia and Somalia. Shorted this because it is a new basin so there is a question of valuation and tends to be a bit too frothy expectation. It will take them a while to deliver any meaningful production, possibly 2018, at the earliest. Thinks there could be significant weakness in the share price going ahead.

BUY
BUY
December 16, 2013

Likes this. Essentially they assist pipeline companies in constructing pipelines. There is one particular division that he likes called Arctic Therm and they are starting to increase the utilization of that division. Has had nice performance this year but he continues to see upside. Very positive on pipeline construction companies, as opposed to pipelines themselves.

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Enterprise Group (E-T)
December 16, 2013

Likes this. Essentially they assist pipeline companies in constructing pipelines. There is one particular division that he likes called Arctic Therm and they are starting to increase the utilization of that division. Has had nice performance this year but he continues to see upside. Very positive on pipeline construction companies, as opposed to pipelines themselves.

BUY
BUY
December 16, 2013

Tends to be used as more of a play in LNG on the West Coast.

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Macro Enterprises (MCR-X)
December 16, 2013

Tends to be used as more of a play in LNG on the West Coast.

COMMENT
COMMENT
December 16, 2013

Numbers on toys hasn’t been great on a macro level, and there are some headwinds from a weak Black Friday. Q4 is always the biggest quarter of the year in terms of sales, so not a bad time to own it. He plays this through warrants. Goes Long warrants and Shorts the underlying common shares. Feels the warrants are mispriced and there is about 1.5 years left in them so he sees the optionality with the warrants.

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MegaBrands (MB-T )
December 16, 2013

Numbers on toys hasn’t been great on a macro level, and there are some headwinds from a weak Black Friday. Q4 is always the biggest quarter of the year in terms of sales, so not a bad time to own it. He plays this through warrants. Goes Long warrants and Shorts the underlying common shares. Feels the warrants are mispriced and there is about 1.5 years left in them so he sees the optionality with the warrants.

COMMENT
COMMENT
December 16, 2013

CEO is stepping down, but will still be involved in the business. An issue that he has always had with this company is their accounting. Somewhat opaque and they tend to use adjusted EBITDA, which tends to be a bit of a red flag for him. Likes the robustness of their business and the resilience of their customers. A play on international growing trade.

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Descartes (DSG-T)
December 16, 2013

CEO is stepping down, but will still be involved in the business. An issue that he has always had with this company is their accounting. Somewhat opaque and they tend to use adjusted EBITDA, which tends to be a bit of a red flag for him. Likes the robustness of their business and the resilience of their customers. A play on international growing trade.

COMMENT
COMMENT
December 16, 2013

Mainly a bus manufacturer. Likes the consolidation in this business. There are now a smaller number of players in the industry and hopefully it is less competitive. There is an emphasis across North America on improved public transport, however, a lot of governments are feeling a fiscal squeeze so there are some headwinds for them. Longer-term, this is a good company. Yield of 5.6%.

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Mainly a bus manufacturer. Likes the consolidation in this business. There are now a smaller number of players in the industry and hopefully it is less competitive. There is an emphasis across North America on improved public transport, however, a lot of governments are feeling a fiscal squeeze so there are some headwinds for them. Longer-term, this is a good company. Yield of 5.6%.

DON'T BUY
DON'T BUY
December 16, 2013

Doesn’t think the outlook for the potash industry is very good over the next couple of quarters. There was a recent announcement with regards to Chinese pricing, which was particularly favourable. Feels the street is overestimating its earnings expectations for the sector. He is Short this and paired it against Mosaic (MOS-N). This has been an interesting trade for him.

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Doesn’t think the outlook for the potash industry is very good over the next couple of quarters. There was a recent announcement with regards to Chinese pricing, which was particularly favourable. Feels the street is overestimating its earnings expectations for the sector. He is Short this and paired it against Mosaic (MOS-N). This has been an interesting trade for him.