Latest Expert Opinions

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Opinion
Expert
PAST TOP PICK
PAST TOP PICK
December 16, 2013

(A Top Pick Sept 18/13. Up 21.8%.) A Short. Has been a rough summer for all Canadian retailers. Just cut their dividend by about 75%. Payout ratio was well in excess of 100% for the last couple of years. Cash has gone from about $400 million, down to about $130 million. Just kicked out of the 3 indexes they belonged to. Has been one of his biggest Shorts for the last 4 months and he sees further downside in the tax loss selling season.

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(A Top Pick Sept 18/13. Up 21.8%.) A Short. Has been a rough summer for all Canadian retailers. Just cut their dividend by about 75%. Payout ratio was well in excess of 100% for the last couple of years. Cash has gone from about $400 million, down to about $130 million. Just kicked out of the 3 indexes they belonged to. Has been one of his biggest Shorts for the last 4 months and he sees further downside in the tax loss selling season.

PAST TOP PICK
PAST TOP PICK
December 16, 2013

(A Top Pick Sept 18/13. Up 5.77%.) Have a monitoring of a heart drug in the US called Cuberton (?) and instead of doing it in a hospital once a month, the patient is able to do it in their home on a weekly basis. Saves Medicare a substantial amount of money. This is their bread and butter business and is adding on various types of business on top of that.

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(A Top Pick Sept 18/13. Up 5.77%.) Have a monitoring of a heart drug in the US called Cuberton (?) and instead of doing it in a hospital once a month, the patient is able to do it in their home on a weekly basis. Saves Medicare a substantial amount of money. This is their bread and butter business and is adding on various types of business on top of that.

PAST TOP PICK
PAST TOP PICK
December 16, 2013

(A Top Pick Sept 18/13. Up 5.77%.) (Pairs Trade: Long Enercare (ECI-T) and Short Just Energy (JE-T).) Has been Long this stock since 2009. Paired this with Just Energy (JE-T) because of concerns about Just Energy's underlying business and their distribution.

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EnerCare Inc (ECI-T)
December 16, 2013

(A Top Pick Sept 18/13. Up 5.77%.) (Pairs Trade: Long Enercare (ECI-T) and Short Just Energy (JE-T).) Has been Long this stock since 2009. Paired this with Just Energy (JE-T) because of concerns about Just Energy's underlying business and their distribution.

PAST TOP PICK
PAST TOP PICK
December 16, 2013

(A Top Pick Sept 18/13.) (Pairs Trade: Long Enercare (ECI-T) and Short Just Energy (JE-T)) Have some lines of credit that are coming up. When a company cuts its distribution, it is never management’s idea, it is always the bankers. Feels that when the lines of credit are rolled over, in January/February, it is a very likely possibility distribution will be cut.

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Just Energy Group (JE-T)
December 16, 2013

(A Top Pick Sept 18/13.) (Pairs Trade: Long Enercare (ECI-T) and Short Just Energy (JE-T)) Have some lines of credit that are coming up. When a company cuts its distribution, it is never management’s idea, it is always the bankers. Feels that when the lines of credit are rolled over, in January/February, it is a very likely possibility distribution will be cut.

BUY
BUY
December 16, 2013

Yield of 14% and generally this is a red flag. Had some production difficulties and were in a “show me” situation. Generally, when a stock is in a penalty box, it will stay there for 3-4 quarters. To overcome this, the company decided to produce 3000 barrels of oil per quarter, which they have done for three quarters. Also, made an acquisition using lines of credit, rather than through dilution. He has conviction in the management team. Feels the yield is sustainable.

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Eagle Energy Inc (EGL-T)
December 16, 2013

Yield of 14% and generally this is a red flag. Had some production difficulties and were in a “show me” situation. Generally, when a stock is in a penalty box, it will stay there for 3-4 quarters. To overcome this, the company decided to produce 3000 barrels of oil per quarter, which they have done for three quarters. Also, made an acquisition using lines of credit, rather than through dilution. He has conviction in the management team. Feels the yield is sustainable.

COMMENT
COMMENT
December 16, 2013

A provider of temporary workplace accommodation, primarily in Western Canada, in the oil sands. Likes the name and likes the space. Thinks this space is going to be growing 18% over the next 5 years because of the projects they are involved in. (See Top Picks.)

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Black Diamond Group (BDI-T)
December 16, 2013

A provider of temporary workplace accommodation, primarily in Western Canada, in the oil sands. Likes the name and likes the space. Thinks this space is going to be growing 18% over the next 5 years because of the projects they are involved in. (See Top Picks.)

HOLD
HOLD
December 16, 2013

A conservative way to play the resource space. Essentially, their business is run by Rio Tinto (RIO-T) and the Iron Ore Company of Canada. Gives you a decent yield. Good, long-term holding.

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A conservative way to play the resource space. Essentially, their business is run by Rio Tinto (RIO-T) and the Iron Ore Company of Canada. Gives you a decent yield. Good, long-term holding.