Latest Expert Opinions

Signal
Opinion
Expert
WEAK BUY
WEAK BUY
March 18, 2014

Retailer of homes, but they finance a lot of their customers’ purchases. Started out as a “rent to own” but they’re getting more and more into the financing. In the past, they would have 7 or 8 good quarters and then would blow up. Management seem like pretty sharp guys and are slowly getting it. He is starting to slowly, but surely warm up to them. In the last 24 months, they’ve put up some pretty good numbers and there are some very bullish projections going forward. A Buy, but not with a lot of passion.

goeasy (GSY-T)
March 18, 2014

Retailer of homes, but they finance a lot of their customers’ purchases. Started out as a “rent to own” but they’re getting more and more into the financing. In the past, they would have 7 or 8 good quarters and then would blow up. Management seem like pretty sharp guys and are slowly getting it. He is starting to slowly, but surely warm up to them. In the last 24 months, they’ve put up some pretty good numbers and there are some very bullish projections going forward. A Buy, but not with a lot of passion.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$18.450
Owned
No
COMMENT
COMMENT
March 18, 2014

Doesn’t know this one really well but thinks the issue is the amount of money they make and their dividend (8.357%) are getting fairly closely matched. This always makes people nervous. Most people don’t want more than a 70% payout ratio, they want a cushion. If the dividend gets cut, the stock will go down 20%-30%.

WesternOne Inc (WEQ-T)
March 18, 2014

Doesn’t know this one really well but thinks the issue is the amount of money they make and their dividend (8.357%) are getting fairly closely matched. This always makes people nervous. Most people don’t want more than a 70% payout ratio, they want a cushion. If the dividend gets cut, the stock will go down 20%-30%.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$7.180
Owned
No
HOLD
HOLD
March 18, 2014

Knows this a bit, but is going to look at it a bit more. Think they disappointed recently so the stock has sold off. However, the numbers going forward are still positive. ROE is 57%.

Knows this a bit, but is going to look at it a bit more. Think they disappointed recently so the stock has sold off. However, the numbers going forward are still positive. ROE is 57%.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$5.480
Owned
No
TOP PICK
TOP PICK
March 18, 2014

Has a high ROE, but it is a little more complex when you are looking at energy companies. Has a great profile in north-western Alberta and the market is starting to recognize that. Production is ramping up and it is all fully funded so there is not a lot of dilution going forward. Primarily a gas story. Well-positioned if gas stays at $4.50, but he could see a nice move upwards in gas in the coming 2-3 years based on lower-than-expected yields on some of the big plays in the US.

Has a high ROE, but it is a little more complex when you are looking at energy companies. Has a great profile in north-western Alberta and the market is starting to recognize that. Production is ramping up and it is all fully funded so there is not a lot of dilution going forward. Primarily a gas story. Well-positioned if gas stays at $4.50, but he could see a nice move upwards in gas in the coming 2-3 years based on lower-than-expected yields on some of the big plays in the US.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$2.700
Owned
Yes
TOP PICK
TOP PICK
March 18, 2014

Great company. A long-term play. If you look at the last 6 months, the share price has done terrible, but it also creates an opportunity. Last year they generated $37 million of cash flow, so there is a lot of cash flow coming from the company. This correction is one that he feels people have been waiting for. Doesn’t know what kind of a year 2014-2015 will be, but last year was an incredibly quiet year and it is hard to imagine it will stay that quiet. Trading at around 5X earnings right now. You’ll have to be patient with it.

Pulse Seismic (PSD-T)
March 18, 2014

Great company. A long-term play. If you look at the last 6 months, the share price has done terrible, but it also creates an opportunity. Last year they generated $37 million of cash flow, so there is a lot of cash flow coming from the company. This correction is one that he feels people have been waiting for. Doesn’t know what kind of a year 2014-2015 will be, but last year was an incredibly quiet year and it is hard to imagine it will stay that quiet. Trading at around 5X earnings right now. You’ll have to be patient with it.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$3.280
Owned
Yes
TOP PICK
TOP PICK
March 18, 2014

(A Top Pick April 3/13. Up 113.04%.) Continues to rock. One of the best capital allocators in the market. A superb franchise. Fantastic management team. A stock that you could sleep at nights with. It should certainly be able to continue to outperform the market for the foreseeable future. Generates a lot of cash flow. Can see $350 in a year.

(A Top Pick April 3/13. Up 113.04%.) Continues to rock. One of the best capital allocators in the market. A superb franchise. Fantastic management team. A stock that you could sleep at nights with. It should certainly be able to continue to outperform the market for the foreseeable future. Generates a lot of cash flow. Can see $350 in a year.

Jason Donville
President & CEO, Donville Kent Asset Management
Price
$264.110
Owned
Yes