Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
May 9, 2014

(A Top Pick May 15/13. Up 21.70%.) Tremendous company and tremendous management. It’s hard to get your hand around the structure. There are 3 public companies associated with it. In infrastructure, energy, has funds it manages giving them a management fee and interest. Very diversified. Very smart management that can deploy its assets profitably and make a nice return on them.

(A Top Pick May 15/13. Up 21.70%.) Tremendous company and tremendous management. It’s hard to get your hand around the structure. There are 3 public companies associated with it. In infrastructure, energy, has funds it manages giving them a management fee and interest. Very diversified. Very smart management that can deploy its assets profitably and make a nice return on them.

David Baskin
President, Baskin Wealth Management
Price
$46.780
Owned
Yes
TOP PICK
TOP PICK
May 9, 2014

(A Top Pick May 15/13. Up 82.07%.) Had a 2-for-1 stock split. People that don’t like this stock say they are a non-traditional lender. Most customers are self-employed or own their own businesses or not traditional customers. That means they have to actually have humans to use judgment. Loan-loss ratios are consistently very low. Lower than the big banks. Returns on capital are consistently over 20% which is better than the big banks. Dividend yield of 1.39%.

(A Top Pick May 15/13. Up 82.07%.) Had a 2-for-1 stock split. People that don’t like this stock say they are a non-traditional lender. Most customers are self-employed or own their own businesses or not traditional customers. That means they have to actually have humans to use judgment. Loan-loss ratios are consistently very low. Lower than the big banks. Returns on capital are consistently over 20% which is better than the big banks. Dividend yield of 1.39%.

David Baskin
President, Baskin Wealth Management
Price
$46.800
Owned
Yes
PAST TOP PICK
PAST TOP PICK
May 9, 2014

(A Top Pick May 15/13. Up 28.27%.) Had a 2-for-1 stock split. This has always suffered from the “Québec discount”. It always traded at a lower price earnings multiple than the other banks. He always felt that if you could buy the stock at a cheaper price and get a higher dividend, you probably should. Earnings have been very good, very strong consistently. Still has room to grow.

(A Top Pick May 15/13. Up 28.27%.) Had a 2-for-1 stock split. This has always suffered from the “Québec discount”. It always traded at a lower price earnings multiple than the other banks. He always felt that if you could buy the stock at a cheaper price and get a higher dividend, you probably should. Earnings have been very good, very strong consistently. Still has room to grow.

David Baskin
President, Baskin Wealth Management
Price
$45.760
Owned
Yes
TOP PICK
TOP PICK
May 9, 2014

One of the preeminent investment bankers in the world right now. Making money on IPOs, bond issues, commercial banking, proprietary trading, etc. but not so much on bond trading right now. You are buying this at a very modest multiple of BV, much less than Canadian banks, and a fairly modest multiple of earnings. He expects the dividend to increase. Yield of 1.41%.

One of the preeminent investment bankers in the world right now. Making money on IPOs, bond issues, commercial banking, proprietary trading, etc. but not so much on bond trading right now. You are buying this at a very modest multiple of BV, much less than Canadian banks, and a fairly modest multiple of earnings. He expects the dividend to increase. Yield of 1.41%.

David Baskin
President, Baskin Wealth Management
Price
$157.200
Owned
Yes
TOP PICK
TOP PICK
May 9, 2014

One of the best managed companies in Canada. They add value all over the place. One of their pluses is they managed to get their average concession bill over $5 a customer. Have increasing ad revenue, not just at the theatres, but also on airplanes. Had a weak release schedule in the 1st quarter and they were hurt by bad weather. Dividend went up and the yield is 3.67%. If they have a strong summer release schedule, earnings will bounce back.

One of the best managed companies in Canada. They add value all over the place. One of their pluses is they managed to get their average concession bill over $5 a customer. Have increasing ad revenue, not just at the theatres, but also on airplanes. Had a weak release schedule in the 1st quarter and they were hurt by bad weather. Dividend went up and the yield is 3.67%. If they have a strong summer release schedule, earnings will bounce back.

David Baskin
President, Baskin Wealth Management
Price
$41.080
Owned
Yes
COMMENT
COMMENT
May 9, 2014

American banking sector is interesting and this bank is one of those that is too big to fail. Their $4 billion accounting glitch is equal to the total profits of most of the Canadian banks for a year, but for this bank it is less than a quarter of profits. Everybody is waiting to see what the regulatory authorities are going to do with the banks. There is a real fear that there is going to be some indictments of bankers and banks having to do with activities prior to 2008. That is putting a damper on all of the US banks right now. There is also a question of what their assets are really worth. There are a lot of “black box” assets i.e. things that are very difficult to value so it is hard to know what the BV really is. Has tremendous earnings power going forward. Doesn’t think it will be $80 but could see $20. (See Top Picks.)

American banking sector is interesting and this bank is one of those that is too big to fail. Their $4 billion accounting glitch is equal to the total profits of most of the Canadian banks for a year, but for this bank it is less than a quarter of profits. Everybody is waiting to see what the regulatory authorities are going to do with the banks. There is a real fear that there is going to be some indictments of bankers and banks having to do with activities prior to 2008. That is putting a damper on all of the US banks right now. There is also a question of what their assets are really worth. There are a lot of “black box” assets i.e. things that are very difficult to value so it is hard to know what the BV really is. Has tremendous earnings power going forward. Doesn’t think it will be $80 but could see $20. (See Top Picks.)

David Baskin
President, Baskin Wealth Management
Price
$14.740
Owned
No
COMMENT
COMMENT
May 9, 2014

Midstream energy company. This has been a tremendously successful sector. Stocks like this have doubled, partly because their yield have doubled, but also because they are so busy in the energy patch. They don’t have a lot of commodity risks as energy explorers and producers have. Likes this company.

Midstream energy company. This has been a tremendously successful sector. Stocks like this have doubled, partly because their yield have doubled, but also because they are so busy in the energy patch. They don’t have a lot of commodity risks as energy explorers and producers have. Likes this company.

David Baskin
President, Baskin Wealth Management
Price
$30.410
Owned
No