Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
May 12, 2014

Short? He has been somewhat bearish to neutral on fertilizer stocks. This one is a premium potash producer. Potash prices were unsustainably high and it took the defection of one of the cartel members to pull it down. At this level, he is pretty neutral on it because of farmers’ income, although not great right now, do have a lot of grain they can sell. Doesn’t see a huge amount of upside on the stock, but also doesn’t see much downside. Dividend yield is pretty decent, which could be a problem for Shorting. More of a sideways trading range right now.

Short? He has been somewhat bearish to neutral on fertilizer stocks. This one is a premium potash producer. Potash prices were unsustainably high and it took the defection of one of the cartel members to pull it down. At this level, he is pretty neutral on it because of farmers’ income, although not great right now, do have a lot of grain they can sell. Doesn’t see a huge amount of upside on the stock, but also doesn’t see much downside. Dividend yield is pretty decent, which could be a problem for Shorting. More of a sideways trading range right now.

Jim Huang
President, T.I.P. Wealth Management
Price
$39.600
Owned
Unknown
COMMENT
COMMENT
May 12, 2014

Recently made a good acquisition near one of their core plays. Has been a laggard for a while because of the high leverage on their balance sheet for the last couple of years. That is starting to change because management is committed to address that by either joint venture or some royalty interests, etc. Stock had a pretty good run which is why you have seen a drop back here. He thinks there will be continued upside in this company.

Recently made a good acquisition near one of their core plays. Has been a laggard for a while because of the high leverage on their balance sheet for the last couple of years. That is starting to change because management is committed to address that by either joint venture or some royalty interests, etc. Stock had a pretty good run which is why you have seen a drop back here. He thinks there will be continued upside in this company.

Jim Huang
President, T.I.P. Wealth Management
Price
$8.510
Owned
Unknown
COMMENT
COMMENT
May 12, 2014

This is symbolic of what has happened to US blue chips in the last couple of years. Have done very well and deservedly so because this is pretty much a reflection of the recovery of the industrial economy. They make aircraft engines, elevators, etc. On the flip side, the stock is trading at high teen multiples and growth is 10%-11% which seems to be the case in a lot of US blue chips. Thinks they are fairly valued, but if the economy goes the right way, there will be upside.

This is symbolic of what has happened to US blue chips in the last couple of years. Have done very well and deservedly so because this is pretty much a reflection of the recovery of the industrial economy. They make aircraft engines, elevators, etc. On the flip side, the stock is trading at high teen multiples and growth is 10%-11% which seems to be the case in a lot of US blue chips. Thinks they are fairly valued, but if the economy goes the right way, there will be upside.

Jim Huang
President, T.I.P. Wealth Management
Price
$118.630
Owned
No
TOP PICK
TOP PICK
May 12, 2014

Everywhere you turn, you see their shops which seem to be taking over the world. Have done very well spreading the concept of expensive coffee globally. The biggest driver right now is actually China, but an additional driver is actually Europe. Even though there are a lot of Starbucks in Europe, they are not making a lot of money there because of a lot of competition. They are trying to fix that. On top of that they are bringing out innovative loyalty cards, instant coffee and into the supermarket channel. Also, bringing out a breakfast and lunch menu. Not cheap, but with the bit of a slowdown, he is seeing opportunity this year. Yield of 1.46%.

Starbucks (SBUX-Q)
May 12, 2014

Everywhere you turn, you see their shops which seem to be taking over the world. Have done very well spreading the concept of expensive coffee globally. The biggest driver right now is actually China, but an additional driver is actually Europe. Even though there are a lot of Starbucks in Europe, they are not making a lot of money there because of a lot of competition. They are trying to fix that. On top of that they are bringing out innovative loyalty cards, instant coffee and into the supermarket channel. Also, bringing out a breakfast and lunch menu. Not cheap, but with the bit of a slowdown, he is seeing opportunity this year. Yield of 1.46%.

Jim Huang
President, T.I.P. Wealth Management
Price
$71.150
Owned
Yes
TOP PICK
TOP PICK
May 12, 2014

Fundamentally this is a nickel producer. Used to have a big coal business which they recently sold. Also, have an issue with being in Cuba, which precludes a US investor from buying the stock. The big reason why it has run up is because of the nickel price. The Indonesian government just declared that they would not export any unprocessed ore (mostly to China), which cuts out about 20% of global supply. Just bringing out one of the big mines in Madagascar, right place at the right time. Thinks there is a lot more upside here unless the ban gets lifted.

Fundamentally this is a nickel producer. Used to have a big coal business which they recently sold. Also, have an issue with being in Cuba, which precludes a US investor from buying the stock. The big reason why it has run up is because of the nickel price. The Indonesian government just declared that they would not export any unprocessed ore (mostly to China), which cuts out about 20% of global supply. Just bringing out one of the big mines in Madagascar, right place at the right time. Thinks there is a lot more upside here unless the ban gets lifted.

Jim Huang
President, T.I.P. Wealth Management
Price
$4.720
Owned
Yes