Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
July 15, 2014

New CEO has done a good job in cleaning house and bringing in new top level management and re-establishing trust. Management would like to re-shift the business from minority interest and infrastructure assets, to a pure E&C (energy and construction) business, and grow the oil/gas segment. If you back out the concession assets, the core E&C business trades at stub value of around 5.5X. It is going to take some time for this strategy to turn things around. He would prefer WSP Global (WSP-T) or Stantec (STN-T).

New CEO has done a good job in cleaning house and bringing in new top level management and re-establishing trust. Management would like to re-shift the business from minority interest and infrastructure assets, to a pure E&C (energy and construction) business, and grow the oil/gas segment. If you back out the concession assets, the core E&C business trades at stub value of around 5.5X. It is going to take some time for this strategy to turn things around. He would prefer WSP Global (WSP-T) or Stantec (STN-T).

Gajan Kulasingam
VP & Senior Portfolio Manager, Sentry Investments
Price
$56.130
Owned
No
TOP PICK
TOP PICK
July 15, 2014

A multi-industrial. Unique in that they have the industrial exposure as well as a healthcare technology segment. Both segments have very good growth prospects. One of the best management teams he has ever met. CEO is retiring, but COO is stepping in, so it will be a smooth transition. Historically, the company has given 11%-12% EPS growth, 15% free cash flow growth and 15% dividend growth. Not expensive. They can do an M&A up to about $12 billion. Accruing so much cash on the balance sheet that you are either going to get a special dividend or they will go out and do a large-scale M&A. Yield of 0.51%. Feels the stock could be worth north of $85.

Danaher Corp. (DHR-N)
July 15, 2014

A multi-industrial. Unique in that they have the industrial exposure as well as a healthcare technology segment. Both segments have very good growth prospects. One of the best management teams he has ever met. CEO is retiring, but COO is stepping in, so it will be a smooth transition. Historically, the company has given 11%-12% EPS growth, 15% free cash flow growth and 15% dividend growth. Not expensive. They can do an M&A up to about $12 billion. Accruing so much cash on the balance sheet that you are either going to get a special dividend or they will go out and do a large-scale M&A. Yield of 0.51%. Feels the stock could be worth north of $85.

Gajan Kulasingam
VP & Senior Portfolio Manager, Sentry Investments
Price
$78.240
Owned
Yes
TOP PICK
TOP PICK
July 15, 2014

The issue people have worried about is over the top and core cutting, and what that means for the traditional cable business. They have shown that to have the pipeline infrastructure, the last mile connection to the house, is still very critical. Signed a deal with Netflix to substantiate that. Largest US cable/broadcast operator. Thinks the Time Warner acquisition is done. Yield of 1.65%. A $70 stock in 2017.

The issue people have worried about is over the top and core cutting, and what that means for the traditional cable business. They have shown that to have the pipeline infrastructure, the last mile connection to the house, is still very critical. Signed a deal with Netflix to substantiate that. Largest US cable/broadcast operator. Thinks the Time Warner acquisition is done. Yield of 1.65%. A $70 stock in 2017.

Gajan Kulasingam
VP & Senior Portfolio Manager, Sentry Investments
Price
$54.890
Owned
Yes
TOP PICK
TOP PICK
July 15, 2014

A service provider that services 2 sectors, transmission/distribution and pipeline. Both segments have significant growth behind them. A cheaper way to play some of the pipeline companies in the US. Top-notch management team with a great track record of organic growth of 10% EPS. If they can do M&A, that would probably add another 2%-3% to that, so you are looking at a business that can give you 10%-15% return. With a flat multiple, this is worth north of $50.

A service provider that services 2 sectors, transmission/distribution and pipeline. Both segments have significant growth behind them. A cheaper way to play some of the pipeline companies in the US. Top-notch management team with a great track record of organic growth of 10% EPS. If they can do M&A, that would probably add another 2%-3% to that, so you are looking at a business that can give you 10%-15% return. With a flat multiple, this is worth north of $50.

Gajan Kulasingam
VP & Senior Portfolio Manager, Sentry Investments
Price
$34.880
Owned
Yes
WATCH
WATCH
July 15, 2014

He can’t get over the amount of student debt so it must be parents funding accommodation. These apartments are very luxurious. He thinks it is a challenging market in this environment. He is waiting to see some of the new developments and how they fill up. He likes the US hotel space and industrial space, which are directly linked to the economy.

He can’t get over the amount of student debt so it must be parents funding accommodation. These apartments are very luxurious. He thinks it is a challenging market in this environment. He is waiting to see some of the new developments and how they fill up. He likes the US hotel space and industrial space, which are directly linked to the economy.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$39.640
Owned
Unknown
WAIT
WAIT
July 15, 2014

He has never seen a stock move so much on a proposed buy back in shares. He does not think that is what is really moving the stock. There was confusion when they bought up Primaris. They since showed that transaction was an excellent one. Announced a large residential development on Long Island, NY. He wants to see them mature, so until then thinks they will be range bound.

He has never seen a stock move so much on a proposed buy back in shares. He does not think that is what is really moving the stock. There was confusion when they bought up Primaris. They since showed that transaction was an excellent one. Announced a large residential development on Long Island, NY. He wants to see them mature, so until then thinks they will be range bound.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$22.980
Owned
Unknown
DON'T BUY
DON'T BUY
July 15, 2014

20% of assets are in the US. They are related to 10 year bond in terms of interest rates. Their debt is quite low so you don’t have to worry much about it. He thinks there will be more and more people coming into this space, although this one may have gotten a little ahead of itself.

20% of assets are in the US. They are related to 10 year bond in terms of interest rates. Their debt is quite low so you don’t have to worry much about it. He thinks there will be more and more people coming into this space, although this one may have gotten a little ahead of itself.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$27.130
Owned
Unknown