Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
July 29, 2014

Got regulatory approval for their rational gaming acquisitions, which will make them the biggest public online gaming company globally. It is going to trans-straddle the consumer and technology sectors. A great, great growth company. Have done nothing but execute perfectly well in terms of deals and acquisitions. Management owns 26% of the company.

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Got regulatory approval for their rational gaming acquisitions, which will make them the biggest public online gaming company globally. It is going to trans-straddle the consumer and technology sectors. A great, great growth company. Have done nothing but execute perfectly well in terms of deals and acquisitions. Management owns 26% of the company.

TOP PICK
TOP PICK
July 29, 2014

A residential management company. They operate residential services, manage condos and look after things like security, concierges, etc. Just reported earnings showing a 16% revenue boost, 32% EBITDA boost. Instituted a dividend a couple of years ago. Still run by the founder who still owns lots of stock. Nobody talks about it, but just a very solid company. Yield of 0.73%.

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A residential management company. They operate residential services, manage condos and look after things like security, concierges, etc. Just reported earnings showing a 16% revenue boost, 32% EBITDA boost. Instituted a dividend a couple of years ago. Still run by the founder who still owns lots of stock. Nobody talks about it, but just a very solid company. Yield of 0.73%.

COMMENT
COMMENT
July 29, 2014

Stocks like this and Canadian Pacific (CP-T) and Tim Horton’s (THI-T) have done very well, reaching very, very high valuations in Price to Book terms. What they all have in common is that they have all decided that they want to buy back stocks. Realize that when you’ve got a stock that is trading at 5X its BV, which means that for every $1 of equity that you are taking out of the treasury to buy stock, you are buying $0.20 worth of equity to cancel. This means your ROE on investment is worth -80%. You are actually subtracting value, and the BV is going down. This means that when you have a market correction, the downside risks are increasing in those stocks. What they should do is issue stocks, raise the BV and use the money to expand their existing business. If you have no use for the money, then at least give the existing shareholders a dividend. In the short term, these things are working out quite well. If you own, the stock could run further, but be ready to Sell.

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Stocks like this and Canadian Pacific (CP-T) and Tim Horton’s (THI-T) have done very well, reaching very, very high valuations in Price to Book terms. What they all have in common is that they have all decided that they want to buy back stocks. Realize that when you’ve got a stock that is trading at 5X its BV, which means that for every $1 of equity that you are taking out of the treasury to buy stock, you are buying $0.20 worth of equity to cancel. This means your ROE on investment is worth -80%. You are actually subtracting value, and the BV is going down. This means that when you have a market correction, the downside risks are increasing in those stocks. What they should do is issue stocks, raise the BV and use the money to expand their existing business. If you have no use for the money, then at least give the existing shareholders a dividend. In the short term, these things are working out quite well. If you own, the stock could run further, but be ready to Sell.

COMMENT
COMMENT
July 29, 2014

Stock has done brilliantly well and probably goes higher. Fair Market Value, as he measures it, is about $18. However, there is some pretty stiff resistance at around $15. If this bull market has legs, then he thinks this is going to do well for you.

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Stock has done brilliantly well and probably goes higher. Fair Market Value, as he measures it, is about $18. However, there is some pretty stiff resistance at around $15. If this bull market has legs, then he thinks this is going to do well for you.

BUY
BUY
July 29, 2014

Likes this a lot. There is a lot of upside potential. His Fair Market Value is quite high. Has been recommending the stock for some time. Probably has another 30%-40% to go before he would consider it to be expensive.

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Likes this a lot. There is a lot of upside potential. His Fair Market Value is quite high. Has been recommending the stock for some time. Probably has another 30%-40% to go before he would consider it to be expensive.

BUY
BUY
July 29, 2014

He sees energy stocks as being reasonable value here. This one has done well. There is now a setback in the group, but he thinks this is a setback on its way to higher levels. He can see 30%-40% ahead from here.

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He sees energy stocks as being reasonable value here. This one has done well. There is now a setback in the group, but he thinks this is a setback on its way to higher levels. He can see 30%-40% ahead from here.

COMMENT
COMMENT
July 29, 2014

This is getting expensive from his Fair Market Value calculations. Has a target of $28-$29, which would carry it up to about 2X Book Value, which is all that the market is going to give you. This is a tired conglomerate. When that happens, the conglomerate starts breaking up and releases all kinds of phenomenal value.

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This is getting expensive from his Fair Market Value calculations. Has a target of $28-$29, which would carry it up to about 2X Book Value, which is all that the market is going to give you. This is a tired conglomerate. When that happens, the conglomerate starts breaking up and releases all kinds of phenomenal value.