Latest Expert Opinions

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
October 7, 2014

Missed out on the way up, but has acquired some on the recent pullback. Owning dealerships is a very good and profitable business, especially when you can operate multiple dealerships. Multiple is a bit high at 10X their EBITDA, but he sees the consolidation as still in the early stages. He is selectively buying this on pullbacks below $60. Auto dealership business has proven to be very defensive even during recessionary times.

AutoCanada Inc. (ACQ-T)
October 7, 2014

Missed out on the way up, but has acquired some on the recent pullback. Owning dealerships is a very good and profitable business, especially when you can operate multiple dealerships. Multiple is a bit high at 10X their EBITDA, but he sees the consolidation as still in the early stages. He is selectively buying this on pullbacks below $60. Auto dealership business has proven to be very defensive even during recessionary times.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$59.160
Owned
Yes
PARTIAL BUY
PARTIAL BUY
October 7, 2014

Long-term hold and is the dividend safe? Doesn’t own this because it is large and when they do have growth projects, it is harder to move the needle relative to some of the smaller companies. They do have some pretty good visible long-term growth and it is looking quite attractive here. He would suggest that you nibble away and leave yourself some room in case it does get cheaper.

Enbridge (ENB-T)
October 7, 2014

Long-term hold and is the dividend safe? Doesn’t own this because it is large and when they do have growth projects, it is harder to move the needle relative to some of the smaller companies. They do have some pretty good visible long-term growth and it is looking quite attractive here. He would suggest that you nibble away and leave yourself some room in case it does get cheaper.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$51.860
Owned
No
BUY
BUY
October 7, 2014

Typically the smaller companies in Canada have been pretty quick to respond to a drop in energy prices. Most of them will have some kind of hedging in place to weather a short-term dip in the energy price. This company has quite a few long-term contracts and are well diversified. All their rigs are utilized in the US now, and the returns remain pretty robust for energy companies.

Typically the smaller companies in Canada have been pretty quick to respond to a drop in energy prices. Most of them will have some kind of hedging in place to weather a short-term dip in the energy price. This company has quite a few long-term contracts and are well diversified. All their rigs are utilized in the US now, and the returns remain pretty robust for energy companies.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$8.010
Owned
Unknown
HOLD
HOLD
October 7, 2014

The entire group has sold off largely because oil prices have dropped from over $100 to below $90. This company made several acquisitions in order to beef up the size of the company and pay a nice dividend. The knock on it would be that they have made so many acquisitions they don’t necessarily have one contiguous core asset to be built around. (See Top Picks.)

Surge Energy Inc (SGY-T)
October 7, 2014

The entire group has sold off largely because oil prices have dropped from over $100 to below $90. This company made several acquisitions in order to beef up the size of the company and pay a nice dividend. The knock on it would be that they have made so many acquisitions they don’t necessarily have one contiguous core asset to be built around. (See Top Picks.)

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$6.520
Owned
No
COMMENT
COMMENT
October 7, 2014

This is just a “pass through” for the oil price. They own a percentage of the oil sands project. Operationally it has not been the best, running at a 65% efficiency rate where 80%-85% would be ideal. With oil prices above $100, there was enough breathing room for them. If there is a prolonged oil price drop, he expects to see market starting to fret and the dividend may be at risk. Large company with a pretty solid balance sheet so there isn’t a big risk. He prefers others.

This is just a “pass through” for the oil price. They own a percentage of the oil sands project. Operationally it has not been the best, running at a 65% efficiency rate where 80%-85% would be ideal. With oil prices above $100, there was enough breathing room for them. If there is a prolonged oil price drop, he expects to see market starting to fret and the dividend may be at risk. Large company with a pretty solid balance sheet so there isn’t a big risk. He prefers others.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$19.150
Owned
Unknown
COMMENT
COMMENT
October 7, 2014

This is viewed as one of the best in class operators when it comes to the junior/intermediate oil and gas space. Management team is highly regarded. Growth is getting harder to come by because they have been so successful. If you are bullish on oil and you want to stay exposed there, this is one that you can hold on to.

This is viewed as one of the best in class operators when it comes to the junior/intermediate oil and gas space. Management team is highly regarded. Growth is getting harder to come by because they have been so successful. If you are bullish on oil and you want to stay exposed there, this is one that you can hold on to.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$8.380
Owned
Unknown
HOLD
HOLD
October 7, 2014

Solid management and a very good allocator of capital. Expects there will be dividend increases over time. The beauty with oil sands projects and oil sands operators is that once they spend capital to get a project going, there is very little decline and very little maintenance capital to be spent. You will see this company building more projects and expanding, but there will be a significant amount of cash flow being returned to shareholders in the form of dividends.

Suncor Energy Inc (SU-T)
October 7, 2014

Solid management and a very good allocator of capital. Expects there will be dividend increases over time. The beauty with oil sands projects and oil sands operators is that once they spend capital to get a project going, there is very little decline and very little maintenance capital to be spent. You will see this company building more projects and expanding, but there will be a significant amount of cash flow being returned to shareholders in the form of dividends.

Rob Stabile
Portfolio Manager, LDIC Inc
Price
$38.530
Owned
Yes