Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 29, 2016

The difference between US and Canadian banks is that the US banks don’t generate as much revenue from retail banking, personal and consumer. They are quite heavy in the investment banking and wealth management. This bank tends to operate more like what we know in Canada, in the sense that 60% of its revenue is retail and 40% is wealth management and investment banking, a nice mix. He has targeted regional banks, in order to trim the fat of the lumpy revenues from investment banking. Although the US economy has been improving, it hasn’t been improving at the same pace in all regions. This is a high-quality name with a reasonable dividend, but hasn’t done well over the last 52 weeks. Wouldn’t be in a rush to buy this, but would look at some of the regional names, such as Columbia Banking System (COLB-Q).

Bank of America (BAC-N)
January 29, 2016

The difference between US and Canadian banks is that the US banks don’t generate as much revenue from retail banking, personal and consumer. They are quite heavy in the investment banking and wealth management. This bank tends to operate more like what we know in Canada, in the sense that 60% of its revenue is retail and 40% is wealth management and investment banking, a nice mix. He has targeted regional banks, in order to trim the fat of the lumpy revenues from investment banking. Although the US economy has been improving, it hasn’t been improving at the same pace in all regions. This is a high-quality name with a reasonable dividend, but hasn’t done well over the last 52 weeks. Wouldn’t be in a rush to buy this, but would look at some of the regional names, such as Columbia Banking System (COLB-Q).

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$14.140
Owned
No
PAST TOP PICK
PAST TOP PICK
January 29, 2016

(A Top Pick Feb 27/15. Down 2.47%.) We are really in a market to protect, and not try to hit home runs. This company has done that. Has sold his holdings.

CAE Inc (CAE-T)
January 29, 2016

(A Top Pick Feb 27/15. Down 2.47%.) We are really in a market to protect, and not try to hit home runs. This company has done that. Has sold his holdings.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$14.630
Owned
No
PAST TOP PICK
PAST TOP PICK
January 29, 2016

(A Top Pick Feb 27/15. Down 18.1%.) The story hasn’t changed. With the increased usage of smart phones, there is a need to stay spectrum efficient. This company is helping the carriers do that with networking solutions. Also, with the Internet of Everything, this company tends to benefit in terms of integration of networks. He is excited about their cyber Security side of things. Pays a great dividend, so you need to be a little more patient with this.

Cisco (CSCO-Q)
January 29, 2016

(A Top Pick Feb 27/15. Down 18.1%.) The story hasn’t changed. With the increased usage of smart phones, there is a need to stay spectrum efficient. This company is helping the carriers do that with networking solutions. Also, with the Internet of Everything, this company tends to benefit in terms of integration of networks. He is excited about their cyber Security side of things. Pays a great dividend, so you need to be a little more patient with this.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$23.790
Owned
Yes
PAST TOP PICK
PAST TOP PICK
January 29, 2016

(A Top Pick Feb 27/15. Up 15.5%.) Involved in medical liability, so with Obama Care and more and more Americans accessing healthcare, there is growth in this space, and the need to ensure medical professionals. Have been doing acquisitions over the last year, and feels they are done with spending money and integration. Likes the cross selling opportunities and the expansion of their geographical footprint. A good entry point.

ProAssurance Corp (PRA-N)
January 29, 2016

(A Top Pick Feb 27/15. Up 15.5%.) Involved in medical liability, so with Obama Care and more and more Americans accessing healthcare, there is growth in this space, and the need to ensure medical professionals. Have been doing acquisitions over the last year, and feels they are done with spending money and integration. Likes the cross selling opportunities and the expansion of their geographical footprint. A good entry point.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$50.120
Owned
Yes
BUY
BUY
January 29, 2016

He wouldn’t be opposed to this as an entry point. They have a new CEO, who has made it clear that he is not going to make any drastic changes. 70% of revenues comes from commercial jets. What is going to determine where the stock price goes over the next 6-12 months is the 787 plane. Deliveries have been going well which is the positive. The challenge is that they spent more money than originally anticipated, so there has been a bit of margin compression on the 787’s. He is not concerned about the 3.7% dividend yield.

Boeing (BA-N)
January 29, 2016

He wouldn’t be opposed to this as an entry point. They have a new CEO, who has made it clear that he is not going to make any drastic changes. 70% of revenues comes from commercial jets. What is going to determine where the stock price goes over the next 6-12 months is the 787 plane. Deliveries have been going well which is the positive. The challenge is that they spent more money than originally anticipated, so there has been a bit of margin compression on the 787’s. He is not concerned about the 3.7% dividend yield.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$120.130
Owned
Unknown
COMMENT
COMMENT
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that Pepsi has a more established non-beverage business. Coke has not done as well, but has a more established bottling business, with about 15% of business coming from this. It is a low margin high capital business and there are rumours that they will be getting out of this. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

Coca-Cola Company (KO-N)
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that Pepsi has a more established non-beverage business. Coke has not done as well, but has a more established bottling business, with about 15% of business coming from this. It is a low margin high capital business and there are rumours that they will be getting out of this. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$42.920
Owned
No
COMMENT
COMMENT
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that this company has a more established non-beverage business. Over 50% of revenue comes from non-beverage items. They have been busy doing acquisitions on that front. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

PepsiCo (PEP-Q)
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that this company has a more established non-beverage business. Over 50% of revenue comes from non-beverage items. They have been busy doing acquisitions on that front. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$99.300
Owned
No