Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
February 17, 2016

One of the largest originators of mortgages. Very stable loan book, and growing loans reasonably well. He has been looking for a steeper yield curve. We don’t have this because people are not very confident about the economic outlook or that the federal reserve is actually going to raise rates. If you take a position, over time you are going to see an ability for them to utilize their balance sheet, and it will be very, very profitable.

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Wells Fargo (WFC-N)
February 17, 2016

One of the largest originators of mortgages. Very stable loan book, and growing loans reasonably well. He has been looking for a steeper yield curve. We don’t have this because people are not very confident about the economic outlook or that the federal reserve is actually going to raise rates. If you take a position, over time you are going to see an ability for them to utilize their balance sheet, and it will be very, very profitable.

TOP PICK
TOP PICK
February 17, 2016

(A Top Pick Feb 25/15. Down 23.33%.) A great opportunity. Trading at 60% of tangible book value, which is something he has not seen in his career, and at about 7X earnings. With any increase in rates, they are going to put a lot of earnings on the P&L. Dividend yield of 0.50%.

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Citigroup Inc. (C-N)
February 17, 2016

(A Top Pick Feb 25/15. Down 23.33%.) A great opportunity. Trading at 60% of tangible book value, which is something he has not seen in his career, and at about 7X earnings. With any increase in rates, they are going to put a lot of earnings on the P&L. Dividend yield of 0.50%.

PAST TOP PICK
PAST TOP PICK
February 17, 2016

(A Top Pick Feb 25/15. Up 32.3%.) The monthly average users is now 1.59 billion, and their daily users are over 1 billion, so the opportunity for reach is spectacular. This is a company that really can’t be analysed on traditional metrics. Hugely expensive and it has to grow into its earnings.

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Facebook (FB-Q)
February 17, 2016

(A Top Pick Feb 25/15. Up 32.3%.) The monthly average users is now 1.59 billion, and their daily users are over 1 billion, so the opportunity for reach is spectacular. This is a company that really can’t be analysed on traditional metrics. Hugely expensive and it has to grow into its earnings.

PAST TOP PICK
PAST TOP PICK
February 17, 2016

(A Top Pick Feb 25/15. Down 30.66%.) This is basically just a valuation reset. They continue to do reasonably well in terms of earnings growth, but the market now has it trading at 10X earnings where it had been trading at 15X. This is still a Buy.

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Regal Beloit (RBC-N)
February 17, 2016

(A Top Pick Feb 25/15. Down 30.66%.) This is basically just a valuation reset. They continue to do reasonably well in terms of earnings growth, but the market now has it trading at 10X earnings where it had been trading at 15X. This is still a Buy.

DON'T BUY
DON'T BUY
February 17, 2016

Merging with Pfizer (PFE-N), a tax inversion play where Pfizer wants to get offshore to avoid higher US taxes. They are not in the good books of the US legislators, which is a risk. Because of this, he would probably stay clear.

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Allergan PLC. (AGN-N)
February 17, 2016

Merging with Pfizer (PFE-N), a tax inversion play where Pfizer wants to get offshore to avoid higher US taxes. They are not in the good books of the US legislators, which is a risk. Because of this, he would probably stay clear.

COMMENT
COMMENT
February 17, 2016

Thinks Visa Europe will give this company a really good opportunity. The credit card business in Europe is less mature than in North America. The average European spends $0.37 of his dollar in cash, and the average North American is about $0.25. Debit is also a big part of Visa’s business, about 60%, and profitable.

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Visa Inc. (V-N)
February 17, 2016

Thinks Visa Europe will give this company a really good opportunity. The credit card business in Europe is less mature than in North America. The average European spends $0.37 of his dollar in cash, and the average North American is about $0.25. Debit is also a big part of Visa’s business, about 60%, and profitable.

BUY
BUY
February 17, 2016

Tends to be volatile, but over time has done quite well. The 2nd largest roofer in the US. There is new construction in the US, which has been somewhat sluggish, but there is also the replacement market. 60% of homes in the US were built before 1980, so they all need new roofs. This is a high beta stock. Still likes the company and the story.

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Tends to be volatile, but over time has done quite well. The 2nd largest roofer in the US. There is new construction in the US, which has been somewhat sluggish, but there is also the replacement market. 60% of homes in the US were built before 1980, so they all need new roofs. This is a high beta stock. Still likes the company and the story.