Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
April 5, 2016

(Preferred Shares 5.25%, Series C.) If the market has had a good run, you might want to hide a little in an alternative yield. These type of preferreds, reset to a rate plus an underlying government rate, usually the 5 year. This one has a very big reset yield. It is also in US$, so you might get a little positive with the US$. When this resets in 2018, you are actually going to be collecting 8.5% at current pricing, more than the 7.5% you are collecting now.

(Preferred Shares 5.25%, Series C.) If the market has had a good run, you might want to hide a little in an alternative yield. These type of preferreds, reset to a rate plus an underlying government rate, usually the 5 year. This one has a very big reset yield. It is also in US$, so you might get a little positive with the US$. When this resets in 2018, you are actually going to be collecting 8.5% at current pricing, more than the 7.5% you are collecting now.

Steve DiGregorio
Portfolio Manager, Canoe Financial
Price
$12.900
Owned
Yes
TOP PICK
TOP PICK
April 5, 2016

(Preferred Shares 3.324%, Series A, callable in 5 years.) Had never liked the preferred market, because there was never any institutional ownership. All of a sudden, in this one, you have institutional ownership, and companies can’t push around the small shareholder like they used to.

Rona Inc (RON-T)
April 5, 2016

(Preferred Shares 3.324%, Series A, callable in 5 years.) Had never liked the preferred market, because there was never any institutional ownership. All of a sudden, in this one, you have institutional ownership, and companies can’t push around the small shareholder like they used to.

Steve DiGregorio
Portfolio Manager, Canoe Financial
Price
$23.760
Owned
Yes
TOP PICK
TOP PICK
April 5, 2016

A free cash flow machine. The trucking Index in the US is at a 52 week high, and this company hasn’t followed, because they had put a Dutch auction to buy back $200 million of stock up to $22. It capped a little, and you are now seeing it drift over $22. Of the $200 million, only $60 million was tendered, which means a) the company’s $22 was a very opportunistic price and b) shareholders thought it was a very low price, so he feels it is probably worth more than $22. At the same time, they are investing quite a bit in "last mile", developing a relationship with Amazon (AMZN-Q), which is taking over the retail world. Has one of the best COs in Canada. Dividend yield of 3.08%.

A free cash flow machine. The trucking Index in the US is at a 52 week high, and this company hasn’t followed, because they had put a Dutch auction to buy back $200 million of stock up to $22. It capped a little, and you are now seeing it drift over $22. Of the $200 million, only $60 million was tendered, which means a) the company’s $22 was a very opportunistic price and b) shareholders thought it was a very low price, so he feels it is probably worth more than $22. At the same time, they are investing quite a bit in "last mile", developing a relationship with Amazon (AMZN-Q), which is taking over the retail world. Has one of the best COs in Canada. Dividend yield of 3.08%.

Steve DiGregorio
Portfolio Manager, Canoe Financial
Price
$22.470
Owned
Yes
COMMENT
COMMENT
April 5, 2016

Oil exposure? Feels exposure amongst all the Canadian banks is quite similar and is quite limited. The bigger issue is their exposure to Alberta. This bank has a relatively new CEO with a focus on the Canadian market. Prefers Toronto Dominion (TD-T), Bank of Nova Scotia (BNS-T), and to a lesser degree Royal (RY-T).

Oil exposure? Feels exposure amongst all the Canadian banks is quite similar and is quite limited. The bigger issue is their exposure to Alberta. This bank has a relatively new CEO with a focus on the Canadian market. Prefers Toronto Dominion (TD-T), Bank of Nova Scotia (BNS-T), and to a lesser degree Royal (RY-T).

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$96.530
Owned
No
COMMENT
COMMENT
April 5, 2016

This is on his list. The reduction in their dividend was a really meaningful step. In effect management is saying that they cannot pay this out anymore. This could be one of the better names coming out of this environment. Have great assets. Also, have not borrowed as heavily as other companies. He would be a buyer at the right price.

This is on his list. The reduction in their dividend was a really meaningful step. In effect management is saying that they cannot pay this out anymore. This could be one of the better names coming out of this environment. Have great assets. Also, have not borrowed as heavily as other companies. He would be a buyer at the right price.

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$17.100
Owned
No
COMMENT
COMMENT
April 5, 2016

Since the financial crisis of 2009, this has done really well, as has car sales. His concern is that there has been a lot of extended term lending on cars, and that could really come down in a negative way. He would be cautious.

Since the financial crisis of 2009, this has done really well, as has car sales. His concern is that there has been a lot of extended term lending on cars, and that could really come down in a negative way. He would be cautious.

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$54.120
Owned
No
COMMENT
COMMENT
April 5, 2016

Citigroup (C-N) or Wells Fargo (WFC-N)? There are very large differences between these 2. This one has a lot of exposure to emerging markets, which he is not keen on. Also there is a lot of fixed income trading.

CitiGroup (C-N)
April 5, 2016

Citigroup (C-N) or Wells Fargo (WFC-N)? There are very large differences between these 2. This one has a lot of exposure to emerging markets, which he is not keen on. Also there is a lot of fixed income trading.

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$41.510
Owned
Unknown