Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
June 16, 2016

He is very constructive on agriculture. There is strong evidence that we are moving from an El Niño period to an El Niña, where the water on the Pacific equator is getting colder, not warmer. That changes weather patterns, which means hotter summers, colder winters and changes agriculture. Soya has gone through the roof because people have been positioning for this. In the last cycle, a lot of people bought potash and nitrogen, because of the supply/demand imbalance and the constraints that existed. That no longer exists. Nitrogen is made out of natural gas of which there is a plethora of in the US. This company had a bad quarter and they cut their distribution. The distribution is very high and he would question the sustainability of it. 8.8% dividend yield.

He is very constructive on agriculture. There is strong evidence that we are moving from an El Niño period to an El Niña, where the water on the Pacific equator is getting colder, not warmer. That changes weather patterns, which means hotter summers, colder winters and changes agriculture. Soya has gone through the roof because people have been positioning for this. In the last cycle, a lot of people bought potash and nitrogen, because of the supply/demand imbalance and the constraints that existed. That no longer exists. Nitrogen is made out of natural gas of which there is a plethora of in the US. This company had a bad quarter and they cut their distribution. The distribution is very high and he would question the sustainability of it. 8.8% dividend yield.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$108.340
Owned
No
BUY WEAKNESS
BUY WEAKNESS
June 16, 2016

Solid stock and a good dividend. Fair valuation. If you own, Hold, but if you don’t, wait for a nice pullback. A steady Eddie, and if you have it in your portfolio, you are not going to lose any sleep over it. Dividend yield of 2.9%.

Solid stock and a good dividend. Fair valuation. If you own, Hold, but if you don’t, wait for a nice pullback. A steady Eddie, and if you have it in your portfolio, you are not going to lose any sleep over it. Dividend yield of 2.9%.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$244.330
Owned
Yes
COMMENT
COMMENT
June 16, 2016

For a 5-year hold? Very, very solid company. Strong management team. If you believe the US Federal Reserve and Central bankers are going to get away and allow the markets to heal, and capital will be allocated, then it would be a nice addition to your portfolio.

For a 5-year hold? Very, very solid company. Strong management team. If you believe the US Federal Reserve and Central bankers are going to get away and allow the markets to heal, and capital will be allocated, then it would be a nice addition to your portfolio.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$339.460
Owned
No
COMMENT
COMMENT
June 16, 2016

An online-server where you get your pet foods and pet medicines delivered to you. Has a decent dividend, but doesn’t really have any growth. Doesn’t have a defendable moat so that there is no competitive advantage. Thinks it is going to be okay here, but at the same time wouldn’t be surprised to see others replicate the model. Dividend yield of 4.2%.

An online-server where you get your pet foods and pet medicines delivered to you. Has a decent dividend, but doesn’t really have any growth. Doesn’t have a defendable moat so that there is no competitive advantage. Thinks it is going to be okay here, but at the same time wouldn’t be surprised to see others replicate the model. Dividend yield of 4.2%.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$18.190
Owned
Unknown
COMMENT
COMMENT
June 16, 2016

The yield curve is very flat. Securitization was introduced in the 1970s. Banks overearned and expanded their business model. Those days are over. Now you have this big business model and they are asking themselves how they can make money. They used to be able to get through this by making mergers and acquisitions, but they can no longer do that. On the long-term structural view, he is not very bullish on banks. In the short term, if they do get a period of rising interest rates, there may be a nice trade for 6-8 months. Thinks the big banks are going to have to start selling themselves off, because the old business model is no longer profitable.

The yield curve is very flat. Securitization was introduced in the 1970s. Banks overearned and expanded their business model. Those days are over. Now you have this big business model and they are asking themselves how they can make money. They used to be able to get through this by making mergers and acquisitions, but they can no longer do that. On the long-term structural view, he is not very bullish on banks. In the short term, if they do get a period of rising interest rates, there may be a nice trade for 6-8 months. Thinks the big banks are going to have to start selling themselves off, because the old business model is no longer profitable.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$13.310
Owned
Unknown
COMMENT
COMMENT
June 16, 2016

One of those stocks that everybody is hiding out in, which is why it gets these massive valuations. If Janet Yellin stays away, a big if, and we get some risk taking in the market and some economic growth, he would suggest that there will be a massive allocation trade out of defensive names, and believes that this would be one of those. The new generation coming along is not going to be using phones, so there will be pricing pressures.

A T & T US (T-N)
June 16, 2016

One of those stocks that everybody is hiding out in, which is why it gets these massive valuations. If Janet Yellin stays away, a big if, and we get some risk taking in the market and some economic growth, he would suggest that there will be a massive allocation trade out of defensive names, and believes that this would be one of those. The new generation coming along is not going to be using phones, so there will be pricing pressures.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$40.490
Owned
Unknown
COMMENT
COMMENT
June 16, 2016

Just sold his Home Depot (HD-N) holdings, which is a wonderful company with a great web presence. It is growing home-store sales without opening any new stores. However, it is too expensive. Lowes is a sister company and is following up a little. Has a decent dividend, but with a little more dependence on selling appliances. Just because it is a good asset doesn’t mean it is a good investment.

Just sold his Home Depot (HD-N) holdings, which is a wonderful company with a great web presence. It is growing home-store sales without opening any new stores. However, it is too expensive. Lowes is a sister company and is following up a little. Has a decent dividend, but with a little more dependence on selling appliances. Just because it is a good asset doesn’t mean it is a good investment.

James Thorne
Sr Portfolio Manager & Chief Capital Markets Strat, Caldwell Investment Management
Price
$78.170
Owned
No