Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
June 17, 2016

One of those companies that can benefit from financial engineering. They’ve pretty good organic growth. Thinks earnings per share grow at about 13% compounded over the next couple of years. Have also done very well by growing through acquisition. Just had a good Q1. Backlog was up quarter over quarter. Trading below its 5-year average.

One of those companies that can benefit from financial engineering. They’ve pretty good organic growth. Thinks earnings per share grow at about 13% compounded over the next couple of years. Have also done very well by growing through acquisition. Just had a good Q1. Backlog was up quarter over quarter. Trading below its 5-year average.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$40.160
Owned
Unknown
HOLD
HOLD
June 17, 2016

Has about a 100% payout ratio, so wouldn’t call the dividend safe. Their US LNG project, Jordan Cove, might not really come to fruition. Trading at a reasonable price to cash flow versus its five-year average. If everything goes right, he thinks their payout ratio will fall to about 90% next year, and you will probably get paid your dividend. They also have some midstream projects that are under construction. Dividend yield of 9.3% could be at risk.

Veresen Inc (VSN-T)
June 17, 2016

Has about a 100% payout ratio, so wouldn’t call the dividend safe. Their US LNG project, Jordan Cove, might not really come to fruition. Trading at a reasonable price to cash flow versus its five-year average. If everything goes right, he thinks their payout ratio will fall to about 90% next year, and you will probably get paid your dividend. They also have some midstream projects that are under construction. Dividend yield of 9.3% could be at risk.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$10.750
Owned
Unknown
BUY
BUY
June 17, 2016

50% energy services, 35% chemical and 16% building. He likes the company. It has a 71% payout ratio, so the dividend should be pretty safe. They are trying to acquire Canexus (CUS-T) which would make them a more formidable player in the chemical space. Trading in line with its peers, but is a lot cheaper than its energy services peers. Have done a really good job of cost-cutting.

50% energy services, 35% chemical and 16% building. He likes the company. It has a 71% payout ratio, so the dividend should be pretty safe. They are trying to acquire Canexus (CUS-T) which would make them a more formidable player in the chemical space. Trading in line with its peers, but is a lot cheaper than its energy services peers. Have done a really good job of cost-cutting.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$10.700
Owned
Unknown
COMMENT
COMMENT
June 17, 2016

This hasn’t worked out so far. Lower interest rates have obviously pressured Great West Life (GWO-T). You have sloppy markets and regulatory pressures that have clouded the outlook for Investors Group. What is really good is that you are going to get paid your 5% dividend and he sees it growing at 6%. Sees growth returning at about 9% next year. Valuation is very cheap at around 10X 2016 versus 11X the 5-year average. This is one you want to be picking away at while it is unloved. A good way of doing that is by selling Puts a few times a year.

Power Corp (POW-T)
June 17, 2016

This hasn’t worked out so far. Lower interest rates have obviously pressured Great West Life (GWO-T). You have sloppy markets and regulatory pressures that have clouded the outlook for Investors Group. What is really good is that you are going to get paid your 5% dividend and he sees it growing at 6%. Sees growth returning at about 9% next year. Valuation is very cheap at around 10X 2016 versus 11X the 5-year average. This is one you want to be picking away at while it is unloved. A good way of doing that is by selling Puts a few times a year.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$28.320
Owned
Unknown
BUY
BUY
June 17, 2016

This didn’t do much for a couple of years, you just got paid your 8% dividend. Now the value has been recognized and being taken over at $7.25 a share. You take a risk if the deal doesn’t close. Dividend yield of 5.8%.

This didn’t do much for a couple of years, you just got paid your 8% dividend. Now the value has been recognized and being taken over at $7.25 a share. You take a risk if the deal doesn’t close. Dividend yield of 5.8%.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$6.790
Owned
Unknown
COMMENT
COMMENT
June 17, 2016

A high-quality, urban focused REIT. Has a good growth rate of around 5% for the next couple of years. 81% payout ratio, so the dividend is safe. The balance sheet is pretty good, better than average. Debt to FMV is around 46%. Just raised some equity to fund a Montréal and Toronto acquisition, which looks accretive. Pretty expensive, trading at about 21X. He would consider selling some Call options a couple of times a year, obligating yourself to sell it at $22-$23 giving you some really good cash flow. 4% dividend yield.

A high-quality, urban focused REIT. Has a good growth rate of around 5% for the next couple of years. 81% payout ratio, so the dividend is safe. The balance sheet is pretty good, better than average. Debt to FMV is around 46%. Just raised some equity to fund a Montréal and Toronto acquisition, which looks accretive. Pretty expensive, trading at about 21X. He would consider selling some Call options a couple of times a year, obligating yourself to sell it at $22-$23 giving you some really good cash flow. 4% dividend yield.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$21.530
Owned
Unknown
BUY
BUY
June 17, 2016

The chemical business isn’t a bank, so there is a little bit more risk and are more economically sensitive. He models a payout ratio of about 60% for 2017. Trading at about 6.1X 2016 estimated price to cash flow, versus 8.25 for a five-year average. Doesn’t really see any EBITDA growth for the next couple of years. You will just be getting paid the sustainable .8% dividend yield, which is okay.

The chemical business isn’t a bank, so there is a little bit more risk and are more economically sensitive. He models a payout ratio of about 60% for 2017. Trading at about 6.1X 2016 estimated price to cash flow, versus 8.25 for a five-year average. Doesn’t really see any EBITDA growth for the next couple of years. You will just be getting paid the sustainable .8% dividend yield, which is okay.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$17.390
Owned
Yes